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Unit 4: Assessment of Tesla’s Human Resources Competitive Position

Student’s Name

Department, Institutional Affiliation

Course Name and Number

Professor’s Name

Due Date
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Unit 4: Assessment of Tesla’s Human Resources Competitive Position

Industry Competitive Position

One of the main reasons Tesla is holding the industry Position is the result of the

supercharger network. Tesla’s proprietary superfast-charging stations create efficient recharging

opportunities for Tesla’s electric vehicle drivers. This means that owners can get back on road in

minutes rather than hours which is a complete game changer in the electric vehicle industry. The

biggest benefits of the Supercharger network, so far completely unmatched, are how widespread

and well-integrated the network is for road trips.

The position of Tesla in the industry is also maintained by its advanced technology in

providing Tesla’s Software updates, according to Fortuna, B. C. (2020, July 16). Tesla provided

7 new software updates: improved traffic light and stop sign control, backup camera

improvements, dashcam viewer improvements, walkaway door lock improvements, new

language support, and cabin camera which are ideal on the road for Tesla drivers.

Tesla’s branding is a major factor for the prosperity of the company, it provides its

customers with exceptional products and good service. Tesla's branding targets the

environmentally conscious customers who are eager in contributing to a green, sustainable

future. No other company has an electric car on the market that comes close to the performance

or price ratio of the Tesla Model 3. The Tesla’s model S Sedan has won nearly every big auto

award, setting the stage for the Model 3 and other subsequent models.

Tesla has maintained its industry position following its dependable battery supply chain

giving Tesla’s a business advantage, as its batteries are generally considered to be better than

those of competitors. According to Team, T. I. (2022, September 1) The Tesla Powerwall 2 is a

DC energy storage system with a usable capacity of 13.5 kilowatt-hours per Powerwall.
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Comparator Group Competitive Position

Although Tesla is the leading manufacturer of electric vehicles, it is not the only one in

the industry, it experiences stiff competition from its competitors, this paper will mainly discuss

Volkswagen Group as a close competitor of Tesla, the paper aims to highlight the strategies

employed by Volkswagen group to be a productive company. In the past few years, Volkswagen

Group has reported an increase in its sells and growth in the market share.

Diversification strategy, Volkswagen’s revenue is much more spread across different

brands, types of products and geographic areas than its rivals’ revenues. Moreover, Volkswagen

offers many types of automotive and maritime products and financial services, which further

diversify company’s sources of income. The company’s wide brand portfolio allows to target

different consumer segments and satisfy their diverse needs better.

Another strategy employed by Volkswagen Group is that it possesses a wide brand

portfolio among all automotive companies, The company sells its products under 12 different

brands just to mention a few; Audi, Seat, Škoda, Bentley, Bugatti, Lamborghini and Porsche

brands, Ducati is Volkswagen motorcycle brand, Product which Tesla has not yet introduced in

the market, this has given Volkswagen group a wider market segmentation.

Volkswagen Advertising strategy, Aggressive promotional activities using social media

networks and online platforms including Twitter, Facebook, You Tube and Instagram help

Volkswagen remain at the top of the promotional game as competitors are increasingly heading

into online space. This advertisement has helped Volkswagen Group to gain number of sales.

Volkswagen also engages with other prominent brands globally via sponsored events like word

cup. Hence, this summarizes the entire Volkswagen marketing mix.

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Human Resources Risks

Human resource related risks can become a substantial part of business or company risks.

Human errors including management failures, forgetting to carry out an important part of a work

task, not passing along an important information to a colleague or manager, violating important

rules and procedures of the enterprise or even not complying with broader legal or ethical norms

and standards can occur in any area of an enterprise’s activity and can thus significantly

influence company´ ability to reach its goals. The source of these human resource risks can be

both intentional and unintentional. This topic will discuss the risks associated with human

resource while executing its tasks to ensure a smooth operation of the company.

Human Resource Risk Due to Ill-Conducted Hiring or Promotion Decisions

In the first case, this risks usually arise form ill-conducted hiring or promotion decisions or low

employee motivation, satisfaction or loyalty. Promoting employee from lower level to the higher

level brings about a feeling of satisfaction among the employees, However, If the wrong criteria

is followed during the promotion can bring dispute in the company or even a split in the

management. Tesla promotion decision should be based on the degree of work of employees and

not to on the bases of favors. This will increase the productivity of the company.

Errors caused by human resources related risks can be caused by a variety of specific

factors. Identifying the primary causes of these risks is thus the fundament of preventing them.

Such an identification should be based on examining all possible circumstances that influence

the behavior of employees in specific situations.

Human resource risks are quite often associated with incorrect employees hiring decisions.

Individuals who do not have the sufficient requirements for managing or higher responsibilities

positions promoted to positions they don’t deserve. The only way to prevent these situations is to
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timely recognize the warning signals of insufficient candidates´ requirements in the hiring and

promotion process. According to These characteristics are often overlooked in human resource

decisions, partly because their importance tends to be underestimated, partly because

organizations or their managers do not possess the skills necessary to fully identify them.

Volkswagen also has a good distribution strategy; their cars are available almost

everywhere throughout the world. Having assembling lines and manufacturing facilities in

several parts of the world. These includes Germany, Mexico, USA, China, India, Indonesia,

Russia and even recognizing Indonesia as a top destination for cars and van sales. In its latest

venture into Algeria, Volkswagen also launched a new production plant there to help boost

localizations levels and make cars cheaper.

Human Resource Risk Due to Improper Employee Motivation

Human resource related risks can also arise due to behavior of employees conditioned by

how their superiors or the enterprise as a whole manage and motivate them. These human

resource risks can be understood as risks caused by a failure of employee motivations. In this

sense, an imminent reason for unsuitable employee motivation, leading to specific behavior, can

be the actions of a superior. A similar, though reverse motivation failure situation arises when

some employees are not sufficiently sanctioned for not fulfilling their tasks correctly. In this

case, the enterprises actually “rewards” them for their flaws: the reward is that unlike others they

get away with their mistakes.

Human Resource Risk at the Employee’s Beginning Working Stage in the Company.

This type of risk arises when hiring employees. In many companies during the screening

procedure there is no stage of checking a candidate for compliance along with social norms,
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corporate standards and psychological stability, which means that there is a risk of negative,

often unintentional, employee’s actions in relation to the company.

Analysis

Risk management is a system of managing risks and financial or economic relations that

arise in the process of management itself, and also includes the strategy and tactics of

management actions and consequences that affect the enterprise. This can be achieved in various

ways; Most importantly is by Developing the decision algorithm. This stage exists in order to

divide the decisions that are planned into more detailed and simple solutions.

Another step in minimizing the risk associated with the human resources is Quantitative

risk assessment. For the successful enterprise organization, the risks should be managed but not

fight against, most of these management mistakes may commonly occur without the company or

individual manager would be aware of them. Moreover, human resource related performance

problems and organization shortcomings often remain disclosed to company managements

and/or tend to be attributed to other factor, commonly to causes on the side of employees.

Recruitment is the first task of any organization, which gives the first step to the creation

of an enterprise. Recruitment of new staff is a recurring action and of a very significant

consequence. It is important to note that the recruitment should be made as qualitatively as

possible and at minimal cost having in mind that promotion of new employees should be done

after evaluation of employees to promote the most productive candidates.

Human resources Opportunities

Human resource opportunities are the many opportunities to be pursued within the work

environment. The human resource e is responsible for recruiting, screening, and training job

applicants. Human resource in Tesla administers the employee- benefits programs and handles
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the employee benefits and compensation scheme and employees' promotion and termination.

Tesla interns are assigned hands-on projects and design challenges that constantly upend

conventions and push the boundaries of said interns. Students are advised to apply for Tesla

START, an immersive 12-week program where undergraduates develop their technical expertise

while preparing for jobs at Tesla or beyond (Furrier, 2020). Tesla is committed to providing an

equal and suitable for every employee to succeed, regardless of gender, age, and background.

Tesla provides employees and their families with medical, dental, and optical bill

coverage and a generous paid-off day for employees to rest and recharge. There are opportunities

for employees to improve their technique and skills to get promoted to more extensive posts at

work once an opportunity arises. Tesla offers employees opportunities to find their community at

Tesla with Employee Resource Groups (ERGs). Tesla's human resource management enables

employees to connect over shared interests and goals, as the human resource team supports a

diverse and inclusive work environment (Furrier 2020). Tesla, manufacturing facilities across

many countries, offers employment opportunities to people from different companies; also, they

have a program where some employees are transferred to work in different regions and countries

with compensation. Tesla has a culture and a management process that aims to help its

employees form patterns, which means they are creative thinkers and innovators. Because these

behaviors contribute to and maintain the company's effectiveness in providing the market with

products that others are not yet thinking about, let alone offering. This empowers employees and

makes them quite marketable in the automobile industry; hence they have an opportunity to work

with Tesla and more companies. Tesla gives equal opportunities with extra care and supports to

employees with disabilities, making it a friendlier and more relatable work environment.

Overall Assessment of the Company’s Human Resource Competitive Position

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Tesla’s mission is to accelerate the world to suitable and sustainable energy through its

innovation (Furrier, 2020). The human resource employs the best skilled and qualified

employees to work on innovation and production, a competitive strategy ensuring the company

produces commendable products. Tesla also adopts new techniques and designs frequently to

attract extra customers; producing a similar product every other time is tedious and viewed as a

lack of motivation and competitiveness in business. The company employs an intense work

schedule through human resources that keep workers on their toes. Through the intense work

schedule culture, the company attracts young, energetic, and innovative workers that can work

under schedule and pressure to meet the market demand and ensure the company produces goods

that compete with other companies to stay relevant in the market.

Human resource ensures that the company undergoes a strict and thorough recruitment

process. The employees are interviewed, screened, and undergo an intense background check to

determine their background, experience, accomplishments, and technical abilities (Furrier, 2020).

This process ensures the company has the best and most competent employees who offer the best

results and work for hand in hand with human resources to attain pre-determined goals. Since

balancing and improving productivity without sacrificing quality is considered a vast challenge,

Tesla's human resource team works hand in hand with employees to ensure they are reliable and

deliver to customers exactly as promised within the said time. This ensures that the company

maintains its loyal customers and attracts new customers, increasing its profitability and

relevance in the market. Tesla has a big focus on international competitiveness, and even after

and during the Covid 19 pandemic, Tesla managed to maintain international competitiveness

(Furrier 2020). Through human resource management and top management, Tesla has developed

ambitious plans and strategies in response to challenges through long-range battery technology
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that enables them to complete the production of high-volume and low-cost electric cars with no

fumes, noise, or dirt to millions. This attracts millions of customers worldwide; hence Tesla

efficiently manages its production and profit margin.

Tesla uses a competitive marketing strategy known as the four P's, which stand for

product, place, promotion, and price. They have a specific range of available products displayed

and found in the same places for years. Their sales promotion relies on viral marketing and

personalized selling, and finally, their pricing supports profits and customers' affordability. This

competitive strategy makes Tesla more accessible to the market, and customers tend to place

their preference on Tesla. Tesla continues to pursue innovation and the production of quality

products through the human resource management team, ensuring the company earns profits,

maintains its best employees, and maintains quality and timely production (Furrier 2020). They

ensure that Tesla is among the most competitive companies in the automobile industry. Just as

every company differentiates its products by creating different products to fit different

customers, Tesla also uses different incentives to motivate its customers and retain top talent,

boosting its competitive advantage.

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References

Fortuna, B. C. (2020, July 16). Tesla's 5 biggest competitive advantages. CleanTechnica.

Retrieved October 21, 2022, from https://cleantechnica.com/2020/07/16/teslas-5-biggest-

competitive-advantages/

Han, J. (2021). How Does Tesla Motors Achieve Competitive Advantage in the Global

Automobile Industry? Journal of Next-generation Convergence Information Services

Technology Vol, 10(5), 573–582.

Harris, M. (2010, 30 May). High cost of disengaged workers. Business Times. Business Times

Mangram, M. E. (2013). Tesla Motors: A Balanced Scorecard Approach to More Effective

Performance Management--Case Analysis. Journal of Strategic Management Education,

9(1).

Sathish, S., & Week, E. Case Study of Tesla.

  Team, T. I. (2022, September 1). Who are tesla's (TSLA) main competitors? Investopedia. Retrieved

October 21, 2022, from https://www.investopedia.com/ask/answers/120314/who-are-teslas-tsla-

main-competitors.asp