Management Question
It is July 26, 2021, and the Board of Directors of Tesla Incorporated has employed you as a consultant to assess and improve the company’s overall situation during the third global wave of the COVID-19 Pandemic and recommend a set of specific, measurable, and rapid actions for the company to take to (a) address persistent supply chain issues, (b) provide focus regarding the company’s self-driving vehicle initiative, and (c) address the company’s stalled stock price. Please prepare a report to Tesla’s board of directors that proposes a list of actionable recommendations that the company needs to follow in order to address all three of these areas in fiscal 2021.
Writing in July 2021, Tesla Chief Executive Elon Musk had the following to say about the company’s recent performance:
To recap, the second quarter of 2021 was a record quarter on many levels. We achieved record production and deliveries and surpassed over $1 billion in GAAP net income for the first time in Tesla history. I’ve really like to congratulate everyone at Tesla for the amazing job. This is really an incredible milestone Underneath this rosy report, however, were several problem areas. Global supply chains were compromised, particularly regarding computer chips. Tesla had also experienced several spectacular and highly publicized failures with their fully self-driving (FSV) vehicle initiative. Further, Tesla’s stock price had stalled. See Tesla’s stock price history here.
As a result, the Tesla Board of Directors requests a specific and measurable recommendation in each of the three following areas:
(1) A recommendation to resolve Tesla’s supply chain issues,
(2) A recommendation to address the company’s troubled full self-driving (FSV) initiative, and
(3) A recommendation to return Tesla’s stock price to robust growth.
Your report should be prepared as a three-page Executive Summary of Recommendations. Your recommendations should be specific and be clearly supported by your analysis of the company’s strategic and financial situation. You may supplement your 3-page summary with an appendix that contains (a) an analysis of the company’s financial statements and/or proforma financial projections and (b) other appendices that you consider appropriate. You will also include a table of References to sources that you use in your Executive Summary.
Case Submission:
Create your summary as a Word document using the word document template provided. Please use Times New Roman, 12pt. Font, Single and/or Double Spaced
Notes:
Three pages MAXIMUM for your Executive Summary of Recommendations. This three-page
maximum does not include any Appendices or the Reference list.
It is required that you cite your sources in your recommendations and provide a reference list in
your appendices.
Please use the Executive Summary template that is provided to make your report.
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APA
1101 words