Analysis Of The Organizational Efficiency

Description Of The Company

The report to the CEO is based on the organizational issue identified at Tesla Inc. the company has been identified to face various issues, including management of safety and security for the customers. Tesla Inc. is an American automobile company based in California and has branches globally. The company was established in 2003 to prove that people do not need to compromise their driving experience with electric cars. The vehicles can be more fun, faster, have better drive, and be luxurious than those that use gasoline (Khan, 2021). However, the one organizational issue identified that affects productivity is the management of the customers’ safety. For any automobile manufacturer, the safety of the customers is vital. In the case of Tesla, the major issue raised by the custom is regarding the car’s safety, including the autopilot semi-autonomous driving features, especially in Model 3, which has led to the death of drivers.

The Current Corporate Culture

Tesla Inc.’s current corporate culture creates the competence of the human resources necessary for innovative products in the global automotive business. Tesla’s corporate culture represents the values and customers that define the workforce decisions and behaviors. According to Alghalith (2018), the corporate culture empowers the workforce to search for an ideal solution that makes the business stand out in the industry. Hence, the firm encourages employees to innovate and support the continuous improvement of their business. Therefore, through this cooperate culture, Tesla’s management has been able to optimize the employees to achieve creativity and innovativeness, which is essential to maintaining the safety of both the customer and the employee. In this regard, Tesla believes in safety in its operations and productions through engagement, education, and continuous improvement. However, the company has not been able to fully achieve this goal as there has been an increase in the lack of safety incidences that emanate from the corporate culture of innovation.

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Identified Areas Of Weakness

Tesla’s areas of weakness damage its performance in the industry, reducing its competitiveness and business growth. Some of the identified weaknesses include, first, manufacturing complications. The company’s culture and high standards of innovation have led to greater mechanical complications and compromised the customers’ safety. Currently, Tesla faces manufacturing delays and the slow launching of new products. The other weakness of the company is its inability to meet the demands of the customers such that, due to the highly complicated procedures in the production of the cars, the company faces an unbalanced supply and demand and hence unable to meet its production requirements (Matthews et al., 2021). The other weakness seen in the company is the lack of high volume production, given that the company is the pioneer in actual energy-saving cars. However, it has failed to produce high volumes of products for its models as it faces production cost management resources and space expansion issues.

Proposed Solutions

Tesla needs to improve its management style and approaches to bring back the company to achieve its goals. In other words, the firm needs to pay more attention to the management of safety and security of the employees at the workplace by focusing on the plants and factories. The company should take the customers’ concerns about the safety of the vehicles seriously and rectify the issues as this may be costly to the company’s future growth, given that safety is an essential element for any car manufacturer. Also, the company needs a robust risk management procedure which will be helpful for the business to reduce its management issues and faults. The organization also needs to focus on recruiting a talented workforce with enough skills and knowledge in manufacturing safe cars.


Alghalith, N. (2018). Tesla: innovation with information technology. International Journal of Business Research and Information Technology5(1), 37-51.

Khan, M. (2021). A critical analysis of Elon Musk’s leadership in Tesla motors. Journal of Global Entrepreneurship Research, 1-10. Matthews, T., Hirve, M., Pan, Y., Dang, D., Rawar, E., & Daim, T. U. (2020). Tesla Energy.