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Tesla Motors operates within the automobile industry that is one of the most rapidly developing markets in the contemporary world. The company specializes in the manufacturing and marketing of electric cars and power train components; it was founded in 2003 in California. The electric cars of Tesla Motors quickly gained popularity as an innovation. The company’s most recent breakthrough is the product called Model S, a fully electric sedan. However, the very first care of Tesla Motors called Tesla Roadster is the product that won the attention of the whole world for the company.
Tesla Motors is a global company, and it operates all around the world. The retail offices of Tesla Motors do not have a large number of people. The company prefers to limit its international teams to a small group of trusted professionals. This is done because the quality is the major focus of operations at Tesla Motors. The main values of this work-driven personnel are the improvement of organizational excellence and innovation. The company has a major goal to acquire a leading position in the automotive industry. Previously, Tesla Motors has shown an impressive pace of growth within the industry and a high level of success beating even the most generous expectations of critics. One of the main threats the company is challenged by today comes from battery production as the current product has a significant flaw in the form of a low energy density (Braschler, 2014).
That way, one of the main focuses of the future operations plan could be the improvement and research in this field. Further, the gap between demand and supply is another threat for the company as the growing appetites of the consumers are unmet these days (Braschler, 2014). The company needs to expand its operations and manufacture more products not to lose customers. Moreover, to attract more buyers, the company needs an available product, and for now, its Model S and Model 3 are within the luxury segment and re unaffordable for a wide range of potential consumers (Hall, 2013). The operations of the company need to be rearranged to make the products more available.
Measurement of Operations
The basis for the measurement of operations is evidence that confirms that the progress in targeted spheres is achieved (U.S. Department of Transportation, 2015). Logically, the success of Tesla Motors in the aspects of business expansion, cost reduction, and customer satisfaction should be measured by practical evidence. For instance, the performance indicators for the cost reduction are the optimization of the supply chain for a purpose to save costs invested in a production of Model 3 cars, and, of course, the actual decrease of the price the vehicles are currently sold for. The performance indicators for business expansion are the new retail offices and factories built to speed up the production of new cars.
Supply and Value Chains
The supply chain of Tesla Motors is widely discussed and admired, as the company has introduced some revolutionary changes to maximize its benefits. To be more precise, several years ago Tesla Motors has transformed into a commodity organization of global character, and this change triggered the restructuration of the supply chain (Tesla’s Revolutionary Supply Chain, 2013). The main purpose of the reorganization is to take control of all the value due to the creation of the company’s own supply chain (Tesla’s Revolutionary Supply Chain, 2013).
The company produces both software and hardware and can back up its own operations by the customized operations management system. However, in 2015 the company has been dealing with a series of issues and due to that its sales decreased in some countries in Asia because of unstable shipment (Hall, 2015). As a result, the logistics and delivery costs are growing, and the company is going through a significant setback as its entire system and supply chain have been impacted by the shipment issues (Hall, 2015). The company needs alternative ways of delivery or an increase in air shipment investment (a rather costly means of transportation).
As a manufacturer focused on excellence, customer service, and quality, Tesla Motors has a thorough quality inspection procedure that is held separately for each vehicle the company is about to ship. At the same time, the criticisms of the products due to inconveniences and fails of various kinds keep on appearing in the customer segment, and this hurts the company’s reputation. To perfect their quality control and address the complaints of the buyers, Tesla Motors is to increase its connectivity to the consumers and survey the weaknesses of its products as perceived by the customers. Ensuring that the vehicles are in flawless condition is crucial for the company, as its cars belong in the luxury goods segment and are expensive. Besides, the rigorous check-up procedure is the privilege of Model S mainly while the other vehicles are to be tested as well.
Tesla Motors is known for its highly innovative approach to the automobile building. The company provides a variety of technologies that distinguish it from its competitors. The company manufactures batteries, wholesale vehicles, chargers – all its technologies are based on electric power. To stay on top of the market, the company is to ensure the innovations do not stop. For that, Tesla Motors is to attract new talent and resources. That way, hiring practices are to target the best specialists able to bring fresh innovative projects.
Braschler, A. (2014). Tesla’s Biggest Obstacles. Web.
Hall, J. (2013). Tesla Builds Supply Chain in Own Image. Web.
Hall, J. (2015). Tesla Motors Extends Innovation to its Supply Chain. Web.
Tesla’s Revolutionary Supply Chain. (2013). Web.
U.S. Department of Transportation. (2015). Operations Performance Measurement. Web.