Page 87 - MS Year in Review 2020

Evaluation:

 Unfortunately, operational systems are not an apparent area of strength
for Tesla.
 For a quantitative evaluation, we assign a score of “2.5” to Tesla for

operational systems.”
 The published information about “growing pains” and customer

dissatisfaction are a clear indication that operational systems are
insufficiently developed.
 This is a classic problem area for rapidly growing entrepreneurial

companies; but the existence of “growing pains” and customer
dissatisfaction are not an indication of a sustainably successful
organization.

Development of The Management Systems Necessary for The Long-Term

Functioning

Positives:

 Insufficient “direct” data is simply not available to assess the extent to
which Tesla has developed the management systems necessary for the
long-term functioning of the business.

Negatives and Risk Factors:

 However, the existence of published information about “growing pains” and

customer dissatisfaction (cited above) are a clear indication that
management systems are insufficiently developed at least to some extent.

Questions:

 There are several questions in this area:
o How does Tesla do “planning” (both strategic and operational)?

o What is the nature and type of Tesla’s organizational structure?
 The complexity of its business implies the requirement of either a
divisional or a matrix structure.

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