Tesla's Products and Green Technology

Globalization of Operations Strategy
Executive Summary
Tesla is a unique company that is focused on bringing products that support a sustainable environment to market. Its electric powered vehicles and its solar panel powerwalls help reduce the need of communities for fossil-fuels and provide consumers looking for green products with new approaches to old ideas. Tesla’s goal is to bring forward the future of green technology to the here and now, and so far it is succeeding very well. Its strategic thrusts include diversifying its product line—from cars to freight trucks to roadsters to solar panels to battery technology to network charge stations and infrastructure, Tesla is spreading out in terms of what it has to offer to green consumers. It is also actively acquiring firms and just recently acquired Solar City to help in the diversification of its business. Its multinational strategic options include standardizing, localizing, regionalizing, centralizing and using subsidiaries to help move supply. Its corporate social responsibility policy is pro-environment and oriented towards helping the community, employees, investors and governments to take part in the green revolution. Its Board of Directors provides a pro-active approach to governance overseeing every aspect of the company’s initiatives, and sources of competitive advantage include the company’s visionary leadership under Elon Musk, its innovative product line, and its brand which has a stellar reputation among both green consumers and tech-savvy consumers. In short, Tesla is set for the next generation to be a top-tier company providing next generation level products to help build a sustainable environment.
Mission
The mission of Tesla is to bring mass market electric cars to consumers to support the overall development across the globe of a sustainable environment.
Vision
The vision statement of Tesla is: “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles” (Rowland, 2018). Tesla’s vision is to be part of the expansion of a new infrastructure that focuses on renewable energy (such as solar power with its solar and powerwall services) and non-fossil fuel burning cars (electric automobiles). As Koppelaar and Middlekoop (2017) report, Tesla is leading the electric power revolution that is seeing many nations convert their old infrastructure from fossil-fuel-based to green energy-based. Agar and Renner (2016) have examined whether 100% renewable energy is possible in urban areas and found that where collaboration between government leaders and industry leaders exist, it is very much possible.
Goals
According to Musk (2013), the goals of Tesla are the same today as they were when the company was launched ten years ago: “to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.”  Because of the revolutionary nature of the goals that Tesla holds for itself, the company has admitted that “in order to get to that end goal, big leaps in technology are required, which naturally invites a high level of scrutiny. That is fair, as new technology should be held to a higher standard than what has come before” (Musk, 2013). Some of the problems that Tesla has encountered in terms of reaching its goals regard the safety of its products and the advancement of its technology in order to achieve the long term objectives.
Strategic Thrusts
Tesla’s strategic thrusts are based on diversifying its assets and acquiring related businesses like Solar City, which is the largest solar panel installer in the U.S. (AP, 2016) and which is focused on the renewable energy aspects of the vision. Tesla is now engaged not only in producing electric-powered vehicles but also in providing solar powered panels and the powerwall, a unique Tesla product that uses solar power storage to help homes cut power costs.
Multinational Strategies
Tesla’s multinational strategic options include: 1) standardizing products and distribution channels so that operations can flow smoothly and effectively especially with regard to supply chain management, which will help to reduce costs and decrease the need for on-site personnel; 2) localizing operations so that worksites in various countries are in conformity with local laws and customs while respectful of international standards especially with regard to human rights issues; 3) regionalizing standards so that products are universally recognized as representing the same brand quality no matter where they originate; 4) centralizing operations through the use of a station headquarters that oversees all work flow around the planet and accomplishes marketing with minimal expense; and 5) using subsidiaries to execute various work flow operations, including production, distribution and marketing in particular geographic areas of the planet for maximum cost efficiency.
Corporate Social Responsibility
Tesla’s corporate social responsibility (CSR) policy is oriented towards satisfying communities, customers, employees, governments and investors. Tesla’s CSR policy for communities focuses on maintaining a high quality brand image that promotes concern for the natural environment. As Greenspan (2017) notes, “communities are satisfied with the fact that [Tesla] products are environmentally friendly because of zero emissions. Tesla also satisfies communities in terms of this stakeholder group’s interest in benefiting from advanced technologies. For example, in 2014, CEO Elon Musk announced that the company would allow other individuals and organizations to use its patents. This corporate social responsibility strategy directly benefits communities interested in using or developing technologies, emphasizing Tesla’s mission and vision statements.” In terms of addressing customer concerns, Tesla’s CSR policy is committed towards developing the lowest-costing battery on the market, expanding its charging station network so that more drivers can plug in anywhere from the road, and providing consumers with an overall experience that is focused on convenience and high satisfaction.
Employees also benefit from Tesla’s CSR policy through collaborative programs with partner firms that allow workers to develop new skills and broaden their experiences (Greenspan, 2017). Investors stand to benefit from the company’s focus on environmental concerns that are currently important to consumers who are embracing the green energy phenomenon, thus making “the sustainability and environmental friendliness ideals of the company in line with current socio-cultural trends [and] thereby supporting business growth” (Greenspan, 2017). Governments stand to benefit from Tesla’s CSR policies by way of the company’s focus on environmental solutions to problems affecting the planet and people’s safety—which is why some governments offer incentives to consumers for purchasing battery-powered vehicles as opposed to fossil-fuel burning cars.
Governance
Tesla’s corporate governance guidelines state that its Board’s duty is to: “exercise their business judgment to act in what they reasonably believe to be the best interests of Tesla and its stockholders. It is the duty of the Board to oversee management’s performance to ensure that Tesla operates in an effective, efficient and ethical manner.  Additionally, the Board has responsibility for risk oversight, with reviews of certain areas being conducted by the relevant board committees. Directors are expected to invest the time and effort necessary to understand Tesla’s business and financial strategies and challenges. The basic duties of the directors include attending Board and committee meetings and actively participating in Board and committee discussions. Directors are also expected to make themselves available outside of board meetings for advice and consultation” (Corporate Governance Guidelines, 2018).
Sources of Competitive Advantage
Tesla’s sources of competitive advantage include its product uniqueness, its product pricing, and its strategic acquisitions linking the various aspects of its mission and vision to a range of product offerings that reinforce the overall aspect and quality of the company’s pursuits. Its electric cars have helped to drive the automobile market in a new direction and its sleek styles have made the Tesla product the car to own for the next generation interested in green technology. Its Solar City acquisition has allowed it to strategically expand its footprint in solar energy markets and give it an extra dimension for satisfying demand for green technology in other capacities not specifically related to cars.
The other great source of its competitive advantage is in the leadership of Elon Musk who has followed in the footsteps of Steve Jobs as an entertaining CEO who knows how to keep investors and consumers interested in the next big product roll-out. Musk presents the latest developments at Tesla with fanfare and enthusiasm that has helped the market to drive Tesla’s stock price up dramatically in recent years, much as Apple fans have helped to drive Apple’s stock price up. Tesla’s leadership has enabled the company to maintain a great relationship with investors, which in turn helps to drive research and development and keep the company at the forefront of the industry.
Its battery supply chain; its supercharger network; its advanced software which includes motor control, battery voltage management, traction and stability control, diagnostics, and touchscreen technology; and its brand (and reputation for attracting customers just like Apple has attracted its own) all act as more sources for this company’s competitive advantage (Zach, 2015).
Building Organizational Capabilities
Tesla is focused on building organizational capabilities through its application of leadership and the implementation of Elon Musk’s vision for the company. Tesla is expected to begin production on freight trucks that can move greater loads at greater speeds than anything currently in the market, all powered by batteries produced in-house through advanced technology. The company is focused on reducing prices in the production of its base electric car model so that middle-class consumers can afford it as an option to other similarly-priced fossil-fuel burning cars on the market.
Tesla is also focused on integrating the “Internet of Things” with its products so that consumers can have total control and awareness of all the information needed to interact with their cars and maintain them for quality (Das, 2017, p. 211). This integration helps to support the mainframe for all Tesla operations and brings the consumer into that mainframe through direct links, cutting down on information-flows and increasing the company’s relationship with consumers.
Merchandising and increasing its brand popularity is also important to Tesla’s organizational capabilities, as it attracts workers to the company who have the skills and talents needed to help take Tesla to the next level of global operations. The company needs top level talent and its brand image is responsible for helping the firm to recruit that talent and keep it in key positions of organizational development.
Financing Options
Tesla’s financing options include raising money through direct investment including the sale of shares and the selling of corporate bonds to investors. It currently has a very high stock price on the market and is viewed as one of the top stocks to own in the field. It thus can raise sufficient funds to finance operations for many several years down the road so long as it continues to meet delivery objectives, production objectives, and extends its product line roll-out to include ever more innovative designs and products that feature the latest in advanced technology.
In turn, Tesla provides financing to consumers who wish to buy a car but cannot afford to pay in cash. Like all other major automobile producers, there are many incentives to buying a car new, and producers want consumers to take advantage of the market’s currently low interest rates in order to make a purchase they might otherwise be putting off were rates higher. Tesla’s financial department helps consumers with low credit get the financing they need at acceptable terms and rates so that they too can own a Tesla.
Use of Technology
Elon Musk is leading Tesla to the forefront of innovative technological solutions. His SpaceX company is paving the way to space exploration and supplying the means and technical know-how to get satellites into space. And Tesla is right alongside that company in terms of using state of the art technology in the auto industry. Its self-driving cars have helped pave the way to the next generation of automobiles on the highway, and its battery-powered vehicles are unlike anything the world has ever seen. Its network of charge stations presents a new kind of infrastructure for a world that is interested in going green, and with the Trump Administration looking for investors to pour billions into new infrastructure projects, Tesla stands out as a firm that has the technology that the next generation is interested in securing. Its solar panel business Solar City is also supplying homes and businesses with state of the art solar technology that can store up solar energy and use it to help power homes and offices so that there is less demand and strain on the national grid. In short, Tesla’s use of energy is focused on next generation designs and is bringing the future of technology into the present.
Conclusion
Tesla’s products, including electric powered cars, trucks and roadsters; solar panels and powerwalls, batteries and charge stations, are appealing to green consumers and tech-savvy consumers. Its market strategy is to drive sales with its brand and attract talent with its visionary leadership. Tesla is primed to take the next generation market place by storm.

References
Agar, B., & Renner, M. (2016). Is 100 Percent Renewable Energy in Cities Possible?.
In State of the World (pp. 161-170).Island Press, Washington, DC.
AP. (2016). Tesla Motors officially owns Solar City. Retrieved from
http://www.latimes.com/business/autos/la-fi-hy-tesla-solarcity-20161121-story.html
Corporate Governance Guidelines. (2018). Tesla. Retrieved from
http://ir.tesla.com/corporate-governance-document.cfm?DocumentID=14836
Das, A. (2017). Building organizational capabilities. New Delhi, India: Educreation
Publishing.
Greenspan, R. (2017). Tesla CSR. Retrieved from
http://panmore.com/tesla-motors-inc-stakeholders-corporate-social-responsibility
Koppelaar, R., &Middelkoop, W. (2017). The TESLA revolution: why big oil is losing
the energy war.Amsterdam University Press.
Musk, E. (2013). Mission of Tesla. Retrieved from
https://www.tesla.com/blog/mission-tesla
Rowland, G. (2018). Tesla’s vision and mission. Retrieved from
http://panmore.com/tesla-motors-inc-vision-statement-mission-statement-analysis
Zach. (2015). Tesla’s competitive advantage. Retrieved from
https://evobsession.com/tesla-competitive-advantage-5-big-ones/