The Concept of Strategic Audit of Tesla Motors Inc

The Concept of Strategic Audit of Tesla Motors Inc Order Instructions: Using the guides and resource suggestions listed in Chapter 12, perform a strategic audit of Tesla Motors, Inc.

The Concept of Strategic Audit of Tesla Motors Inc
The Concept of Strategic Audit of Tesla Motors Inc

A good starting point is the company’s investor relations website at:
The audit should include the following:
I. Current Situation
a. Current Performance
b. Strategic Posture
II. Strategic Managers
a. Board of Directors
b. Top Management
III. External Environment
a. Natural Environment
b. Societal Environment
c. Task Environment
IV. Internal Environment
a. Corporate Structure
b. Corporate Culture
c. Corporate Resources
V. Analysis of Strategic Factors
b. Review of Current Mission and Objectives
VI. Strategic Alternatives and Recommended Strategy
a. Strategic Alternatives
b. Recommended Strategy
VII. Implementation
VIII. Evaluation and Control
Unoriginal Content:
Your essay may contain no more than 10% quotes from other sources. Paraphrase what you read instead of copying and pasting. You may not re-use work that you have submitted in previous classes. All work in this class must be original.
Essays that contain more than 50% unoriginal content will not earn any credit. Essays that contain between 10% – 49% unoriginal content will receive a substantial point deduction. Paraphrase instead of copying and pasting. Please note there is a difference between unoriginal content and plagiarism. Unoriginal content is correctly quoted and cited. Plagiarized sentences and paragraphs are not correctly quoted or cited. Plagiarism will result in an automatic zero for this assignment.

The Concept of Strategic Audit of Tesla Motors Inc Sample Answer


The concept of strategic audit has attracted a global debate. Experts in the business sectors outline that it is always easy to venture into the same but on the contrary, to make it successfully grow is a real task thereby fostering the need for audit and evaluation.  Nonetheless, both business specialists and intellectuals agree on the importance of the same. Hence, a strategic review is viewed by writers as the assessment of a firm’s tactics as well as business policies with the aim of scrutinizing the flaws and faults so as to spur the excellent growth of the enterprise.

Nevertheless, the paper shall endeavor to do a strategic audit for Tesla Motors Inc. on the current situation of the firm both on performance and strategic posture as well as strategic managers including the board of executives and topmost management. Furthermore, it shall cover external environment entailing essential, task and societal; internal environment comprising of corporate structure, culture, and resources; SWOT analysis of strategic factors, review of mission and objectives. Finally, it examines strategic substitutes and optional strategy, implementation; evaluation and control.

Current Situation: Current Performance and Strategic Posture      

According to the firm’s website, it has so far released four models and its whole stock quote of about two hundred and nineteen. Wholly the boards of directors and top administration have so far highly performed to sell the products as well as make them cheaper to the purchasers as outlined in the organization’s goal. Furthermore, Tesla sells their automobiles from their silos as opposed to others that do the same through dealers and distributors (Hirsh, 2014).

On current strategies, it has opened several Tesla have begun their stores on malls whereby even buyers of cloths can see their products. The potential buyers can thus select and order their preferred car model and color thereby reducing time wasted in negotiations as well as having an unsatisfied customer. Based on the scholars’ emphasis, that is bestowing to the world’s controls (Hoffman & Zimbelman, 2009).

Strategic Managers: Board of Directors and Top Management

The strategic role of the board of governors and chief executive officers, according to the firm’s website is to aid in the success of transformation by articulating its importance, arousing the potential interests of the buyers, motivating the staff as well as getting personally involved. Board of Governors has set very tough standards for the company’s directors, officers as well as employees. The Tesla websites alert that there is a prudent liaise control. Furthermore, the board of governors is also entrusted to serve as the link between the firm and shareholders as well as supervising the daily running of the stocks trades (August 2013).

According to the web released by the company, the board of governors has set aside measures to help them fulfill their mandate including together with obedience to the already stipulated method’s rules. Furthermore, empowering workers to open dialogue; cooperate opportunities, reduced inside trading; protection of safety and health, fighting against prejudice and embarrassments; promoting confidentiality; elimination of corrupt dealings; safeguarding the company’s assets. Additionally, following compliance protocols; the set ethics that they govern include conflicts of interests, adhere. All that team is gender balanced, have well-stipulated roles as well as professional training as required by international requirements. Finally, top supervisors and managers are mandated to take charge of various departments (Hirsh, 2014).

III. External Environment: Natural Environment, Societal Environment, Task Environment

Tesla’s aim is to produce an automobile that doesn’t use diesel that pollutes tother Nature; that’s according to the corporation’s Chief executive officer. Also, the societal expectations are catered for through periodic engagement with their representatives, and finally, the task environment is met by the stationed engineers at the enterprise’s malls (Buchanan & Gibb, 2008).

Inside Setting including all business beliefs, assets, and arrangement

According to researchers, the internal environment is very crucial to a strategic audit of any firm. However, Tesla has a well-outlined structure with the top most being the board of directors and junior most being the sales representatives. The entire group is well coordinated, inculcated with a culture of valuing feedback from clients, excellent communication skills, as well as recommended methods of delivery. To add to the list, the firm has resources including updated information technology gadgets, tools as well as sound engineering models (Buchanan & Gibb, 2008).

Strategic analysis, SWOT

The strength of Tesla Motors stem from its diverse innovation in the automobile industry. The electric vehicle manufacturing expertise has resulted in the production of very high quality vehicles that have earned the highest rating in safety provisions. The model S boasts of excellent features that include autopilot, all wheel double drive and free elaborate over-the-air electronic software updates.

The opportunities available for Tesla Motors include widespread adoption of electric vehicles that have created a ready market for Tesla Motors globally.

The strength of the company includes: it only produces electric automobiles as opposed to other firms, it is the first business to build up a whole microelectronic carriage, balanced cord of ethics both for the board of governors and top executive (Tesla Motors, 2014). However, the demerits comprise higher manufacturing expenditure, limited renewing locations and reduced sell-ability due to underdevelopment in many continents (Robins, 2014).

Nevertheless, the firm has prime opportunities to capitalize on for the better good including more demands on electric motors due to fluctuation in oil prices; the globe is moving towards safeguarding the environment from pollutions from smoke thus the need to have electronic machines, the firm can consider using solar panels to replace batteries. Despite all the openings, the company has quite some threats in the ever-changing business world. For instance, stiff competition from larger firms dealing with the same, the electric engine is more expensive than combustion engines (Robins, 2014). The threats include intense competition from lean and efficient multinational companies. The global economic crisis also poses a constant threat to the existence of medium manufacturers that survive on a relatively small margin.

The weaknesses of Tesla Motors include its inability to be repaired in the most market while its durability and longevity are still to be proved. Limited supply chain creates a big problem whenever interruptions in supply chains are registered (Tesla Motors, 2014).

Review of Current Mission and Objectives

According to the enterprise’s website, Tesla’s mission is to move to a sustainable electronic and solar economy from ancient hydrocarbons economy. However, to achieve the mission, vision is also of fundamental significance; to grow the most attractive automobile enterprise in the 21st Century through switching the global to electric vehicles. Moreover, to realize the stated mission, Tesla must do regular strategic audits so as to compete effectively with other giant diesel and petrol firms. The investigation ought to include external, internal, industrial as well as competitive. Therefore, the vigorous evaluation would be able to determine any change in the market demands and policies plus inventions from other surrounding syndicates (Hirsh, 2014).

Deliver self-independent evaluation of financial, supervisory plus job perils and regulate the firms’ board and top management effectiveness. The company shall aid in control professionals so as to minimize hazards, better quality of the whole course so as to enhance better performance in spreading its aims (Buchanan & Gibb, 2008).

Professionals in the same field outline that Tesla additionally has to do the right order of the raw materials, assemble them in the right proportions and dimensions, do vigorous drive tests, invest in advertisements and seek support from the environment agencies. Hence, displaying the merchandise in easily accessible stores, offer after sales services, sell policies to the potential buyers on a serious note are all important assignments. Finally, training company models and Tesla ambassadors, do a collaboration with other developing nations that are promising to be future clients as well as packaging and exposing on billboards (Hirsh, 2014).

The Concept of Strategic Audit of Tesla Motors Inc Objectives

To come up with a sustainable and inclusive procedure that would determine both inside and outside risks that could slow down the successes of the firm’s strategy and goals. (Hirsh, 2014).

To team up together with additional risk management roles to minimize incurring of threats

To systematize findings for regular communications

Legalize internal review booklet with all staff (Hirsh, 2014).

Strategic Alternatives and Recommended

The corporation could consider investing and strategizing in areas where they are most likely to face challenges before they occur like refilling stopovers, spare parts fall outs and breakdowns. Having strategically placed mechanics dealing with wiring and general repairs could also help actualize the strategic plan. Alternatively, do a low-cost electronic vehicle that would give it an upper hand in the flooded and competitive market. Tesla’s is to get into the furthest periphery of the market whereby buyers are ready to cater for premium for their products as well as insurance policies. That would indemnify customers on behalf of the organization so as to save massive expenses of replacements when technicalities arise thereby saving on raw material and manpower (Hirsh, 2014).

After obtaining the aim of making the profit from most admired Roadster model, the demand shot up for its products; thus, the sales were reinvested to create a more pocket-friendly S models that earned the company several international awards according to the corporation’s website. According to the company’s Chief, from the sales, prototypical X was introduced with even reasonable charges. Moreover, the institution plans a launch of a new model in 2017 that shall even attract more customers (Hirsh, 2014).

According to the report, the firm is selling vans directly to the buyers through their showrooms located within the business malls where several people and general public go for daily routine commodities such As watches, clothes, large monthly shopping as well as quick beverages. The strategy is to ensure the potential purchasers freely view the newest models, and their prices are hence influencing their decision. Extra so, they get to see the first gadgets and get advice from the well proficient vendors. Also, by making direct sales, the firm eliminate middlemen such as dealers and brokers who may not in all cases give the accurate information on model quality and prices. Hence, customers shall be preserved from hecklers that stand to defraud them or charge higher prices than the usual prices (Hirsh, 2014).

According to the professionals, investing in employees’ welfare can considerably raise theirs. Hence, Tesla has to have well regularly revised policies of the staffs ethical, health and financial status so as to achieve the strategic plans and objectives. Compensations when injured in the line of duty, methods and criteria of promotion should be well stipulated so as to meet international standards (Hirsh, 2014).

Moreover, having well-structured training guideline will be essential in the realization of the set aims. Board of management should offer routinely upgrading that cover on the role of manufacturers and people in environmental health, globe ethical standards, and federal laws safeguarding her tax contributors in their respective countries. When done, general know how shall exponentially grow on customer relations thereby substantively skyrocketing demand (Buchanan & Gibb, 2008).


According to the firm CEO, the important factors that could affect actualization of the strategic plan are an outline of the business, clients, leadership, and organization systems plus procedure. Just to start up the discussion, the firm structure should constantly always be accurately revised and examined whether it is helping achieve the outlined objective; necessary measures like reducing the number must be taken when necessary. The procedure should smoothen communication modalities from seniors to juniors since any interference with the flow shall adversely affect operations and service delivery. On the other hand, customers shall also have sound and accessible mechanisms of relaying their issues such as placement of order, selection of model, compliments and complaints thereby give them a sense of satisfaction (Hirsh, 2014).

Writers stress that Tesla to achieve these, organization goals must be all translated into action objectives. Without which all the strategic plan shall be tendered into are to little paperwork; all managers, stake holders, as well as a technical team, must channel their efforts towards the general good of the firm by all means needed to remain relevant in the market (Robins, 2014).

Evaluation and Control

The managers of Tesla Motors must make sure that the enterprises implementation strategic plan are occasionally reevaluated by comparing with the previous years or other competing companies like Honda, Nissan, and Toyota so as make current decisions such as the type of model to be released, prices as well as the date. Always make necessary amends to the structure together roles so as to be at par with the current market trends. To borrow from the corporation’s history, in by 2013, the firm planned to make and sell SUV-X model and sell it by 2014, however, when the strategic evaluation was done; the launch was postponed to the last half of 2015 ( White, 2013).

The Concept of Strategic Audit of Tesla Motors Inc Conclusion

To sum it up, from the above details, discussions, and scrutiny, it is evidenced that sound strategic audit is of practical importance to every organization that would wish to grow to an international level. Tesla Motors hence has well formulated an achievable flowing business plan and based on the audits it is doing well. To prove that, the organization developed a very attractive and expensive model which the author retaliates caught the attention of the national government and buyers. After which, the company began to grow even more expensive makes which gave them divers kinds of awards from that came along with money acknowledgments thus, according to Tesla’s website, the ministry provided the substantial incentives which helped make the debts. The firm had a comprehensive tactic to excel. Nevertheless, there is the need to control periodically and evaluate all the processes about the new models despite previous successes so as to consistently minimize the chances of incurring unnecessarily loses.

The Concept of Strategic Audit of Tesla Motors Inc References

August, N., (2013). Tesla 4th model-Affordable EV-To come in 2017. Retrieved from: on 16th July 2014

Buchanan, S., & Gibb, F. (2008). The information audit: Methodology selection. International journal of information management, 28(1), 3-11.

Chatterjee, K., Morton, S., & Mukherji, A. Strategic Audit Policies Without Commitment. PARETO OPTIMALITY, GAME THEORY AND, 407.

Hirsh, J., (2014). Elon Musk Opens up Tesla patents to everyone. Retrieved from: on 15th July 2014.

Hoffman, V. B., & Zimbelman, M. F. (2009). Do strategic reasoning and brainstorming help auditors change their standard audit procedures in response to fraud risk?. The Accounting Review, 84(3), 811-837.

Kanellos, M.,(2014). Toyota Phasing Out Battery Deal With Tesla In Its Long Running Beef With Batteries. Retrieved from: tesla-in-its-long-running-beef-with-batteries/ on 15th July 2014.

Olsen, E., (2014).internal and External analysis. Retrieved from: on 15th July 2014

Robbins, S., (N.D) What CEOs do? A CEO job Description. Retrieved from: on20th July 2014

Tesla Motors (2014) Tesla Motors Annual Report, Form 10K retrieved June 10, 2016, from file:///D:/Tasks%202/Tesla%20Motors%20-%20Annual%20Report.htm

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