It was a major breakthrough, one that would be looked back on by some senior managers as adefining moment for the quarter. But there was little time for celebration. They moved onto the nextfire. With delivery centres packed, Musk wanted to begin delivering Model 3s directly to customer'shomes. The company had already developed a system for finalising sales remotely, it was how theyhad worked around the laws in Texas and other states, where franchise dealers had been victoriousin keeping Tesla stores out. Customers at "galleries" were directed to computers to contact thecompany about buying a car. Salespeople in Las Vegas or elsewhere would follow up to close thedeal. The company would come up with a packet of documents that needed "wet signatures" thatwould get sent to a customer's house along with an overnight envelope and instructions to return itwith a check within 2 days. The cars would then be shipped from Southern California to Texas fordelivery.Thepace grewfrantically....

Kim, who had worked to improve the online buying process, returned to members of his sales turnedto members of his sales staff who had worked at Amazon and Uber, for their expertise in trackingpackages and hiring gig workers. Musk wanted cars delivered in covered trucks. Kim and chiefdesigner Franz von Holzhausen huddled to develop the look of the carriers until it became clear itwould be too costly and take too much time. Instead Kim proposed to Musk that employees simplydrive cars to the buyer's homes and hand over the keys. Tesla drivers would return to the office bycalling Uber or Lyft. Home delivery was unusual in the auto industry, and an uncertain proposition forsome buyers.

There were other strategies for hastening delivery. Instead of spending an hour with each customerintroducing thenewTeslaownerto the brand-newcar'sfeatures,Kimwantedhisdeliveriesto aimfor five minutes. They would tell customers to watch a training video instead. Some of the driverswere eager to return that they would summon an Uber or Lyft ahead of their arrival at a customer'sdoor- a clever time saving ploy unless the ride hailing car showed up before they did and knocked ontheeagerModel 3buyer'sdoor.

As they raced towards the end of the quarter, it became clear that the team had failed to anticipatehowmanytrucksitwouldrequire todeliveranever increasingvolumeofcarsto deliverycentres.

Third Party Carriers did not have enough space for them. Managers had just assumed they wouldkeepupping anduppingtheirshipments ascarsrolledoff theline.

During one nightly call, Kate Pearson, head of customer experience expressed to Musk that she hadbadnews. The companycould notmeetitsgoalof100000 deliveriesthisquarter.

Question

1. In terms of case study, Kate Pearson made a call to express some bad news to Musk. Listandexplain thefactorsrequired for effectivecommunication.(20)