Case 16 Tesla Case Study Analysis Questions

1.     What are the key elements of Tesla’s strategy?

·       Electric Vehicle Focus

·       Innovation and Technology

·       Direct-to-Consumer Sales

·       Autonomous driving

2.     Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Tesla is employing?

·       Differentiation Strategy

                                      i.     Innovative technology. Known for cutting-edge technology, including advanced battery systems, electric drivetrains and autonomous driving.

                                    ii.     Design and Performance. Sleek design, high performance and acceleration capabilities

                                  iii.     Brand Image. Tesla is often seen as synonymous with electric nobility

3.     Are you impressed by the strategy Elon Musk has crafted for Tesla?  Why or why not?

·       Elon Musk’s strategy for Tesla has been widely acknowledged as ambitious and disruptive within the automotive industry.

·       As for going green energy, I am impressed with what Electric vehicles can bring to the environment. However, I believe that the technology is incomplete and the infrastructure to support the initiative is not properly laid out. We are still dependent on coal power plants to charge our Electric Vehicle. Our renewable energy is still not stable enough to supply us with electricity. And the charging station for our Electric Vehicle is not properly set up or strategically located for us to charge.

4.     What is your assessment of Tesla’s financial performance as shown in case Exhibit 2? Use the financial ratio information in Table 4.1 of Chapter 4 to assist you in calculating a revealing set of financial ratios and interpreting them.

·       Total Current Ratios = Total Current Assets / Total Current Liabilities

·       2019: 12,103 / 10,667 = 1.13 (Ratio is higher than 1; shows the firm’s ability to pay current liabilities using assets that can be converted to cash)

5.     Are Musk’s plans to build a second production/assembly plant in Shanghai (with production beginning in 2020) and a third one in Germany (with production starting in 2021), followed by two plants in the United States to build the Model Y, the Cybertruck and probably the Tesla Semi (with production beginning in 2022) too ambitious or too risky? Beyond the company’s means to finance?

·       To ambitious. Considering that the sales of the competitors are slowly gaining grounds, the expansion of Tesla poses too ambitious and too risky at the same time.

6.     What do we learn from the data in case Exhibits 3 and 4? Is Tesla’s executive team too overconfident about the company’s ability to compete successfully against all of the many new electric vehicle models that the major automobile manufacturers have recently introduced and are scheduled to introduce in the remainder of 2020 and in 2021–2022?

·       Tesla still leads the way in Electric Vehicle sales as shown in both Exhibit 3 and Exhibit 4. However, as the demand for more Electric Vehicle rises, competition in the field of Electric Vehicle has become wider as well. Cheaper and of the same quality is becoming more evident in the previous years and albeit, succeeding years. Tesla’s executive team is too confident about the company’s ability to compete successfully that may pose a risk in the company’s profit and marketability.

7.     What are the issues/problems that Elon Musk and other members of Tesla’s top management team need to address as of mid-2020?

·       Production and supply chain

·       Profitability and finances

·       Global expansion

·       Autonomous driving technology

·       Customer services relations

·       Workforce management

·       Environmental and Regulatory Considerations

8.     What, if any, changes/adjustments in Tesla’s strategy would you recommend that Elon Musk consider? You answer should include all of the recommended actions Musk and Tesla should take to deal with the issues identified in question 7.

·       Operational Efficiency. Continue to improve operational efficiency to meet growing demands and minimize production challenges.  

·       Financial Stability. Maintain focus on achieving sustained profitability while strategically investing in research and development.

·       Global Expansion. Prioritize regulatory compliance and stay informed about evolving regulations in different regions.

·       Autonomous Driving. Enhance transparency and communication about the development of autonomous driving technology.

·       Competitiveness. Monitor competitors closely and be ready to adapt to changing market dynamics.

·       Customer Service. Prioritize customer satisfaction through effective customer service and prompt issue resolution.

9.     What is your outlook for Tesla’s future performance and its prospects for revolutionizing the global automotive industry’s use of gasoline-powered engines versus battery-powered engines?

·       Positive Outlook

                                      i.     Leadership. Tesla has established itself as a leader in the electric vehicle market, with a strong brand and a reputation for innovation.

                                    ii.     Demand for EVs. There is a global trend toward increased adoption of vehicles due to environmental concerns, government incentives and advancements in battery technology.

                                  iii.     Autonomous Driving Technology. Tesla’s focus on autonomous driving technology positions the company for a potential competitive advantage in the future.

·       Challenges

                                      i.     Competition. Traditional automakers are increasingly entering the electric vehicle market, posing a threat to Tesla’s market dominance.

·       Tesla’s outlook is influenced by its ability to address challenges, maintain its competitive edge, and navigate the evolving landscape of the automotive and energy sectors. The company’s success has already contributed to changing industry dynamics but the ultimate revolution in the use of gasoline-powered engines versus battery-powered engines will depend on a combination of technological advancements, market forces and regulatory support.

 10.  At the end of August 2020, Tesla split its stock price five for one, bringing its previously sky-high share price of $2,230 down to a more accessible $446 on Aug. 31. Following the split, the share prices eroded to $400.51 at the close of trading on November 2, 2020; this price represented a rather astronomic price-earnings ratio of 770.21 (based on an EPS of $0.52 for the previous 12 months). Would you predict that Tesla’s stock price at the start of 2025 would be above or below $400 per share? Why?

·       Tesla’s revenue multiplied over the last five years. With the launch of Tesla’s highly anticipated Model Y, though coincided with the outbreak, Model Y demand is still high. And forecasted to have a solid increase by year 2025 for Tesla.

 

My Middle Finger Salute you!

Someone forwarded this to me. We've been divorced since 2016 and have been following up our annulment in the Philippines, to no avail. The least that she can do since she got heaps from me, financially and emotionally. 

I wonder where was my savings went? I do have at least 25K Pesos monthly savings for almost two years being sent to her exclusively prior our migration to Australia. 

If I remember it right, she asked to stay in Sydney for awhile with her relatives there and yet the drama of no where to stay. 

Again, my Middle Finger Salutes you! 

 

Case 24 Uber Technologies Case Study Analysis Questions

1.     Describe Uber’s business model. What service is Uber providing to the market? Is its business model financially successful?

·       Ride-Hailing Service. Uber provides a user-friendly mobile app that allows customers to request rides and track their drivers. Uber recruits independent drivers who use their transport to provide transportation services. Payments are made electronically, and Uber takes a percentage of each fare.

·       Uber Eats. Uber expanded its services beyond ride-hailing to food delivery through Uber Eats.

·       Financial Success. Uber has faced both successes and challenges. On one hand, it has achieved significant market penetration globally, becoming a dominant player in the ride-hailing industry. However, Uber had not yet achieved profitability. The Company has experienced losses due to high operating costs, investments in new technologies and competition with other ride-hailing services.

2.     How have Uber’s successes and challenges measured against its competitors and other companies within the software industry?

·       Success

                                      i.     Global Market Prescence. Innovation and Technology.

·       Challenges

                                      i.     Competition

                                    ii.     Labor issues

3.     Using SWOT analysis, what are some examples of external and internal influences that have impacted Uber?

·       STRENGTH

                                      i.     Global Brand Recognition. Uber has established a strong and globally recognized brand in the ride-hailing and transportation industry.

                                    ii.     Innovation. Uber leverages advanced technology to provide a user-friendly platform, real-time tracking and innovative services, contributing to a competitive edge.

·       WEAKNESS

                                      i.     Regulatory issues. Uber has encountered regulatory challenges and legal hurdles in various markets, impacting its ability to operate freely.

                                    ii.     Driver dependencies. Uber’s reliance on a network of independent drivers brings its challenges related to labor disputes, classification and driver satisfaction.

                                  iii.     Profitability challenges. Uber has struggled to achieve profitability, facing losses due to high operating costs, aggressive expansion and competitions.

·       OPPORTUNITIES

                                      i.     Expansion into new markets. Uber has opportunities for growth by expanding its services into new markets and regions, reaching untapped customer bases.

                                    ii.     Partnership and Collaborations. Collaborations with other companies, governments or organizations can open new avenues and strengthen Uber’s market position.

·       THREATS

                                      i.     Competition. Intense competition from other ride-hailing services, traditional taxi companies and emerging mobility solutions can impact market share and pricing.

4.     What are Uber’s options in handling California AB5, an attempt to reclassify Uber’s drivers as employees? What potential impact would each decision have?

·       California AB5. Aimed to reclassify many gig workers, including those working for companies like Uber, as employees rather than independent contractors.

·       Uber’s Options:  

                                      i.     Compliance with AB5. Uber could choose to comply with AB5. This would involve providing employee benefits, such as minimum wage, overtime pay, health insurance, and other benefits as required by California laws. Though treating drivers as employees would likely lead to high labor costs for Uber.

                                    ii.     Legal Challenge. Uber could choose to legally challenge AB5 but the potential impact of this is high legal costs and uncertainty.

                                  iii.     Compromise. Uber could engage in negotiations with relevant stakeholders, including labor unions and legislators, to find a compromise that addresses concerns while allowing some flexibility. Negotiations might lead to compromises that provides some benefits to drivers without full employee classification. Agreements reached through negotiations could set an industry standards for gig economy companies in California though.

5.     Of the options discussed, what is Uber’s best option to continue into the future? How does Uber’s financial situation affect its decision-making process?

·       Engaging in Negotiations. Actively engaging in negotiations with stakeholders to find common ground and compromise solutions that address concerns without a complete shift to employee classification.

·       Legal Challenges and Lobbying. Continuing to legally challenge AB5 while also engaging in lobbying efforts to influence legislative changes that provide a more favorable regulatory environment for gig economy platforms.

·       Uber’s financial situation plays a critical role in the decision-making process, as the company needs to balance the desire for flexibility in its business model with the need to address regulatory concerns and maintain financial sustainability. Ultimately, the best option will be one that aligns with Uber’s strategic objectives, ensures compliance with regulations and preserves its ability to operate in the long term.

#HiredbymyGoodLooksandOozingSexAppeal

 In 2017, I secured my first position as a Fly-in/Fly-out Worker here in West Australia. Back then, finding employment in the mining industry was a formidable task, and I was genuinely grateful for the opportunity.

Around three months into the job, a recruiter reached out to me regarding another job prospect. I informed her that I had just recently started with Orica. To my surprise, she responded with a somewhat mocking tone, asking, “How did you manage to secure a job at Orica?”

It was at this moment that I felt like I was facing discrimination due to my employment with one of West Australia’s premier mining companies. In a light-hearted response, I casually mentioned to her that I was hired by my Good Looks and Oozing Sex Appeal.

This amusing exchange led to the creation of the hashtag, #HiredbymyGoodLooksandOozingSexAppeal. 

 

INTEL

A few weeks following my graduation, I received an invitation for an in-person interview at a prominent global microchip corporation. This initial interview was scheduled at their Makati Office, despite my relative experience, I eagerly anticipated this opportunity, as it marked the beginning of my career as a Mechanical Engineer in the Philippines.

The interview was set for 8 am, and my enthusiasm prompted me to arrive around 7:30 am. Upon arrival, I was greeted by the HR representative who had initially contacted me. I promptly submitted my academic credentials, including my diploma, resume, and transcript of records.

While waiting, I observed a gentleman, whom I assumed to be the manager, engaging in a discussion with the HR representative while reviewing my documents. Approximately five minutes later, the HR representative returned my documents and regretfully conveyed that they had decided not to proceed with my interview.

Feeling utterly disheartened, I inquired about the reason behind their decision. The HR representative informed me that my transcript of records revealed a substantial number of academic failures, which did not align with their company’s hiring criteria.

In my frustration and evident disappointment, I was on the verge of expressing my discontent by forcefully closing their main door and venting my frustration internally. It was disheartening to realize that a company of their stature appeared unprofessional in their candidate assessment.

Regrettably, I later learned that both their Makati office and manufacturing plant had ceased operations around 2008. Most likely because of the two of them. I couldn’t help but wonder about the whereabouts of the HR representative and the presumed manager, contemplating a meeting with them to convey my belief that they deserved to experience unemployment.

 

 

Unilever Case Study Analysis Questions

  1.     Does it seem that Unilever has made a commitment to operating in a socially responsible manner? Based on the five components of a socially responsible strategy depicted in Figure 9.2 in Chapter 9, is Unilever’s strategy socially responsible? How does it address the needs of all of its stakeholders? Explain.

·       Employee Diversity

-       Unilever has taken steps to promote diversity and inclusion within its workplace. This includes initiatives to create an inclusive workplace and ensure equal opportunities for employees, irrespective to their background.

·       Environmental Sustainability

-       The company has set an ambitious targets to reduce its environmental footprint, including goals to reduce carbon emissions.

·       Community Involvement

-       Unilever engages in community involvement through various initiatives, including partnerships to promote hygiene and sanitation in developing countries.

·       Corporate Governance

-       Unilever maintains a system of corporate governance that includes a board of directors responsible for overseeing the company’s performance and ensuring compliance with laws and regulations.

·       Ethics

-       Unilever is committed to maintaining high ethical standards in its marketing practices, with a focus on providing accurate and honest representation of its products and services.

2.     How does Unilever link rewards and incentives to strategically-important employee behaviors and the company’s targeted sustainability outcomes?

·       Performance-based incentives

·       Recognition programs

·       Training and Developments

·       By using these mechanisms, Unilever fosters a corporate culture that values and encourages sustainability. These incentives reinforce the company’s commitment to sustainability and encourage to actively participate in achieving targeted sustainability.

3.     Evaluate the key environmental strategy implementation efforts at Unilever. Has management allocated sufficient resources to the sustainability effort? Exercised strong leadership? Instituted policies and procedures that facilitate good execution of sustainability? Demonstrated prudent financial management, based on your analysis of its recent financial performance? Explain.

·       Resource Allocation

-       Unilever’s “Clean Future” program demonstrates their dedication to environment sustainability.

·       Leadership

-       Unilever’s CEO, Alan Jope, has been a vocal advocate for sustainable business practices.

·       Policies and Procedures

-       Unilever has instituted policies and procedures that facilitate the execution of sustainability efforts. These targets waste reduction, and environmental impact assessment.

·       Financial Management

-       Unilever’s recent financial performance shows a commitment to prudent financial management in the context of sustainability. They have managed to balance sustainable practices with profitability.

4.     What grade would you give to Unilever for its efforts to become a socially responsible, environmentally sustainable corporation?

·       High grade for efforts. “A” grade for efforts to become a socially responsible and environmentally sustainable corporation. Unilever’s holistic approach to sustainability and their efforts to align their business practices with environmental and social responsibility goals are commendable. They have shown that sustainability can be integrated into their core business operations, making a positive impact on both their company and the wider community.

5.     What recommendations would you make to Alan Jope to increase Unilever’s triple bottom-line performance? Provide a justification for these recommendations.

·       Enhance Supply Chain sustainability

·       Be more responsible in sourcing raw materials, reducing waste and minimizing emissions. By fostering sustainability throughout the supply chain, Unilever can achieve better environmental performance and strengthen their social responsibility by improving the well-being of communities and workers in their supply chain

·       Strengthen Employee Engagement

·       Unilever should implement initiatives that empower and motivate their workforce to actively contribute to the company’s sustainability goals. This can enhance social responsibility and boost overall performance through increased motivation and productivity

·       Expand Philanthropic Efforts

·       Unilever should consider expanding its philanthropic efforts, with a particular focus on addressing global social and environmental challenges. Increase charitable contributions and partnerships in area like clean water access, poverty alleviation and climate action.

 

 

Case 20: Boeing 737 Max Case study analysis Questions

1.     Does it seem that Boeing has made a commitment to operating in a socially responsible manner? Based on the five components of a socially responsible strategy depicted in Figure 9.2 in Chapter 9, is Boeing’s strategy socially responsible? How does it address the needs of all of its stakeholders? Explain.

Employee Diversity

·       Boeing has policies in place to support employees, including safety initiatives, professional development programs and a commitment to diversify and inclusion within the workforce.

      Environmental Sustainability

·       Boeing has made commitments to improve its environmental sustainability. This includes initiatives to reduce carbon emissions, enhance fuel efficiency, and invest in research for sustainable aviation fuels.

Community involvement

·       Boeing engages in philanthropic efforts through its charitable contributions and community engagement programs. Their portfolio focuses on education, workforce development and veteran support, aiming to positively impact communities where the company operates

Corporate governance

·       Boeing has a system of governance that includes a board of directors responsible for overseeing the company's performance and ensuring compliance with laws and regulations.

      Ethics

·       Boeing is expected to maintain high ethical standards in its marketing practices, ensuring accurate and honest representation of its products and services. Consumer safety is a significant concern.

For shareholders, it strives for financial growth and stability through innovation and market leadership in aviation. For employees, it emphasizes safety, professional growth, and a diverse work environment. For communities, it invests in philanthropy and sustainability initiatives. For customers, it prioritizes delivering safe and reliable aircraft.

 

2.     How does Boeing link rewards and incentives to strategically important employee behaviors and the company’s targeted sustainability outcomes?

Performance–based incentives. Employees involved in sustainability initiatives, such as designing fuel-efficient aircraft or improving manufacturing processes to reduce waste, may be eligible for performance-based bonuses.

Employee Recognition Programs. Employees engaged in developing eco-friendly technologies or proposing innovative sustainability ideas might receive recognition awards, fostering a culture that values sustainability contributions.

Training and Development Opportunities. Employees might receive incentives like access to specialized training, skill development, or mentorship, encouraging them to align their behaviors with sustainability goals.

3.     In what ways, if any, is Boeing exercising corporate social responsibility? Are there any changes to its CSR strategy that you would suggest? If some shareholders complained that Boeing has been spending too little or too much effort on corporate social responsibility, what would you tell them?

Boeing has been exercising its corporate social responsibilities through Environmental Sustainability, Philanthropy, Diversity, and Ethical Business Conduct.

Boeing should include in their Corporate Social Responsibility the stakeholder engagement. Improving engagement with a broader range of stakeholders, including local communities, environmental organizations, and shareholders, can provide a more comprehensive understanding of CSR expectations and concerns.

Boeing’s CSR initiatives demonstrate a commitment to environmental sustainability, community engagement, and ethical business conduct. Balancing CSR efforts to align with both business interests and society expectations is essential for sustainable growth and long-term shareholder value.

4.     What grade would you give to Boeing for its efforts thus far to become a socially responsible, environmentally sustainable corporation?

Grade B. Boeing has shown commitment to environmental sustainability, community involvement and philanthropy, and its efforts in diversity and inclusion.

5.     What recommendations would you make to David Calhoun to increase Boeing’s triple bottom-line performance? Provide a justification for these recommendations based on the outlook for Boeing and the attendant risks.

Sustainable innovation. Boeing should invest in research and development to create more fuel-efficient aircraft, reduce carbon emissions, and minimize the environmental impact of air travel.

Diversity. Strengthen efforts to enhance diversity within the company.

Stakeholder engagement and transparency. Actively engage with stakeholders including customers, employees, suppliers and the wider community to understand their expectations and concerns.

 

Case 21 Walt Disney Case Study Analysis Questions

 1.     What is The Walt Disney Company’s corporate strategy?

·       Create high-quality family content

·       Exploiting technological innovations to make entertainment experiences more memorable

·       Expanding internationally

2.     What is your assessment of the long-term attractiveness of the industries represented in The Walt Disney Company’s business portfolio?

·       Media Networks

·       This will depend on Disney’s ability to adapt to changing consumption patterns and evolve in the streaming era.

·       Parks and Resorts

·       It can be cyclical and is sensitive to economic conditions and geopolitical factors.

·       Studio Entertainment

·       The film industry remains attractive in the long term, driven by global demand for entertainment.

·       Consumer Products

·       Can be a steady source of revenue. However, it is subject to changing consumer preferences and economic conditions.

·       Interactive media

·       Disney’s investment in the digital platforms, mobile apps, and gaming shows their commitment to adapting to these changes.

3.     What is your assessment of the competitive strength of The Walt Disney Company’s different business units?

·       Disney’s competitive strength varies across its business units, with a particularly strong position in Studio Entertainment and Consumer Products due to its extensive portfolio of franchises and characters. The media networks and interactive media segments face ongoing industry changes, and Disney has been actively adapting to remain competitive. Overall, Disney’s strong brand, intellectual property, and commitment to innovation position them well in their respective industries. However, continuous adaptation is crucial in the evolving landscape of entertainment and media.

4.     What does a 9–cell industry attractiveness/business strength matrix displaying The Walt Disney Company’s business units look like?

·       High Business Strength = Studio Entertainment

·       Low Business Strength = Interactive Media

5.     Does The Walt Disney’s portfolio exhibit good strategic fit? What value chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see?

·       Content creation

·       Skills in content creation can be transferred and shared across business units. For instance, popular franchises and characters from Studio Entertainment can be leveraged for content in the consumer products segment

·       Streaming Services

·       Skills in content curation, data analytics and digital marketing can be shared across these segments to optimize the streaming services performance and customer experience

6.     What is your assessment of The Walt Disney Company’s financial and operating performance in fiscal years 2015-2019? What is your assessment of the relative contribution of each business unit to the financial strength of Disney based on the 2018 and 2019 fiscal year financial data?

YEAR	Operating Revenues (In millions)	Net Income (In millions)	Operating Activities (In millions	Total Assets (In millions)
2015	52,465	8,852	11,385	88,182
2016	55,632	9,790	13,136	92,033
2017	55,137	9,366	12,343	95,789
2018	59,434	13,066	14,295	98,598
2019	69,570	10,913	5,984	193,984

 

·       With the help of Disney’s various business units, Disney was able to change from a successful production studio to a comprehensive interactive experience. From 2015, its net revenue of 52,465 (in millions) has improved steadily. Growth in revenue is a sign of a successful business

7.     What actions do you recommend that The Walt Disney Company’s management take to improve the company and increase shareholder value? Are there specific actions that you recommend to successfully integrate the 21^st Century Fox or improve the likelihood of success for Disney’s direct-to-consumer and over-the-top media services? Do you have recommendations for lessening the impact of COVID-19 on financial performance?  Your recommended actions must be supported with a convincing, analysis-based argument.      

·       To improve and increase shareholder value, and to address the successful integration of 21^st Century Fox, here are some recommendations:

1.     Maximize Disney plus

·       Continue to invest in Disney plus. Focus on content development, user experience and international expansion

2.     International expansion

·       Focus on expanding Disney’s global footprint, especially in emerging market

3.     Mitigate pandemic impact

·       Diversify revenue streams and implement flexible pricing models. Especially in the theme parks and resort segment

4.     Sustainable cost management

·       Implement efficient cost management measures to optimize profitability in the face of economic uncertainties