Impact of CEO’s behavior on promotion

The growth of the organization is dependent on the involvement of the relevant stakeholders in the processes of the business operations. The different marketing and promotional approaches that are undertaken by the businesses helps in maintaining the sustainability of the same. The report “Can Tesla Avoid a Breakdown?” projected the offhand behavior of the CEO Elon Musk towards the analysts. On the other hand, he refused to reveal different details of the company’s monetary situation to the stakeholders, which has affected the involvement of the same as per the growth objectives of the business. The promotion of the Model 3 of Tesla is thereby affected by the vague answers that were given by Musk.  Tesla’s stock dropped by 6%, as the suitable promotional activities that were planned by the organization was affected by the lack of marketing communication systems (Gao-gao,   Chang-jie & Qing-yun,  2012). The stakeholders, specifically the investors invest on the progresses of the business through a thorough knowledge on the position of the business while operating in the international markets. However, the lack of proper knowledge transfer and refusal to share the financial and technical status of the organization with the stakeholders of the business has affected the involvement of the same.

The discussion will be aiming at analyzing the internal and the external environments of the business. The research will also portray the different recommended strategies that might be undertaken by Tesla in order to promote the Model 3 in a more efficient manner and thereby enhance the involvement of the stakeholders in the processes.  

Efficient marketing strategies have helped the organization in identifying the demand of the customers and the different market segments. Tesla has undertaken market survey in order to  identify their target customers who are the successful business executives and entrepreneurs. The target customers of the organization are generally the upper middle class and the middle class segment of the society with high affordability for the electric motors. Moreover, Nykvist  and Nilsson (2015) stated that the segmentation of the customers is based on their typical incomes of over $ 100,000 or more. However, with time the organization has brought about changes in their pricing strategies, which has helped in making the cars more affordable for the other segments of the markets. It has helped the business in upholding the uniformity of the demand in the international markets. The major aim of the organization is to reach out the eco- friendly cars to the people in order to promote the green approach.

Internal and external environment of Tesla

The strategies that are undertaken by the business have helped the same in enhancing the sales volume of the business while operating in the international markets. Cardoso,   Nishi  and Guimarães (2016) stated that the easy availability of the cars due to the reduction of the prices has made the cars more affordable for even the middle income rated people. The strategies of the business has helped in maintaining proficiency of the changes  in the systems of the business as per the objectives. On the other hand, the digital promotional activities that are planned by the business has supported the growth of the same while operating in the highly competitive regions. 

On the other hand, the Porter’s five- force analysis of the organization has helped in enumerating the competition that is faced by Tesla and the different supplier and consumer bargaining powers that shapes the promotional and product development factors. Tesla faces an intense competition in the electronic car developing markets, as there are different other manufacturers of the electronic vehicles. Therefore, the organization must take steps to bring in changes in the promotional methods in order to cope up with the increasing competition in the diversified international markets. The bargaining power of the consumers depends on the low switching costs, which is taken to be a moderate force that justifies the performance of the business. The availability of substitutes in the market is lower which has helped in maintaining the smooth functioning of the systems of the business while operating in the international markets. Tesla’s operations are mainly based on the supplies that are given by the suppliers in continuous intervals. It has helped in upholding the operational integrity of the systems of the business while operating in the international markets.  Therefore, the organization has taken steps to maintain proper relations with the suppliers in order to support the smooth functioning of the processes of the business (Wang  & Liu,  2014).  The threat of new entrants is a negligible force which is faced by the organization as there are relatively lower amount of manufacturing units who are focused on creating electronic motors due to the high cost of machineries required for the manufacturing process.   

The strategies that formed by the organizations are mostly dependent on the evaluation of the internal and external environments. The internal and external environmental analysis  undertaken by the organization helps in identifying the position of the organization in the market and thereby bring in changes in the operating systems  in order to gain a competitive advantage while operating in the different markets.

Strengths · Brand image · Continuous innovative approach of the organization · Technological expertise · Growth in the sales volume	Weaknesses · High Cost vehicles affecting the affordability of the commoners · Limited presence in the markets · High competition among the small amount of competitors · Higher production and operating costs
Opportunities · Growing demand of the sustainable commodities · Introduction of autonomous technologies · Low priced models for the middle income people	Threats · Legislative regulations and environment protection acts often constrains the functioning of the business · High competition in the market · Lower promotional practices through digital media (Wang  & Liu,  2014)

Strengths, weaknesses, opportunities, and threats of Tesla

The identification of the internal strengths and competencies of the organization helps in upholding the proper processing of the business. As per the case, Tesla must take steps to develop a suitable digital promotional media in order to bring in changes in the systems of the business while operating in the international markets. The continuous innovative approach of the organization and the automation of the driving technologies will be maximizing the scopes of expansion of the business. However, promotion of the same in the international markets will be helping the organization in maintaining the proficiency of the functions as pr the objectives of the business (Daxing,  2015). The organization has also taken the initiative of creating electronic vehicles at a much lower price, which will be helping the same in maintaining a larger customer base. It will be helping the organization in making an expansion of the ventures.  In order to cope up with the high level of competition in the markets, the organization has undertaken continuous innovative approach. The continuous innovations that are undertaken by the organization supported the sustenance of the same. The most important threat that is faced by the organization is due to the lack of proper promotional practices, which has affected its marketing functions greatly. Lack of proper knowledge of the organizational undertakings and financial standings of the business has affected the involvement of the stakeholders and investors in the processes of the business. It has greatly affected the functioning of the business while considering its concerns of sustaining the intense market competition.  Cardoso, Nishi  and Guimarães (2016) stated that the proper functioning of the business processes is supported through the marketing and promotional activities.  Therefore, the organization must take steps to develop suitable promotional technologies in order to support the performance and sustenance in the competitive market situations.

Political	· Governmental incentives that are delivered to the organization for the growth of the sustainable electronic vehicles · Global trade agreements has enhanced the scopes of the organizational expansions · Political stability in most of markets has helped in the growth of the businesses  (Kreiner et al., 2012)
Economic	· Decreasing costs of installing renewable energies · Fluctuations in the global economies mostly due to the Brexit effect has led the organization to undertake  a price hike by 5% at UK in order to compensate with the falling pound’s value (News, 2018). · The decreasing battery costs have helped the organization in minimizing the costs of operations, which has helped the business in minimizing the cost of each cars.
Social	· Increasing awareness among the people in the different markets and their inclination towards reducing the carbon emissions holds opportunities for growth in the diverse markets. The change in the systems of the business will be based on the change in the preferences of the customers (Van Wiemeersch,    2014).
Technological	· Technological advancements have helped the organization in maintaining their sustenance in the different markets. The adaptability of the people to the different emerging technologies has helped in maintaining the congruity between the changes and the preferences of the customers (Stolze,  2014).    · Automation of the business applications has provided the organization with scopes of expansion (Chen  & Perez,  2018).
Environmental	· Expansion of the environmental legislations will be affecting the operations of the organization. The different processes that are undertaken by the organization might emit a considerable amount of waste that might contaminate the region (Moritz et al., 2015). However, the waste is insignificant, as the organization utilizes different filtration methods before disposing the wastes in the open environment (D’Hooge et al., 2012).  However, the different waste management regulations that are proposed by the environment departments might affect the smooth functioning of the businesses.
Legal	· Different energy consumption regulations that are imposed by the governments affects the proper functioning of the systems of the business while operating in the international markets (Martin,  2014). · The different trade acts and regulations also affected the proper functioning of the systems of the business while operating in the international markets.

The expansion of the business is based on the wide acceptance of the eco- friendly techniques that are undertaken by the businesses while operating in the international markets. On the other hand, the smooth operations of the business are based on the continuous innovations that re undertaken by the businesses. However, the organization must take steps to utilize the social media channels in order to promote their pro duct offerings (Stringham,   Miller  & Clark,  2015). It will be helping the organization in making most of its target customers aware of their accomplishments. The utilization of digital promotions will be helping the organization in making their progression while operating in the international markets. On the other hand, Hardman,   Shiu  and Steinberger-Wilckens (2015) stated that the organization must also take steps to innovate more n the automation technology of the cars which will be helping the business in maintaining a competitive edge over the other players in the market.   

Recommended strategies for Tesla

The factors that might be affecting the organizational performance in the future are due to the slow production process of the cars. The different threats that are faced by the organization are due to the huge demand that is faced by the organization and the inability of the business to meet up with the demands for insufficient resources. Nykvist  and Nilsson (2015) stated that the proper functioning of the systems is based on the financial plans of the business. In this regards, the organization’s long term financial planning is based on the sales of the Model S which will be boosting the activities planned by the business.  In order to meet the demand of the customers, the organization must take steps to compound its productivity (Mangram,  2012). On the other hand, the sustenance of the business is based on the continuous innovative approach of the organization while operating in the international markets.  

Conclusion

Therefore, from the above analysis it can be stated that apart from continuous innovations and eco friendly approach, the organization must also focus on the promotional techniques in order to maximize awareness among the customers of their venture. On the other hand, the internal and external environmental analysis has emerged the issue of the production lag of the business, which has affected the demand. Therefore, the strategies that are planned by the organization is being stated in a part of the discussion, which will be helping the organization in optimizing its productivity and thereby bring in changes in the systems of the business while operating in the international markets.   

References

Cardoso, A.H.D., Nishi, E.H. & Guimarães, R.S., (2016). Turbocharger Actuator Influence on Commercial Vehicle Performance and Emissions Powered by Diesel Engines (No. 2016-36-0334). SAE Technical Paper.

Chen, Y. & Perez, Y., (2018). Business model design: lessons learned from Tesla Motors. In Towards a Sustainable Economy (pp. 53-69). Springer, Cham.

Daxing, H., (2015). Coordinated Control Optimization of Composite Braking System of Hybrid Electric Vehicle with Multi-Constraints. Journal of Chongqing Jiaotong University (Natural Science), 3, p.029.

D’Hooge, A., Palin, R.B., Johnson, S., Duncan, B. & Gargoloff, J.I., (2012). The Aerodynamic Development of the Tesla Model S-Part 2: Wheel Design Optimization (No. 2012-01-0178). SAE Technical Paper.

Gao-gao, S.H.A.H.G., Chang-jie, O.U. & Qing-yun, S.U.N., (2012). Study on Control Strategy for Regenerative Braking in a Parallel Hybrid Electric Vehicle. Vehicle & Power Technology, 2, p.008.

Hardman, S., Shiu, E. & Steinberger-Wilckens, R., (2015). Changing the fate of Fuel Cell Vehicles: Can lessons be learnt from Tesla Motors?. international journal of hydrogen energy, 40(4), pp.1625-1638.

Kreiner, P.B., Hermann, W.A., Kohn, S.I. & Baglino, A.D., Tesla Inc, (2012). Battery thermal event detection system using an electrical conductor with a thermally interruptible insulator. U.S. Patent 8,154,256.

Mangram, M.E., (2012). The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of Strategic Marketing, 20(4), pp.289-312.

Martin, C., (2014). Driving change in the battery industry. Nature nanotechnology, 9(5), p.327.

Moritz, M., Redlich, T., Krenz, P., Buxbaum-Conradi, S. & Wulfsberg, J.P., (2015), August. Tesla Motors, Inc.-Pioneer towards a new strategic approach in the automobile industry along the open source movement. In Management of Engineering and Technology (PICMET), 2015 Portland International Conference on (pp. 85-92). IEEE.

News, B. (2018). Brexit prompts Tesla to increase prices 5pc in the UK. [online] The Telegraph. Available at: https://www.telegraph.co.uk/technology/2016/12/22/brexit-prompts-tesla-increase-prices-5pc-uk/ [Accessed 4 Sep. 2018].

Nykvist, B. & Nilsson, M., (2015). Rapidly falling costs of battery packs for electric vehicles. nature climate change, 5(4), p.329.

Stolze, E.D., (2014). A Billion Dollar Franchise Fee-Tesla Motors’ Battle for Direct Sales: State Dealer Franchise Law and Politics. Franchise LJ, 34, p.293.

Stringham, E.P., Miller, J.K. & Clark, J.R., (2015). Overcoming barriers to entry in an established industry: Tesla Motors. California Management Review, 57(4), pp.85-103.

Van Wiemeersch, J.R., Ford Global Technologies LLC, (2014). Providing a charging event for a vehicle battery. U.S. Patent 8,751,062.

Wang, Y. & Liu, D., (2014). A study of mechanical and electrical compound braking force distribution strategy for electric vehicle. Control Engineering of China, 3, pp.347-351.