2.0: Background of the study
Tesla automobile was established in 2003 by a gathering of risk-taking specialists from Silicon Valley who set out on a mission to demonstrate that electric vehicles could be the standard vehicle decision of this generation. The Tesla association has confronted intense pundits since the long early stretches of its set of experiences because it is still a generally new organization compared to the Renaults and Citroens of the motoring world (Sovacool et al., 2019). Regardless of the opposition, the organization has re-imagined the way that the world sees electric vehicles. The organization endeavored to defy expectations and turn the car business on its head, testing customary vehicle assembling and proprietorship. The explanation that Tesla trend-setters attempted to switch things around by commercializing the electric vehicle was to profit drivers, the economy, and the climate.
Tesla founders came up with only one goal, “to accelerate the world’s transition to electric mobility with a full range of increasing affordable electric cars” (Koppelaar & Middelkoop, 2017). In order to achieve its goal, the company made adjustments in its organizational structure with clear roles by the manager, employees, and the best strategies to succeed in the competitive market. The company has been experiencing consistent growth and increase in its sale of electric vehicles due to bold leadership from CEO Elon Musk. Tesla management also has to develop a competitive business model and open innovation through extensive market research and development. Tesla has become the best player in the automotive industry and the world’s most significant market such as USA, Europe, Asia, and other parties of marginalized countries (Crane, 2015). Therefore, to increase the influence and deliver to customers preferred choices, the company has invented the newest and most technical models used IT software programs. The company produced Roadster, Model X, Model Y, Model S then-latest Model 3 with batteries (Eisler, 2016). Further, the company has played a significant role in providing well-paying jobs to thousands of employees with good benefits among all its major stations in the world. A point to note, Tesla organization vision and mission is not yet fully achieved, therefore, the company carries out research on the world market to establish the loopholes and establish their major stations. Tesla organizational culture has contributed much to its growth over years, its current top position in the world automotive industry and the future of the company in achieving its mission and goals. Therefore, the research carries out a critical review of elements that shape Tesla organizational culture in automotive industry.
Tesla is critically one of world’s topmost companies in automotive industry with the largest organizational structure due to its diversity in dealership networks, manufacturers, marketing, and advertising (Abdi et al., 2018). Tesla Motors and BMW focuses on developing human resources necessary for innovative products in the global vehicle business. Tesla Motors organization is built on a solid functional or unitary-form organizational structure that integrates critical elements such as ambitious innovation, adherence to the ‘First Principles’ method, and the business’s lack of bureaucracy. For instance, the Tesla organization has involved a group of employees for engineering and sales and services. Also, during the Covid-19 precession, Tesla thrived through with little negative response to the economic downturn. Ultimately, this resilience has been attributed to the consistent company’ organizational culture geared towards enabling the taskforce coin their value addition around the ideal market pain points. Further, Tesla organization faces a challenge from the competition in global centralization (Miroudot, 2020); hence a need to adjust the autonomy of its organizational cultures.
Tesla organization’s reform efforts emphasize its culture as the primary contributor to success. Consequently, the company’s performance problems are linked to an old organizational culture that emphasized bureaucracy and lack of accountability (Habidin, 2013). However, the lack of bureaucracy, ambitious innovation, and the ‘First Principle’ method define the ethical culture that will ensure the performance and effectiveness of the organisation’s internal and external problems (Kukkamalla et al., 2020). Further, the lack of empirical study connecting the impact of organisational culture to crisis resilience has attributed to consistent organisational culture geared towards increasing value addition in the dealings and sales of vehicles (Rapaccini et al., 2020).
This research examines the essential key elements that shape the performance’s organisational culture and the organisation’s market resilience (Holweg et al., 2016). Ultimately, this helps to increase the production, distribution, marketing, and sales of the business organisation hence increasing performance (Alfaro et al., 2012). Additionally, this research has also significantly contributed to the academic realm into evidence-based research on the specific aspects of the organisational culture that promote the automobile business’s performance, for instance, the vehicle manufacturing industry and the sales and marketing industry.
This research has a tremendous effect on;
This research involves a critical review of the elements that shape organisational culture in Tesla Motors. Additionally, the research employs a systematic review (Teece, 2018) to critically determine the elements that shape organizational structure in Tesla Motors organisation. Notably, the research draws evidence from the published secondary peer-reviewed contemporary studies and theories to support and address the research objectives and give evidence-based conclusions and recommendations.
In increasing the manufacturing and sales of Tesla organization in world automotive market, this research aim was to carry out critical review of elements that shape the organizational structure and its effect on Tesla Motors performance. Further, the objectives of this research were:
In answering the objectives, the research focuses on but not limited to the following theories:
The theory emphasises the importance of people and employees’ beliefs, behaviours, and attitudes in an organisation. Notably, to increase the performance of an organisation, individual characteristics must be taken into account. Human relations theory considers efficiency as the employees’ workplace’s organisational structure (Thomas et al., 2019). Hence, this research reviews organisational culture elements such as traditions, values, and unwritten behavioural rules among the employees. Ultimately, this makes a strategy that enables the organisation to trend in the global market in vehicles’ manufacture and sales.
Competitive advantage refers to factors that allow the Tesla organisation to manufacture vehicles most efficiently and quickly. Sustainable competitive advantage is elusive for the Tesla organisation because, in most cases, the managers tend to ignore people’s attitudes, behaviours, and beliefs, which are essential factors. This research examines and explores the impact of people on the organisation’s organisational structure with other companies, hence bringing to a change that increases performance (Rapaccini et al., 2020). Further, interrelationships exist between organisational context factors, employees’ outcomes, work factors, individual employees’ psychological and motivational factors. Also, the organisational results are related to competitive advantage (Thomas et al., 2019). Ultimately, this contributes to the favourable operations of Tesla Motors in the economy.
The research involves a systematic review of the literature related to the elements that shape the organisational structure and its impacts on Tesla Motors and BMW’s performance (Ruff, 2015). Ultimately, the systematic reviews aim to conclude the state of knowledge based on a rigorous and even unbiased overview based on the research topic. Further, the systematic review, also involves developing research questions, developing the protocol, conducting research, selecting and assessing the study’s quality. The systematic review also includes extracting, analysing, and synthesising studies and later interpreting the results. The research utilises detailed information from google scholar, journals, and emerald to ascertain the research’s appropriateness and validity. The sources and resources used have a range of five years’ difference. Moreover, the use of appropriate terms is crucial in locating the research’s relevant studies.
The location and selection of appropriate research methods plays a crucial role in adding the research value. The value-added analysis draws information from secondary qualitative and quantitative data obtained from peer-reviewed journals, reports, officially published documents from 2015-2021. Additionally, the researcher makes strong efforts to ensure data collection reliability and validity. A point to note, reliability and validity, helps demonstrate and communicate the rigour of the research processes and the findings’ trustworthiness (Rapaccini et al., 2020). Hence, declaring peer-reviewed journal articles as knowledge validating sources.
This chapter incorporated five Chapters; each of them provided key insights. Chapter 1 anchored the study setting out clearly, its relevance through its background and rationale. Further, it outlines key areas of investigation through its aims and objectives. Moreover, the research provides supporting evidence by highlighting fundamental theories and frameworks related to the research, complemented with a brief method of analysis, among other relevance information that guided the research. Chapter 2 scrutinized the theoretical literature and its supporting shreds of evidence and their application to the fundamental aspect of the study. Chapter 3 presented a rationale behind the method the method of analysis, the data collection process, and key findings relatable to the research objectives, informed by the theories in chapter 2. Chapter 4 interpreted the findings from Chapter 3. Finally, Chapter 5 encompassed a conclusion based on critical findings and discussion in the study, which led to the recommendations of elements that shapes Tesla organizational structure and their implementation in the organisation’s production and sales.
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