Identify A Firm That Exemplifies This Strategy And Explain

Identify a Firm That Exemplifies This Strategy and Explain Why

You are assigned differentiation strategy. Identify a firm that exemplifies this strategy and explain why you consider it to be a cost leader or differentiator. Once you have picked a firm, please answer the following questions:

  1. What is the mission statement and/or vision statement of this firm? Is this firm targeting specific strategic goals?
  2. What is the firm’s corporate structure? Draw out the corporate structure, you are free to use pen and paper, take a photo of it and post the file, or you may use MS Word or MS PowerPoint and design the structure using the chart tool (this will let you connect boxes with lines and then type within each box). See details of possible designs in Chapter 10 and in the diagram on page 2 of this assignment.
  3. Using the various examples of structures in the textbook (Chapter 10, also next page of this assignment), describe which structure your firm matches, and how it matches. Is it an exact match or are there small differences? If there are differences, describe them.
  4. Finally, do you believe that this firm is structured appropriately considering its current and future strategic goals?

Keep your answer to 4 pages maximum, all inclusive. Do not use a company that has already been covered in during this course as your example.

Paper For Above instruction

In this paper, I will analyze Tesla, Inc., a renowned firm exemplifying the differentiation strategy. Tesla has established itself as a leader in electric vehicles (EVs), renewable energy solutions, and innovative technology, crafting a unique brand identity centered around innovation, sustainability, and high performance. The company's mission statement is “To accelerate the world's transition to sustainable energy,” which reflects its strategic goals of leading the EV industry and expanding renewable energy products (Tesla, 2023). Tesla primarily targets consumers looking for innovative, environmentally friendly, and high-tech transportation solutions, positioning itself distinctively in a highly competitive automotive market.

Regarding Tesla's corporate structure, the company operates as a multinational corporation with multiple subsidiaries and divisions. Its organizational structure can be depicted as a divisional structure based on product lines—namely Automotive, Energy Generation and Storage, and Services. The core corporate hierarchy includes the Board of Directors overseen by Elon Musk, the CEO, with divisions managed by executive leaders responsible for research and development, manufacturing, sales, and service operations. Tesla’s structure emphasizes innovation and agility, supporting rapid development cycles and direct sales channels, which are characteristic of a decentralized approach that fosters entrepreneurship within divisions (Tesla, 2023).

Analyzing Tesla's structure in relation to textbook classifications, Tesla's organizational form aligns most closely with the divisional structure, especially with product-based divisions. According to Chandler's (1962) framework, Tesla employs a strategic business unit (SBU) model, facilitating focus on different market segments such as automotive and energy Solutions. The decentralized nature of Tesla’s divisions reflects the textbook's description of a divisional model that allows flexibility, innovation, and responsiveness to market demands. However, Tesla's close integration of R&D and manufacturing functions adds a layer of coordination not always explicit in pure divisional structures, suggesting some hybrid features.

Considering Tesla's strategic objectives for expansion and innovation, its current organizational structure appears appropriate. The company's emphasis on rapid product development, market responsiveness, and innovation requires a flexible and decentralized structure, which Tesla effectively maintains. As Tesla continues to grow and diversify into new markets such as energy storage and possibly autonomous vehicles, its organizational design may need further refinement to sustain agility while ensuring cohesion across divisions. Nonetheless, its current structure supports its strategic goals of market leadership, innovation, and sustainability.

References

  • Chandler, A. D. (1962). Strategy and Structure: Chapters in the History of the American Industrial Enterprise. MIT Press.
  • Tesla, Inc. (2023). About Tesla. Retrieved from https://www.tesla.com/about
  • Grant, R. M. (2019). Contemporary Strategy Analysis. Wiley.
  • Galbraith, J. R. (1973). Designing Complex Organizations. Addison-Wesley.
  • Johnson, G., Scholes, K., & Whittington, R. (2020). Exploring Corporate Strategy. Pearson.
  • Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic Management: Concepts and Cases. Cengage Learning.
  • Mintzberg, H. (1979). The Structuring of Organizations. Prentice-Hall.
  • Nelson, R. R., & Winter, S. G. (1982). An Evolutionary Theory of Economic Change. Harvard University Press.
  • Porter, M. E. (1985). Competitive Advantage. Free Press.
  • Weber, M. (1947). The Theory of Social and Economic Organization. Free Press.

Related Assignments