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TABLE OF CONTENTS
TESLA
INTRODUCTION
3
ORGANISATIONAL STRUCTURE
3,4,5
ORGANISATIONAL CULTURE
5,6
WALMART
INTRODUCTION
6,7
ORGANISATIONAL STRUCTURE
7,8
ORGANISATIONAL CULTURE
8,9
BIBLOGRAPHY
12,13
TESLA
INTRODUCTION:
that manufactures, designs and sells electric automobiles, battery and solar
panels. Tesla motors was founded in 2003 by Marc Tarpenning and Martin
Eberhard in California, USA. Elon Musk joined and become the co-founder of the
Schreiber, 2019) Tesla is not just unique in its business idea, it also extends to
ORGANISATIONAL STRUCTURE:
motors, does not have any known management structure unlike many
companies of its size. There is no public list of senior leaders nor any particular
organizational chart. “Musk has long expressed contempt for rigid reporting
nimbleness and flexibility over a clear chain of command.” (Hull and Pogkas,
2019) Somehow, after searching for public refernces and interviewing the
current and former employees of the organisation. A list of key executives was
departmentalisation.
Chief designer
Franz von Holzhausen
Chief Designer
Dr. Michael
Schwekutsch
VP, Global
Supply Chain
Karn
Budhiraj
VP, Global
Supply
Management
Roshan
Thomas
VP, Global
Supply Chain
Stuart
Bowers
VP,
Engineering
As we can see in the above table, Tesla motors has many divisions such as energy,
engineering and
production, HR & safety, software, legal & finance and sales. As shown in the table,
there are several VP’s
for each division except for one i.e. software which has one VP and artificial
intelligence director leading it.
Tesla benefits a lot from this type of organizational structure from many other
companies of the same or
similar size. As this type of structure has less bureaucracy than others and it also
helps in increase in speed
Tesla motors is going through reorganization and making considerable changes which
are vital for the
success of the organization. CEO Elon musk sent a memo to the employees stating
“To ensure that
functions where sensible and trimming activities that are not vital to the success of
our mission.” (korosec, 2019)
Organisational culture:
Organisation culture can be defined as set of values, beliefs and assumptions that
govern an organisation
related people. An organization's structure has an effect on an organization's culture.
Tesla’s mission is “to
accelerate the world's transition to sustainable energy.” The cultural values of Tesla
employees is to move
fast, do the impossible and constantly innovate. The routines and rituals of the
employees is to think like
owners and reason from first principles. Thinking like owner’s supports the companies
mission and vision
principle focus on acknowledging root factors for understanding and solving the real
world problems. There
culture, where employees are asked to find out the problems within or outside the
organisation and asked to
find a solution. Tesla’s culture also allows the employees to communicate to anyone
without anyone’s
permission. “Anyone at Tesla can and should email/talk to anyone else according to
what they think is the
manager without his permission, you can talk directly to a VP in another dept., you
can talk to me, you can
talk to anyone without anyone else's permission.” (Bariso, 2019) Tesla works on the
safety of the employees
working at the factory, production line. Safety of the employees at the Fremont
factory is already very less
than the NUMMI who operated the factory till 2010. (Shelby, 2019 )
(Shelby, 2019).
WALMART
INTRODUCTION:
countries with 11,200 stores and runs e-commerce websites in 10 countries. Walmart
creates job
opportunities for 2.2 million people approx. globally and 1.5 million alone in USA
(Corporate - US, 2019).
Walmart has good organizational structure and culture for these employees.
ORGANISATIONAL STRUCTURE:
Due to the large size of the company, Walmart's organisational structure is highly hier
archical. This type of
feature relates to the vertical lines of authority and command in the organisation. For
example, every
employee has a superior, except for the CEO of the company. The hierarchical
structure of Walmart is
(Hierarchy Structure,
2019)
human resource management and many more. The key feature behind hierarchical
functional is ability of the
manager to easily influence the workings in the organization. Like, any new policy is
made at the
headquarters of the company then it is passed on to regional managers and its easily
communicated to the
store managers.
Regional VP: He is responsible for all the operations in his particular region.
In-store managers:
The cashier: He is supposed to check with cash counter and fulfill billing
responsibilities.
Customer support: He is to check with the customer related issues that may
arise or are being faced.
(Hierarchy Structure, 2019)
ORGANIZATIONAL CULTURE:
Organizational culture depends on the shared values, beliefs and assumptions. The
values carried by
the employees are – service to the customers, respect for individual, strive for
excellence and act
with integrity. Each value has its own set of behaviors which when practiced
by employees help in business results and create a culture. For example, the service
to customers is
associated with customer first, frontline focused & innovative and agile. Respect for
individual says
listen, lead by example and inclusive. Strive for excellence is about high performance,
accountable
and strategic. Act with integrity means being honest, fair and courageous. (Corporate
- US, 2019)
everything they do at Walmart. It is how they deliver good customer service and
improve
performance to achieve their common purpose i.e. saving customers money so that
they can live
better. The artifacts of Walmart are Sam’s Walton’s Cap, Photo of Sam, Rosalind
Brewer; “Game
Changer”, Valeda Snyder, Save money. Live better. and Walmart organic produce.
(Corporate - US, 2019)
Walmart encourages its employees by promoting them to next level. Every year
160,000 employees
PESTLE ANALYSIS
SOCIO-CULTURAL TECHNOLOGICAL
Improving popularity of low Technological developments by
carbon lifestyles. its competitors and Tesla.
Improving preferences of Improvement of automation in
renewable energy. business.
Improving wealth distribution Technological impact on the
in markets. products offered by Tesla.
Culture (social convention, Impact of technology on cost
gender roles etc.) structure in auto
manufacturers.
LEGAL ENVIRONMENTAL
Company rights. Climate change/ weather.
Patent laws. Increase of concern in harmful
Employment law. gases due to automobiles.
Health and safety law. Laws regulating environment
Data protection. pollution.
Energy consumption Rising standards of waste
regulations. disposal.
Dealership sales regulations.
POLITICAL:
Political factors identifies the governmental decisions impact on the macro
environment of the
business. Tesla can strengthen financial position from the incentives offered by the
government. “The
also plays a key role in a political factor. For example, Tesla uses ample of cobalt as a
raw Material.
Democratic republic of Congo produces 60% of world’s cobalt . (Barrera, 2019) “Amnesty
International’s research has shown that cobalt mined by children and adults in
extremely hazardous
conditions could be entering the supply chains of some of the world’s largest car
makers. (Amnesty.org, 2019)
ECONOMICAL:
In this part, we would deal with the economic factors affecting the macro
environment. Tesla benefits from
its low battery costs compared to its competitors. “A report by the Financial Times, UBS
has conducted an
analysis of battery production costs for various manufacturers and concluded that Tesla enjoys a
20% cost
advantage over its closest competitor.” (Hanley, 2019) So, this acts an opportunity for the
business.
Changes in foreign exchange rates can be said as one of the most interesting factors. Tesla being
operating in
many countries and having more of international scope there would be foreign currency
transactions too. For
example, according to Tesla annual reports the company had recorded loss in foreign currency
exchange rates of
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14
41.5 million and 18.5 million in 2018 and 2016 respectively whereas it also recorded a gain of 62.6
million in
2017. As seen above there can be profit or loss. So, the foreign currency exchange rates are
considered to be one
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slept on the floor of his factories. [online] Business Insider. Available at:
https://www.businessinsider.com/elon-musk-doesnt-have-office-desk-sleeps-on-
https://www.sec.gov/Archives/edgar/data/1318605/000156459018002956/tsla-
19. Shelby, L. (2019). Becoming the Safest Car Factory in the World. [online]
https://blog.trade.gov/2016/01/27/automotive-products-expanding-a-key-