In today’s competitive business world, there are various issues and challenges, which are confronted by different organizations. For an organization, it is very important to overcome these challenges for getting success. It can enable the company to increase its profits and market the next level, if it can manage challenges in effective manner. This essay includes the discussion about the innovative business, which was started by San Carlos in the year 2003 and how the CEO of the company, i.e. Elon Musk has implemented various creative solutions to the issues, confronted by the company. According to Schumpeter, entrepreneur is the person, who is always ready to innovate and yield something new by the different processes of organization. San Carlos, developer of the Tesla Motors was a real entrepreneur, who has incorporated various innovative practices in its products and services. He recognized the needs and preferences of people towards vehicles and cars (Anderson, Narus, & Narayandas, 2009).
Tesla Motors is an automobile organization in United States of America and it is also engaged in producing the solar panels. The management of the company has implemented various innovative ideas by introducing electric cars in the automotive industry. CEO Elon Musk foresees his company as innovative, technology firm and independent automotive player. In addition to this, Tesla Motors is aiming on providing electric cars at affordable prices to each and every customer. In the year 2015 and 2016, Model S of Tesla Motors was the best-selling electric car (Cobb, 2016). The mission and vision statement of Tesla Motors shows the nature of its prominent electric automotive manufacturing business. Founded in the year 2003, Tesla became profitable in the year 2013. This continuous growth and development indicate that the industry is responding to the automobiles of organization and related products and services. Its visions statement builds direction of Tesla for the growth of company (Chen, and Perez, 2015). With enhanced popularity and strong image, organization is placed to get success in international automobile industry. Entrepreneurship is the major source for the survival of business and CEO of the company believed that this entrepreneurship developed the decision making process creatively. This essay includes one of the major issues, which are faced by the Tesla Motors in today’s business world. The company has implemented different solutions to deal with this issue and explore new ways for enhancing its business operations. It includes the innovative business ideas of the management at Tesla Motors. Implementing new strategies and solutions assisted the organization in regaining its brand image and enhanced its profits and revenues. Now, the company is serving with its business operations in different areas of the world, like; Asia, United States, Australia, Europe and Canada and it is headquartered is California (Fleisher, & Bensoussan, 2015).
As discussed above, Tesla is making innovation its business operations by introducing electric cars and solar cars. In its existence, the company has faced various issues, which affected its growth in competitive business environment. One of the major issues, which are considered here, is related to environmental sustainability and social impacts. Increased level of pollution has enhanced the emphasis on automobiles. However, vehicles and automotive products are the major reason behind environmental pollution. In today’s world, people are becoming very concerned about the environment and other environmental practices. So, it affected the growth and survival of the company (Hahn & Powers. 2010). At the same time, the company has faced social and legal pressures to enhance the sustainability of its products and services and improve its production method. According the survey conducted by Green Tribunal, the pollution from vehicles is one of the major reasons behind high pollution levels. However, Tesla was very much focused on the environmental and corporate social responsibility practices, but still it has confronted issues related to environmental practices.
When the company has entered in the automotive industry, it was the major issue for all the automakers. Adverse impact on environment was affecting the life and health of people and other environmental factors. At that time, it was a great challenge to develop highly performing economy without any environmental damage. This was the major reason, why Tesla has chosen making investment in electric and solar cars (Moon, 2010).
Leading the arrival of more sustainable transportation system and innovation in this, Tesla Motors has created a strong brand image in the automobile industry. Established in 2003, the organization has grown to become the largest manufacturer of electric cars in the industry. As of today, it has contributed over 50000 cars in road across the globe (Hill, 2013). By creating this transportation system, Tesla Motors wanted to develop a transportation system, which is more sustainable and eco-friendly. It decided to work with the objective to prove that electric cars can be far better than gasoline cars. The management of company state that organization should not only focus on the profits alone, but also support the environmental and social welfare.
This is one of the reasons behind the innovation at Tesla (Hill, 2013). Under its innovative practices, Tesla Motors has introduced its electric cars and grown to become largest manufacturer of electric cars in the industry. Elon Musk has reported that the major objective behind this new product is to provide a transportation system, which is very sustainable and environmental friendly. These innovative cars can be charged at home and they do not need refueling of gasoline unlike the vehicles, which are manufacturing by other automakers. Tesla Motors was able to impress the customers. By introducing trailblazer electric cars for the market, i.e. Tesla Roadster, the company was able to gain the attention of car lovers and transform the situation of green car sector (Morschett, Schramm-Klein, & Zentes, 2015).
In this context, Musk stated that the major purpose of this electric car is to enhance the energy promotion and attain this goal by reducing its adverse impact on environment. Tesla Motors had implemented a campaign to promote its green transport system via electric cars. The company was focused on removing the carbon emission by utilizing supercharger stations, which only uses grid electric power via solar panels (Landrum, Gardner & Boje, 2014). Primarily, the company has resolved the dependence of world on gas through revolutionary innovations in electric cars. It has partnered with the SolarCity to offer the owners of electric cars an alternative to recharge their cars utilizing the solar panels in their homes.
In this way, it can be stated that development of electrical vehicle segment gives an appropriate instance of how the shift to economy based on the renewable resources will take place. It has been seen that people were very satisfied with the cars, introduced by Tesla. In addition to this, the designing of its cars models is very beautiful that most of the people want to purchase its cars. Electric cars are cheaper and better than gasoline cars (Hill, Jones & Schilling, 2014). This shift towards environmental sustainability assisted the electric cars to beat out the gasoline vehicles in the automotive industry. There are so many practices, like; inexpensive communication, appropriate information and data and development of environmental promotion all over the world, enabled the customers in the market to learn about different commercial polluters and redirect their environmental values in the purchasing decisions of customers.
Thus, it can be said that CEO of Tesla Motors, Elon Musk has made efforts to resolve the related issues and implemented solutions for both the environmental and organizational welfares. He managed to resolve the issues via creative solutions. Company has considered the innovation as the major way to enhance its performance. It has been engaged in the corporate social responsibility practices to offer benefits to the environment and its people. An effective entrepreneurship and management assisted the organization in regaining its position in the automobile industry. Thus, Tesla Motors was able to come out of these issues in an effective manner (Zott, & Amit, 2013).
In today’s business world, it is very essential to reform its organizational culture with innovative practices as the companies are making efforts in expanding their businesses in the global environment. When an organization plans to implement an innovation in its operations, then there will be need of support from senior level management, but this support is not expected from senior management only. Effective innovations can be generated by adopting a right and effective organizational culture, where all the people can engage in the decision making process and they are free to give their idea and opinions (Mosey & Kirkham, 2017). These innovations in the organizations can lead them towards success or failure. Thus, there is the need for entrepreneurs to take the innovation as a source by which they can find more opportunities for new business operations in existing business environment.
Innovation is a term, which is used to define the new and creative things, which are implemented with a specific objective. It can be adoption of changes in the business processes and systems. The process of innovation includes categorization of the idea and opinions, which can be come from the outside or inside the organization and recognizing these opinions for the business processes, like; allocation and implementation of resources, decision making process etc. Each and every company should understand that how they can gain the value by implementing innovative practices, so it will be able to enhance the growth and position of company in industry (Nykvist & Nilsson, 2015). The top management should understand that innovation is the major way by which companies make efforts to deal with the market trends and make technology advancement in the operations. It will assist the organization in beating the competitors.
When an organization implements innovation, it is not necessary that they will be successful. By the failure in innovation, the companies can understand that what processes and technologies are not good and effective for the company. By analyzing this, the company can understand the effective and appropriate innovative practices for value creation. An organization should understand the innovation model that is introduced by Tidd and Bessant (2013). This conceptual model is stated below;
The above given diagram shows the innovation model that is given by Tidd and Bessant. This model examines the innovative capacity in the innovation culture of the organization. Under this model, Tidd and Bessant stated that innovation is an important process that includes some steps that can be resulted in the growth and overall growth of company. A firm can implement innovation by following below-given steps;
This is the first step in the conceptual framework of innovation. A company can recognize opportunities via finding the business opportunities by the process of environmental scanning. This environmental scanning process assists the organization in identifying different opportunities and threats, which are posed on organization (Tidd, & Bessant, 2013).
After finding the opportunities, company can select the areas, on which opportunities; it needs to emphasize and to enhance. It will assist the organization in enhancing the operations, which need development.
Implementation of different ideas and opinions is very difficult because it includes making focus on collecting the resources and knowledge and to implement the entire plan in uncertainty situation.
Companies can gain the value by implementing the innovative practices and systems via analyzing the above steps of model. By this, the company can develop the knowledge and resources and enhance it different ways.
Apart from this, organizations can use some other methods to capture the value through innovation, like; sharing and storing knowledge, knowledge and IPRs, growth of dynamic abilities and developing new and innovative technology (Tidd, & Bessant, 2013). These practices for the organization are stated below;
Knowledge and Intellectual Property Rights are the practices, which can be used by the organization to capture the value via innovation. Utilization of knowledge and resources is very important for the organization before implementing innovation (Radius, 2017). The innovation will not be effective, if the company does not have knowledge about the market trends and changing conditions. Organizations can gain the value by understanding different factors, like; brand name, distribution channels, market positioning, assets, ownership of firm and the regulations related to the intellectual property rights of the company. Moreover, it needs to understand the outcome of implemented innovation (Radius, 2017).
Intellectual Property Rights are the exclusive rights of any organization, which needs a proper security and safety. Organizations need to develop effective security solutions as IPRs assist them in capturing the value from innovative practices. The management thinks that IPR can provide the growth over its competitors. So, they should make protect the knowledge and confidential information and try to communicate them with other related networks for generating new and innovative ideas. There should be revision of IPR, so new information can be attained from internal and external stakeholders of company (Wieland, Hartmann & Vargo, 2017). It can be an effective strategy for gaining value by having required knowledge and protecting the IPRs.
Sharing and storing the knowledge is another practice, which can enhance the value of organization through innovation. Companies can enhance the innovation by implementing effective ways to information sharing. Organizations can do the knowledge management by using different approaches, like; it can manage the information and data via Information Technology advancements. It can introduce the intranet for communicating with the internal stakeholders of the organization (Rothaermel, 2015). Under this, organization can make the investment in technology for managing knowledge. It includes the improvement in the process, culture and structure of company. In addition to this, the company can improve the skills of employees by conducting training and development program, so that they can effectively manage and store the confidential information of company. Knowledge storing and sharing is very significant for the company because it enhances the innovative capabilities of the employees. Development of knowledge sharing will have positive impact on the innovative skills of company. For transforming the data can be done within company by developing process. It can convert the information to material knowledge by recognizing the same data and information (Saha, & Bhattacharya, 2011). The company can develop a familiar and supportive workplace environment for the employees. The employees can take it as their benefits to share the knowledge among all. Organizations can connect the employees via conducting the workshops, seminars; it assists the organization in creating new knowledge. Via intranet, the related information can be circulated among all the employees of company.
Thus, company can implement these processes to attain the significant value by the implementation of innovative practices in the organization and its operations.
Dynamic capabilities can be defined as the abilities of the company to attain the innovation by considering the needs and preferences of customers in today’s changing environment. With the changes in the business segment, so there would be need of changes in the organizational capabilities, owned by the organization. The organization implements effective strategies and managerial activities to make the capabilities more dynamic, possesses by the organization. These managerial activities can be divided in three components, like; sensing, seizing and transforming (Ologbo, Md Nor, & Okyere-Kwakye, 2015). Sensing is the capability to recognize and evaluate the opportunities, which are available in the external environment of company. Seizing includes the ability to utilize the available resources in the organization to capture the value from these opportunities. In the last step, i.e. transforming includes implementation of changes in the processes. For this, we can take the example of Intex was unable to follow the revolution in the operating system of phones. There are so many companies in the industry, which were able to understand the needs and expectations of the customers. This was the time, when these companies have changed their capabilities (Wisdom, 2014).
Technology innovation is one of the most common and important innovations, which can be implemented by the organizations. It is not necessary that companies implementing technology innovations will have financial benefits, but it can assist them in enhancing the capabilities in its marketing and advertising processes (Okpara, 2007). They can improve the safety and security by installing new and advanced technology, so it will be very difficult to theft and imitate the confidential information and Intellectual Property Rights, like; licenses, patents, trademarks etc.
Installing new technologies in the organization can help in improving the technical skills and capabilities of the employees, so that they can perform their tasks in effective manner (Sengupta, 2013).
From the above essay, it can be concluded that innovation plays an important role in attracting the customer base towards company’s products and enhancing its growth and chances of success in the industry. First part of the essay evaluates the issues that are faced by Tesla Motors in its existence. The company has implemented different solutions to deal with the issues, which enabled it in regaining more competitive advantage in the automotive industry. Furthermore, second part of essay has stated different methods, which can assist the organization in capturing the value through innovation. It includes various practices, like; sharing the knowledge, Intellectual property rights and implementing new technologies for enhancing the business operations. These practices will assist the company in enhancing its performance. By implementation of these practices, the companies can ensure the growth and survival in today’s competitive business environment. Using IPRs can encourage the businessmen to take risks and challenges for making investment in the innovation. It provides technological and safety ideas to the company, which assists the organizations, which have less technologies. Thus, implementation of innovation in the organization can entice the people towards the products and services of the company as they always find something new and creativity in the products. By implementation of above practices, the company will be able to enhance the chances of growth and success in today’s business world. Thus, innovation is one of the major components for enhancing the overall performance of the firm.
Anderson, J. C., Narus, J. A., & Narayandas, D. (2009). Business market management: Understanding, creating, and delivering value. Pearson Prentice Hall.
Chen, Y. and Perez, Y. (2015). Business model design: lessons learned from Tesla Motors. In GERPISA International Conference.
Cobb, J. (2016). Tesla Model S Was World’s Best-Selling Plug-in Car in 2015. Retrieved from http://www.hybridcars.com/tesla-model-s-was-worlds-best-selling-plug-in-car-in-2015/.
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective application of new and classic methods. FT Press.
Hahn, W. & Powers. T.L. (2010). Strategic plan quality, implementation capability, and firm performance. Academy of Strategic Management Journal, 9(1), 63-81.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Hill, J, (2013). electronic vehicle sale expected to grow globally to 1.8 miilion by 2023. Viewed on November 6, 2017 from https://cleantechnica.com/2014/08/12/electric-vehicle-sales-expected-grow-globally-1-8-million-2023/.
Landrum, N. E., Gardner, C., & Boje, D. M. (2014). An integral foundation for international strategic management. Humanistic Perspectives on International Business and Management, 120-133.
Moon, H.C. (2010). Global Business Strategy: Asian Perspective, World Scientific Publishing Co Inc.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international management. Springer.
Mosey, S. and Kirkham, P., (2017). 2 Entrepreneurial strategy. Building an Entrepreneurial Organisation, p.21.
Nykvist, B. and Nilsson, M. (2015). Rapidly falling costs of battery packs for electric vehicles. Nature Climate Change, 5(4), pp.329-332.
Okpara, F.O. (2007). The Value of Creativity and Innovation in entrepreneurship. Journal of Asia Entrepreneurship and Sustainability, Vol 3.
Ologbo, A., Md Nor, K., & Okyere-Kwakye. (2015).the influence of knowledge sharing on employee innovation capabilities. International journal of human resource studies, 5(3), pp. 102-110.
Radius (2017). Tesla Motors: achieving excellence and innovation overseas. Viewed on November 6, 2017 from < https://www.radiusworldwide.com/knowledge/case-studies/case-study-tesla-motors>
Rothaermel, F.T. (2015). Strategic management. McGraw-Hill Education.
Saha, C., & Bhattacharya, S. (2011). Intellectual property rights: An overview and implications in pharmaceutical industry. Journal of advanced pharmaceutical technology & research, 2(2), pp. 88-93.
Sengupta, J. (2013). Theory of Innovation: A New Paradigm of Growth. Springer Science Publications.
Tidd, J., & Bessant, J. (2013). Managing Innovation: Integrating Technological, Market and Organizational Change. (5th ed.). Chichester, United Kingdom: Wiley.
Wieland, H., Hartmann, N.N. and Vargo, S.L., (2017). Business models as service strategy. Journal of the Academy of Marketing Science, pp.1-19.
Wisdom, J.P. (2014). Innovation Adoption: A Review of Theories and Constructs. Adm Policy Ment Health, 41 (4).
Zott, C., & Amit, R. (2013). The business model: A theoretically anchored robust construct for strategic analysis. Strategic Organization, 11(4), 403-411.
MyAssignmenthelp.co.uk is a name in assignment writing services that students trust. We offer our assignment writing services for a wide variety of assignment including essays, dissertations, case studies and more. Students can place their order with us anytime as we function 24x7, and get their copies at unbeatable prices. We guarantee that all of our solutions are plagiarism-free.
MyAssigmenthelp.co.uk really nailed my assignment. They managed to deliver it on time even though I needed it in a day!
I need an English essay on the Romantic Age, but I didn't have much to spend. These guys did my essay at very cheap prices without affecting quality!
MyAssignmenthelp.co.uk really impressed me with the quality of the dissertation they delivered. It was absolutely flawless!
I thought I would not be able to get help for my epidemiology assignment anywhere but I got that with MyAssignmenthelp.co.uk, and it was a brilliant paper.
Honestly, guys, choose MyAssignmenthelp.co.uk the next time you need a paper. These people have simply the best writers in their team.
I never thought I would ever get an A grade on one of my assignments, but MyAssignmenthelp.co.uk made that dream come true!
I am really happy with the services I received from MyAssignmenthelp.co.uk. The paper was top notch and submitted on time.
Seriously, I think it's impossible to find even a single error in the assignments provided by MyAssignmenthelp.co.uk. I've ordered several, and each of them has been flawless!
I got the most amazing nursing case study I could have ever asked for! I am definitely ordering all my future assignments from here.