The leadership is a quality of a leader who influences the followers and motivates them to reach the goals that are beneficial to all. (Vroom, Jago 2007). Elon Motors CEO Elon musk has proven to be an influential and successful leader. The two types of leadership are transactional and transformational. Transactional leadership focuses on rewarding subordinates in exchange for their efforts. Transformative leadership, however, is more concerned with the needs of the individual, rather than the short-term goal. Transformational leaders are characterized by four traits, such as inspiring motivation, idealized impact, individualized attention and intellectual stimulation. Elon has all four characteristics, which makes him a leader who is transformational.
Tesla Motors is the most technologically advanced company. However, it still tries to break into the market. The goal is to influence the external stakeholders to use the fully electric vehicle instead of gasoline-powered cars. The market size is enormous and the product development is ongoing. In 2016, the total sales of passenger cars were over 74 millions. Three major automotive industry players (e.g. Toyota, Volkswagen und Daimler each earned over $600 billion in revenue. China, Japan Germany United States were the four major car producers. The automotive market is a huge one, but it can be challenging for companies such as Tesla to introduce a novel product. Tesla Motors has not yet entered the introduction stage of its product lifecycle. It is still in the growth phase. The company’s introductory phase is characterized by a lack of competitors or fewer, so resources are allocated towards marketing and developing the product. In the growth phase, however, the company begins to make profit after the product is launched.
Tesla Motors is in a precarious situation, as it has entered a growth phase but still does not generate the profit they desire. Tesla Motors has set a target to produce 500,000 automobiles per year in 2020. In this case, Tesla Motors should continue to take steps in order to reach the desired goal. This includes implementing change-management strategies and creating an environment geared towards results. If the right steps are taken, it is possible to produce such a large number of cars per year by 2020. Tesla Motors sales are only about 1% of all car sales in 2016, according to Statista (2016). It is not enough to be a revolutionary firm. There are always gaps and loopholes between what the company wants and what it gets. Tesla is facing enormous pressures in sales, manufacturing and revenue. The C.E.O. had to review and implement new strategies for change management after seeing the disappointing third quarter results (NBC News 2017).
A supply chain analysis allows you to understand the growth of an industry and how to make decisions to enhance it. This analysis helps determine which suppliers are the best for a company and what prices they should be paying. According To Ellram (1991 p. 13), supply-chain management is a group of firms that are interacting with each other to deliver goods or services to their customers.
Tesla Motors is a great example of how the idea of mass-producing electric cars can be achieved with proper measures and efficient use of technology and capital. The dream of this company is still not realized but it’s on the way. Tesla Motors proved that it was possible for a newcomer in this market where the big players had positioned themselves. As the C.E.O. is already a successful entrepreneur, the target of producing 500,000 vehicles of electric power is not too far-fetched. The dream of manufacturing 500,000 electric vehicles can only be fulfilled if you make good decisions and use better change-management strategies. The company can reach the target in time by using the right leadership style. It can also reduce employee anxiety and stress. If you implement transactional management, then your employees will work harder and be internally motivated.
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