Tesla Business Analysis Report
Group Discussion #1
MNGT-6320.794
Professor: Phat Loung
Team Members: Tamia Flores, Marcus Walker, Psalm Baradi, Alejandra Marquez, and
Kavalvizhi Kannan
Introduction
This report analyzes Tesla Inc., a globally recognized leader in electric vehicles (EVs)
and sustainable energy solutions. Tesla has revolutionized the automotive industry with its
innovative technology, high-performance EVs, and strong brand recognition. In this report, we
examine Tesla’s core competencies, product quality, and process control mechanisms.
Question 1: Provide three examples of a core competency of the business/company/organization
your team picked and discuss its order winner and order qualifiers. Tell how your team members
have used the two concepts in a purchasing decision.
Core Competencies and Order Winners/Qualifiers Tesla’s success can be attributed to several
core competencies that differentiate it from competitors:
1. Advanced Battery Technology and Energy Efficiency
o
Tesla leads in EV battery development, producing high-capacity lithium-ion
batteries that offer long driving ranges and fast-charging capabilities.
o
Order Winner: Superior battery performance, enabling Tesla vehicles to travel
longer distances per charge than many competitors.
o
Order Qualifier: Standard energy efficiency expectations in EVs, ensuring that
Tesla meets market demands for sustainability and range.
2. Autonomous Driving and AI Integration
o
Tesla’s Full Self-Driving (FSD) software and Autopilot technology provide
advanced driver assistance systems (ADAS) using AI and machine learning.
o
Order Winner: Cutting-edge autonomy features that improve driver convenience
and safety.
o
Order Qualifier: Basic driver-assistance features expected in premium vehicles.
3. Supercharger Network and Infrastructure
o
Tesla has built an extensive global Supercharger network, allowing for rapid
recharging and convenience for Tesla owners.
o
Order Winner: Fast-charging capability and widespread network availability.
o
Order Qualifier: Access to charging stations, which is a fundamental requirement
for EV customers and at home chraging stations.
Purchasing Decision Influence: Tesla's combination of high performance, long-range
capability, and advanced technology influenced purchasing decisions among team members. The
superior battery technology and autonomous driving features were decisive order winners, while
the extensive charging infrastructure ensured Tesla met order qualifiers. The creation of Tesla is
the future anhd the begging of all the new electric vehicles they are to come. The future is
technology and this is why Tesla was created to take that further step into the future. Teslas
statement says it all, "Doing the best, taking chances, respect, continuous learning, and
environmental responsibility".
Question 2: Based on the business/company/organization your team selected, discuss whether
you think its products/services exhibited overall good or poor quality. If it exhibited good quality,
explain what made it so. And if it exhibited poor quality, what actions do you think could be
taken by the business/company/organization to improve quality?
Product/Service Quality Analysis Tesla’s product quality can be assessed based on
various factors, including vehicle performance, reliability, and customer satisfaction.
Overall Quality Assessment: Mixed Results

Good Quality Aspects:
o
High Performance: Tesla vehicles boast industry-leading acceleration, range, and
energy efficiency. One example of Tesla's advanced battery technology is the
Model S Plaid, which can accelerate from 0 to 60 mph in just 2.6 seconds. This
performance is comparable to high-end sports cars like the Porsche 911 Turbo S,
which achieves 0 to 60 mph in 2.5 seconds, and the Lamborghini Aventador SVJ,
which also reaches 0 to 60 mph in 2.6 seconds (Herbez, 2023).
o
Innovative Technology: Over-the-air (OTA) software updates keep vehicles up to
date by enhancing performance, adding new features, and improving safety. All
without requiring a visit to the service center. These updates can include
improvements to the vehicle's Autopilot system, navigation enhancements, new
entertainment options, and efficiency optimizations. These updates guarantees
that the vehicle remains at the cutting edge of technology, providing a better
driving experience over time (UMATechnology, 2024)
o
Sustainability: Tesla’s commitment to renewable energy and carbon footprint
reduction enhances its brand appeal.

Challenges and Areas for Improvement:
o
Manufacturing Defects: Reports of panel gaps, paint issues, and fit-and-finish
inconsistencies have impacted customer perceptions.
o
Service and Repair Delays: Long waiting times for service appointments and parts
availability have been areas of concern.
o
Autopilot and FSD Reliability: While groundbreaking, Tesla’s autonomous
systems have faced scrutiny regarding safety and regulatory challenges.
Recommendations for Improvement:
1. Strengthen quality control measures in production to minimize defects. Implement
rigorous inspections at each stage, use advanced testing equipment, and provide
continuous employee training. Real-time data analytics can also help identify and address
issues promptly.
2. Expand service centers and streamline repair processes to reduce delays. Increase service
center locations, improve scheduling systems, and enhance technician training. Use
advanced diagnostics and maintain a well-stocked inventory to ensure quick repairs.
3. Enhance AI testing and safety protocols for Full Self-Driving (FSD) to improve reliability
and consumer trust. Implement comprehensive testing, regularly update safety protocols,
and share results with the public. Collaborate with regulatory bodies to ensure
compliance.
Question 3: Based on the business/company/organization your team chose, identify three
different processes and indicate (with examples) how process control charts could be used in
each.
Process Control Charts in Tesla’s Operations Tesla employs various manufacturing and
service processes where process control charts can be used to monitor and improve quality.
1. Battery Production Quality Control
o
Process: Battery cell manufacturing involves precise chemical compositions and
assembly, to ensure the safety, longevity and performance of the vehicle. With,
any changes in the manufacturing process can lead to serious hazards like safety,
battery life and inconsistent and negative performance.
o
Control Chart Usage: Monitoring voltage consistency, defect rates, and capacity
performance with an X-bar and R chart to detect variability. The benefits of using
the following charts are early detection of process variations, improved battery
longevity, and increased consumer satisfaction.
1. X-Bar Chart (Average) will allow us to track the average of the voltage. It
will help identify shifts in the mean. It is important to monitor voltage
inconsistency because a small deviation can affect the performance of the
battery. X bar charts will help detect if the average voltage is shifting
away from the target.
2. R Chart (Range) will identify the range in process variability. By
monitoring the range of the voltage, Tesla can ensure that all batteries are
being made similarly. Different ranges indicate how the batteries are
performing. Consistent ranges indicate stability and large ranges suggest
there is an issue with manufacturing process.
3. Both charts will track defect rates that allow immediate mediation when
the process shifts from the consistency or correct quality of standard. Both
charts will also monitor the energy storage that each cell is capable of. X
bar and R charts will track and make sure the battery maintains the
capacity requirements and the variation of the capacity.
2. Vehicle Assembly Line Precision
o
Process: Tesla’s Gigafactories use robotics and automation for efficient vehicle
production. The robots and precise assembly processes to achieve high production
numbers. Keeping consistency, uniformity and minimizing defects is vital for
efficiency and high quality.
o
Control Chart Usage: Implementing a P-chart (proportions) to track defective
assembly rates and improve production uniformity.
1. In vehicle assembly, defective assembly can range from minor issues to
critical functional problems. A P-chart will observe the percentage of
defective vehicles from the assembly line. A P-chart will show whether a
defect rate is in appropriate limits or if there is an upward trend, indicating
a problem needing attention. Real-time monitoring of assembly quality
will be given with a P-chart.
3. Customer Service Response Time
o
Process: Handling service and repair requests for Tesla owners. Tesla’s customer
service and repair services handle a high demand of requests, efficient and timely
responses are a necessity. Customer satisfaction depends on quick and timely
resolutions.
o
Control Chart Usage: Utilizing a C-chart to measure the number of service
complaints over time and address recurring issues proactively. This helps identify
trends and pinpoint any rising complaint numbers, which could result in
underlying issues. A C-chart will give Tesla evidence base data to improve
customer satisfaction.
Conclusion
Tesla’s industry leadership stems from its advanced technology, sustainability efforts, and
extensive charging network. While its product quality is impressive, certain areas, such as
manufacturing consistency and service efficiency, require improvement. Implementing process
control charts can further enhance Tesla’s operational efficiency and customer satisfaction.
References
1. Tesla, Inc. (2023). Tesla Annual Report 2023. Retrieved from https://www.tesla.com
2. Consumer Reports. (2023). Tesla Vehicle Reliability and Customer Satisfaction.
Retrieved from https://www.consumerreports.org
3. Forbes. (2023). Tesla’s Autonomous Driving Technology: Strengths and Challenges.
Retrieved from https://www.forbes.com
4. Automotive Manufacturing Solutions. (n.d.). Tesla's EV battery production and global
gigafactory network. Retrieved from
https://www.automotivemanufacturingsolutions.com/ev-battery-production/teslas-evbattery-production-and-global-gigafactory-network/45873.article
5. Lectron EV. (n.d.). Inside the Production: Where Are Tesla Batteries Made? Lectron EV.
Retrieved from https://ev-lectron.com/blogs/blog/inside-the-production-where-are-teslabatteries-made
6. Herbez, V. (2023). 13 Vehicles That Go From 0 to 60 in Under 2.5 Seconds. Retrieved
from https://motor-junkie.com/13-vehicles-go-0-60-2-5-seconds/2785/
7. UMATechnology. (2024). What are Tesla’s Over-the-Air Updates? Retrieved from
https://umatechnology.org/what-are-teslas-over-the-air-updates/#google_vignette