ANSWER KEY

SRTRATEGIC MANAGEMENT (IAT-1) MBA-II SEMESTER

(2017-2019 BATCH)

Part A - Answer Any Two Full Questions (16*02=32 Marks)

1 (a) What is a strategy?

ANSWER: Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy can
also be defined as “A general direction set for the company and its various components to achieve a desired state in
the future. Strategy results from the detailed strategic planning process”.

A strategy is all about integrating organizational activities and utilizing and allocating the scarce resources within
the organizational environment so as to meet the present objectives. While planning a strategy it is essential to
consider that decisions are not taken in a vaccum and that any act taken by a firm is likely to be met by a reaction
from those affected, competitors, customers, employees or suppliers.

Strategy can also be defined as knowledge of the goals, the uncertainty of events and the need to take into
consideration the likely or actual behavior of others. Strategy is the blueprint of decisions in an organization that
shows its objectives and goals, reduces the key policies, and plans for achieving these goals, and defines the
business the company is to carry on, the type of economic and human organization it wants to be, and the
contribution it plans to make to its shareholders, customers and society at large.

1(b) Discuss the process of strategic management.

ANSWER: Strategic management is a continuous process that appraises the business and industries in which the
organization is involved; appraises its competitors; and fixes goals to meet the entire present and future competitor’s
and then reassesses each strategy.

1. Environmental Scanning- Environmental scanning refers to a process of collecting, scrutinizing and

providing information for strategic purposes. It helps in analyzing the internal and external factors
influencing an organization. After executing the environmental analysis process, management should
evaluate it on a continuous basis and strive to improve it.
2. Strategy Formulation- Strategy formulation is the process of deciding best course of action for
accomplishing organizational objectives and hence achieving organizational purpose. After conducting
environment scanning, managers formulate corporate, business and functional strategies.
 3. Strategy Implementation- Strategy implementation implies making the strategy work as intended or putting
the organization’s chosen strategy into action. Strategy implementation includes designing the organization’s
structure, distributing resources, developing decision making process, and managing human resources.
4. Strategy Evaluation- Strategy evaluation is the final step of strategy management process. The key strategy
evaluation activities are: appraising internal and external factors that are the root of present strategies,
measuring performance, and taking remedial /corrective actions. Evaluation makes sure that the
organizational strategy as well as its implementation meets the organizational objectives.

These components are steps that are carried, in chronological order, when creating a new strategic management plan.
Present businesses that have already created a strategic management plan will revert to these steps as per the
situation’s requirement, so as to make essential changes. Strategic management is an ongoing process. Therefore, it
must be realized that each component interacts with the other components and that this interaction often happens in
chorus.

1© Explain the concept of “Balanced Scorecard” and analyze its role in today’s competitive scenario, with a
suitable example.
ANSWER: The balanced scorecard (BSC) is a strategic planning and management system that organizations use to:

 Communicate what they are trying to accomplish

 Align the day-to-day work that everyone is doing with strategy
 Prioritize projects, products, and services
 Measure and monitor progress towards strategic targets

The system connects the dots between big picture strategy elements such as mission (our purpose), vision (what we
aspire for), core values (what we believe in), strategic focus areas (themes, results and/or goals) and the more
operational elements such as objectives (continuous improvement activities), measures (or key performance
indicators, or KPIs, which track strategic performance), targets (our desired level of performance), and initiatives
(projects that help you reach your targets).

The balanced scorecard revolutionized conventional thinking about performance metrics. When Kaplan and Norton
first introduced the concept, in 1992, companies were busy transforming themselves to compete in the world of
information; their ability to exploit intangible assets was becoming more decisive than their ability to manage
physical assets. The scorecard allowed companies to track financial results while monitoring progress in building the
capabilities needed for growth. The tool was not intended to be a replacement for financial measures but rather a
complement—and that’s just how most companies treated it.

Some companies went a step further, however, and discovered the scorecard’s value as the cornerstone of a new
strategic management system. In this article from 1996, the authors describe how the balanced scorecard can address
a serious deficiency in traditional management systems: the inability to link a company’s long-term strategy with its
short-term financial goals. The scorecard lets managers introduce four new processes that help companies make that
important link.
The first process—translating the vision—helps managers build a consensus concerning a company’s strategy and
express it in terms that can guide action at the local level. The second—communicating and linking—calls for
communicating a strategy at all levels of the organization and linking it with unit and individual goals. The third—
business planning—enables companies to integrate their business plans with their financial plans. The fourth—
feedback and learning—gives companies the capacity for strategic learning, which consists of gathering feedback,
testing the hypotheses on which a strategy is based, and making necessary adjustments.
2 (a) Cite any two examples each of vision & mission statement of a company.

ANSWER:

MISSION STATEMENT:
Nike: "To bring inspiration and innovation to every athlete in the world."
Starbucks: "To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time."

VISION STATEMENT:
AMAZON: Our vision is to be earth’s most customer-centric company; to build a place where
people can come to find and discover anything they might want to buy online.

AVON: To be the company that best understands and satisfies the product, service and self-
fulfillment needs of women – globally.

2 (b) Distinguish between strategy and tactics. Discuss the characteristics of a good strategy.

ANSWER:

Basis Strategy Tactics

Who formulates? A prerogative of top Lower level management

management

What is the Deals with many things Narrow focus

scope?

Time horizon Longer period Shorter period

Timing of action Prelude to action During the action

Type of guidance General guidance to Specific and situational guidance

whole organisation to specific section of
organisation
CHARACTERISTICS OF A STRATEGY:
1. Strategy is a systematic phenomenon:

Strategy involves a series of action plans, no way contradictory to each other because a common
theme runs across them. It is not merely a good idea; it is making that idea happen too. Strategy
is a unified, comprehensive and integrated plan of action.

2. By its nature, it is multidisciplinary:

Strategy involves marketing, finance, human resource and operations to formulate and
implement strategy. Strategy takes a holistic view. It is multidisciplinary as a new strategy
influences all the functional areas, i.e., marketing, financial, human resource, and operations.

3. By its influence, it is multidimensional:

Strategy not only tells about vision and objectives, but also the way to achieve them. So, it
implies that the organisation should possess the resources and competencies appropriate for
implementation of strategy as well as strong performance culture, with clear accountability and
incentives linked to performance.

4. By its structure, it is hierarchical:

On the top come corporate strategies, then come business unit strategies, and finally functional
strategies. Corporate strategies are decided by the top management, Business Unit level
strategies by the top people of individual strategic business units, and the functional strategies
are decided by the functional heads.

5. By relationship, it is dynamic:
Strategy is to create a fit between the environment and the organisation’s actions. As
environment itself is subject to fast change, the strategy too has to be dynamic to move in
accordance to the environment. Success of Microsoft appears to be very simple as far as software
for personal computers are concerned, but Microsoft strategy required continuous decisions in a
turbulent and dynamic environment to remain leader.

2 © “Victorious warriors win first and then go to war, while defeated warriors go to war
first and then seek to win.” Justify the statement with reference to the importance and relevance
of strategic management in organization.
ANSWER: Strategic management is both an Art and science of formulating, implementing, and
evaluating, cross-functional decisions that facilitate an organization to accomplish its objectives.
The purpose of strategic management is to use and create new and different opportunities for
future. The nature of Strategic Management is dissimilar form other facets of management as it
demands awareness to the "big picture" and a rational assessment of the future options.
 RELEVANCE OF STRATEGIC MANAGEMENT:

 Reduction in Fixed and Flexible Expense: The capital invested in the fixed assets is a
fixed capital. Instead of purchasing the fixed assets, the managers may buy such assets on
rent to decrease the fixed capital investment. In the same way, the flexible expenses can also
be reduced through collection arrangement. Making changes in packing, of making changes
in full, by acceptance, the strategy of machinery resources in management etc.

 Motivation to Group Activity: By taking strategic decisions through the group, integration
between group members increases on accepting various optional strategies which result in to
co-operation and unity. Not only that, but the managers can also get the advantage of special
strength of group members.

 Reduction in cost of capital: It is a fact that the unit which is successful in raising the
capital of the lowest possible cost is almost eligible to face the competition right from the
beginning. After getting the estimate of capital requirement the managers select the sources
of capital from where they can acquire the capital in a strategically manner. The strategic
management has been proved to be very useful to raise the estimated capital at lowest
possible rate, simple conditions for mortgage, return of borrowed capital and conversion of
borrowed capital into owner’s capital.

 Acceptance of Organizational Changes: Normally the employees do not accept the

changes made in the organization, because due to that the change occurs in their roles also.
As a result the necessity to giving training of the new work to the employees arises. Not
only that but because of such changes many departments also have to be closed. In these
circumstances the problem of the safety of job arises.

 Increase in rate of return on investment: Due to the strategic management there is a noble
increase in the rate of return on investment made in the project. On the basis of the
information received through analysis of internal and external environment the managers
can increase the rate of return on investment by making a maximum use of resources.

 Prevention of Overlapping of Work: Due to the interaction with employees and officers
working at all the levels of the organization the question does not arise at all for the
distribution of one work to more than one employee or event he overlapping work is also
not possible. When the same activity is done by more than one employee. At that time there
is wastage of time and materials. The problem of co-ordination also arises. With the help of
strategic process, the managers can prevent the overlapping of work.

 Prevention of Organizational Gap: Out of the departmental activities organization if any

activity is not allotted to any employee, that activity is known as organizational gap.
If the allotment of any work is left out by mistake, then none of the employees can be held
responsible for it. In strategic management process, because of the interacting process being
done with each employee, all the employees are given equal works and so there does not arise a
questions of organizational gaps.

 Increase in trading on equity: Trading on equity depends upon many factors. Among on
this, by making a maximum use of borrowed capital in a creative manner through strategic
management process, the profitability of the unit can be increased and the equity share
holders can be paid maximum dividend. If an appropriate strategically arrangement is not
made for the use of financial resources, then its profitable use will not be successful and the
interest on the borrowed capital will also become burdensome.

CHARACTERISTICS OF STRATEGIC MANAGEMENT:

 Conscious Process

Strategies are a product of the developed conscience and intellect that we humans proudly
possess and employ. Strategic management implies the usage of the brain and the heart and is not
a routine ever continuing process. It requires great skill and experience to be carried out
effectively and requires full application of one’s conscience.

 Requires Foresight

The future is uncertain. We cannot predict what will happen. However on the basis of the
information that is available to us we will be able to presume certain things about the future. For
instance, a discovery that the item XYZ causes cancer can allow us to make a very reasonable
presumption that the item XYZ will be banned in the near future. This presumption thus allows
us to not make any investment in anything directly related to XYZ.

 Dependent on Personal Qualities

The above two considerations make it amply clear that Strategic Management is heavily
dependent on the personal qualities of the managers occupying the top level positions. These
personal qualities including skills and experience obtained over years of employment and
observation cannot be imparted by training or coaching classes and requires practical exposure
for extended periods of time unless the person is born with the talent of strategizing (which is
rare).
  Goal Oriented Process

The process of Strategic Management is a goal oriented process. The process is done with the
intention and goal of analyzing the various elements through SWOT analysis and other tools and
to develop a plan or strategy that effectively allows the business to maneuver itself around every
hurdle and make use of its strength. This process also plays the role of making all other functions
of the business goal oriented as well.

 Facilitates decision making

Strategic Management plays an integral role in making important decisions. Whenever a

manager has to make a decision he has to think about the bearing of such a decision on the
overall strategy and the business’ trajectory. Thus the strategies developed acts as a guide to
make efficient and accurate decisions.

 Primary Process

Strategic Management is the primary process in any business. The strategies that the business has
to apply in its activities are developed at the initial stage itself and only after the creation of the
strategy that other processes commence by making the strategy as its basis.

 Pervasive Process

Strategic Management is a pervasive process seen in all levels of the business. The core
strategies are formulated for the entire business by the top level management and strategies to
efficiently achieve the overall goal so laid down by the top level management is developed
through the various lower business units.

 Allows for Risk Management

Risk management can be considered as a subset or a specific form of strategic management. Risk
is the probability of a future loss and risk management involves formulating various strategies to
combat the risks making risk management a form or variety of strategic management. Strategic
management in this form allows for identifying and eliminating the risks posed by various
hazards to the business.

 Drives Innovation

The development of strategy is not a simple process and requires making the best out of often
very restrictive situations. This drives innovations and allows managers to approach problems
from different angles and solve problems more efficiently. After all necessity is the mother of all
inventions.
 3(a) Define company philosophy with a suitable example.

ANSWER: It stands for the basic beliefs that people in the business are expected to hold and be
guided by—informal, unwritten guidelines on how people should perform and conduct themselves.
Once such a philosophy crystallizes, it becomes a powerful force indeed. These are "general laws that
furnish the rational explanation of anything."

Examples of Company Philosophy:

1. Maintenance of high ethical standards in external and internal relationships is essential to maximum
success.

2. Decisions should be based on facts, objectively considered—what I call the fact-founded, thought-
through approach to decision making.

3. The business should be kept in adjustment with the forces at work in its environment.

4. People should be judged on the basis of their performance, not on personality, education, or
personal traits and skills.

5. The business should be administered with a sense of competitive urgency.

3(b) Write short notes on:

i) Strategy Formulation: Strategy formulation is the process of establishing the organization's

mission, objectives, and choosing among alternative strategies. Sometimes strategy formulation
is called "strategic planning."

Strategy formulation refers to the process of choosing the most appropriate course of action for
the realization of organizational goals and objectives and thereby achieving the organizational
vision. The process of strategy formulation basically involves six main steps. Though these
steps do not follow a rigid chronological order, however they are very rational and can be easily
followed in this order.

1. Setting Organizations’ objectives -

2. Evaluating the Organizational Environment
3. Setting Quantitative Targets
4. Aiming in context with the divisional plans
5. Performance Analysis
6. Choice of Strategy
ii) Financial Objectives: Financial Objective means the financial requirements or goals that a
company or an organization plan for the future. In simple words it means to set a target how to
achieve profit and make more money .But sometimes it also includes the amount of money that
is required for a specific goal, the timeframe in which that task must be finished and how to
spend the money.

Financial objectives are goals on earnings and revenues that the company aims to achieve with
an specific indicator that will allow it to be measured in an specific period of time. Financial
goals touch on everything money-related that a company wants to achieve within a given period
— say, one month, quarter or fiscal year. These objectives may span a shorter stretch if top
leadership must cope with an immediate operational crisis, the kind that may happen if a major
customer owing substantial amounts suddenly files for bankruptcy.

FINANCIAL OBJECTIVES OF A FIRM:

1. Profit Maximization Objective:

Profit as an objective has emerged from over a century of economic theory. In this traditional
economic theory, the typical firm was small, owner managed and competing with a large number
of similar firms.

2. Wealth Maximization Objective:

Wealth maximization means maximizing the net present value (or wealth) of a course of action.
The net present value of a course of action is the difference between the present value of its
benefits and present value of its costs. A financial action which has a positive net present value
creates wealth and, therefore, is desirable.

3. Value Maximization Objective:

The goal of firm is to maximize the present wealth of the owners i.e., equity shareholders in a
company. A company’s equity shares are actively traded in the stock markets, the wealth of the
equity shareholders is represented in the market value of the equity shares.

4. Other Maximization Objectives:

i. Sales Maximization Objective:

The interests of the company are best served by the maximization of sales revenue, which brings
with it the benefits of growth, market share and status. The size of the firm, prestige, and
aspirations are more closely identified with sales revenue than with profit.

ii. Growth Maximization Objective:

Managers will seek the objectives which give them satisfaction, such as salary, prestige, status
and job security. On the other hand, the owners of the firm (shareholders) are concerned with
market values such as profit, sales and market share.

iii. Maximization of ROI:

The strategic aim of a business enterprise is to earn a return on capital. If in any particular case,
the return in the long-run is not satisfactory, then the deficiency should be corrected or the
activity be abandoned for a more favorable one. Measuring the historical performance of an
investment centre calls for a comparison of the profit that has been earned with capital employed.

iv. Social Objectives:

The business enterprise is an integral part of the functioning of a country. As such, in return for
the privileges and rights granted to it by the state, the business firm should be made increasingly
responsible for social objectives.

3© Differentiate Vision & Mission statement. Discuss the elements of a mission statement.
ANSWER: DIFFERENCE BETWEEN VISION & MISSION

Basis Mission Statement Vision Statement

About A Mission statement talks about HOW A Vision statement outlines
you will get to where you want to be. WHERE you want to be.
Defines the purpose and primary Communicates both the
objectives related to your customer needs purpose and values of your
and team values. business.
Answer It answers the question, “What do we do? It answers the question,
What makes us different?” “Where do we aim to be?”
Time A mission statement talks about the A vision statement talks about
present leading to its future. your future.
Function It lists the broad goals for which the It lists where you see yourself
organization is formed. Its prime function some years from now. It
is internal; to define the key measure or inspires you to give your best.
measures of the organization's success It shapes your understanding
and its prime audience is the leadership, of why you are working here.
team and stockholders.
Change Your mission statement may change, but As your organization evolves,
it should still tie back to your core values, you might feel tempted to
customer needs and vision. change your vision. However,
mission or vision statements
explain your organization's
foundation, so change should
be kept to a minimum.
Developing a What do we do today? For whom do we Where do we want to be going
statement do it? What is the benefit? In other words, forward? When do we want to
Why we do what we do? What, For reach that stage? How do we
Whom and Why? want to do it?
Features of an Purpose and values of the organization: Clarity and lack of ambiguity:
effective Who are the organization's primary Describing a bright future
statement "clients" (stakeholders)? What are the (hope); Memorable and
responsibilities of the organization engaging expression; realistic
towards the clients? aspirations, achievable;
alignment with organizational
values and culture.

ELEMENTS OF A MISSION STATEMENT:

1. The mission statement is clear and understandable to all personnel, including rank-and-
file employees.
2. The mission statement is brief enough for most people to keep it in mind. This typically
means one hundred words or less, which is possible.
3. The mission statement clearly specifies what business the organization is in.
4. The mission statement should identify the forces that drive the organization's strategic
vision.
5. The mission statement should reflect the distinctive competence of the organization.
6. The mission statement should be broad enough to allow flexibility in implementation but
not broad enough to permit a lack of focus.
7. The mission statement should serve as a template and be the means by which mananagers
and others in the oragnization can make decisions.
8. The mission statement must reflect the values, beliefs, and philosophy of operations of
the organization.
9. The mission statement should be achievable. It should be realistic enough for
organization members to buy into it.
10. The wording of the mission statement should help it serve as an energy source and
rallying point for the organization.

Part B - Compulsory (01*08=08 marks)

4. Case Study – Tesla’s Global Strategy.
4 (a) Identify the key focus areas of Tesla. Discuss importance of each one of them in detail.

ANSWER: FOCUS AREAS OF TESLA:

1. Innovation
2. Research & Development (R&D)
3. Customer
4 (b) Conduct a SWOT analysis of Tesla and summarize its global business strategy which is
making it a market leader.
ANSWER:
Strengths:

 Brand recognition – Tesla is a well recognized brand. Apart from its vehicles, it is also
known for a large range of other kind of sustainability products. The brand has gained
reputation and global recognition through its products and services. It has attracted heavy
publicity and recognition based on its differentiated business model. Brand recognition is
an important factor that aids at generating sales and in case of Tesla, it is a major leverage.
From Quora to several business news sites and media, the internet is constantly abuzz with
discussions over the brand and its products.
 Sustainable innovation – The sustainable innovation model adopted by Tesla is one of its
most critical strengths. From its vehicle to solar energy and energy storage systems, all of
its products are related to sustainability. The focus is on helping the world transition
towards a better and energy efficient world. Both its Model X and model S are fully
electric, high performance vehicles with exceptional functionality. Apart from its range of
vehicles, Tesla makes energy storage and solar energy systems. Its vehicles and energy
storage systems are highly innovative and equipped with best in class technologies and
several exceptional functionalities.
 Growing vehicle sales – Tesla’s vehicle sales have kept growing globally. It markets and
sells its vehicles over the world through the company owned stores. From 2015 to 2016, it
has seen some major growth in its revenue. This happened due to a sharp growth in vehicle
sales of around 55%. From 2015 to 16, Tesla’s automotive revenue increased $2.16
billion, or 63% to $5.59 billion. This is some major growth backed by a sound marketing
strategy.

Weaknesses:

 High costs of vehicles – Tesla vehicles are costlier than the ordinary vehicles and in this
regard they rank among the premium category vehicles. Apart from its Model 3, Model S
and Model X are costly and therefore not affordable for the middle class consumers. Even
the Model 3 is somewhat high priced for the middle class consumers in the developing
countries. The high cost of Tesla vehicles is an important weakness that has kept Tesla’s
sales from growing fast.
 Limited presence – Tesla’s sales network depends on its super charger network. As its
super charger network grows, the brand’s sales will also grow. Elon Musk is working on
growing this network faster but till now it has a limited presence and will take both time
and a large investment to grow.
  High competition – The level of competition is high. The need for super chargers to charge
Tesla vehicles is an important factor affecting its competitive strength. Other brands like
Nissan and Ford are also making environment friendly and electric vehicles. Their
vehicles due to being priced lower pose a competitive threat to Tesla’s sales. So, both
affordability and accessibility or availability are important questions before Tesla. By
managing the two factors, it will be able to manage the competitive threat before the
brand.

Opportunities:

 Growing demand of sustainable products- Sustainability is not a passing fad and the
demand for sustainable products has grown fast in the 21 st century. This is a major factor
churning demand in the favor of Tesla. People are looking for environment friendly
options for transportation. Tesla’s opportunities are growing as people want products that
are less polluting and more environment friendly. Think if trillions of dollars being spent
on fuel could be saved every year and thousands of megawatts of solar energy stored.
Apart from reducing the consumption of fossil fuel, this can help save dollars. If your car
saves you millions in your life time by running on electricity and your home appliances
run on solar energy, you know Tesla vehicles and products are not costly. They will save
you more than you have invested in purchasing them.
 Supply chain, sales and maintenance network in Asia – Asian markets are heating up and
for brands like Tesla there are major opportunities hidden in both the Chinese and Indian
markets. Tesla can focus on strengthening, its sales, supply and maintenance network in
Asia. This can help the brand grow its sales faster. Moreover, the Asian consumer is eager
for sustainable products and only if the prices of Tesla product were lower, the large
middle class Asian consumer segment could become a large source of revenue for it.
 Autonomous driving technology – Autonomous driving technology has become the talk
of the town and many top vehicle brands are working to bring their Autonomous vehicles
on the road by or before 2020. Tesla also has plans to release fully autonomous vehicles.
Its current vehicles come equipped with self driving hardware required for full self
driving capability at a safety level that is substantially greater than human driving.
 Mobility service – Tesla is also planning to release a ride sharing service. If it does, that
could provide people with another cheaper option for transportation.

Threats:

 Competition – Tesla is facing intense competition from both luxury brands and
environment friendly brands. Apart from the luxury brands like Audi and Porsche, the
brands making environment friendly vehicles are also a competitive threat. Tesla has a
premium image and it will take time to break this image and bring more affordable
vehicles to the market. However, that is a good way to reduce the competitive threat.
  Legal and regulatory troubles – Legal and regulatory troubles can be costly affairs and
they can lead to an increase in costs. Tesla has operations in several countries and thus its
business is subject to legal and political regulation in those markets.

GLOBAL STRATEGY OF TESLA:

Tesla entered the market through expensive high-end cars targeted to the more financially
privileged class of people. Once it is more established and widely known as a successful idea, it
would venture into a more competitive market of lower-level priced models. So the first model
was launched to get the company’s mission out in the marketplace.
All Tesla needed was to make a name for their brand get its concept widely accepted. After that
it reinforced its business model. Tesla’s business model is based on a three-pronged approach to
selling, servicing, and charging its electric vehicles.
Business Strategy:

Direct Sales: Tesla doesn’t adopt the approach of franchise dealerships, unlike most
manufacturers. They prefer selling their product directly to the customers through self-owned
showrooms across many of the major urban centers in the world. They believe that this method
of selling can speed up their product development. But more significant is the customer’s buying
experience. Tesla has showrooms, Service Plus centers (a combination of retail and service
center), and service facilities. Tesla has also made use of the Internet sales—consumers can
customize and purchase a Tesla online.
Servicing: As mentioned above Tesla has combined direct sales with service centers. They
believe opening service centers has a positive effect on the customer demand. Thus the “Service
Plus” retail centers. Customers can service their cars or charge them at the service centers or the
Service Plus locations. They also have mobile technicians who can come to your home, called
Tesla Rangers. With the Model S, they can wirelessly upload data so technicians can view and
fix certain problems online without even physically touching the car.

Charger’s network: Tesla has a wide network of where their customers can charge their
vehicles. Supercharger Stations: a place where customers can charge their vehicles in about 30
minutes for free. It is their belief that this will increase the rate of the customers product
adoption.
Tesla’s business network is growing faster. Last year, the company saw some major growth in its
vehicle sales. Its manufacturing and marketing have also grown more cost efficient. However,
the growth of its supercharger network is important for the brand to grow its sales globally.
Tesla has plans to release fully autonomous vehicles and ride sharing services. Its Model 3 will
help it penetrate the market deeper, especially the Asian markets. Now, Tesla is a well known
brand producing sustainability products. The demand for these products has kept rising and in
future if Tesla’s network grows faster, then you know it is going to save the world billions by
saving on fossil fuel consumption.