SM9633: Tesla Was Ranked by Forbes as the World’s Most Innovative Company in 2015: International Business and Innovation Assignment , NU, Singapore

Instructions on Assessment: 

Tesla was ranked by Forbes as the World’s most innovative company in 2015. Tesla Motors is an automotive company, which was established in 2003 by a group of Silicon Valley engineers, including Elon Musk (founder of PayPal). On 7^th March 2019, Tesla Motors signed an agreement with Chinese authorities to build a factory in Shanghai, this factory would be Tesla’s first outside of the US (BBC, 2019).

Based on the case of ‘Electric carmaker Tesla entering China’, students are required to produce a 3000 words (+10%) academic report to address the questions below by using relevant academic theory and concepts. Answers MUST be adjusted and supported by sufficient self-collected research data.

QUESTIONS

1. Professor Dunning (1977) proposed the well-known ‘eclectic paradigm’, including ownership-specific advantages (O); Location advantages (L), and Internalisation advantages (I). Applying the OLI framework, and using appropriate analytical tools, critically discuss and answer the following questions:

a. To enter foreign markets, the MNE must possess some sort of ownership-specific advantages. What ownership advantages can give Tesla Motors a competitive advantage over local electric carmakers in China? How can these contribute to Tesla’s success in China?

b. What location-specific advantages is Teslamotivated to exploit from China, and why has Tesla Motors decided to build a factory in Shanghai?

c. How could TeslaMotors effectively internalize their ownership-specific advantages in China (e.g. protect and use its own advantages in the host country)?

2. Considering the importance of informal institutions (e.g. cultures, values, and norms) for international business, critically discuss how national cultural differences can bring both barriers and competitive advantages for Tesla Motorsoperating inChina?What cross-cultural management approach should be taken by Tesla to acquire cross-cultural competence when operating in China?

3. Drawing upon relevant academic literature, critically discuss what type(s) of innovation strategy TeslaMotors adapted. What are the benefits and challenges of building a local innovation network in China for Tesla Motors?

Mapping to Programme Goals and Objectives:

1. Knowledgeable about the theory and practice of international business and management

1. Demonstrate current knowledge and understanding of the major functional areas of business.

2. Demonstrate current knowledge and understanding of specialist areas of business.

3. Demonstrate, through the application of knowledge to business contexts and scenarios, their abilities of analysis and synthesis

2. Skillful in the use of personal, professional, and managerial techniques and processes

1. Demonstrate the application of the following transferable skills: numeracy, literacy, communication, and time management.

2.Demonstrate the managerial skills of customer needs recognition, problem-solving, and critical thinking.

3. Apply managerial and leadership techniques of team building, decision making, and leadership.

3. Employable as graduates

1. In the context of securing graduate employment, demonstrate the skills of self-presentation (through CVs, interviews, and assessment center testing).

2. Demonstrate an active awareness of the graduate employment market.

3.Demonstrate an active engagement with a range of graduate employers and professional bodies.

4. Aware of ethical issues impacting on business and professional practice

1. Demonstrate an understanding of approaches to Corporate Social Responsibility and their impact on organizations and individuals.

2. Demonstrate a personal response to an ethical or governance business dilemma.

3.Demonstrate an understanding of different perspectives towards business ethics including shareholder, stakeholder, and critical approaches.