Essay About Energy Storage Company And 2003.The Mission Of This Company

Tesla Motors Scenario Planning
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Human Resource Planning – HRM5504Dated: May 30, 2018Submitted By:Gayetri Gupta (N01278473)Roopkaran Kaur Dhillon (N01270255)Himanshu Kochhar (N01281158)Ramandeep Kaur (N01289282)Scenario Planning on TESLA MOTORSCompany BriefTESLA Motors Inc. is an American automotive and energy Storage Company which was created by group of engineers in Silicon Valley in 2003.The mission of this company is to enhance the world transportation into ecological, affordable and clean transportation.General environment factorsEconomic Factors: Consumer Purchasing Power Parity (Canada): From 1990 to 2015, the average of the PPP and the market exchange rate were $0.84 US and $0.82 US, respectively. This trend reinforces the notion that Canadian purchasing power, which captures both traded and non-traded goods and services, is less impacted by short-term fluctuations in the market exchange rate. And the fact that Canadian market is relatively stable for the company.Increasing fuel prices: The increasing fuel prices makes it difficult for the people to stay put with their vehicles consuming gas, which in turn gives TESLA the increased chances to penetrate into the market since their vehicles would not consume fuel.Global Inflation Rate: The increasing global inflation rate (2015 – 2.79%, 2016 – 2.8%, 2017-3.15%) poses a threat to the company since this would increase the cost and have effect on consumers’ purchasing power.Social Factors: Increase in the popularity of low carbon emission cars: The consumers are getting sensitive towards environment which gives the company a room to penetrate into markets better by offering vehicles that would emit low carbon and also run on renewable source of energy.Technological Factors:High rate for change in technology: Changing or adopting new technology can be a costly affair for any company. Since TESLA is highly dependent on technology hence improvements in their vehicles would increase cost for the company. Environmental Factors: Natural Disasters: TESLA’s factory in California and Nevada is an earthquake zone. Such natural disasters can devastate auto-making and loose large amount of market share.Sources of energy: Driving vehicles without consuming and burning gasoline is great, but using electricity derived from coal plants defeats the purpose.Legal Factors:US Government’s Energy Loan Programs for research and development of new technologies may interest new players entering the marketThe Franchise Laws in the US which does not allow TESLA to sell cars directly to consumers affects the company’s sales.Business Environmental FactorsDelays in project timelines, cost and volume targets for production, launch, etc.TESLA is not as experienced with high volumes as the company anticipates that its Model 3 shall be successful. Thus the company needs to develop efficient, automated, low cost manufacturing capabilities, processes and supply chains necessary to accommodate the volumes.If the company’s vehicles or other products that contain vehicle powertrains or battery packs fail to perform as expected, the company to develop, market and sell its electric vehicles could be harmed. The company does not maintain long term agreement with a number of suppliers. This limited supply chain exposes the company to potential sources of delivery failure or component shortages for production.The company’s growth is highly dependent upon consumers’ willingness to adopt electric vehicles.Since the business is quite capital intensive hence the industry decreases potential threat of new entrants.Given the fact that company is highly dependent on innovation, there is a continuous need of being innovative and thinking out of the boxGreat Organizational capabilities: TESLA Motors is a company that succeeds on revolving insubstantial assets into creative yields. According to Motor Trend, their Model S has around 250 copyrights aloneTESLA Motors have their own stores across 18 countries where consumers can easily access and take benefit of the electric cars. They manufacture vehicles based in the demand, and the orders personalised online. This only works because of their approach to the industry and customers are willing to wait. But since the company had to struggle with the demand hence it poses a red alert for the company.Business ScenariosMost Desirable Efficient and effective scale of production accompanied with economies of scaleOther products/offerings discovered that could decrease dependency on innovation Increased opportunities at B2B platform and market places that could increase efficiencies and reduce costsFranchise laws in US which protects cars dealers and creates challenges for TESLA from selling cars directly to its customers are being eased outMost LikelyIncreased strictness in carbon emission lawsIncreased efficiencies in operation Stable inflation rate which would to lead to healthy competition and market conditionsLeast DesirableDecreasing fuel cost hence the consumer bending towards buying fuel run carsDent on brand image/reputation which hampers TESLA’s goodwill in the eyes of the stakeholdersNo government support in any form what so ever.Double digit inflation rate which would mean increased cost and decreased consumer purchasing powerSuppliers gaining high bargaining power thus increasing cost for the companyPossibility of substitutes vehicles/mode of transportation which could be easier on the pockets of the consumer would pose a threat to company’s salesTESLA’s readiness and HR’s strengths and WeaknessesScenario and its highlightsPossible challenges to be likely to be faced In the ScenarioHR StrengthsHR WeaknessesMost DesirableEfficient and effective scale of production accompanied with economies of scaleOther products/offerings discovered that could decrease dependency on innovation Increased opportunities at B2B platform and market places that could increase efficiencies and reduce costsFranchise laws in US which protects cars dealers and creates challenges for TESLA from selling cars directly to its customers are being eased out  Labour supply that coincides with the employer needs could act as a pain area since this is beyond company’s locus of controlThe R&D could take huge investments Good employer branding attracts large pool of candidate. Thus, the increased labour demand could be catered                          Most LikelyIncreased strictness in carbon emission lawsIncreased efficiencies in operation Stable inflation rate which would to lead to healthy competition and market conditionsRegulatory biding from the government could imply a need to make changes in the production processes and effect company’s efficiency The labour and management is well versed with the best practices concerning the production process and other operation of the company. Thus, a regulation change could be answered by the employees without adversely affecting the company        Training would have to be imparted to make sure that the company abides by them. This would imply deploying resources.Least DesirableDecreasing fuel cost hence the consumer bending towards buying fuel run carsDent on brand image/reputation which hampers TESLA’s goodwill in the eyes of the stakeholdersNo government support in any form what so ever.Double digit inflation rate which would mean increased cost and decreased consumer purchasing powerSuppliers gaining high bargaining power thus increasing cost for the companyPossibility of substitutes vehicles/mode of transportation which could be easier on the pockets of the consumer would pose a threat to company’s salesBeing able to attract customer to buy the products/offerings by the company since the substitutes are cheaper and thus more attractive for the consumersThe dent on the brand image would make it very difficult for any company to be regain the customers’ trust and thus affect the company’s market shareThere shall be decrease in company’s earnings and also it shall not be possible for the company to ask for any financial help from any institution since there shall be dent on company’s market value tooThe increased bargaining power of the supplier would make it difficult to procure cost effective raw material and thus have an effect on the cost of productionThe existing human capital resource could help to spread out a positive word about the company and its practises that could help to decrease the effect of dented goodwillPeople leaving the job or the need to downsize because of decreased earnings HR Initiatives and Programs suggestedScenarioHR Initiatives and Programs suggestedMost DesirableFocus on your top and high potential performers: Tune in to needs, think about consistence, and give choices. Have a strong business explanation behind differentiation and enable administration to follow up on that.Most LikelyUse best practices as a guide, not a rulebook. Finding out about the most recent and most noteworthy developments and practices in the business will help manage internal choices. You should utilize these practices as takeoff platform for the development around the requirements and culture of the association. Best practices ought to be utilized as a compass, not a guide.Least DesirableBe a proactive business leader: The HR shouldnt sit tight for an issue to emerge to voice a conclusion, and authority can hardly wait until the point when it is prepared to make a move to carry HR into the discussion. HR must comprehend what is occurring in the inward and outer condition consistently.