Question

Tesla

1. How to make these weaknesses into strengths?

Burn through cash, high prices, bottlenecking/product delays, lack of infrastructure, limited market presence, and high debt burden

Answer 1

How Tesla can make these weakness into strength

As we know all the above factors are internal to the Tesla , so we need to understand that when we talk about the internal factors it carries both weakness and strength, most important thing about theses factors are that these all factors are controllable to a business , so it became quite important for business organization to critically examine all these factors and then have better control over these factors in a efftive way.

Management of Tesla needs to bring some changes in their organization to make theses weakness into their strength.

Tesla is facing the problem of cash burning it means they are spending more money very quickly , so the first thing that Tesla has to control this cash burn these are some way how they can control cash burn problem

• Tesla has to mange their cash flow so they can minimize cash burning .

• They need to maintain a reserve of cash to company can meet Financial crises

• Tesla has to limit it’s overhead expenses

• Tesla has to control it’s expenditure

High prices

High prices are another issue that company is facing , Tesla has to control their high prices because with high prices we can not compete our competitors ,

These are the way how Tesla can control high prices

• Tesla has to control the wastage in their organization, high level of wastage ultimately increase the price .

• Adopt new technology , with the adoption of new production technology Tesla can minimize it’s cost , however initially new technology is vey costly but in long term it will be cheaper to the company

• Choose effective supply chain management

• Ensure ideal production , there should not be over or under production , over production can increase the stroge cost which will became hurdle in price control

• Firing ineffective employee , however it’s not ethical nor I will suggest but it can be done if it’s necessary

Product delay – Product delay can hurt your servings capacity , it’s products are not available at right time at right place you will not be able to serve your customers so must ensure their should be delay

• Effective supply chain management

• Shout have proper planning

• Must aware about the demand in the market

• Be prepared in advance

With the help of above Tesla can ensure smooth supply of products .

Limited infrastructure -No organization can survive in absence of proper infrastructure facilities so it is very important for Tesla to have proper infrastructure facilities availability in their organization.

• Tesla should build proper infrastructure facilities

• They take facilities in rent

• Test can tie-up up with some other organizations to meet out this challenge

Limited market presence -Tesla has to expand its market share , because for the sustainability of a organization business expansion is required , and we also measure the success of the organization by its market share

• Tesla should always try to add new customers with them by servings them better

• Create awareness among the people in new market

• Always try to bring new product to sustain in the market

• Tesla should R&D regularly

• Stay in touch with customers

• Find new market for the organization

High debt burden -Tesla has to plan it’s debt burdeburdensns

• Should have better finance management

• Try to find out some profitable investment opportunities

• Pay those debt which are having high are of interest

• Avoid new debt

• Control cost

• Focus on profitability activities

This is how Tesla can make its weakness into opportunity.