This case study provides analysis of the strategic marketing plan of electric vehicle manufacturer, Tesla Motors. It is important to note that this case study provides context for the tasks below and...

Management
Managerial Accounting
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Instructor Code
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1.0 Introduction
The companies have to consider different factors in order to attain the goals and objectives. According to the words of Martin Eberhard (2005), the founder of Tesla Motors, customer’s plays, a significant role in their decision process and the company is giving more importance to the customer needs and interests. In this paper, we are analyzing different aspects related to the operations of Tesla Motors in a detailed way.
2.0 Body
2.1 Critically Analyzing the impact of technological change, globalization and customer expectations in the management accounting process of Tesla Motors
While analyzing the management accounting process of tesla motors we can understand that the process is affected by different internal and external factors. Any changes in the technology or systems will directly affect the management accounting system of the company.
Technology change
According to the words of Thomas (2016) companies are using management accounting for taking the right decisions. Tesla Motors is giving more importance to innovative tools and practices. Tesla Motors is using advanced manufacturing technology for producing goods. The company is also using computer integrated manufacturing tools and strategies. Based on the tools introduced by the company they have to make changes to their management accounting policies and practices. Management accounting also helped the company for taking quick decisions related to the implementation of new technologies and products (Smith et al 2017, p.12). New tools always help the organizations for managing the major issues and it also for integrating different functions in a effective way. Management accounting always helps the Tesla Motors for identifying the best technology that helps the company for improving the efficiency.
Globalization
Management accounting process of Tesla motors is also influenced by the globalization and other related trends. According to the words of Elon Musk (2015) CEO of Tesla motors due to the globalization the company is facing different problems from the domestic and international market. The company expanded the operations to different parts of the world, they are also planning to start their
anches in Asian countries. Management accounting practices in one country are different from another country, so the accountants have to create special provisions for managing the accounts in different countries (Lanzara et al 2017,p.63). Tesla Motors is using three major practices for completing their management accounting process in a productive way.
Three Major Practices Used by Tesla
1. Strategic management
2. Performance management
3. Risk management
Due to the impact of globalization, they have to make changes to all the practices and policies related to management accounting. As per the report of Business Insider (2017) management accounting also helps the business managers to take important business decisions. The company Tesla motors required more information and ideas for implementing new products and services. Management accounting always helps the company for introducing cost-effective plans and activities. Company required the resources for introducing new changes and it also helps for attaining the organizational goals. In the case of Tesla Motors Management accounting policies and practices helped the company for identifying the right resources for managing the operations of the organization. Management accounting also helped the Tesla Motors for identifying KRA (key performance areas).
As per the report of Business Insider (2016) Tesla motors is giving importance to the concepts of integrity, innovation, customer and quality. In order for attaining these objectives, they have to understand the changes in the global market based on that they have to make changes to the management accounting policies.
Customer Expectations
Customer expectations about the Tesla products are very high, they considered Tesla as a technologically competent company. In order for meeting customer expectations in a productive way, the managers have to create a daily or weekly budget. Management accounting also helps the company for creating daily budgets and it helped for improving the operational efficiency of the organization (Martins et al 2015,p.99). Management accounting also helps in managing the customer expectation about different products and services offered by the company Tesla.
2.2 Memo -1
Memo for the Management of Tesla Motors
2.2.1 Critically Analyzing the Limitations in the Use of a Traditional Budgetary Control System in their Modern Workplace
To
Management of Tesla Motors
From
XXXX
Date: 7/01/2019
Subject: Use of a Traditional Budgetary Control System
Our company is using modern tools and strategies for controlling the internal and external functions. Some companies are still using the traditional budgetary system for controlling the activities in a productive way. Use of traditional budgetary system has some problems and it affects the overall operations company Tesla
Limitations of Traditional Budgetary Control System
1. Budget is prepared on the basis of estimates
While analyzing the process of traditional budgetary control system we can understand that it is mainly based on estimates, if the estimates are wrong it will affect the overall activities of the organization. In the case of Tesla, we can understand that it is not possible for the company to prepare the estimates. Tesla has to make changes to the existing policies and practices for attaining the sustainable competitive advantage. (Yang et al 2018,p.3687). It is not possible for the company to make accurate estimates about the different activities of the organization.
2. It incurs a high cost for introducing traditional budgetary control system
Most of the US based companies are using different methods and tools for reducing the cost of operations. They are also searching for new methods and tools that help in improving the productivity of the organization. The company invested a huge fund for introducing electronic cars and other related products. It is not easy for the company to spend more fund for managing the traditional budgetary control system. In order for managing the traditional budgetary control system the company also has to incur more administration expenses.
3. The traditional budgetary control system is not a substitute for efficient management
As per the report of Business Insider (2016) budgeting will not help for replacing the management functions and policies. While analyzing the case of Tesla, the company required the support of employees and top-level executives for attaining the goals and objectives (Sohn et al 2018, p.115). To a certain extent, the budgetary control system helps for making the right decisions but it will not help for executing top-level plans and actions.
4. Problem of Co-ordination
If we are introducing a budgetary control system, it is not easy for the company to coordinate the activities in a...