ADVANCED PERFORMANCE MANAGEMENT

ASSIGNMENT

By

SREEHARI ASOKAN

RA2331207010034

2ND IAF – A
 UNIT-I

STRATEGIC POSITIONING AND MARKET GROWTH: APPROACH USING

SWOT ANALYSIS AND BCG MATRIX ON

TESLA

Tesla, Inc.: A Leader in Sustainable Innovation

Introduction
Tesla, Inc., founded in 2003 by engineers Martin Eberhard and Marc Tarpenning, has
revolutionized the electric vehicle (EV) and sustainable energy markets. Headquartered in Palo
Alto, California, the company is dedicated to accelerating the global transition toward
renewable energy solutions. With its cutting-edge technology, futuristic designs, and disruptive
market influence, Tesla continues to redefine the automotive and energy industries.
Under the visionary leadership of Elon Musk, Tesla has transformed the EV market, producing
high-performance, environmentally friendly vehicles. Its product range includes the Model S,
Model 3, Model X, and Model Y, all of which boast advanced features like autopilot
capabilities, over-the-air software updates, and state-of-the-art battery technology.
Beyond the automotive sector, Tesla plays a vital role in energy storage and generation. The
company’s Powerwall, Powerpack, and Megapack provide innovative energy storage solutions
for residential, commercial, and utility-scale applications.
Through its integration of sustainability, technology, and innovation, Tesla continues to address
global environmental concerns, pushing the world toward a cleaner, more efficient future.
 SWOT Analysis

Introduction

A SWOT analysis evaluates Tesla’s internal strengths and weaknesses, along with external
opportunities and threats. This analysis provides insights into the company’s strategic
advantages and areas for potential improvement.

Discussion

Strengths

Tesla’s key strengths lie in its innovative technology, strong brand reputation, and industry
leadership in EVs. The Model 3 and Model Y, among the best-selling EVs globally, reinforce
Tesla’s dominance in the market. The company’s vertical integration strategy, including
inhouse battery production and software development, ensures efficiency, cost control, and high
product quality. Additionally, Tesla’s Gigafactories enable large-scale production, optimizing
supply chain management. The brand also enjoys immense loyalty and benefits from Elon
Musk’s influential leadership, which continues to drive its global success.

Weaknesses

Despite its dominance, Tesla faces several internal challenges. High production costs and
premium pricing limit accessibility for many potential customers. Supply chain disruptions,
including shortages of semiconductor chips and raw materials, often cause delivery delays.
Tesla’s dependence on Elon Musk for strategic direction presents risks, particularly concerning
leadership continuity. Additionally, high employee turnover and an underdeveloped service
network in some regions lead to customer dissatisfaction and operational inefficiencies.
Opportunities

The growing global demand for sustainable transportation and energy solutions presents Tesla
with vast opportunities. Expanding into emerging markets, such as India and Southeast Asia,
could drive higher adoption rates. Tesla’s investments in renewable energy solutions, including
solar panels and battery storage, align with the rising interest in clean energy. Further
advancements in autonomous driving technology and battery innovation could also open new
revenue streams.

Threats

Tesla faces intense competition from traditional automakers, such as Ford, BMW, and
Volkswagen, which are rapidly expanding their EV offerings. The volatility of raw material
prices, particularly lithium and cobalt, poses financial risks. Regulatory uncertainties, including
shifting government incentives and policies, could impact Tesla’s global operations.
Additionally, cybersecurity vulnerabilities in Tesla’s highly automated and software-driven
systems present potential threats to user safety and data privacy.

Analysis
Tesla’s leadership in EV innovation, strong brand loyalty, and advanced technology provide a
competitive advantage. Its vertical integration and over-the-air software updates further
enhance efficiency and customer experience. However, challenges such as high production
costs, quality control issues, and a limited service network impact overall customer satisfaction.
Dependence on Elon Musk’s leadership also raises concerns about long-term stability. On the
opportunity front, Tesla can benefit from expanding EV markets, government incentives, and
advancements in energy storage and autonomous driving. Cost reductions through innovation
can further improve affordability and market penetration. However, threats such as increasing
competition from traditional automakers and new EV startups, regulatory scrutiny, supply chain
disruptions, and cybersecurity risks could hinder Tesla’s growth.
 BCG Matrix Analysis
Cash Cows
Question Marks

Tesla’s renewable energy division, encompassing products like the Solar Roof and Powerwall,
falls into the Question Marks category. The global shift toward sustainable energy presents a
significant opportunity, but widespread adoption remains slow due to high installation costs
and consumer awareness barriers. However, strategic partnerships with governments, utilities,
and private enterprises could facilitate broader market penetration. Further technological
improvements and price reductions may help transform these offerings into Stars, positioning
Tesla as a leader not only in transportation but also in clean energy solutions.

Dogs

The Tesla Roadster, though iconic, currently occupies the Dogs quadrant. Initially introduced
as a high-performance sports car, its market presence remains limited due to its niche appeal
and high price point. Unlike Tesla’s mass-market models, the Roadster contributes minimally
to overall revenue. While it serves as a brand statement for performance innovation, its
commercial viability is questionable. Tesla may need to reassess its long-term role—whether
to discontinue it or reposition it as a limited-edition collector’s item.

Analysis
Tesla’s product positioning in the BCG Matrix highlights its strategic focus on high-growth
areas while leveraging stable revenue streams. The Stars category (Model Y, Model 3, and
Energy Storage) demands continued investment to maintain leadership. The Cash Cows (Model
S, Model X, and Supercharger Network) provide stable profitability that funds future
innovation. The Question Marks (Tesla Semi and Solar Roof) require careful strategic
evaluation to determine their potential to transition into Stars. Meanwhile, products in the Dogs
category (Roadster and Cyberquad) may remain niche offerings without substantial business
impact.
Conclusion

The BCG Matrix analysis of Tesla provides valuable insights into its strategic product
positioning. By focusing on high-growth segments like Model Y, Model 3, and energy storage,
Tesla can sustain its competitive edge. Maintaining Cash Cows ensures financial stability, while
careful management of Question Marks determines their viability. Minimizing investment in
low-impact products like the Roadster and Cyberquad helps optimize resources. Overall,
Tesla’s strategic approach, backed by innovation and sustainability, positions it for long-term
market leadership in the EV and clean energy industries.
 UNIT- II
McKinsey 7S Framework Analysis of Tesla

Introduction
The McKinsey 7S Framework is a strategic management tool used to analyze and align an
organization’s internal elements for success. It consists of seven interdependent factors divided
into Hard Elements (Strategy, Structure, Systems) and Soft Elements (Shared Values, Style,
Staff, Skills). This framework helps in evaluating Tesla’s internal dynamics and its strategic
effectiveness for 2025-2026.Strategy

Tesla's strategy revolves around innovation, sustainability, and technological leadership. The
company maintains a competitive edge through vertical integration, allowing it to control
critical aspects of its supply chain, including in-house battery production, AI-driven
automation, and proprietary software development. By investing heavily in R&D, AI, and
autonomous driving technology, Tesla seeks to maintain its first-mover advantage in the electric
vehicle (EV) and renewable energy markets.

Discussion

Structure
Tesla operates with a flat organizational structure, enabling faster decision-making and
encouraging direct communication between leadership and employees. This structure fosters
agility and innovation, but as Tesla continues expanding globally, scalability challenges arise.
The company must balance decentralization with efficiency to sustain growth while
maintaining its innovative culture.

Systems
Tesla employs cutting-edge AI, machine learning, and data analytics to enhance production
efficiency and vehicle performance. The Gigafactories, strategically located worldwide, focus
on large-scale battery production, reducing costs and improving supply chain resilience.
Additionally, Tesla’s software-based ecosystem, including over-the-air (OTA) updates and
selfdriving technology, differentiates it from traditional automakers.

Shared Values
Tesla's core values—sustainability, innovation, and customer-centric solutions—define its
brand identity. These values drive product development, marketing, and corporate social
responsibility initiatives, fostering strong brand loyalty among customers and investors.

Skills
Tesla attracts highly skilled talent in engineering, AI, and battery technology. However, high
turnover rates, especially among leadership and production workers, pose a challenge.
Retaining top-tier talent and improving workforce stability are crucial for long-term success.

Style
Elon Musk’s visionary, risk-taking, and hands-on leadership style has been a key driver of
Tesla’s rapid growth. While his unconventional approach inspires innovation, it also creates
operational and managerial challenges that require a balance between centralization and
delegation.

Staff
Tesla’s workforce is driven by innovation but faces issues related to work-life balance,
highpressure environments, and employee retention. To maintain a sustainable workforce, Tesla
must invest in better working conditions, training, and employee well-being initiatives.

Analysis
Tesla’s hard elements (strategy, structure, systems) provide a strong foundation for growth, but
scalability challenges exist. Soft elements (shared values, style, staff, skills) drive innovation
but require improved work-life balance for sustainability. The alignment between these
elements is crucial for Tesla’s long-term success in the competitive EV market.
Conclusion
Tesla’s application of the McKinsey 7S Framework highlights its strengths in innovation,
leadership, and sustainable strategy. However, it must address organizational structure
flexibility, employee satisfaction, and supply chain risks for continued dominance in the EV
industry. Aligning all elements effectively will be key to Tesla’s success in 2025-2026.
 Case Study Analysis: Value Chain of Tesla
Introduction
Tesla Inc., founded in 2003, has revolutionized the automotive and energy sectors with its
electric vehicles (EVs), energy storage solutions, and solar technology. The Value Chain
Analysis, introduced by Michael Porter, helps examine Tesla’s internal processes to understand
how the company creates value and maintains a competitive edge. This study analyzes Tesla’s
primary and support activities to determine its operational efficiency and strategic advantages.

Discussion
Inbound Logistics
Tesla follows a vertical integration strategy, controlling key supply chain elements. Owns
gigafactories to produce lithium-ion batteries, reducing dependency on external suppliers.
Sources raw materials like lithium, nickel, and cobalt directly from miners, ensuring a secure
supply chain.
Challenges: Supply chain disruptions, reliance on rare materials, and increasing raw material
costs.

Operations
Tesla operates multiple gigafactories (in the U.S., China, and Germany) for vehicle and battery
production.
Automated manufacturing and AI-driven robotics improve efficiency.
Focus on sustainable production, using renewable energy for factory operations.
Lean production model with continuous process improvements to reduce costs.

Outbound Logistics
Tesla directly sells vehicles through its online platform and company-owned stores, eliminating
dealership costs.
Uses customized delivery centers for a seamless customer experience.
Efficient software-based order tracking ensures better logistics management.
Challenges: High transportation costs and delays due to supply chain bottlenecks.
Marketing & Sales
Tesla disrupts traditional car sales by using a direct-to-customer model (no third-party
dealerships).
Strong brand loyalty and word-of-mouth marketing reduce customer acquisition costs.
Uses social media, Elon Musk’s influence, and referral programs instead of traditional
advertising.
Expansion into new markets (India, Southeast Asia, and Latin America) increases global reach.

Service & Support

Over-the-Air (OTA) software updates provide continuous vehicle performance improvements.
Tesla Service Centers and mobile service units offer quick maintenance and repairs.
AI-driven diagnostics help predict vehicle issues before they occur, reducing breakdown risks.
Challenges: Limited service centers in some regions, leading to customer dissatisfaction.

Analysis
Strengths:
Strong vertical integration reduces costs and improves efficiency.
Direct-to-consumer model enhances customer experience and brand loyalty.
Cutting-edge AI, battery, and self-driving technology provide a unique market position.
Sustainable energy solutions align with global green energy goals.

Challenges:
Supply chain risks due to material shortages and geopolitical issues.
Service limitations in regions with fewer Tesla service centers.
High production costs despite automation and efficiency improvements.
Conclusion
Tesla’s value chain is a key factor behind its success in the EV and energy sectors. Its strong
vertical integration, advanced technology, and direct sales model provide a competitive edge.
However, challenges like supply chain risks, service network limitations, and production costs
need strategic solutions. By enhancing global manufacturing, expanding service networks, and
securing raw materials, Tesla can maintain its leadership in the evolving EV market.
 UNIT-III

ERP System Implementation at Tesla

Introduction

Tesla, Inc., a global head of electric vehicles and renewable energy depends on the advanced
Enterprise Resource Planning (ERP) system to manage his complex, vertical integrated
operations. In an integrated platform, the supply chain, production, finance and customer
conditions integrate Tesla efficiency, scalability and innovation. Adapted ERP combined with
new technologies such as AI, IoT and blockchain, enabling real -time decision -making
processes, operational skill and stability. Tesla's ERP strategy supports its rapid growth,
global expansion and commitment to distribute exceptional customer experiences and
sophisticated products.

Discussion

Tesla's ERP journey began with the adoption of industry systems such as SAP and Oracle,
which was adapted to meet the company's unique needs. The ERP system is divided into
several modules and addresses each specific operating area:

Supply Series Management (SCM): Spores raw materials, components and finished goods in
Tesla's global network. It also provides facilities for demand forecast, customization and
supplier conditions to ensure a spontaneous production current.

Production of execution system (MES): Production programs manage quality control and
factory operations. It integrates real -time mask date, future maintenance and automatic
production work flow to increase efficiency and reduce shutdown.

Economic modules: Handle accounting, budget, compliance and financial reporting. This
ensures cost -effectiveness, tax management and financial planning for global operation of
Tesla.
Sales and distribution modules: Tesla's direct-consumer sales models and support for cell
services. It manages online and offline sales, order processing, Customer Relationship
Management (CRM) and delivery logistics.

HRR Resources (HR) modules: recruitment, salary, performance management and employee
involvement. This employee integrates AI-operated workforce analysis and training programs
to increase productivity and storage.

Product Life Circle Management (PLM) Module: Design, Development, Testing and Launch
of New Products Supervisors. This allows collaboration between engineering teams, suppliers
and regulatory bodies to streamline innovation and compliance.

Customer service and support modules: Service increases after the sales experience when
managing requests, guarantees and maintenance planning. Tesla's ERP integrates AI Chatbots
and predictive analysis to improve customer engagement and service efficiency.

Stability and match modules: Tesla's environmental impact, regulatory farming and tracing
moral sourcing of raw materials. This provides data -driven insights to support Tesla's
stability and commitment to corporate social responsibility.

Tesla’s ERP system is integrated deep with new technologies such as artificial intelligence
(AI), Internet of Things (IoT) and Blockchain. For example, AI and machine learning
produce production programs and inventory management, while IoT sensors in factories
provide real -time data for monitoring and decision -making. In addition, Tesla's ERP system
supports its commitment to stability by tracking the environmental impact of operations and
ensuring moral source of raw materials.

Analysis

Tesla’s Enterprise Resource Planning (ERP) system is a custom-built, in-house solution

designed to support its vertically integrated operations. Unlike traditional automakers that
rely on third-party ERP solutions like SAP or Oracle, Tesla’s proprietary system enables real-
time data management, automation, and supply chain optimization.

The tailor-made system-Tesla uses its own ERP instead of third-party solutions such as SAP
or Oracle.

Vertical integration - originally combines production, supply chain, finance and HR.
Real-time data and automation-AI-operated insight to optimize, fixtures and logistics.

Cost and efficiency - reduces software dependency, improves economic planning and
improves scalability.

Challenges - high development costs, global scalability problems and cyber security risk.

Strategic effect - Tesla's rapid expansion, cost control and operating efficiency support

Conclusion

Tesla’s ERP system is a critical enabler of its success, providing the tools and data needed to
manage its complex operations, drive innovation, and deliver exceptional customer
experiences. By continuously investing in and adapting its ERP system, Tesla has been able
to maintain its competitive edge in the rapidly evolving automotive and renewable energy
industries. As Tesla continues to push the boundaries of technology and sustainability, its
ERP system will remain a cornerstone of its strategy and operations.
 UNIT- IV

Data Security of Tesla

Introduction

Tesla, a global leader in electric vehicles (EVs) and autonomous driving technology, relies
heavily on data collection and artificial intelligence (AI). With its advanced connectivity,
over-the-air (OTA) updates, and self-driving capabilities, Tesla gathers massive amounts of
customer and vehicle data. Ensuring the security of this data is crucial to maintaining user
trust, regulatory compliance, and preventing cyber threats.

Discussion

1. Tesla’s Data Security Measures

End-to-End Encryption – Tesla encrypts data transmission to protect it from cyber threats.

Secure Cloud Storage – Tesla utilizes cloud-based storage with strict security protocols to
safeguard sensitive information.

Regular Software Updates – Over-the-air (OTA) updates provide security patches and
enhance cybersecurity defenses.

AI-Driven Threat Detection – Advanced machine learning algorithms detect and prevent
potential cyber threats in real time.

Firewall and Network Security – Tesla secures its in-car networks to prevent unauthorized
access and cyberattacks.

Multi-Factor Authentication (MFA) – Added security layers protect user accounts and
prevent unauthorized logins.

2. Ethical & Privacy Concerns

Extensive Data Collection – Tesla collects data from vehicle sensors, cameras, and driver
behaviors, raising privacy concerns.

Government Scrutiny – Regulatory bodies, especially in Europe (GDPR) and China, question
Tesla’s handling of sensitive data.
Restrictions in Certain Regions – Some governments, such as China, have restricted Tesla
vehicles near sensitive areas over security fears.

User Consent & Transparency – Concerns exist about how much control users have over their
data and whether Tesla provides sufficient transparency.

Third-Party Access Risks – Potential vulnerabilities arise from partnerships with cloud
storage providers and other third-party service integrations.

3. Security Challenges & Risks

Hacking Vulnerabilities – Cybersecurity researchers have demonstrated potential weaknesses

in Tesla’s software, including remote vehicle access.

Data Breach Threats – A security breach could expose customer data, leading to reputational
and financial damage.

Regulatory Compliance Risks – Tesla must continually adapt to evolving data privacy laws
(e.g., GDPR, CCPA, China’s Cybersecurity Law).

Bug Bounty Program – Tesla actively incentivizes ethical hackers to identify and report
security flaws to strengthen its cybersecurity defenses.

Autonomous Vehicle Security – As Tesla advances in AI and self-driving technology,

ensuring the security of vehicle communication and decision-making data is a growing
challenge.

Analysis

Proactive Security Measures – Tesla’s encryption, AI-driven threat detection, and frequent
software updates demonstrate its commitment to cybersecurity.

Constant Cyber Threat Evolution – The company must continuously enhance its security
systems to counter new and sophisticated cyber threats.

Legal and Regulatory Compliance – Compliance with global data protection laws is crucial to
Tesla’s expansion and operations in different markets.
Potential Business Risks – A major cybersecurity incident could result in financial losses,
legal actions, and reputational damage.

Future Considerations – As Tesla scales its AI-driven and autonomous vehicle technologies,
stronger cybersecurity measures and privacy-focused policies will be critical for long-term
success.

Conclusion

While Tesla prioritizes data security through encryption, AI-driven threat detection, and
continuous software improvements, it must remain vigilant against emerging cyber threats.
Strengthening regulatory compliance and addressing privacy concerns will be critical for
maintaining consumer trust and business integrity in the long run.