Answers are based on the 3 TELSA articles
1) How does the PESTEL impact the TELSA organization? (see filed labeled PESTEL)
2) Value of resources and capabilities (see file labeled VRIO) Be Specific
a) Value
) Rarity
c) Inimitability
d) Organisational support
3) What generic business strategies do they implement? Explain.
4) What are the issues in the industry?
5) What is Telsa’s Corporate strategy?
a) What is cooperation deposition? Explain.
) Is it a related or conglomerate diversification? Explain
c) Elevate diversification drivers
d) Analyze the relative benefits of vertical integration and outsourcing.
7) What is Telsa International strategy? Explain & discuss A,B,C,D
a) Internationalism drivers
) Advantages- identify competitive advantage in international strategy, through exploitation of local factors and global sourcing.
c) Market selection
d) Mode of entry
8) Is TELSA in good or bad position? Explain
Tesla Model 3 Loses Endorsement
Higgins, Tim; Roberts, Adrienne . Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]22
Feb 2019: B.2.
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Tesla Inc.'s Model 3 sedan lost its coveted "recommended" status from influential product reviewer Consume
Reports less than a year after it was awarded, raising questions about the quality of the vehicle as the electric-ca
maker rushed to increase production.
Consumer Reports said Thursday that as it was seeking additional Model 3 data last year, owners reported
problems with loose body trim and glass defects -- issues that prompted the magazine to yank its
ecommendation.
"The additional problems that we're seeing seem to be some build-quality issues," Jake Fisher, senior director of
automotive testing at Consumer Reports, said in an interview. "It is possible that as you build more vehicles you're
unning into some issues."
Consumer Reports' survey of Model 3 owners in the spring and summer of 2018 resulted in it lowering the
predicted reliability of the vehicle to below average from average.
Tesla said it has addressed "the vast majority of these issues" through design and manufacturing improvements in
the time since the surveys were conducted. "We are already seeing a significant improvement in our field data," a
spokeswoman for Tesla said in a written statement.
The Model 3 is Chief Executive Elon Musk's bet that Tesla can evolve into a mainstream auto maker with a more-
affordable version of its electric cars. Tesla's rise in the past 15 years has been fueled by luxury vehicles that cost
around $100,000, as well as by investors' enthusiasm toward Mr. Musk's vision for an electric future.
Tesla and Consumer Reports have a complicated history. The magazine's early praise of the Model S full-size
sedan helped the auto maker gain credibility in 2012. But as Tesla moved from making hundreds of vehicles a yea
to attempting to deliver as many as 400,000 this year, it has struggled with production.
Last year, Consumer Reports said it couldn't recommend the Model 3 because it took too long for the vehicle to
ake. Tesla improved the
aking distance with a wirelessly transmitted software update, and the magazine in
May reversed its earlier decision to withhold the recommended status.
That software update surprised many in the automotive industry, as such changes traditionally must be made at
car dealerships. Tesla has pioneered updating its sold vehicles remotely using Wi-Fi or cellular signals, similar to
how smartphones get new software to fix bugs or add features.
The issues raised Thursday, though, are of a variety that can't be addressed with software. Other auto makers have
dealt with quality issues after
inging out new models and made improvements in the second and third year as
kinks are worked out.
The challenge for Tesla this year is balancing its goal of maintaining profitability while also facing increased
expenses tied to its rapid growth. As Tesla has cranked out more Model 3s, customers and outside repair shops
have reported lengthy waits for fixes.
Part of the challenge is Tesla's lack of infrastructure across the U.S. Unlike other auto makers, it doesn't have a
network of hundreds of franchise dealerships to sell and service its vehicles.
Despite the complaints, many Tesla customers rave about the Model 3. Tesla ranked highest on owner satisfaction
on another Consumer Reports survey released in December.
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Tesla Inc.'s Model 3 sedan lost its coveted "recommended" status from influential product reviewer Consume
Reports less than a year after it was awarded, raising questions about the quality of the vehicle as the electric-ca
maker rushed to increase production.
Consumer Reports said Thursday that as it was seeking additional Model 3 data last year, owners reported
problems with loose body trim and glass defects -- issues that prompted the magazine to yank its
ecommendation.
"The additional problems that we're seeing seem to be some build-quality issues," Jake Fisher, senior director of
automotive testing at Consumer Reports, said in an interview. "It is possible that as you build more vehicles you're
unning into some issues."
Consumer Reports' survey of Model 3 owners in the spring and summer of 2018 resulted in it lowering the
predicted reliability of the vehicle to below average from average.
Tesla said it has addressed "the vast majority of these issues" through design and manufacturing improvements in
the time since the surveys were conducted. "We are already seeing a significant improvement in our field data," a
spokeswoman for Tesla said in a written statement.
The Model 3 is Chief Executive Elon Musk's bet that Tesla can evolve into a mainstream auto maker with a more-
affordable version of its electric cars. Tesla's rise in the past 15 years has been fueled by luxury vehicles that cost
around $100,000, as well as by investors' enthusiasm toward Mr. Musk's vision for an electric future.
Tesla and Consumer Reports have a complicated history. The magazine's early praise of the Model S full-size
sedan helped the auto maker gain credibility in 2012. But as Tesla moved from making hundreds of vehicles a yea
to attempting to deliver as many as 400,000 this year, it has struggled with production.
Last year, Consumer Reports said it couldn't recommend the Model 3 because it took too long for the vehicle to
ake. Tesla improved the
aking distance with a wirelessly transmitted software update, and the magazine in
May reversed its earlier decision to withhold the recommended status.
That software update surprised many in the automotive industry, as such changes traditionally must be made at
car dealerships. Tesla has pioneered updating its sold vehicles remotely using Wi-Fi or cellular signals, similar to
how smartphones get new software to fix bugs or add features.
The issues raised Thursday, though, are of a variety that can't be addressed with software. Other auto makers have
dealt with quality issues after
inging out new models and made improvements in the second and third year as
kinks are worked out.
The challenge for Tesla this year is balancing its goal of maintaining profitability while also facing increased
expenses tied to its rapid growth. As Tesla has cranked out more Model 3s, customers and outside repair shops
have reported lengthy waits for fixes.
Part of the challenge is Tesla's lack of infrastructure across the U.S. Unlike other auto makers, it doesn't have a
network of hundreds of franchise dealerships to sell and service its vehicles.
Despite the complaints, many Tesla customers rave about the Model 3. Tesla ranked highest on owner satisfaction
on another Consumer Reports survey released in December.
Credit: By Tim Higgins and Adrienne Roberts
DETAILS
Subject: Software upgrading; Automobile dealers; Vehicles
Location: United States--US
People: Musk, Elon
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Company / organization: Name: Consumer Reports; NAICS: 511120; Name: Tesla Inc; NAICS: 336999
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
First page: B.2
Publication year: 2019
Publication date: Feb 22, 2019
Publisher: Dow Jones &Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: XXXXXXXXXX
Source type: Newspapers
Language of publication: English
Document type: News
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Tesla Model 3 Loses Endorsement
Slow Repairs Dent Appeal Of Teslas --- Owners
face long waits for parts as logistical problems
plague the car maker
Higgins, Tim . Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]11 Feb 2019: B.1.
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FULL TEXT
Gus Schmidt was so excited when he received his Tesla Model 3 sedan in August that he tweeted a photo of
himself and his wife grinning next to the electric car. Six weeks later, the thrill was gone.
The Fort Lauderdale, Fla., resident damaged his bumper in a low-speed collision and then had to wait three months
for the repair shop to get the spare parts from Tesla and fix his car.
The unusually long wait for a repair underlines a drawback of being a Tesla Inc. customer. The upstart ca
company has created a coveted luxury
and but is still learning some of the basics of the auto business.
Tesla has cranked up its Model 3 production in recent months, enabling buyers like Mr. Schmidt to get thei
vehicles after long waits. But as Tesla's U.S. sales approach those of luxury-auto makers like BMW AG and Daimle
AG's Mercedes-Benz, it has encountered new logistical problems, from delivery and servicing of a growing fleet to
alancing supply and demand.
Tesla Chief Executive Elon Musk has acknowledged some of the operational challenges, saying on a recent
conference call that his No. 1 priority this quarter is to improve the service of its cars.
"We've just been very silly about where we store our parts," Mr. Musk said. For example, he said, Tesla was
shipping spare parts from China to the U.S. and then back to customers in China. "It's just being smarter about
sending parts directly to service centers."
Getting the logistics right is especially crucial this year given Mr. Musk has said Tesla will
ing down the price of
the Model 3 from its cu
ent $42,900 base sticker price to the long-promised $35,000 threshold to reach
mainstream buyers.
Mr. Musk expects Tesla