Page 80 - MS Year in Review 2020

business foundation being created by Tesla. Then we will assess the extent to which

Tesla seems to be developing each of the six key strategic building blocks.

Assessment Methodology

The assessment will be done in two ways. There will be a qualitative assessment
and a quantitative assessment (based upon that qualitative assessment).

Qualitative Assessment. The qualitative assessment will consist of

descriptive comments about the extent to which Tesla has developed each of
the six key strategic building blocks. To the extent feasible, will draw upon

independent published assessments. However, I will also provide my own
commentary.

The assessment will be organized into four parts: positives, negatives,

questions, and Evaluation. “Positives” are clear “assets,” “negatives” are clear
“weaknesses,” or limitations and “questions” are simply “issues” that cannot
yet be resolved, but are potential limitations and/ or problems. The

“evaluation” is the result of these three aspects.

Quantitative Assessment. The quantitative assessment will be based upon

a five-point scale, where “5” is the highest score and “1” is the lowest score.”
I will explain the rationale for the assignment of these scores to each
dimension (foundation and building blocks).

Benchmarking the Scores. In addition, I will draw upon our historical data-
base (consisting of thousands of companies) to compare the scores assigned

to Tesla to that of other organizations in our data base. As explained further
below, our data base scores have been used to identify five levels of
organizational success from “Business Champions” to “Firms at risk of

failure.”

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