CASE STUDY Read the case study below and answer the questions that follow:

Inside Tesla company culture: Innovative and propelling Tesla CEO - Elon Musk is showing other industries how the work environment in a company can spark innovation. At Tesla, the company culture encourages its workforce to relentlessly come up with new ideas and solutions that meet the global market demands. The young company which has taken the automotive industry by storm is sharing how they made so much progress in little time. In this article, well be showing you what makes the company culture at Tesla so unique and effective. About Tesla Tesla is an American electric vehicle company that seeks to eliminate the use of fossil fuels and aid the worlds transition to sustainable energy. Today, Tesla has over 70,000 employees and five large facilities in the United States, China, and Europe, and 35 office locations across 9 countries. With over 499,000 units of electric vehicles sold globally, the iconic automotive company has played a huge role in achieving clean energy. Tesla keeps making its way to the top of the automotive industry and keeps scaling to become a symbol of electric cars as they surpass the 1 million mark of electric vehicles produced in 2020.

Their unique approach - How Tesla builds its company culture

Elon Musk - founder of Tesla, known for his unconventional personality and one-of-a-kind leadership style, greatly impacts the way he builds company culture.

Reducing meeting sizes

The number of attendees at every Tesla meeting is kept small. Top contributors are allowed in the discussion and are also permitted to leave if they dont find these meetings helpful to them or have nothing to contribute at the time. On most occasions, these meetings usually include 4-6 people who have value offering at the meeting. The company believes in the importance of productivity and time management. Elon prefers that employees be engaged in productive tasks instead of spending long hours in a meeting where they are not particularly needed.

Skip-level meetings

According to Elon, more layers of communication impart errors and lead to information loss. So, he encourages the act of skip-level meetings to get the pure information he needs. This also reduces the limits imposed on direct interaction experienced in big organizations.

Broad spans of control

Employees arent restricted and confined by rules at Tesla. Every employee is encouraged to do their jobs how they deem fit, as long as it yields positive results. By endorsing employees freedom, Tesla allows them to get innovative and creative to take actions that are contributory to the companys growth. Tesla invests a lot in its employees by partnering with experts to train them. Only top leaders and managers are allowed to host training programs for employees development.

Trust and responsibility

Employees at Tesla are given a lot of responsibility and are trusted to handle the situation perfectly. Musk only hires motivated and smart people, hence, he has high expectations and standards. The educational background of its employees doesnt matter as long as they have a track record of exceptional achievement. Employees at all levels are to carry out their tasks at the company as they own it. Tesla ensures that all employees are intentional about the success of the company.

Youth culture

Most Tesla's leaders are young and smart talents who quickly develop into their roles and are eager to learn how to do things better. Employees at Tesla are prompted to try out something new and out of their comfort zone. Its Performance Acceleration program contributes to the rapid adaptation of young employees at the company, as it helps them learn the ways of innovators in that field. Tesla prioritizes talent mobility and career management, which also contributes to the agile learning process of its employees.

Why it works

Tesla is all about the growth and development of its employees. Every value and policy imposed on its employees all head in one direction, and that is how they can keep improving. Tesla employees are encouraged to work hard and smart while taking necessary breaks in-between to prevent a mental shutdown. The culture at Tesla also empowers teams to work closely together and experiment with new things, yet keeping them aligned with the business goals.

REFER TO THE ARTICLE ON TESLA AND ANSWER THE QUESTIONS BELOW:

QUESTION ONE [20]

Provide an overview of the value chain and explain how the primary and support activities of Tesla meets global market demands.

QUESTION TWO [30]

2.1. The Behavioural and Human Relations Approach has contributed to the field of management in that it has stressed on employees social needs and led to the focus on the development of people skills.

Discuss the Behavioural and Human Relations Approach in the context of Teslas culture (20)

2.2. Explain the characteristics of a charismatic leader in reference to the article. (10)

QUESTION THREE [20]

Teslas company culture thrives on innovation and a relentless focus on new ideas and solutions. Highlight Teslas response to a complex and uncertain operating environment.

QUESTION FOUR [30]

Conduct a SWOT (strengths, weaknesses, opportunities, strengths) Analysis as part of environmental scanning of Tesla. Further, explain how this would impact the formulation of their strategy.