Answer Booklet

B207A: Shaping Business Opportunities I

Personal Information
Student Name Abdul Hussain Syed
Student ID 190599
Registration Information
Branch KUWAIT
Section Number 102 Assessment type Final-THE
Academic Year 2020-2021 Semester First
Earned Grade out of 100 marks
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ANSWER 1

Performance objectives can be defined as the generic set of performance indicators by which
operations are judged when assessing the operation’s ability to serve its chosen markets.

The five Performance objectives at Tesla are as follows:

a) Quality: One of the best objective at Tesla Inc. is the quality which addresses their strategic
objective through regular quality checks, quality improvement initiatives, and research on the
automotive/transportation and energy solutions market.

b) Speed: Tesla has the ability to bring new products or services to market quickly. It always
looks out for various options and ways using which they can be innovative and make better
products and services offered at the market. The objective of maintaining and streamlining
operational effectiveness and high productivity helps them to work in the best manner.

c) Flexibility: Tesla, Inc. integrates automation for this concern. For example, the company
automates manufacturing processes combined with human intervention. This condition helps
Tesla achieve high productivity.

d) Dependability: Tesla focuses on the operational strategic operational and supply chain
management where it aims at achieving at global supply management which helps in
achieving its manufacturing process. Tesla has a global supply chain aimed at supporting its
manufacturing processes. For example, high productivity of the company’s manufacturing
plants in the U.S. benefits from timely shipment of materials from overseas.

e) Sustainability: Another important objective of the Tesla is its performance and operational
working is to have relevant and utmost customer satisfaction maintained with high providence
of quality management so as their sustainability and working performance can be inter related.
Tesla has the performance objective of making sure that the human resources are equipped
with relevant skills and competencies for their growth and sustainability.

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ANSWER 2

Idea Generation

Tesla's initial product was the Tesla Roadster, a high-performance sports electric vehicle. But, the
company's long-term plan is to create a wide range of models, including affordably priced family
cars. This is because Tesla's primary goal is to help accelerate the transition from a mine-and-burn
hydrocarbon economy towards a solar-electric one. Tesla's plan of action depends on direct deals and
administration, not diversified vendors.

Screening

Tesla Roadster was designed to beat a gasoline sports car like a Porsche or Ferrari. As the years have
shown, all Tesla's vehicles produced since are high-performance and show some of the best results at
the track. However, the creation of a few more professional sports cars is not in Tesla's plans. This
position was reiterated today by Musk on Twitter. As before, the company remains faithful to its
original plan to create a wide range of affordable models that will accelerate the mass adoption and
use of electric vehicles and renewable energy products.

Concept Development

Tesla doesn’t advertise in the Sunday newspaper or put ads on the radio. Instead is uses the classic
software “inbound” sales model: They know consumers are smart and will find them. They
understand the buyers’ journey very well. Tesla’s speed in innovation in the market for high-end
vehicles is more like a Google or an Amazon than an automaker. And its soaring market valuation is
a clear sign to all automakers that they’ll need to develop more innovative, Tesla-like business
models in order to survive.

ANSWER 3

3) Tesla's 5 forces model are as follows:

Threat from new entrants- Tesla's innovative technology and performance induced products which
other established automotive companies are unable to match as of date, however, due to high
technological process the cost of Tesla cars are very high.

Consumers bargaining power- Many established car brands have started offering cheaper
substitutes for Tesla which is giving the buyer an option to consider other brands to save money.
Currently there are no switching costs charged to customers in case they plan to switch their brand
this is giving additional power to the consumer to negotiate.

Suppliers bargaining power- Suppliers are in a better position owing to the availability of alternate
fuel automotive as many car brands have also started manufacturing the same thereby giving the
suppliers a side base of customers hence they can restrict any negotiation with Tesla and may charge
a high price.
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Threats of substitutes- Many global brands have started focusing on alternate fuel cars as it is
considered to be the future of automotive due to rising fuel costs and environmental awareness. This
is creating competition for Tesla, especially in price front.

The Rivalry among existing competitors - A tough competition among the available players is
forcing the manufacturers to cut down the prices thereby affecting the overall profitability of the
industry.

ANSWER 4

Advantages:

 Access to supplier capabilities: To ensure that quality reviews are conducted regularly and
that improvements to manufacturing processes are implemented. This shift increased the
management workload, but improved quality control and overall product quality.
 The ability to focus on core internal capabilities: Operating managers at Tesla, Inc.
overcome these issues by market-based scheduling, coupled with streamlined systems for
optimum performance. In market-based scheduling, the organization tracked domestic real
market demand and used the resulting data as the basis for scheduling vehicle production.
 Clear, identifiable supply chain costs: Tesla has a global supply chain aimed at supporting
its Manufacturing processes.

However, the major drawbacks in this is compromise of the quality of the outsourcing units. As the
standard of Tesla, which is famous for its superior innovation quality is not possible to be maintained
by the outsourcing units. This quality compromise can have serious threat to the reputation of the
company. For this, the company had to shift its manufacturing unit in the internal system

Disadvantages:

 Quality reduction: It is sometimes possible by outsourcing, the quality of a product

decreases due to usage of improper material during production by the supplier. It therefore
resulting in wastage of resources, time, etc.
 Improper service delivery: There may be a possibility that materials are received in delay
from suppliers and also damaged sometimes. So the waiting time automatically increases for
the customer, resulting in losing them and incur a loss.

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