Professional Documents
Culture Documents
SWOT
SWOT
B100 TMA01
· Explanation of SWOT
By pointing out strengths and weaknesses, the institution can realise what fields of
business, management and marketing are fundamental and which areas require
improvement. Strengths and weaknesses are the result of internal business management.
Opportunities and threats, contrary to strengths and weaknesses, are rising from external
factors. By identifying extraneous influences, an organisation can define them as either
opportunities, which can be used as an advantage, or as a threats which will enable an
organisation to manage or eliminate a potential future risk.
''There are several tools that enable managers to analyse the internal and external factors
that impact on an organisation. SWOT analysis is one of the conceptually more
straightforward tools (…)'' (Schaefer, A (2015) An introduction to business and
management ‘Block 1 Introduction’ . 2nd edition. Milton Keynes, The Open University)
The two biggest problems facingTesla are the lack of funding and their troubled supply
chain. These issues have caused the company to fail on their production goals in 2017.
Subsequently, this has also had a knock on effect on both it's investors and consumers
due to the resulting adverse publicity.
Elon Musk's company was trying to develop rapidly and compete with the biggest
automotive manufacturers in the world, but by having relatively small capital and a faulty
supply chain, Tesla was exposed to failure in many fields.
The result of Tesla having one main supplier at a time and the lack of long-term contracts
means that the company is at the mercy of the supplier. By limiting its suppliers, the
company exposes itself to the risk of prices being driven up, timeframes being stretched to
the advantage of the supplier, and having general lack of control of production.
The fact that Tesla is still not profitable discourages potential investors.
In order to help with the company's cash flow, Tesla should be producing and selling as
many cars as possible. This will improve the firm's liquidity and enable them to repay their
suppliers on a more timely basis. In turn, this will better supplier relations and encourages
other suppliers to work with the company.
In order to address the above issues, Tesla should also concentrate their efforts on
establishing stable relationships with new suppliers and nursing existing supplier
relationships.
· References