FAKULTI SAINS SUKAN DAN REKREASI

KAMPUS SEREMBAN

UNIVERSITI TEKNOLOGI MARA CAWANGAN NEGERI SEMBILAN

SMG605 (STRATEGIC MANAGEMENT IN SPORTS ORGANIZATION)

INDIVIDUAL ASSIGNMENT

PREPARED BY:
NO NAME MATRICS NO
1. NUR SAIDATUL ALIAH BINTI ZULKAFLI 2019572681

PREPARED FOR:

MADAM UMMI KALTHUM BINTI MOHD MOKHTAR

SUBMISSION DATE:

18TH JUNE 2021

TABLE OF CONTENTS

1.0 COMPANY BACKGROUND.......................................................................................................... 1

1.1 BUSINESS AREA.........................................................................................................................1

1.2 VISSION........................................................................................................................................1

1.3 MISSION....................................................................................................................................... 2

1.4 OBJECTIVES AND GOALS........................................................................................................ 3

1.5 POLICIES...................................................................................................................................... 3

1.5.1 Human Rights and Conflict Minerals Policy.......................................................................... 3

1.6 MISSION STATEMENT EVALUATION MATRIX...................................................................4

2.0 COMPANY ANALYSIS...................................................................................................................5

2.1 EXTERNAL AUDIT..................................................................................................................... 5

2.1.1 OPPORTUNITY.....................................................................................................................5

2.1.2 THREATS...............................................................................................................................6

2.2 INTERNAL AUDIT...................................................................................................................... 7

2.2.1 STRENGTHS......................................................................................................................... 7

2.2.2 WEAKNESS...........................................................................................................................8

3.0 SWOT ANALYSIS DIAGRAM..................................................................................................... 10

4.0 CONCLUSION................................................................................................................................10

REFERENCES........................................................................................................................................ 1
1.0 COMPANY BACKGROUND
1.1 BUSINESS AREA

Tesla was formed in 2003 by a group of engineers who wanted to show that
driving electric vehicles does not have to be a compromise - that they can be better,
faster, and more fun to drive than gasoline cars. As a result, Tesla now manufactures
all-electric automobiles and sustainable energy generating and infinitely scalable
storage systems. The quicker the world moves away from fossil fuels, and toward a
zero-emission future, Tesla thinks, the better.
Tesla automobiles were manufacture in the company's factories in Fremont,
California, and Shanghai's Gigafactory. Tesla is adopting a proactive approach to
safety, requiring production personnel to complete a multi-day training program
before ever setting foot on the factory floor to realize our aim of having the safest
plants in the world. Tesla then continues to conduct on-the-job training and monitor
performance daily to make rapid changes. As a consequence, Tesla's safety record
continues to improve as manufacturing ramps up. (Tesla, n.d.)

1.2 VISSION

Tesla's corporate mission is to " by leading the world's transition to electric vehicles,
create the most appealing automobile firm of the twenty-first century."This corporate
goal stresses the firm's renewable energy focus. As a result, the organization explicitly
tackles the electric vehicle sector as a primary channel for aiding worldwide
renewable energy industry growth. (Rowland, 2018)
In Tesla Inc.'s vision statement, the following elements are essential:
1. The most persuasive
Tesla, Inc. aspires to be the industry's most compelling company. This
component denotes corporate leadership and excellence. This objective
will be met by implementing cutting-edge technology into the company's
electric vehicles and related products.
2. Automobile manufacturer
Tesla Inc.'s activities are focused on creating and manufacturing vehicles,
according to the "car company" component of the business goal. The
"21st-century" component is satisfied by the company's leadership in
electric vehicle design and manufacture.

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 3. The 21st century
This feature demonstrates how the organization employs cutting-edge
technology to address current issues like environmental preservation.
4. The global shift to electric cars
The company's long-term ambitions make up the fourth component. For
example, the corporation is expanding its operations, with ambitions to
build new units in Asia's growing regions.

1.3 MISSION

"To speed the world's transition to sustainable transportation," Tesla's mission

statement stated. However, under Elon Musk's leadership, the company's objective
was altered to "accelerate the world's transition to sustainable energy" in mid-2016.
This new statement denotes a minor but essential adjustment in the company's
business strategy to capitalize on renewable energy market potential. In some ways,
the new corporate goal acknowledges the company's batteries and related energy
storage technologies' value in industries other than the electric car sector. (Rowland,
2018)
The following are critical components of Tesla Inc.'s mission statement:
1. Acceleration
Tesla's role in pushing the industry toward innovative technologies for
sustainable business and goods that rely on renewable energy is
established by the company mission statement's "to accelerate" component.
2. Transition in the globe
"The world's transformation" is also mentioned in the company's business
mission, meaning that it expects to dominate the global market for electric
automobiles and related products. As a result, it is tied to the business
vision statement's concentration on the worldwide market.
3. In the direction of renewable energy
Furthermore, the change from "sustainable transportation" to "sustainable
energy" shows that Tesla, Inc.'s corporate mission statement evolves to
reflect the company's current strategic goals. The company, for example,
used to be focused entirely on the development of electric vehicles.

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1.4 OBJECTIVES AND GOALS

Their goals are to increase the availability of electric vehicles. It stated that
their goals are to increase the number and variety of Electric Vehicles (EVs) available
to mainstream consumers in three ways:
1. Sells their vehicle brand.
2. Sell patented electric powertrain components to other automakers to get their
own EVs to customers sooner.
3. Serves as a catalyst and positive example to other automakers, demonstrating
pent-up consumer demand for vehicles that are both high-performance and
efficient.
Objectives:
1. To create, manufacture, and market premium electric automobiles that are
both socially responsible and environmentally friendly.
2. Incorporate technology advancements as well as high-end features into our
products.

1.5 POLICIES
1.5.1 Human Rights and Conflict Minerals Policy

Tesla suppliers must guarantee that their operations and therefore the products
and services they supply to Tesla adhere to all or any relevant national and
international laws and regulations. Tesla expects its suppliers to conduct their
global operations responsibly, following this policy and therefore
the principles laid out below. Furthermore, Tesla collaborates with our
suppliers to make sure that the subsequent regulations are adhered to:
 Legal and Regulatory Compliance:
Tesla suppliers must guarantee that their operations and the products
and services they provide to Tesla adhere to all relevant national and
international laws and regulations.
 Conflict Minerals:
Tesla's suppliers are required to require reasonable steps to
confirm that the components and supplies they supply to Tesla are
"conflict-free" within the Democratic Republic of the Congo, which
suggests that conflict minerals don't benefit armed groups within

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 the DRC. Conflict-free parts and supplies are freed from metals
derived from "conflict minerals," described as "minerals produced
from conflict zones.":
(i) Columbite-tantalite (tantalum)
(ii) Cassiterite (tin)
(iii) Gold
(iv) Wolframite (tungsten)
(v) Any derivatives of the above
 Human Rights:
Tesla is devoted to making sure that its suppliers do not engage in
human trafficking or utilize slave or child labour. Tesla does
not tolerate and cannot accept products or services from suppliers that
engage in human trafficking. Slavery, child labour, and human
trafficking are illegal under state, federal, and jurisprudence. These
crimes are committed in countries all round the world. (Tesla, n.d.)

1.6 MISSION STATEMENT EVALUATION MATRIX

COMPONENTS
ORGANIZATION customers Product services Markets Concern for Technology
Survival,
Growth,
profitability
Tesla. Inc YES YES YES NO YES

philosophy Self-concept Concern Concern for

For employees
public
YES YES NO NO

2.0 COMPANY ANALYSIS

2.1 EXTERNAL AUDIT
2.1.1 OPPORTUNITY

 With its future Gigafactory, it will be able to take advantage of

economies of scale:

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 Tesla now employs only one production facility to produce all of its
automobiles. Its ability to make cars is severely limited as a result.
Tesla is well aware that it requires more giant factories to create and
sell more products. It invests in a "Gigafactory" concept to fulfil a
rising market's demands and position it to compete on production
scales with other mainstream automobile firms. It may help to increase
market penetration, especially as buyers become more accepting of
electric car technology. Tesla wants to raise annual sales from around
500,000 in 2020 to 20 million in ten years. (Gaille, 2020)
 Mid-market Car Range:
For both volume and fleet car sales, the mid-market auto segment is
crucial. Tesla can use its existing infrastructure to create lower-cost
mid-market vehicles, which will result in increased volume and
adoption. (Fox, 2020)

 Self-producing batteries can help expand the number of cars available

for sale:
With one notable exception: the battery, Tesla already manufactures
many of its components. Suppose Tesla can effectively bring battery
manufacture in-house. In that case, it will have a great potential to
boost its battery supply (and thus its collection of vehicles for sale)
while presumably lowering costs. It would no longer be dependent on
third-party producers, and it would be able to bring its product to
market more quickly and in larger quantities. (Gaille, 2020)

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2.1.2 THREATS

 Competitions:
The automotive industry's behemoths may have previously
misunderstood Tesla, but they need subsequently woken up and
heavily invest in electric and digital technologies. it is important to
acknowledge their size and presence, especially within the u. s.,
arguably Tesla's best market. The larger companies still control a
large market and have the financial means to speculate heavily in
electric and digital technology. (Fox, 2020)
 China market:
Even in China, Tesla still contains a great distance to catch up to its
competitors in volume. Thus, the performance of Tesla during
this critical market within the future years are going to be put to the
test.

 Lack of necessary materials:

Although lithium-ion cells are used in Tesla's battery packs, global
demand is expanding as other automobile manufacturers ramp up the
manufacturing of electric vehicles. As a result of the escalating cost of
these essential raw materials and other essential elements necessary for

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 batteries, such as nickel, copper, and cobalt, Tesla's supply of these
critical raw materials and other vital components may be interrupted.
All of these materials can have a significant impact on the company's
manufacturing process in the future.

2.2 INTERNAL AUDIT

2.2.1 STRENGTHS

 Innovation:
Tesla could be a forward-thinking company that continues to take a
position extensively in Research and Development (R&D). Tesla put
$1,343 million towards its product and repair development in
2019.This year will see the introduction of the new Roadster sports car
and other new products. Innovation is often seen in an
exceedingly style of areas, not simply products. Its new Gigafactory in
China is supplied with cutting-edge manufacturing technology. Elon
Musk's other enterprises, like Space X, will cross-fertilize ideas and
technologies, it is worth noting. While there may not appear to be any
clear parallels, Tesla may benefit from new materials and software.
Tesla is the 9th most inventive brand in 2019, according to BCG. (Fox,
2020)
 Design:
Tesla, in my opinion, is that the Apple of the vehicle industry. I'm not
drawing a parallel between Steve Jobs and Elon Musk, though it's a
motivating one. Both enterprises' heart is meticulous attention to detail,
a positive client experience, and end-to-end product design. taking note
of clients doesn't necessarily imply taking everything they are
saying into consideration but recognizing when changes are needed
and acting. Elon Musk is well-known for responding to client feedback
and adjusting as a results of it. (Fox, 2020)
 Partners:
Tesla has formed a world alliance network to assist with R&D
expenditures, distribution, and, of course, charging stations. Tesla and
Panasonic, as an example, In 2010, the 2 companies started working

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 together to develop nickel-based lithium-ion battery cells for electric
vehicles. Hotels, resorts, service centres, and retail malls are
just some of Tesla's charging partners. (Fox, 2020)

2.2.2 WEAKNESS

 It does not manufacture enough:

In-house manufacturing services can be both beneficial and detrimental.
While a firm can ensure quality by manufacturing all of its components
in-house, it must also ensure that it can meet market demands. Tesla
has significantly fewer production hubs than larger, more established
manufacturers, limiting the number of vehicles it can build. To keep up
with demand, it has to expand its network of sites. Tesla fell short of its
yearly delivery goal in 2020, delivering 499,550 units versus its stated
goal of 500,000. (Gaille, 2020)
 All of its batteries come from a single source:
Tesla has swiftly become the world's most significant consumer of
batteries, which all originate from the same supplier. The battery is the
most critical component for an electric car manufacturer, and when
supplies run low, manufacturing practically comes to a standstill.
Given the company's nature, this bottleneck is to be expected, but its
limited supply will constrain Tesla until it can fully resolve the
problem. (Gaille, 2020)
 Its customer service is subpar:
Brilliant thinkers may design Tesla's goods, but customer service is
still a huge issue for customers. Similarly, client satisfaction with the
cars is high, but not with the purchasing procedure. The buying
procedure accounts for a large part of the new vehicle experience, and
Tesla does not consistently give a good consumer experience. (Gaille,
2020)

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3.0 SWOT ANALYSIS DIAGRAM

STRENGTHS WEAKNESS

 Innovation-development of  Not manufacture enough- significantly

technologies for energy store,
digital, and cars.
 Design- leading design focus
across products and customers'
INTERNAL experiences.
 Partners have established a global
network of alliances
OPPORTUNITIES
fewer production hubs than larger, more
established manufacturers.
 Batteries come from a single source-
storms originate from the same supplier,
supplies run low.
 Customer service is subpar- customer
service is still a huge issue for
customers.
THREATS

EXTERNAL  economic of scale- invest in a  Competitions- prominent global

"Gigafactory" concept to fulfil
rising market demands.
 Mid-market Car Range- the
mid-market auto segment is
crucial.
 Self-producing batteries- can
effectively bring battery
manufacture in-house.
players are aggressively investing in
electric vehicle production.
 China-market- long way to go to
catch up to its competitors in terms
of volume.
 Lack of necessary materials-
supply of these critical raw materials
and other critical elements could be
disrupted.

4.0 CONCLUSION

Tesla has a lot going for it, including a growing reputation for quality, a
household name for cutting-edge technology, and the potential for tremendous
expansion. It must, however, overcome possible hurdles such as a shortage of
manufacturing capacity, the continuing holding of huge corporate debts, and serious
issues that damage not only its public image but also its ability to deliver a
trustworthy product. As a result, like many other businesses, Tesla can only achieve
long-term success by maximizing its strengths, capitalizing on its opportunities,
avoiding its flaws, and tackling its dangers.
Tesla, Inc. has the required characteristics to be a successful business in the
future. However, as this SWOT analysis shows, the company has many challenges
that must be overcome to maintain its competitiveness and enhance profitability. First
and foremost, Tesla must improve its international footprint. For example, new
facilities and sales activities in high-potential developing countries might assist Tesla

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in realizing its corporate purpose and vision statements by promoting business growth.
Furthermore, the corporation must maintain its significant investments in research and
development (R&D) to generate technologically innovative and competitive products.
As a result, Tesla can grow in the global automobile market despite fierce competition,
according to this SWOT study.

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REFERENCES

Fox, G. (16 May, 2020). Tesla SWOT Analysis – A SEXY Car Range But What's Missing. Retrieved from
garyfox.co: https://www.garyfox.co/tesla-swot-analysis/

Gaille, B. (20 December, 2020). Tesla SWOT Analysis (2021): 33 Biggest Strengths and Weaknesses.
Retrieved from brandongaille: https://brandongaille.com/tesla-swot-analysis/

Rowland, C. (27 August, 2018). Tesla, Inc.'s Mission Statement & Vision Statement (An Analysis).
Retrieved from Panmore Institute: http://panmore.com/tesla-motors-inc-vision-statement-
mission-statement-analysis

tesla. (n.d.). About Tesla. Retrieved from tesla.com: https://www.tesla.com/about