Strategic Management Management Essay Research Paper

STRATEGIC MANAGEMENT
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Strategic Management
Introduction and Summary.
As the problem of global warming continues to worsen, some governments and large enterprises have begun to take active and effective measures to address this problem related to all humankind. Also, more and more people believe that the world will be more protected from emissions if people stop using fossil fuels. Along with Musk’s personal vision and innovative spirit, he founded Tesla in 2008 and began producing the first all-electric cars. Jiang (2018, p. 498) mentions that this type of new nature of manufacturing is friendly to the ecosystem. According to Cheng (2017), in order to prove that electric vehicles can drive faster and better, Tesla’s people have begun to innovate continuously and are committed to building the world’s best all-electric vehicle brand and make the most effort to contribute to global warming. Rarick et al (2017) states that the company can produce both electric cars and other storage products, like batteries so as to provide comprehensive service to their customers. Initially, Tesla produced them at California, where most of its auto parts were made. However, with the increasing cost pressures, Tesla wanted to build a factory in mainland China, and he saw a huge market in China. All in all, despite tesla has accounted for a quarter market share in the world, it still faces various challenges, particularly those from its rivals and other factors.
Challenges.
Lemann (2019) notates that Elon Musk made efforts to make Tesla a better company globally. One of the ways on how he hoped to achieve this was by trying to give it freedom from the pressures it was getting from Wall Street. From what Jiang (2018, p.496) wrote, there has been continued growth in the automobile industry since the coming of electric vehicles. Although the Chinese government is providing Tesla with much help in the local automobile sector, the company still faces challenges in terms of much competition and innovation in the manufacturing industry along this line. There are other companies like Nio, BYD Company, Volksawagen that pose as a theat to the company. These companies are proving better in terms of the entrepreneurship which seems as a threat to Tesla. Politically, the President of the US, Donald Trump, continues to put pressure on American Companies to move out of China back to the US. Though Tesla felt the pressure, they decided to stay in China.
Parnell (2018) also adds that another challenge that Musk is facing is the difficulty with matters of finances. Though Musk is claiming they are funding secured, the company is facing challenges with finanes especially after the fear of investors to bring shares in support of the company. Perkins et al (2018, p. 475) argued that from the thought of these investors, it was important for Tesla to continue producing cars to realize more profits than going private. Another challenge is that Musk is finding it hard to get those people that are willing to help him run the company well. Finding this person is getting hard to achieve. Also, most of the top executives that were working with Musk left. Thoug...