MANAGEMENT SCIENCE

DEPARTMENT
Group Project Cover Sheet

STUDENT DETAILS
Student ID Section Student Name
4110932 01 Obai Jeddawi
3910393 01 Abdulaziz Salman Allharbi
3713326 01 Abdullah Faham
3910647 01 Yousef Mohammed
4111390 01 Ali Mohammed Alali

INSTRUCTION FOR SUBMISSION OF HARD COPY (PRINT) REPORT

1. Read and sign your cover sheet.
2. Attach this sheet to the front of your report.
3. Your report should be submitted to the relevant lecturer.
ASSIGNMENET DETAILS
Project Title: Tesla Company
Lecturer’s Name Dr. Manuel Cadongonan Jr.
Program Name
Course Code MGT 214 Course Name Operations Management
Due Date April 17th,2022 Date submitted April 17th,2022
Cheating and assisting to cheat are offences under the Yanbu University College’s policy.
STUDENT’S STATEMENT
I have read and understood the information provided on this assignment cover sheet and in the
college’s policy relating to cheating and assisting to cheat, collaboration and plagiarism. I certify that
the attached work is entirely my own except where work quoted is duly acknowledged in the text;
that I have not worked with another person or persons except where specifically permitted by the
lecturer, and that this work has not been submitted for assessment by myself or any other person in
any other time. I have retained a copy of my work.

Students’ Signature

Assessed by &
Mark/Grade _____/100
Date

MGT 214 – Operations Management Page 1 of 11 Semester 212

 Table of Contents

- EXECUTIVE SUMMARY
- 1. COMPANY & PRODUCT DESCRIPTION:
- Name
- Description.
- Goods and/or services the company provides
- History Line
- Mission and values.
- Location
- Competitors in business
- Company’s competitive advantage strategies

- 2. QUALITY

- 3.GLOBALIZATION

- 4.SOCIAL RESPONSIBILITY

- 5.LAYOUT ANALYSIS

- 6.RECOMMENDATIONS AND SUGGESTIONS

- REFERENCES

MGT 214 – Operations Management Page 2 of 11 Semester 212

EXECUTIVE SUMMARY:

Tesla Motors manufactures and sells 100% electric cars and advanced electric
vehicle components. The company produced the first car to integrate zero
petroleum consumption, high-energy efficiency and great driving performance.
Tesla has its strengths, which it uses as a competitive advantage over its
competitors. It has weaknesses and also opportunities it can invest in.Tesla is
involved in producing high-performance electric cars, whereby people can
charge their cars at home and not bother visiting a gas station. Tesla owns its
sales and service networks. It also sells ca components to other manufacturers

MGT 214 – Operations Management Page 3 of 11 Semester 212

A
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COMPANY & PRODUCT DESCRIPTION p
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Please complete the table below with all the needed details. This section should n
not exceed two pages. y
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COMPANY BACKGROUND g
Company name
Tesla o
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Description Tesla was founded in 2003 by a group of engineers who wanted to
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prove that people didn’t need to compromise to drive electric – that
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electric vehicles can be better, quicker and more fun to drive than
gasoline cars. Today, Tesla builds not only all-electric vehicles but
also infinitely scalable clean energy generation and storage products.
Tesla believes the faster the world stops relying on fossil fuels and
moves towards a zero-emission future, the better.

Goods and -Tesla’s cutting-edge battery technology.

services -Electric powertrain.
-Electric Cars.
-Tesla introduced a low-priced, high-volume electric vehicle.
- Electric vehicles.
- Lithium-ion batteries.
- solar shingles.
- chargers.
- Automobile parts, and manufacturing equipment and tools for its own
factories.

History line Launched in 2008, the Roadster unveiled Tesla’s cutting-edge battery
technology and electric powertrain. From there, Tesla designed the world’s
first ever premium all-electric sedan from the ground up – Model S – which
has become the best car in its class in every category. Combining safety,
performance, and efficiency, Model S has reset the world’s expectations for
the car of the 21st century with the longest range of any electric vehicle,
over-the-air software updates that make it better over time, and a record 0-
60 mph acceleration time of 2.28 seconds as measured by Motor Trend. In
2015, Tesla expanded its product line with Model X, the safest, quickest and
most capable sport utility vehicle in history that holds 5-star safety ratings
across every category from the National Highway Traffic Safety
Administration. Completing CEO Elon Musk’s “Secret Master Plan,” in 2016,
Tesla introduced Model 3, a low-priced, high-volume electric vehicle that
began production in 2017. Soon after, Tesla unveiled the safest, most
comfortable truck ever – Tesla Semi – which is designed to save owners at
least $200,000 over a million miles based on fuel costs alone. In 2019, Tesla
unveiled Model Y, a mid-size SUV, with seating for up to seven, and
Cybertruck, which will have better utility than a traditional truck and more
performance than a sports car.
Mission and
values
Tesla’s mission is to accelerate the world’s transition to sustainable

MGT 214 – Operations Management Page 4 of 11 Semester 212

 energy.

Location
-Glendale AZ-9245 W Glendale Ave
9245 WEST GLENDALE AVENUE
GLENDALE, AZ 85305
Store : (602) 337-5554
Roadside Assistance : (877) 798-3752
Service : (602) 337-5554
Competitors in
business Seven electric vehicle companies competing with Tesla:

- Rivian Automotive Inc. (RIVN)

- Lucid Group Inc. (LCID)
- Nio Inc. (NIO)
- XPeng Inc. (XPEV)
- Li Auto Inc. (LI)
- Ford Motor Co. (F)
- General Motors Co. (GM)

Competitive 1) Tesla’s Battery Supply Chain: Tesla currently produces 4 all-electric vehicles
advantage — the Tesla Models S, X, 3, and Y, all of which require significant battery
capacity.
strategies
2) Tesla’s Supercharger Network: Tesla’s proprietary superfast-charging
stations create efficient recharging opportunities for Tesla’s electric vehicle
drivers. Tesla’s current fleet of Superchargers range in power from 72 kW for
Tesla’s Urban Superchargers up to 250 kW for the newest Superchargers being
installed around the world.
3) Tesla’s Software Updates: Over-the-air updates — just like the ones
we get on our smartphones, tablets, and computers — continuously
improve Tesla’s all-electric vehicles. Updates come fairly frequently .
4) Tesla’s Branding: Tesla has developed a reputation for producing
superb products. The Tesla Roadster transformed the image of all-
electric cars from small, slow vehicles to amazingly fast vehicles of
desire.
5) Tesla AI: Tesla’s autonomous driving capacity, offered at its highest
level in the “Full Self Driving” package, is getting better quarter after
quarter, with more autonomous features regularly added. Tesla AI
analyzes countless images from Tesla owners’ cars while they drive
around and uses them to train the autonomous-driver neural nets Tesla
keeps developing for its vehicles’ Autopilot/Full Self Driving features.

MGT 214 – Operations Management Page 5 of 11 Semester 212

QUALITY

TQM Principles adopted by Tesla

{ Communication and integrated design }
It is no doubt that Tesla has a spectacular management as evidenced by its success
within a short span. Elon Musk has been successful with his previous strategies, for
instance, PayPal and Space X. The two major principles of TQM that have been
adopted in Tesla include communication and integrated design. Efficient
communication in the company is considered a primary drive to attaining success.
Employees work in lean offices where they are in constant contact with their leaders
as a way of promoting efficient communication (Sharma 2016). Aspects of
communication, including strategies, timelines, and methods are taken seriously in
the company. For this reason, the Tesla’s management is always in touch with the
employees and customers. Tesla has a robust integrated system. Despite the
company being divided into various departments and specialties, efforts are made to
maintain the entire company as a whole. In other words, processes and departments
are interconnected to form an integrated system. Integration of functions at Tesla
promotes smooth communication while ensuring that teams remain coordinated,
hence facilitating the improvement of processes in line with TQM objectives.

{ Employee Satisfaction }

Recently, Forbes named the company as the most innovative company (Alexander
2015). Employee involvement has the additional advantage of reducing employee
turnover and workplace dissatisfaction. The company understands that involving
employees in decision-making and other production processes can boost innovation.
However, while Tesla’s policy of employee engagement is effective in fostering
innovation, certain areas should be improved. The areas include job security,
employee health and safety, effective communication, and promotional training
(Madan 2010).

MGT 214 – Operations Management Page 6 of 11 Semester 212

People’s satisfaction in TQM refers to measures put in place by an organization to
promote a good working environment for its employees. TQM appreciates the
central role of employees in fostering business success. Employees amplify the
culture of the organization, either positively or negatively. Kaizen supports
employee involvement by maintaining that those who are close to the process
perform process involvement best (Sonobe & Otsuka 2014). In a manufacturing
setup, employees are in the best place to observe and rectify anomalies within the
process. Alexander (2015) found that employee engagement at Tesla is valued
greatly.

GLOBALIZATION
This case study provides analysis of the strategic marketing plan of electric vehicle
manufacturer, Tesla Motors. It has profound marketing management implications, as it
addresses this investigation from the unique perspective of Tesla's ‘new technology’-
based approach to automobile marketing and relates it to the successful marketing
model of Apple Computer. This marketing approach is counter to the traditional
automobile industry's marketing management approach which favors mass marketing
and mass production. A qualitative, exploratory research approach was adopted for this
analysis. Research was conducted via extensive secondary literature collection and data
analysis, as well as in-depth examination of case studies focusing primarily on Apple
Computer.

Key findings conclude that:

(1) the battery electric vehicle industry is poised for explosive growth;

(2) Tesla Motors is uniquely positioned to capitalize upon this growth opportunity; and

(3) a ‘new technology’-based approach to marketing management is central to

Tesla's current and future growth.

MGT 214 – Operations Management Page 7 of 11 Semester 212

SOCIAL RESPONSIBILITY

Employee Health and Safety at Tesla:

● Production employees are required to participate in a multi-day training

program before ever setting foot on the factory floor.
● Tesla provides zero-cost health care and benefits to full-time employee
positions.
● Employee engagement in health risk reduction measured by employee
suggestions, good observations, Find it-Fix it program and continuous
improvement ideas have increased from 3,000 engagements in 2017 to
almost 23,000 in 2019.

Carbon Emissions by Tesla:

● It has been estimated that internal combustion engine (ICE) vehicles, i.e.
vehicles that run on petrol produce 69 tons CO2 emissions during their
lifetime. Tesla electric cars, on the other hand, produce only a small fraction
of these.

MGT 214 – Operations Management Page 8 of 11 Semester 212

LAYOUT ANALYSIS

● Tesla, Inc. is a California company that manufactures electric cars

and electrical components for electric trains. A publicly traded
NASDAQ company with the TESLA logo, it posted a profit after 10
years in the first quarter of 2013. What has caught Tesla's
attention is its production of electric sedans, as practical as the
Tesla Model S. The company also sells lithium-ion battery packs to
international companies for use in

● electric trains, and the company's board of directors announced

that it seeks to mass-produce electric cars, to reduce their cost to be
within the reach of the average consumer.

● Company type:
● car factory — commercial establishment — contracting — business
— brand — organization — public limited company.

● Industries:
● Automotive Industry - Solar Power.

MGT 214 – Operations Management Page 9 of 11 Semester 212

REFERENCES

-https://www.shopify.com/ph/blog/8211159-9-simple-ways-to-write-

product-descriptions-that-sell

-https://money.usnews.com/investing/stock-market-news/slideshows/

upstart-tesla-competitors-to-watch

-https://www.tesla.com/about

-https://research-methodology.net/tesla-csr-a-brief-overview/

-https://www.tandfonline.com/doi/abs/10.1080/0965254X.2012.657224?

journalCode=rjsm20

MGT 214 – Operations Management Page 10 of 11 Semester 212

STUDENT WORKLOAD DISTRIBUTION

Student Name Workload / Delivery

Abdulaziz Salman Alharbi 1-COMPANY & PRODUCT DESCRIPTION
3910393 -Table of Contents
Obai Jeddawi 4.SOCIAL RESPONSIBILITY
4110932
3.GLOBALIZATION
Abdullah Faham
3713326

Yousef mohammed 2-QUALITY

3910647

5.LAYOUT ANALYSIS
Ali Mohammed Alali
4111390

MGT 214 – Operations Management Page 11 of 11 Semester 212