Tesla diversification strategy

Procedure
Read through Case 16: “Tesla Motors in 2016: Will Its Strategy Be Defeated by Low Gasoline Prices and Mounting Competition?” in the back of your textbook.

Carefully go through all chapters covered in your course and analyze the Tesla case within the frameworks available. Because this situation is fluid, there’s no correct or incorrect answer; what’s important is your application of course materials and the process of your analysis. Begin with a SWOT analysis, and then read through and thoroughly answer all the questions. When conducting your SWOT analysis, feel free to review the many business articles on Tesla, the stock chat message boards (for sentiment), and any source of information you feel is helpful. Remember to provide citations for any material you quote verbatim.

Your paper should provide answers to the following questions:

1. Create a SWOT analysis for Tesla. Refer to both Table 4.3 and Figure 4.2 in your textbook. List Tesla’s strengths, weaknesses, and potential opportunities and threats. Be sure to include these in your paper by either listing them or creating a diagram similar to Figure 4.2. Then write your conclusions and implications of the analysis. Lastly, provide at least two recommendations based on this analysis. Explain your reasons for these recommendations.

2. Based on what you’ve read about Mercedes-Benz acquiring a stake in Tesla and strategic partnerships from your text, what are the potential pitfalls of this alliance? Do these pitfalls apply in Tesla’s case, given their patent policy? Explain why.

3. What type of diversification strategy does the launch of Tesla Energy represent: related or unrelated? Explain why. Does Tesla Energy’s new business meet the three tests of corporate advantage?

4. What kind of vertical integration strategy did Tesla choose for its distribution and supply chains: backward or forward integration? What are the advantages of its chosen strategies? What are the disadvantages?

5. In reviewing Tesla’s manufacturing strategy, does the part of Tesla’s value chain it outsources make strategic sense? Explain why or why not.

6. Which of the five generic strategies is Tesla pursuing with its marketing strategy? Explain.

7. What are the key elements of Tesla’s culture? What problems do you foresee that Elon Musk will have in sustaining that culture amid growing competition? Explain.

Grading Criteria
The following is a breakdown of how your project will be graded:

1. Content 85%

· Question 1: 25 points

· Questions 2 through 7: 10 points each

2. Written communication 10%

3. Format 5%

Here’s a brief explanation of each of these criteria:

Content
The student

· Provides clear answers to the assigned questions

· Addresses the questions in complete sentences, not just simple yes or no statements

· Provides a clear analysis of the assigned topic and presents reasonable conclusions with appropriate supporting information

· Writes in his or her own words and uses quotation marks to indicate direct quotations

· Uses at least three other sources. At least one of these sources must be found through the Penn Foster online library.

Written Communication
The student

· Answers each question in a complete paragraph that includes an introductory sentence, at least four sentences of explanation, and a concluding sentence

· Uses correct grammar, spelling, punctuation, and sentence structure