B207A: Shaping Business Opportunities I

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Question No. 01:

What defines a business's profitability is how much a company can compete in the market in

which it operates. Through something like that, several companies and organizations have led to

the formulation of a success target that serves as a matrix to assess their performance quickly.

Performance evaluations are moment targets that a corporation aims to fulfill in a short period.

Given all this, Tesla Inc. was not left behind when it came to formulating success targets. The

appropriateness of efficient human resources is one success goal that Tesla has put in place. This

ensures the smooth functioning of business goods; this aim has been placed in position because it

will supply its ever-growing demand. Having adequate supply delivered in its marketplace is

another success target that the organization has set itself to accomplish. They have achieved it

through an advanced and productive supply chain system that has made it much easier for

suppliers and consumers to communicate. It has established itself as an output target that is

intended to automate its production system. Through both the elimination of human labor costs,

the business can reach a low production cost.

Dependability:

Tesla Inc. has opted to manufacture its spare parts in-house to manage its durability in

manufacturing. The organization can plug future development hitches by manufacturing parts in

house and preparing faster than if it had been outsourced.

Quality:

For optimum quality and functionality, highly efficient products, including vehicles

manufactured by Tesla, require proper specification plans. The organization can maintain a high

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degree of quality in its goods by having a steady quality management schedule with frequent

inventory reviews. This helps to keep the business a firm brand name.

Speed:

Stock levels are continually reviewed by making output centered in-house, and any deficit can be

counteracted early. Mostly, in any product line shift, the changes can be made rapidly without

creating any net impact on the production levels of the business.

Flexibility:

If it complies with four core aspects regarding flexibility: reaction, range, mix, variety, and

volume, the operations of a business may be called flexible. As its activities are mainly handled

in-house, Tesla Inc. can comply with these aspects.

Sustainability:

In performance activities, the more power an operations manager has, the more efficient the

business can be in the manufacturing process.

The corporation's other success target is its effort to manufacture high-quality equipment at that

same expense cost. They will indeed be able to enter a much broader market through this and

boost their product. The company has managed to accomplish its performance target on quality

management through the quality management process through which the organization has

discontinued importing automotive parts from suppliers.

Question No. 02:

Over the years, Tesla Inc. has placed its foot down forward by manufacturing high-end

renewable energy, despite its opposition from standard petrol or diesel powered engine vehicles,

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to maximize shareholder value. This has prompted Tesla's leadership team to explore new

product developments. People's needs are caused by:

 And a will to retain better margins to escape price-based competition

 Wanting to maintain a distance in the product between myself and its competitors.

 To be capable of serving its consumers with a range of items.

In three different ways, new technologies produced are categorized:

1. Latest Generation Products: The application developer will often either fully build a

different design or modify an existing somebody to create an alternative product.

2. Augmentation of Existing Product lines: To enhance the efficiency or aesthetics of

even an existing product, the production team will design changes. The weight of both

the material or its durability can be influenced by modifications made. This product's

initial core design is in no way altered.

3. Breakthrough Goods: These would be products that have not yet been produced before

but was new to the market. In many other cases, they are usually created to fulfill a need

for creatinine.

Innovations that are primarily focused on technology create opportunities for new products

produced out of technical innovation. A commodity modification is known as the second type of

new product creation. Under this classification, a new product emerges predominantly from

market analysis and thus brings in a focused alteration of a product. Product development has

many benefits, one being that it can contribute to market growth and improve business

profitability, so it is more necessary for a company to promote new products.

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.

Question No. 03:

The porters' five-force template is a measurement and evaluation system that aims to simplify

and convey to its sector the competitive level of an enterprise. These five powers are grouped

under manufacturers, consumers, new business models, alternative products, and direct rivals

from the industry. About Tesla Inc., we've discussed these five powers.

Suppliers: Any business that supplies a major manufacturer with a product or service is referred

to as a supplier. It would be in a concentrated state and also as a semi-finished material. Here, the

reciprocal partnership between a supplier and end manufacturer is measured because most end

manufacturers prefer a supplier that can preserve their brand image, has strong regional

coverage, and delivers a high-quality product. While Tesla Inc. aims to do most in-house

manufacturing, it still provides products based on these requirements. The business also tests

elements, such as the supplier's purchasing power, the presence of buying pressure regulation,

and alternatives for obtaining the appropriate.

Buyers' Negotiating Power: Any business with one big customer in its operation poses a

tremendous risk to itself, as the customer's buying preference would significantly affect much of

its tactics and pricing patterns. As it extends chance to a broader pool of consumers, a

widespread client base is favored. While elevated in nature, Tesla commodities are created for an

overall market, minimizing risk.

New Entrants: There have always been risks from new entrants who may choose to join the

company in a seemingly particularly poorly market with industry players having average to

super-normal income. This poses a challenge to the established firms' market share. While there

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may be some obstacles to entry, such as a significant initial capital expenditure or licensing,

some businesses may be ready to set up firms more quickly than expected.

Substitute Goods: A replacement is a service or product that can work in almost the same manner

as, or perhaps better than, the consumer's needs. Both petrol-powered vehicles are designated

replacements for electric cars in this case.

Direct Business Competitors: A competition is known to be any company selling a similar

product to those of a company. A rival typically presents a threat because they chew into the

company's market share but profit margin. Market share is the number of a company's sales

compared to the overall revenue of the industry's companies. Honda and Ford engines, which

have entered electric vehicles' manufacture, are direct rivals and have eaten into Tesla's market

share.

Question No. 04:

It returns home on outsourcing what something essentially wants from other suppliers when a

business aims to reduce its operating costs. Through this, a company can use more than one

assembly point, which would, in turn, led to the reduction of participation in the manufacture of

each part of supply chain management it needs. Although this seems to be the latest trend for

many sectors, CEO Elon Musk of Tesla came out again to comment that the company can no

longer outsource the automotive parts it uses. Outsourcing has an advantage, except that it lowers

the manufacturing cost and thus the time spent processing a specific material.

It can minimize costs because the business or organization involved in the manufacturing no

longer needs to manufacture the product from scratch but only serves as a production assembly

point. But one downside and one serious which always comes through outsourcing are that there

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is a risk of delivering a low-quality product, and manufacturers used to outsource attempt to save

costs by producing a low-quality product on their hand. This is why Elon Musk said Tesla is no

longer outsourcing because they are keen to offer high-quality goods to their customers.

With these benefits, one can fail to note that there is some lack of control in the manufacturing

process, whether it be in terms of performance or quantity. In their manufacturing process, firms

would be unable to practice economic aspects such as declining marginal returns laws, thus

increasing their economy of scale where they might have recently experienced. The

manufacturer has to continuously carry out tests on the supplier, thus increasing administrative

costs, just as there is a reduced unit cost. Over-sourcing services or manufacturing could result in

the closing of existing facilities and potential job losses. The manufacturer becomes strongly

dependent on the supplier as this occurs.

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