PGBM146 Managing Operations and Marketing Assignment Sample

Module code and Title: PGBM146 Managing Operations and Marketing Assignment Sample

Introduction of the company

Tesla is an automobile and energy-based company that specializes in the manufacturing and selling of electric vehicles along with the generation and shortage system for energy. The company with its headquarters in the USA has also gained recognition in installing and the maintenance of energy systems and selling solar electricity that offers a meeting of sustainability factors of producing clean energy products in the market. The mission and vision of the company have been to provide the consumers with an alternative to the usage of gasoline-run vehicles with Electric Vehicles (EVs) and to motivate the consumers toward the use of renewable energy such as solar energy for the betterment of the next generations.

Operations and marketing practices of the case study of Tesla

The operation and marketing practices to reach fulfilment Tesla has to use and define operational strategies which may help the company in setting broad objectives that may direct the business marketing practices towards the operational goal of success. Tesla utilizes the management practices through the activities of managing resources that may be devoted toward the production and delivery of the EVs and Energy sustained products offered by Tesla. In terms of efficient operations management practices, the system of operations management has to be set up that involves the correct inputs going through a transformation process and gaining desirable outputs to gain consumer satisfaction (Nusraningrum et al., 2020). The company has to use effective operational decisions to make sure the operational practices are on point which involves product designing, resource planning, Supply Chain Management, HRM, finance and inventory control. In Tesla, a designated group of managers are responsible for resource allocation which is termed one of the main functions of operations function (Ásványi, 2022).

In the operational practices in the company, the HR operations are a vital part which involves the input of potential recruits, employees who go through the transformation process of the office, computers to designate the outputs of payroll and training to enhance the capabilities to reach operational practice limit. The marketing practices that have been practised in Tesla involve the need of consumers in the market and the delivery of the required products to gain brand value. The marketing practices in the company involve an extensive study of the market to understand consumer behaviour and then the recommended changes are made to the product to gain a competitive advantage (Bag et al., 2021). Effective marketing practices such as consumer satisfaction feedback on social media platforms have been used in creating differentiations from the competition and creating value among the target market. To have an effective marketing practice by the company, the company has to gain a deeper understanding of the concepts of wants, needs and demands among the consumers. The marketing practices of the company have to involve the buyer decision-making process which involves giving importance to the personality of the target audience and indenting the motivational factors that may lead to purchase intent (Gopinath, 2019). Tesla also utilizes the Red Ocean Strategy which provides the company with an action plan to help it survive in the competitive market of the USA.

The marketing practices of Tesla involve providing consumers with high-quality products rather than investing in marketing strategies to promote the products. The marketing practices involve the company increasing the quality of the consumer experience and building strong effective programs to gain a competitive advantage in the automobile market (Taran et al., 2021).

Analysis of the ways that the practices related to marketing and operational theories

STP

The marketing practices of Tesla produce the consumers in the market with the premium quality of products that are analysed with the help of STP theory as follows

Segmentation

The segmentation strategy that is involved in the marketing practices of Tesla is the segmentation process of geography, demographic and psychographics. The segmented audience of the marketing strategy of Tesla involves consumers in the semi-urban area, environmentally conscious and audience who give attention to the social responsibilities of the companies. The target market segmentation may be defined as a market strategy or operation which involves the company breaking down the bigger target market into smaller groups of consumers to provide comparable needs and wants (Dolnicar et al., 2018).

Targeting

The targeting segmentation approach that has been taken by Tesla includes the behavioural and psychographic segmentation of the targeted audience in the market. The company aim toward the middle and upper-middle-class consumers who have the social factor importance to be given on the eco-friendliness of the products. The strategic goal of the company is to capture the audience in the mass market which may co-relate to the characters so the target market emphasizes the cost-effectiveness of the products along with the environmental responsibility of the production process and products (Xinyi et al., 2022).

Positioning

The positioning strategy as part of the STP theory helps the company, Tesla, to understand the perception of the answers towards the company which helps in the analysis of the products in gaining brand value among the targeted audience. Positioning strategies that have been a part of the company’s marketing practices have helped in gaining a competitive edge in the market which involves the attraction of consumers towards the segmentation of the target. It may be stated that Tesla uses the positioning strategy to design image and value among the consumers to stand in the market along with competitors.

Maslow’s hierarchy of needs

The operational practices of Tesla may be analysed with the help of Maslow’s hierarchy of needs where the practices and the functions are met by understanding the needs of the employees to gain operational success. The operations strategy may involve the shaping of the long-term pattern to contribute to the overall strategy of making long-term decisions to meet the ultimate objectives in the market (Slack and Lewis, 2019). According to Maslow’s Hierarchy of needs theory, Tesla has to provide the importance of the needs of the employees in the operational practices to ensure that the employees are able to reach the optimal level of job satisfaction to meet the success of the company. According to the theory, the company has to meet the needs of the employees regarding safety, physiologic, esteem and social needs and help in the analysis of self-actualization to bring success in the operational practices in the company.

Analysis

Inventory management theory

The theory that is more concerned with the inventory management of an organisation in terms of the set of different actions referring to recording and tracking of inventory, is the inventory management theory. The need for managing the inventory is manifold, where the requirements of controlling the entire inventory refer to the management of the inventory costs and the analysis of the cost structure related to the management of inventory (Muller, 2019). Mostly, the need for management of the inventory also arrives from the actual need of forecasting any contingencies or adjusting to the changes in the force of demand and strong supply maladjustment (Netsuite.com. 2022). According to different research studies, inventory management is a function of cost and the concept has been explained by segregating the management into different terms (Priniotakis and Argyropoulos, 2018). The inventory of Tesla has been culminating in successive years which have been marked as not much efficient inventory management as shown by the research publication journal, with the turnover proportion being 6.5 (Almenhali et al., 2021).

Figure 1: Inventory management figures of Tesla (Source: Almenhali et al., 2021)

Tesla although has scored better in recent years in terms of the inventory management score, by making it to the higher ranks a described further. Tesla has an active inventory management system where the question arises on the edge of efficiency that Tesla usually follows in managing the inventory, where the 20% annual returns from the inventory management of Tesla has been reported, which is the strength (Refer to Appendix 1). In the third quarter of the year 2021. Tesla reported having around $5.75 billion of inventory worth, which has been increasing to $8.1 billion in 2022, where the analysis on the inventory management of Tesla has been further analysed (Macrotrends.net. 2022). The inventory management theory is more focussed on the art of managing the existing inventory of a company in the current period, to which the discussion may be forwarded by taking in the example of Tesla having 150 automobiles in inventory in the USA (Electrek. 2022).

Administrative management model

The theory of administrative management theory is more inclined in assessing the entire administration of a specific business organisation, where different economists and managers have made contributions to the theory from time to time. The administrative management theory has the steps of planning the nature process, organising the parts with the human resources, creating a better network of operational efficiency and controlling all the possible errors. Tesla has the commits divided into different sections, such as auditing, the section of disclosure, the section of corporate governance and the compensation body (Tesla. 2022). Different research studies have in detail the applications of the administrative management theory in different sectors of operation, where the paper divides the system into different management actions and processes (PYSMENNA and ZAІTSEVA, 2021). It has been found that the administrative management theory is closely related to the different preference order and the nature of the activities being proposed for innovation in the organisation thus (PYSMENNA and ZAІTSEVA, 2021). As for Tesla, the discussion may start with the organisational structure of the company, where the company’s administration is much more centralised. Tesla has been restructuring the administrative system of the company by renovating the quality checking model, where the company has argued for video monitoring in the administration (InsideEVs. 2022). There has been a higher impact of the administrative management system being functioned properly by the research study assertions, where the given paper discusses the importance of the administrative manager to be taken seriously. The paper on administrative management systems discusses the direct effect on the system of recruitment and immediately causes better progress in evaluating human assets (Eustacte, 2017).

Supply chain model

There are different models and theories of the supply chain in terms of the coordination of the network creation of a vast margin of connectivity with the warehouse and point of commodity discharge. Thus, it may be said that the supply chain model consists of different interlinking theories, as goes around the constraint theory. Research studies have analysed the supply chain theory in a brief model, to which it has been found that the constraint theory is being developed in the academic research field (Ikeziri et al., 2019). Tesla has followed the constraint theory of the supply chain because the company uses at least 92% of the entire initial products and thus contributes toward the sustainability of the supply chain (Tesla. 2022). On a brief note, the competition in a firm setting is duly accounted for the quality management of the different resources, where the opportunity of surviving in the global market is related directly to the concept of total quality management (Pambreni et al., 2019). Moreover, the company does follow a regular analysis of the different batteries and the parts for a better analysis, to avoid any kind of damage in the supply chain. As may be ascertained by the name, the supply chain contains the theory of constraint to appropriately determine the actual constraints in the way of manufacturing, which Tesla does appropriately. There are three different objectives in the theory of constraints, from objective setting to measurement of efficiency, all of which points to the assurance of quality finding any kind of faults (Ahmed, 2019). Moreover, the supply chain model includes the understanding of the quality of the goods that are in the inventory and are being sent for processing, which refers to the total quality management procedure. According to the research articles, the total quality management model is more focused on constant improvement through the method of innovation and the development of sustainable practices to survive in the market competition (Pambreni et al., 2019).

Marketing communication theory

Communication to gain more suppliers and buyers had been a primitive notion, although there is much more to this in the modern age of globalisation. Tesla needs different strategies still to have a better impact on the automobile purchasing consumers, especially favouring the electric self-driving cars. There are differences between the operations management and the operations strategy of Tesla, although, the communication of a company is better improved if the operations management is considered in regards to the analysis of product positioning and time required for communication. The marketing communication system that has been taken in the current research is supported by research studies that have asserted that the communication may take any form of advertisement, it may be through the use of social media spaces or the use of website visitation of the climates (Rahayu and Fatima, 2019). Tesla has been one of the companies that have taken the communication strategy to a lower level, where the research study emphasises that communication is more inclined to price and security. The communication strategy that the research studies thus have focussed on is persuasion and making a better convincing system, which may attract most of the consumers (Bayazovna, 2020). The marketing communication theory that has been put in the current discussion focuses on the ways that Tesla has adopted to gain a better revenue of $24 billion, which shows that the company Tesla have pursued its communication strategy better (Startingbusiness.com. 2022).

Figure 2: Revenue growth data of Tesla (Source: Startingbusiness.com. 2022)

Social marketing model

Price

Tesla has been launching and developing a more adjustable price system for the organisational system to work, where there had been a large proportion of inflation in the USA. The inflation index in the USA had been below 8.5%, which had been positive news for the lower level of inflation recorded from the high point of 9% (Refer to Appendix 5). On the same note, thus it may be said here are several of the factors that may be considered responsible and accountable for the pricing adjustment, where the determinants of the market system and degree of rivalry matter (Zhou, 2021).

Product

Currently, the company of Tesla has yet to bring about much more innovation in the different electric automobiles by a large amount, which has been substantiated by research evidence. It may be thus said that the company has integrated the system of Powerwall in the manufacturing of the different electric automobiles, which have been officially tweeted by the company’s Chief Executive Officer (CEO), Elon Musk (Twitter.com 2022).

Promotion

Tesla has been active on different social media, including YouTube and Twitter mostly, where the company has created a certain following of the customers and stakeholders. Different research studies have made analysis the consideration of YouTube as the place for better promotional activities, because of its long-lasting sustainability of YouTube from the year of 2005 (Schwemmer and Ziewiecki, 2018).

Place

Place in strict terms refers to the different locations that Tesla has followed in the current scenario, owing to which the company has made better progress (Refer to Appendix 4). The consecration of the Gigafcatory for Tesla has been discussed to expand in several locations, as proposed by the organisation (Electrek. 2022Electrek. 2022).

Designing of brand

The designing of the brand is more important than the designing of the different parts, although it may be said that the company has made a tremendous innovation in the designing of the parts. As the research studies suggest, there has been an active innovation followed up by the different companies that enable the company to position the brand better (Liu and Meng, 2017). In the discussion of the designing of the brand, the operations management has been discussed here because the operations management provides a suitable plan structure for the recommended designs. The design of models Tesla has been quite an innovative beast of the integration of Powerwall, and the designing of the automobiles keeping in mind the demands of the modern-day customer have been entirely competitive and carry the art of being a futuristic visionary organisation thus. Tesla has taken in the designing team for Mercedes to design the models of the automobiles thus, where it is shown that the company of Tesla cares much for the design system (Refer to Appendix 6).

Technological innovation theory

The technological innovation theory points out the different stages of innovation that a company may go through to bring in a product that is meant for better long-run competition and hence have a higher customer reach (Refer to Appendix 3). The research study finds out that the company of Tesla has made the innovation within the structure of the company by a method of updating and developing the software, where all such innovations have been occurring in the different models that Tesla has built (Kim, 2020). Moreover, the innovation that Tesla has brought to automobiles have been improving and expanding, such as making the lithium batteries last longer and creating more space for hyperactivity of the automobile (Refer to Appendix 2).

Value chain analysis

Primary activities

Inbound logistics

Tesla is a manufacturing company that involves the use of a variety of raw materials which are required to produce products and inbound logistics provides the company with the raw materials storing of the inputs and delivers the raw and finished products. The inbound logistics of the company are responsible for the recordkeeping, storage and movement of the inputs in the internal operation of the company (Pagani and Champion, 2021). The role of inbound logistics is to keep real-time inventory data and the daily functions of the warehouse of the company to keep a record of the supply-demand and the manufacturing plan daily.

Operations

Tesla has its manufacturing plant in the USA which states the requirements of the management of the in-house operations along with the coordination of the different working units within the company. The operations may be divided into two segments which are based on the energy generation storage segment and the automotive design that comprises the design, development and sales of the electric vehicles. In addition to that, the energy generation and the segmentation in the company may also include the installation, manufacturing and sale of the energy storage. In operations as the primary activity, the company may also involve the utilisation of the Capacity management strategy that may help the company in understanding the management planning accounting for the capacity of the raw materials (Hena, 2018).

Outbound logistics

The outbound logistics of Tesla may be stated as the emphasis on consumer satisfaction and the guarantees provided to the consumer in efficiency and swift transportation and delivery which may also contribute to providing a value-added notion to the operational practices in the company. The company also gives importance to the Triad supply network framework and emphasizes the dependency level of the company over the suppliers. The value net proposition may be added to the operational decisions that are taking place in the company in terms of outbound logistics (Prataviera et al., 2022).

Marketing and sales

Tesla’s value chain analysis shows that the company works toward the “Zero Dollar Marketing” principle which relies on the mouth of satisfied consumers by providing them with high-quality and unique products in the market. The quality management in the operational function helps the company to gain successful marketing functioning that also engages the creation of value among the targeted audiences in the USA.

Services

Tesla provides post-service services among the consumers in the service centres which is to create value among the consumers buying needs and wants all across the USA. The services also connect to the supply chains of the company which are interconnected through the organizational activities in different processes with the use of creating value for the targeted market (Černá et al., 2022).

Support activities

Firm Infrastructure

Tesla may be divided into two categories based on infrastructure understanding of the leadership of Chief Executive Officer (CEO) Elon Musk who is responsible for undertaking the decision-making power for different product categorizations. The infrastructure covers legal matters, quality management, planning and strategic management along with financing, the firm infrastructure looks upon the cost management too. The infrastructure of the company also involves the use of Generic Sourcing Strategies which involves the advantages of the company operations and marketing and the relative capability position of the market to gain a competitive edge.

Human Resource Management (HRM)

Tesla has also maintained a competitive advantage through the talent workforce selection process which helps the company in developing innovative ideas to bring a wide range of products to the market. In the HRM of the company, the Lean thinking (Culture) model has been applied which helps in the improvement of the employee skills and delivering a set routine that is used by the organisation. In the HRM practices, Tesla provides the employees with skills and tools that help in the planning and the improvement of the skills that are required to gain operational success in the company.

Technological development

Tesla has been able to gain a unique status in the automobile industry as the company has been able to adopt technology development in everyday operational functions and marketing practices. The use of technological development has been also utilized by the company in blockchain technology which has been helpful for the company to track the assets of the business. Tesla has gained a unique status in the automobile industry through the foundation of technological advancement uses such as Artificial Intelligence (AI) and Machine learning which has increased its value in the competitive market.

Procurement

Procurement and maintenance of inventory of the raw materials that have been stated as the lifeline of Tesla’s manufacturing process. The value chain analysis of Tesla shows that the company has been maintaining effective communication among the various distributors to obtain different raw materials that are required for the production of the EVs. The effective relationship that has been maintained by the procurement process of Tesla has helped in gaining a competitive advantage in the automobile industry in the USA along with the creation of value among targeted audiences.

Recommendations

The recommendations for the study are as follows:

Tesla should improve the management of the prices that help the company to improve the services effectively.
The company should improve the product management that allows the company to effectively manage productivity and enhancement the development of the company.
The company should also look after the market positioning of the products and should be aware of the product development that helps in the better revenue collection of the company.
The company should improve the attraction for the customers by managing the demands and effective management of the services through innovation management.
The company too should look after the enhancement of the services of the company through better developmental management by enhancing the innovative design implementation of the cars.
The company should improve the services and development by effective technological services that provide the organisation to flourish well.

Conclusion

It may be concluded that the help of effective strategic management and implementation of better promotional management of the product of the company has helped in the development of the products of Tesla globally. The market segmentation and penetration by managing the pricing of the products of the organisation has effectively helped in developing a better marketing strategy for the company. The different ways by which the theoretical system may be explored in the case study of Tesla. It thus may be said that the application of several theories in terms of the company analysis has resulted in a brief discussion to understand and evaluate the specific points, such as innovation and management system for Tesla that are beneficial for the discussion. On a specific note, the strategies that Tesla has adopted have been taken in the current discussion owing to the model discussion and all such discussions have been supported by academic articles. Thus, Tesla has established itself to be a better company in the global market and even has improved its services with better technological innovation which has provided the company to flourish well.

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Appendices

Appendix 1 (SWOT)

Strengths

1. Tesla’s strengths are gathered through the management of innovation

2. The better model innovation has helped the company to increase its revenue to 53.8 billion dollars

Weaknesses

1. The weaknesses of the company due to less presence in the competitive market

2. Tesla’s adoption of full automation has made the company forget about the human adaptability that affected the relationship with the employees

Opportunities

1. The opportunities of the company involved in the case of effective innovation and better technological development

2. The eco-friendly cars help the company to manage the CO2 emissions that help in attracting customers

Threats

1. The company has a huge number of competitors including Volkswagen, Hyundai and Ford which put a challenge in managing the sustenance

2. The instability in the manufacturing of the cars that impacts the suppliers put the investors’ relations into a problematic situation

Strengths

Tesla’s strengths lie in managing better innovation and even in the way the company is maintaining energy efficiency quite well. The revenue collection of the company for 2021 became 53.8 billion dollars with the increase in better model innovation (Statista. 2022). The company effectively manages the brand and to believes in making effective collaborations strategies for the development of the company.

Weaknesses

The weakness of Tesla involved the company’s lesser presence in the competitive market which create obstacles for Tesla to sustenance in the competitive market. The weaknesses of the company mainly concerned the full automation of the company which made the company forget about human adaptability which affected the employee relationship a lot (IMD business school. 2022). The productivity of the company has been highly affected due to a lack of adaptability and the company failed to manage the complexity of the processes.

Opportunity

The opportunities of the company are limited in the case of innovation through the effective development of the technology development of the company in an effective way. The introduction of electric cars has gained the company a better market amidst the climate change for which the company saw a rise in the selling of the vehicles of about 200,000 pre-orders in a month in 2020 (Harvard Business Review. 2022). The eco-friendly cars of the company have affected the company in managing 5 million metric tons of Co2 emissions in 2020 helping the company get potential customers (Tesla. 2022).

Threats

The threat that the company is supposed to face is the case of competition in the market which includes Volkswagen, Hyundai, Ford and many others that put the position of the company in a problematic situation. The inclusion of innovation within the cars frequently to manage the competition within the market may impact the sustainability of the cars in a problematic situation. Unstable manufacturing management of the cars of the company impacts the suppliers and even puts the investors’ relations of the company into a problematic situation.

Appendix 2 (PESTLE)

Political	Economical	Social	Technological	Legal	Environmental
The political condition of the USA is quite stable as the system of government is well managed by the country by conducting free and fair elections and also helps in building good diplomatic relations	The economic condition of the country is quite stable as the country’s GDP is quite good even after the Covid–19 situation which has helped the company to establish a good market	The social situation of the country consists of the management of diversity among the communities and understanding the preferences of the communities by establishing a good market	The technological innovation of the country is maintained quite well and the introduction of AI technology has helped Tesla to implement innovation management within the product	The legal system of the country is also good as the process of registration in establishing a good business establishment helped in managing the policies effectively	The country has increased environmental degradation due to excessive pollution by managing the policy, scope and purpose management of the organisation effectively

Political

The political condition of the United States of America (USA) is quite good as the country has a stable political structure and as the country follows a democratic system of government that allows the country to maintain stability well. Moreover, the stable system of government has helped the country to establish a good market for various kinds of companies and Tesla being originated in the USA has established a better market due to good diplomatic relations of the USA with various countries. The free and fair election, minimum internal and external disputes in the country and better management of democratic practices have helped the country to flourish well globally (Usembassy.gov. 2022).

Economical

The economic condition of the USA is quite good as the country has a free market economy for a business establishment with better Gross Domestic Product (GDP) development of the country. Furthermore, the GDP of the country is around 23 trillion in 2021 which has made the growth and development of the country so much possible and even the rate of GDP has provided the country to provide good markets for companies (Data.worldbank.org. 2022). The better and more effective economic condition of the country has helped Tesla to get such a good market and it has helped the company to flourish well in the competitive market.

GDP of the USA (Source: Data.worldbank.org. 2022)

Social

The social situation of the country is quite good as the country consists of diverse cultures and the people of the country are highly aware of the way the country has been able to flourish well. Additionally, the diversity of the culture has helped in making better business in the country and it even has helped the companies to understand the preferences and inclinations of the people. The country’s stratification is based more on class and the country has various kinds of distinctions in living conditions and places based on race, colour and economically backward which helps Tesla to segment the customers well.

Technological

The technological innovation of the country is well maintained by the government by managing science and technological innovation management by making transparent and open systems for better business management. It may be argued that the federal government of the country tries to manage innovation by identifying the opportunities for the country in the competitive market by implementing Artificial Intelligence (AI) technology into every walk of life (United States Department of State. 2022). The innovation and implementation of effective technology management in the country have impacted Tesla in working in the global market in a much better way and it has helped the company to make such innovative cars well.

Legal

The legal system and structure of the USA are quite good provided that the companies trying to establish a market in the country have to understand the procedure well by understanding the process of registration. In addition to that, the country has to implement certain policies for the company to establish a better market and also have to make a better import and export business by making the companies understand the licensing process to make better business (Usa.gov. 2022).

Environmental

The environmental management of the country is managed well and due to the huge population the country faces a lot of environmental degradation and even the rate of pollution is quite high within the country. The country manages environmental management systems that help in managing the scope, purpose and policy management of the organisation and helps in monitoring the kinds of problems faced by the companies and the way the companies are able to establish well and the country manages to sustain well (Usgs.gov. 2022).

Appendix 3 (Porter’s 5 forces)

The threat of new entrants	The threat of new entrants is high due to a lot of competitors in the market both electric cars and fossil fuel car companies
Bargaining power of consumers	The bargaining power of the consumer is low due to the excessive cost of the products
Bargaining power of suppliers	The bargaining power of the suppliers is high due to limited Supply Chain Management
Competitive rivals	The competitive rivalry is intense due to excessive competitors in the market
Threat of substitutes	The threat of substitutes is high due to the increased market share of the company

The threat of new entrants

The threat of new entrants to Tesla is high while the barrier to entry into the market is quite low as the company being an electric car company has competitors in fossil fuel and other electric car companies which have put the company in managing the innovations for the company effectively.

Bargaining power of consumers

The bargaining power of the buyers of the company is quite low as the company has segmented customers due to the high-end pricing of the products that make the company a better competitive advantage in the market by providing people with diversified and better-quality products.

Bargaining power of suppliers

The bargaining power of the suppliers is high as the company has a limited supply chain management network and as the majority of the suppliers for the parts come from Germany which has helped the company a lot and the company makes other parts which have allowed in making better vertical integration for effective cost leadership.

Competitive rivals

The competitive rivalry of the company is highly intense as the company faces a lot of competitors such as Ford, Volkswagen and other companies and the differentiating strategy of the company puts the market penetration into a challenging position.

Threat of substitutes

The threat of substitutes is high as the market share of the company has increased in November 2021 to 2.52% although, it decreased to 2.33% in December 2021 even though the market share of the company is effectively good (Statista. 2022)

Market share of Tesla (Source: Statista. 2022)

Appendix 4 (6Ps)

Product	Price	Place	Promotion	People
The products of the company have to be managed through the help of sustainable management by understanding the product life-cycle	Tesla has put forward a premium price strategy to ensure the management of the prices of the products	The company owns its showrooms and galleries that help in managing the services well	Advertising and marketing management helps the organisation in managing the long-term and short-term technological change management	Employee management helps in managing the mission and vision by making employee engagement through productivity management

Product

The products of Tesla are highly effective for environmentally sustainable management and as electric cars are innovative and are quite faster and smoother than fossil fuels cars people prefer them a lot. Moreover, the product has a good storage capacity of energy and the vehicles of the company have access to a solar energy system which even helps in keeping the vehicles eco-friendly and fewer management costs from the customers’ side. According to the Product Life-cycle model, Tesla belongs to the maturity stage due to eco-friendly product delivery to the customers and also the company’s branding effectively.

Price

The company has put forward a premium price strategy due to its high quality with the high price of the products and the company makes sure that the prices are managed well by keeping in mind the exchange rates and import duties. Furthermore, the pricing strategy and management of the company have changed a lot in a year which has helped the company to gain effective profits of 37.36 million dollars that has helped the company to nearly cross the margin of profit (Tesla Price. 2022).

Prices change in Tesla (Source: Tesla Price. 2022)

Place

The company has stores and galleries for cars which are majorly present in the metropolitan markets and the company too has access to online services which helps the organisation in managing the retail sales and services effectively. The company’s operating galleries are present in the USA and even in 35 other countries which provide access to superchargers for the cars and even help the people to have service centres for the management of the cars.

Promotion

Tesla takes up advertising and marketing strategy for the promotion of products in the market by managing the authenticity of the products, managing the experience of the consumers and building good connections with the community for better selling of the cars. The market orientation of the company has to be managed well to manage the long-term and short-term understanding to understand effective technological change by managing the manufacturing firm for the competitive market (Baines et al., 2017). However, throughout the promotion, the company has to take up Maslow’s hierarchy of needs to understand the demands and desires of the consumers which helps the company to promote the products accordingly.

People

The employees of Tesla are essential for the company which helps the company to develop well and put forward the company’s mission and vision in the foremost position of the company. Moreover, the company has organised effective training programs for employees as well as volunteers willing to join the company and progress well where the company may teach good skills and even provide information regarding automotive that benefits the individuals. The company manages the Human Relations Management that helps in productivity management of the organisation and it helps in building good relations between employees and managers for better engagement in the market.