Strategic Plan - Tesla

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Strategic Plan: Tesla chooses Nevada for its battery ‘Gigafactory’ Table of Contents Executive Summary…………………………………………………………………….. 3 Organizational Background……………………………………………………………...4 Situational Analysis of the Current State………………………………………………..5 Internal Environment……………………………………………………………..5 External Environment…………………………………………………………….6 Optimum End-State……………………………………………………………………...9 Gap Analysis…………………………………………………………………………….10 Implementation Plan…………………………………………………………………….13 Financial Pro Formas……………………………………………………………………15 Critical Success Factors…………………………………………………………………15 Assessment Plan…………………………………………………………………………16 Conclusion……………………………………………………………………………….17 Appendices………………………………………………………………………………18 Appendix A – SWOT Analysis…………………………………………………..18 Appendix B – Decision Matrix…………………………………………………..19 Appendix C – Gigafactory Layout……………………………………………….20 Appendix D – Income Statement…………………………………………………21 Appendix E – Stock Chart………………………………………………………..22 Works Cited……………………………………………………………………………...23 Executive Summary This report provides an analysis and evaluation of Tesla’s strategic plan and its recent decision to invest in a Gigafactory located in Nevada. Tesla will build the Gigafactory in order to create economies of scale to reduce the cost of batteries needed for its electric vehicles. This, in turn, will help Tesla gain a strong foothold in the affordable electronic vehicle market. Methods of analysis include a situational and GAP analysis of Tesla’s current state and optimum end state, an implementation plan showing the tools and steps Tesla has taken to carry out the new Gigafactory project, financial pro formas evaluating the company’s financial health and the impact of the Gigafactory on Tesla’s finances, critical success factors showing the uniqueness Tesla has compared to their competitors, and an assessment

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