Tesla Inc. Mission Statement/Business-Level Strategy/Functional-Level Strategy Analysis Assignment
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Tesla, Inc. July 2020
Company Description
(https://ir.tesla.com)
Teslas mission is to accelerate the worlds transition to sustainable energy. Since our founding
in 2003, Tesla has broken new barriers in developing high-performance automobiles that are not
only the worlds best and highest-selling pure electric vehicleswith long range and absolutely
no tailpipe emissionsbut also the safest, highest-rated cars on the road in the world. Beyond
the flagship Model S sedan and the falcon-winged door Model X sports utility vehicle, we also
offer a smaller, simpler, and more affordable mid-sized sedan, Model 3, which we expect will
truly propel electric vehicles into the mainstream.
In addition, with the opening of the Gigafactory and the acquisition of SolarCity, Tesla now
offers a full suite of energy products that incorporates solar, storage, and grid services. As the
worlds only fully integrated sustainable energy company, Tesla is at the vanguard of the worlds
inevitable shift towards a sustainable energy platform.
About Tesla
(https://www.tesla.com/about)
Tesla was founded in 2003 by a group of engineers who wanted to prove that people did not need
to compromise to drive electric that electric vehicles can be better, quicker and more fun to
drive than gasoline cars. Today, Tesla builds not only all-electric vehicles but also infinitely
scalable clean energy generation and storage products. Tesla believes the faster the world stops
relying on fossil fuels and moves towards a zero-emission future, the better.
Launched in 2008, the Roadster unveiled Teslas cutting-edge battery technology and electric
powertrain. From there, Tesla designed the worlds first ever premium all-electric sedan from the
ground up Model S which has become the best car in its class in every category. Combining
safety, performance, and efficiency, Model S has reset the worlds expectations for the car of the
21st century with the longest range of any electric vehicle, over-the-air software updates that
make it better over time, and a record 0-60 mph acceleration time of 2.28 seconds as measured
by Motor Trend. In 2015, Tesla expanded its product line with Model X, the safest, quickest and
most capable sport utility vehicle in history that holds 5-star safety ratings across every category
from the National Highway Traffic Safety Administration. Completing CEO Elon Musks
Secret Master Plan, in 2016, Tesla introduced Model 3, a low-priced, high-volume electric
vehicle that began production in 2017. Soon after, Tesla unveiled the safest, most comfortable
truck ever Tesla Semi which is designed to save owners at least $200,000 over a million
miles based on fuel costs alone. In 2019, Tesla unveiled Model Y, a mid-size SUV, with seating
for up to seven, and Cybertruck, which will have better utility than a traditional truck and more
performance than a sports car.
Tesla vehicles are produced at its factory in Fremont, California, and Gigafactory Shanghai. To
achieve our goal of having the safest factories in the world, Tesla is taking a proactive approach
to safety, requiring production employees to participate in a multi-day training program before
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ever setting foot on the factory floor. From there, Tesla continues to provide on-the-job training
and track performance daily so that improvements can be made quickly. The result is that Teslas
safety rate continues to improve while production ramps.
To create an entire sustainable energy ecosystem, Tesla also manufactures a unique set of energy
solutions, Powerwall, Powerpack and Solar Roof, enabling homeowners, businesses, and utilities
to manage renewable energy generation, storage, and consumption. Supporting Teslas
automotive and energy products is Gigafactory 1 a facility designed to significantly reduce
battery cell costs. By bringing cell production in-house, Tesla manufactures batteries at the
volumes required to meet production goals, while creating thousands of jobs.
And this is just the beginning. With Tesla building its most affordable car yet, Tesla continues to
make products accessible and affordable to more and more people, ultimately accelerating the
advent of clean transport and clean energy production. Electric cars, batteries, and renewable
energy generation and storage already exist independently, but when combined, they become
even more powerful that is the future we want. 1
Tesla, Inc. Mission Statement, Business-Level Strategy, and Functional-Level Strategy
Analysis Assignment
Assignment Instructions
1. This is a TEAM/INDIVIDUAL ASSIGNMENT (You may complete this assignment
individually or in teams of no more than three students). I expect your answers to be
your own thoughts and written in your own words! Different teams/individuals within
the class or between the two sections of the class should not collaborate on their answers to
this assignment. (See the discussion in your Syllabus regarding ECUs Academic Integrity
Policy.) In addition, use only the information from your textbook, chapter outlines,
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3. Save the file as TeslaMSBLFL and then the last name, first name initial, and middle
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as explained in instruction 7 below.
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Assignment
I. Read Case 07: Tesla, Inc. which is found in the section, The 12 Most Popular Cases on
the McGraw-Hill Connect site in the Tesla, Inc. July 2020 pdf file that has been provided
by your instructor. (DO NOT use any other information about Tesla Inc. from external
sources on this assignment.) Then complete the following areas of the case analysis
assuming it is July 2020. Format your answers as given in the Assignment Answer Format
section below.
II. Analysis
A. Using information from the case and article above, Chapter 1 of your textbook,
Chapter 1/5.2/12.1/12.3s outline and lecture, Chapter 2 of your textbook, Chapter
2/11.4/12.2s outline and lecture, and the Goals/Objectives/Strategies/Tactics
Assignment, analyze Teslas PRESENT vision, mission, values, and at least five
goals and/or objectives.
B. Using information from the articles above, Chapter 6 of your textbook, and Chapter
6/11.1/11.2/FSs outline and lecture, identify Teslas PRESENT generic business-
level strategy, and at least one PRESENT functional-level strategy in the functions
given in the Assignment Answer Format section below.
III. Citations for This Assignment
A. Case 07: Tesla, Inc. Example: (TC p. 2 or TC pp 2 3)
B. Tesla, Inc. July 2020 Example: (TI p. 2 or TI pp 2 3)
C. Assumption Example: (Assumed)
Assignment Answer Format
Assignment Body
Use APA writing rules subject to the following specific modifications:
Use Times New Roman font, 12 point.
In general, single space within the document using left alignment subject to the instructions
below.
Use one-inch margins and tab stops at 0.35 inches.
Page numbers should be in a footer 0.7 inches from the bottom of each page except any
cover page.
Use page breaks instead of multiple lines when starting a new page.
Paragraphs are written in block paragraph form, left aligned
Lists are sequentially numbered or lettered indented lines that are left aligned and formatted
using the Word multilevel list tool. Single space between lines in your lists.
Section headings are 12 point bold, centered. Double space after these headings.
First subsection headings are 12 point underlined, left aligned. Single space after these
headings.
Second subsection headings are 12 point followed by a colon. Single space after these
headings.
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Assignment Outline and Headings
Header: [Team Member 1], [Team Member 2], [Team Member 3]
Present Vision, Mission, Values, and Strategic Goals/Objectives Analysis
Present Vision
[Tesla vision with citation.]
[Block paragraph discussing strengths and weaknesses of Teslas vision.]
Present Mission
[Tesla mission with citation.]
[Block paragraph discussing strengths and weaknesses of Teslas mission.]
Present Mission Elements
I. Present Customer Groups
A. [One sentence statement identifying first customer group and geographic domain.]
1. [One sentence statement from material supporting your answer with citation.]
2. [One sentence statement from material supporting your answer with citation.]
3.
B. [One sentence statement identifying second customer group and geographic domain.]
1. [One sentence statement from material supporting your answer with citation.]
2. [One sentence statement from material supporting your answer with citation.]
3.
C.
II. Present Customers Needs
A. [Customer group identified in part I. A. above.]
1. [One sentence statement identifying the first customer need being satisfied.]
a. [One sentence statement from material supporting your answer with
citation.]
b. [One sentence statement from material supporting your answer with
citation.]
c.
2. [One sentence statement identifying the second customer need being satisfied.]
a. [One sentence statement from material supporting your answer with
citation.]
b. [One sentence statement from material supporting your answer with
citation.]
c.
3.
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B. [Customer group identified in part I. B. above.]
1. [One sentence statement identifying the first customer need being satisfied.]
a. [One sentence statement from material supporting your answer with
citation.]
b. [One sentence statement from material supporting your answer with
citation.]
c.
2. [One sentence statement identifying the second customer need being satisfied.]
a. [One sentence statement from material supporting your answer with
citation.]
b. [One sentence statement from material supporting your answer with
citation.]
c.
3.
C.
III. Present Company Business Model
A. Teslas Value Proposition
1. [One sentence statement identifying the first part of Teslas customer value
proposition.]
a. [One sentence statement from material supporting your answer with
citation.]
b. [One sentence statement from material supporting your answer with
citation.]
c.
2. [One sentence statement identifying second part of Teslas customer value
proposition.]
a. [One sentence statement from material supporting your answer with
citation.]
b. [One sentence statement from material supporting your answer with
citation.]
c.
B. Teslas Profit Formula
1. [One sentence statement identifying the first part of Teslas profit formula.]
a. [One sentence statement from material supporting your answer with
citation.]
b. [One sentence statement from material supporting your answer with
citation.]
c.
2. [One sentence statement identifying the second part of Teslas profit formula.]
a. [One sentence statement from material supporting your answer with
citation.]
b. [One sentence statement from material supporting your answer with
citation.]
c.
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Present Core Values
1. [One sentence statement identifying and describing a core value with citation.]
2. [One sentence statement identifying and describing a second core value with citation.]
3.
[Block paragraph discussing strengths and weaknesses of Teslas core values.]
Present Goals/Objectives
1. [One sentence statement identifying a goal/objective with citation and analysis.]
2. [One sentence statement identifying another goal/objective with citation and analysis.]
3.
Strategy Analysis
Present Generic Business-Level Strategy
[Block paragraph identifying the present generic business-level strategy, the definition of the
strategy, and at least four statements supporting your answer from the materials with citations.]
Present Functional-Level Strategies
Intensive Marketing Strategy:
[Block paragraph identifying one strategy, the definition or description of the strategy, and
statements supporting your answer from the materials with citations.]
Other Marketing Strategy:
[Block paragraph identifying one strategy, the definition or description of the strategy, and
statements supporting your answer from the materials with citations.]
Production/Operations Strategy:
[Block paragraph identifying one strategy, the definition or description of the strategy, and
statements supporting your answer from the materials with citations.]
Research and Development Strategy:
[Block paragraph identifying one strategy, the definition or description of the strategy, and
statements supporting your answer from the materials with citations.]
Human Resources Strategy:
[Block paragraph identifying one strategy, the definition or description of the strategy, and
statements supporting your answer from the materials with citations.]
Financial Strategy:
[Block paragraph identifying one strategy, the definition or description of the strategy, and
statements supporting your answer from the materials with citations.]
Information System Strategy:
[Block paragraph identifying one strategy, the definition or description of the strategy, and
statements supporting your answer from the materials with citations.]
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Generic Business-Level and Functional-Level Strategies Analysis
[One or more block paragraphs discussing the strengths and weaknesses of Teslas present
generic business-level and functional-level strategies.] [Team Member 1], [Team Member 2], [Team Member 3]
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Present Vision, Mission, Values, and Strategic Goals/Objectives Analysis
Present Vision
Believing in free expression and the thought that every voice has the power to impact the world
(Twitter p. 3).
[A good discussion about the visions strengths and weaknesses based on the information in the
Chapter 2/11.4/12.2 Outline.]
Present Mission
The mission we serve as Twitter, Inc. is to give everyone the power to create and share ideas and
information instantly without barriers. Our business and revenue will always follow that mission
in ways that improve and do not detract from a free and global conversation (Twitter p. 3).
[The good discussion about the missions strengths and weaknesses based on the information in
the Chapter 2/11.4/12.2 Outline.]
Present Mission Elements
I. Present Customer Groups
A. Global users that create, consume, discover, and distribute real-time public self-
expression and conversation.
1. Twitters primary service was the Twitter global platform for real-time public
self-expression and conversation, which allowed people to create, consume,
discover, and distribute content (Twitter p. 4).
2. Key buying industries include the general public who buys products produced
by this industry and also uses this industrys services for socializing (SNS p.
13).
3. Twitter is available in more than 40 languages around the world (Twitter p. 3).
4. Social networking is a global enterprise with U.S. sites attracting visitors from
non-US addresses on a regular basis (SNS p. 13).
B. Global advertisers through Twitter promoted products.
1. Twitters promoted products enable its advertisers to launch products and
services and promote their brands, amplifying their visibility and reach, and
connect with Twitters audience, while extending the conversation around their
advertising campaigns (Twitter p. 4).
2. Key buying industries include retail trade, telecommunications retailers, and
finance and insurance establishments that purchase online advertising (SNS p.
13).
3. Social networking is a global enterprise with U.S. sites attracting visitors from
non-US addresses on a regular basis (SNS p. 13).
[Team Member 1], [Team Member 2], [Team Member 3]
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II. Present Customers Needs
A. Global users that create, consume, discover, and distribute real-time public self-
expression and conversation.
1. Socializing (a.k.a affiliation or belonging) is one need fulfilled by Twitter.
a. Key buying industries include the general public who buys products
produced by this industry and also uses this industrys services for
socializing (SNS p. 13).
2. Self-realization is another need filled by Twitter.
a. Since creativity is an important aspect of self-realization, users ability to
create content helps fulfill this need (Assumed).
3. Information is a third need filled by Twitter.
a. Twitters primary service was the Twitter global platform for real-time
public self-expression and conversation, which allowed people to create,
consume, discover, and distribute content (Twitter p. 4).
B. Global advertisers through Twitter promoted products.
1. Increased sales of products and services is one need fulfilled by Twitter.
a. Twitters promoted products enable its advertisers to launch products and
services and promote their brands, amplifying their visibility and reach,
and connect with Twitters audience, while extending the conversation
around their advertising campaigns (Twitter p. 4).
2. Enhancing goodwill toward advertisers is another need fulfilled by Twitter.
a. Twitters promoted products enable its advertisers to launch products and
services and promote their brands, amplifying their visibility and reach,
and connect with Twitters audience, while extending the conversation
around their advertising campaigns (Twitter p. 4).
b. Advertising has multiple advantages including the enhancement of
goodwill toward the advertising company (Assumed).
3. Educating/informing the general public is a third need fulfilled by Twitter.
a. Twitters promoted products enable its advertisers to launch products and
services and promote their brands, amplifying their visibility and reach,
and connect with Twitters audience, while extending the conversation
around their advertising campaigns (Twitter p. 4).
b. Advertising has multiple advantages including the education of the
general public about the advertising company and/or an important issue
(Assumed).
III. Present Company Business Model
A. Twitters Value Proposition
1. Free of charge platform available to global users for real-time public self-
expression and conversation that attracts various advertisers.
a. Twitters primary service was the Twitter global platform for real-time
public self-expression and conversation, which allowed people to create,
consume, discover, and distribute content (Twitter p. 4).
[Team Member 1], [Team Member 2], [Team Member 3]
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2. For sale promoted products that enable its advertisers to launch products and
services and promote their brands, amplifying their visibility and reach, and
connect with Twitters audience, while extending the conversation around their
advertising campaigns.
a. Twitters promoted products enable its advertisers to launch products and
services and promote their brands, amplifying their visibility and reach,
and connect with Twitters audience, while extending the conversation
around their advertising campaigns (Twitter p. 4).
b. Twitter also solidified its value proposition for advertisers with its Start
With Them campaign, which highlights that Twitter connects advertisers
with the most valuable audiences when they are most receptive (Twitter p.
6).
B. Twitters Profit Formula
1. Revenue Generation: Twitters two main revenue sources were from advertising
services and data licensing.
a. Twitter Inc. generated advertising and data licensing revenue as shown in
Exhibit 1 by providing mobile advertising exchange services through the
Twitter MoPub exchange, and offering data products and data licenses
that allowed their data partners to search and analyze historical and real-
time data on the Twitter platform, which consisted of public tweets and
their content (Twitter p. 5).
2. Cost Structure: Fixed costs in the industry consist mainly of servers for
developers and users and the depreciation expenses of those servers; fixed and
variable costs reflected in research and development spending consisting of
labor and facilities related costs; and variable costs of patents, which are key for
companies protecting their intellectual property, and marketing costs.
a. Depreciation expenses accounted for 11.5% of industry revenue in 2018
because social networking sites must maintain servers for developers and
users which can be expensive (SNS pp 20 21).
b. The most significant industry cost is wages, which make up 38.3% of
revenue in 2018, up over the five-year period (SNS p. 19).
c. One of the major purchase costs are patent costs which are key for
companies protecting their intellectual property (SNS p. 20).
d. Marketing costs made up 6.6% of total industry costs in 2018 (SNS p. 20).
3. Profit Margin: Profitability in the industry is dependent upon generating
sufficient advertising services and data licensing to cover costs and provide
attractive profits.
a. Industry profit margin is estimated to reach 32% in 2018 (SNS p. 20).
Present Core Values
1. #GrowTogether is a strategy launched in September 2017 whose mission is to power
positive global change by fostering respectful conversations, creating deeper human
connections, and encouraging diverse interactions among individuals and teams, across the
entire organization, and on the platform resulting in a more globally inclusive culture and
more globally diverse workforce (Twitter p. 3).
[Team Member 1], [Team Member 2], [Team Member 3]
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2. Free Expression: Twitter believes in free expression and thinks every voice has the power
to impact the world.
A. Online Safety: Free expression is a human right unless it becomes abusive or
threatening. To keep users safe, Twitter builds tools so users can control what they
see and who they interact with; work with a community of online safety experts to
fight abuse everywhere; and develop and enforce policies to prohibit abusive
behavior (Twitter p. 3).
3. Twitter for Good: Twitters philanthropic mission is to reflect and augment the power of
Twitter and the talents of its employees through direct civic engagement, employee
volunteerism, charitable contributions, in-kind donations, and by harnessing the Twitter
service for good (Twitter p. 4).
4. Transparency: Twitter is transparent about its political activity and contributions.
A. Civic Engagement: It engages with policymakers, governmental entities, and civil
society in markets throughout the world to advance public policy issues of
importance to its users, employees, and shareholders.
B. Political Action Committee (PAC): Twitter actively engages in United States policy
issues and voter registration initiatives that will impact users, the company, and its
platform.
C. Transparency Report: Twitter shares a biannual Twitter Transparency Report with
email privacy practices, legal requests received, and the actions it has taken (Twitter
p. 4).
[The good discussion about the core values strengths and weaknesses based on the information
in the Chapter 2/11.4/12.2 textbook and outline.]
Present Goals/Objectives
1. Maximize stockholder wealth over the long term (Assumed) (G/LT).
2. Twitters industry-specific revenue is expected to increase an annualized 26.9% to roughly
$1.6 billion in 2018 (SNS p. 26) (O/ST).
3. Increase profitability in 2019 (Assumed) (G/ST).
4. Increase revenue from advertising services to $3.2 billion in 2019 (Assumed) (O/ST).
5. Increase the average stock price to $35 per share in 2019 (Assumed) (O/ST).
6. Increase average active monthly users by 15% in 2019 (Assumed) (O/ST).
7. Increase worldwide brand recognition from its present level of 90% to 95% within the next
five years (Assumed) (O/LT).
Strategy Analysis
Present Generic Business-Level Strategy
Twitters present generic business-level strategy is focused differentiation. A focused
differentiation strategy seeks to create higher value for customers than the value that competitors
create, by delivering products or services with unique features while keeping costs at the same or
similar levels, allowing the firm to charge higher prices to its customers in one to two industry
market segments. The social network industry is divided into five distinct market segments: (1)
general social networks which accounted for 61.6% of total revenues in 2018; (2) photos and
short video social networks which accounted for 24.3% of total revenues in 2018; (3) Internet-
[Team Member 1], [Team Member 2], [Team Member 3]
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based social networks which accounted for 9.8% of total revenues in 2018; (4) professional
social networks which accounted for 2.3% of total revenues in 2018; and (5) other social
networks which accounted for 2.0% of total revenues in 2018 (SNS p. 13). Launched in 2006,
Twitter is a social networking site that primarily focuses on microblogging, enabling for public
self-expression in conversation in real time in the general social network industry segment (SNS
p. 25). Twitter promotes itself as what is happening in the world and what people are talking
about right now (Twitter p. 3). Since its inception, Twitters user base has grown primarily
organically, complemented with targeted campaigns to drive new user acquisition (Twitter p. 6).
In 2018, Twitter set out to clearly define who the company is and express the uniqueness and
power of its brand through marketing campaigns to drive awareness of Twitters unique
positioning (Twitter p. 6).
Present Functional-Level Strategies
Intensive Marketing Strategy:
Twitter is using a market penetration strategy. A market penetration strategy seeks to increase
market share for present products or services in present markets through greater marketing
efforts. Since its inception, Twitters user base has grown primarily organically, complemented
with targeted campaigns to drive new user acquisition (Twitter p. 6).
Other Marketing Strategy:
Twitter uses a direct sales promotion strategy. Direct sales involves person-to-person selling in
which a company salesperson communicates the benefits of products and services to prospective
customers. Twitter has a global sales force and sales support staff located in over 35 offices
worldwide that is focused on attracting and retaining advertisers while certain advertisers use the
companys self-serve advertising platform to launch and manage their advertising campaigns
(Twitter p. 6).
Production/Operations Strategy:
Twitter is pursuing a technology and equipment choices production/operations strategy.
Technology and equipment choices production/operations strategy centers around the degree of
automation and computerization in the organization. Twitter is composed of a set of core,
scalable, and distributed services that are built from proprietary and open source technologies
(Twitter p. 7). These systems are capable of delivering billions of messages, including images
and video, to hundreds of millions of people a day in an efficient and reliable way (Twitter p. 7).
Research and Development Strategy:
Twitter is pursuing a product research focus research and development strategy. A product
research focus research and development strategy centers on continually improving a companys
product. Twitter continues to invest in its existing products and services as well as develop new
products and services through research and product development (Twitter p. 7).
Human Resources Strategy:
Twitter is pursuing a quality recruitment and selection human resource strategy. A quality
recruitment and selection human resource strategy centers around selecting and recruiting the
best quality job candidates. Twitters highly competitive environment along with the need for
many employees with specialized skills indicates that it must recruit and select quality
[Team Member 1], [Team Member 2], [Team Member 3]
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employees to compete effectively (Assumed). Skilled coders are needed to develop new
applications and maintain websites (SNS p. 20).
Financial Strategy:
Twitter has pursued both an equity and internal financing financial strategy. An equity financing
strategy uses the sale of stocks to the general public to finance growth. An internal financing
strategy uses internal cash flows to finance growth. Twitter went public on November 7, 2013
with an initial public offering (IPO) (Twitter p. 7). Since that time, Twitter has used internal
funds to invest in its growth such as developing new products and services through research and
product development (Twitter p. 7).
Information System Strategy:
Twitter is using an investment in new technology information system strategy. An investment in
new technology information system strategy involves constantly updating both hardware and
software capabilities through the acquisition of new technologies. Twitter continues to invest in
its existing products and services as well as develop new products and services through research
and product development (Twitter p. 7). Twitter also continues to invest in protecting the safety,
security, and integrity of its platform by investing in both people and technology, including
machine learning (Twitter p. 7).
Generic Business-Level and Functional-Level Strategies Analysis
[A good discussion about the effectiveness of Twitters generic business level strategy and
functional strategies. A discussion about the consistency or lack of consistency between the
generic business level strategy and functional strategies is the most important factor in this
discussion.]
