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Capstone Final Project and Presentation Overview This assignment consists of two sections: a final capstone project plan and a closing process PowerPoint presentation. You must submit both sections as separate files for the completion of this assignment. Label each file name according to the section of the assignment it is written for. Instructions Section 1: Final Capstone Project Plan You are now in the final stage of the capstone project development. All previous documentation should be combined into one document that will serve as the statement of work for the project. Your goal is to have the CEO of your chosen company and the leadership team approve your strategy recommendations. The presentation should be very detailed in order to address potential concerns and provide support for your recommendations. However, the executive team is only interested in a 30-minute summation. Therefore, you also must create a compelling executive summary that is supported by details that convince the executive team that it should move forward with your recommendation. Develop a 20–30 page project plan in which you: Write a 2–3 page executive summary in which you provide a high-level technical overview of your project where you address the following from the case study:  Strategy Development. Innovation and Competitive Analysis. Exploiting Innovation. The Organization’s Response to Change. Combine all previous documentation for Project Deliverables 1–4 in which you provide all aspects of the strategic management process into the project plan. Compile all the quality resources from the previous deliverables. Note: Wikipedia and similar websites do not qualify as quality resources. Section 2: Closing Process PowerPoint Presentation In addition to your detailed executive summary, you must present your findings to the executive team and the venture capital group that along with the executive summary will convince everyone that your solution is optimal. Your PowerPoint must have speaker notes and these speaker notes must be written as if you were presenting this project to your client. A template is provided for your use. You can modify the template based on your professor’s instructions. Do not omit any information from the template because the information aligns with the rubric. Note: Use the Capstone Project Presentation Template [PPTX].    Prepare a 9–15 slide presentation in which you: Include a title slide and a slide in which you provide the purpose and objectives of the presentation. Examine your chosen company’s competitive environment. Determine your chosen company’s main strengths and weaknesses. Determine and evaluate two to three strategies to exploit its innovation breakthroughs. Recommend a strategy for your chosen company. Advise a key strategic implementation approach. Include a summation slide in which you provide the key takeaways for the CEO. This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions. The specific course learning outcome associated with this assignment is: Synthesize project deliverables into an executive summary and presentation of a strategic management process recommendation.Running Head: TESLA MOTOR: DISRUPTING THE AUTO INDUSTRY 1 TESLA MOTOR: DISRUPTING THE AUTO INDUSTRY 6 Tesla Motor: Disrupting the Auto Industry Harvey Allen Strayer University MGT 599 Capstone Professor: Yemer, Hassan January 21, 2021 The motor vehicle industry has been among the oldest industry in the global market as well as one of the most competitive. Over the years, the number of companies joining the industry has been on the rise and this has compelled investors to upgrade creativity and innovative levels for the purpose of remaining relevant. More so, the society and the government have increased demands that the industry companies must meet. Tesla Motors is one of the automobile companies that compete in the global market. The company is headed by Elon Musk realized that the company was facing massive competition challenge and failure to make a fast and calculate move would negatively affect overall company operations. By 2006, Musk came up with creative ideas that would eventually disrupt the entire motor industry. For instance, the company CEO announced that the following changes must be implemented in the following order; building of sport cars, manufacturing affordable cars, and producing electric vehicles with zero emission. Tesla Motor Strategy and how it fits company’s situation A strategy is an approach that a company or business may opt to use to boost its overall performance or attain certain desired goal. In this case, Tesla chose a strategy meant to increase consumer satisfaction, increase market share, and competitive advantages. The company combined a number of moves that would make the consumer change the attitude towards the company and its products and with creating a better brand image, the company was able to get strategically positioned in the market. The strategy fits the company current situation because it is designed in a manner that suits the current company needs. For instance, the strategy works towards preventing the company from being overpowered by competing brands and instead makes the company stand out. Company management main strategies taken that led to the recent development According to the case study, Tesla Motor management team took a number of strategies that led to the current developments at the company. The first and main strategy used by the management is to design unique sport cars. This is a great strategy that helped the management to manage and direct the company towards introducing new products in the market. The second strategy that the management adapted is the use of available resources with the help of technology to design affordable vehicles. This is a great strategy that made the management to manage the company in a manner that innovation would be embraced so that the company can end up with great, unique, and low-priced vehicles. The management also compelled by the idea of global warming embraced the electric vehicles and this is a great strategy Running head: TESLA MOTORS INNOVATION AND COMPETITIVE ANALYSIS 1 TESLA MOTORS INNOVATION AND COMPETITIVE ANALYSIS 2 Assignment 2 Tesla Motors Innovation and Competitive Analysis Harvey Allen MGT 599 Capstone Professor: Hassan Yemer February 7, 2021 Tesla Motors Innovation and Competitive Analysis Porter’s Five Forces of Competition at Tesla The motor vehicle industry in the United States and globally is marked with a lot of competition that compels companies in the industry like Tesla to seek for different strategies to handle competition. The porter’s five forces help in understanding the competition state in the automobile sector. a. Competitive rivalry According to (Schowalter, 2017); the automobile industry does not a high number of competitors and some offers stiff competition for Tesla. Companies in the industry have to go an extra mile to attract the much-needed customer attention. Different marketing mixes like strategically places selling outlets, setting competitive places, conducting promotions, and designing products that meets consumer needs are used to keep the company progressing and meeting set goals. b. Supplier power The industry has a lot of suppliers and this makes the supplier power to go down since the companies have different supplier options to choose from. This is possible because the number of suppliers exceeds the number of companies being targeted and this comes as a great advantage to the manufacturers as they are able to negotiate prices leading to lower cost of production. c. Buyer power The motor vehicle industry targets middle to high economic class people and the fact that there are diverse companies fighting for the same target market increases buyer power. In the industry, buyers have power to dictate the quality, design, and shape of vehicles they want and other measures like cost (Schowalter, 2017). For instance, vehicles that client consider as being unnecessary expensive record low purchase and this means the company has to act in a manner that suits consumer needs to make sales and realize minimized profits. d. Threat of substitution The motor vehicle industry is one of the most expensive industries to join due to massive finances and investment that investors are required. There are also huge government demands for investors in the industry for instance operating licenses and taxes among other demands. This makes it hard for the substitutes to be manufactured and supplied in the market thereby granting companies like Tesla a chance to market and sell its products without facing substitution challenge. e. Threat of new entry Due to high demands of joining the industry also reduces chances of new entrants joining the market to do so (Schowalter, 2017). The more reason is that many investors finds it hard to meet all the demands and make sales in a market that is already dominated by specific companies that are knRunning head: EXPLOITING INNOVATION AT TESLA 1 EXPLOITING INNOVATION AT TESLA 2 Exploiting Innovation at Tesla Harvey Allen Professor: Hassan Yemer MGT: Capstone 599 Strayer University February 21, 2021 Importance of Innovation for Long-Term Survival of Tesla Corporation At Tesla, innovation remains and is treated as the backbone of the company and this is a practice that appears to have along of benefits in regards to the long-term survival of the company. For instance, Tesla Inc. heavily invests in non-stop engineering and innovation and a perfect example is where the company has invented electric motors that make use of lithium-ion batteries. Because of the great innovation, Tesla is currently focusing in how to turn around the world for the better through manufacturing products that promote clean energy use, reduce global warming, conserve energy, and completely minimize overreliance on fossil products. The innovations seems to hold the future for Tesla since the world is moving towards products that does not harm them or the environment and Tesla is on point which means in the future, it would be the global automobile leader. Secondly, clients are seeking for cheaper vehicles that have a low maintenance while offering quality services and this is direction that innovation at Tesla is driving the company towards (Purificato, 2014). This is because the vehicles designed by Tesla do not need energy from fuels to move which means using electricity would be much cheaper. Additionally, there are a lot of mechanical challenges that vehicles develop from use of fossil fuel product and the innovation at Tesla is eliminating all such problems making their models easy to maintain. For the Tesla Company to remain competitive in the industry and even become market leaders, it should embrace the architectural innovation strategy. This is a strategy that demands the company to constantly review the current products and make improvements to make the products meet the very best standards that does not have an equal in the global electric vehicle market. The strategy would help Tesla in having completely unique products that cannot be substituted since every model would have a slight and better change than the initial model. It would also be hard for the competing brands to understand the next move Tesla would take. Automotive Industry Evolution In the current times, the automobile industry is in an era where a lot of changes are taking place. With intense advanced technology that seems to bring new innovative inventions on a daily basis, the industry is being compelled towards embracing change. This is more so because consumer needs and demands are changing often and failure of the companies to embrace change is affecting sales and overall performance of the company. The current changes are shaping the next five years of the automobile industry. For instance, in the next five years, there is a high likelihood that vehicles willRunning head: TESLA RESPONSE TO CHANGE 1 TESLA RESPONSE TO CHANGE 6 Tesla Response to Change Harvey Allen MGT 599 Capstone Hassan Yemer Strayer University March 6, 2021 Tesla’s growth based on Evolution History Tesla Motors started as a medium motor vehicle manufacturing company and it has evolved over the years to become the current giant brand with global recognition. During foundation years, the company could record as little as 4\% growth rate but over the years the growth rate has significantly increased to the current growth rate of over 107 percent. The growth rate has been as a result of increasing revenue generation which was at 226.48 percent in the second quarter of 2019. According to Singh, (2019) this is the best revenue rise in auto manufacturers industry. In the 2018 fiscal year, Tesla’s annual revenue increased from $15million in 2008 to $21billion by 2019. There are speculations that Tesla Motors could continue this trend over the next decade due to the different growth and expansion tactics in place until Tesla manages to attain its mission of fully transitioning to sustainable energy. Tesla management has a great vision of expanding its product portfolio to include trucks, solar, storage, and automobiles (Dzialo, 2018). Additionally, on a higher level; Tesla intends to manufacture more affordable cars to meet diverse market demand and also boost company’s profitability levels. In overall, Tesla is considered as one of the most promising avenue for investment trusts comprised of substantial risks and lucrative rewards. Advantages and Disadvantages of Vertical Integration versus Outsourcing Michael Porter’s Diamond Model is a framework that clearly explains why specific industries engage in international competition while others avoid such competition. Four major attributes are the major determinants of the national competitive advantage; factor conditions; demand conditions; related and supporting industries; and firm strategy, structure, and rivalry. The application of the model helps a business to understand whether joining international market is the best option to consider or not. Additionally, the model empowers companies to understand whether or not when entering international market, the company should make use of vertical integration or outsourcing (Carayannis, & Wang, 2012). It is important to note that vertical integration is a situation where a company controls and owns suppliers, distributors, and retail locations thereby controlling the value of the supply chain in place. On the other hand, outsourcing is a situation where the company seeks private operators to offer retailing, supplying, and distribution services. With outsourcing, the company does not have control of the supply chain as well as its value (Vuković, Jovanović, & Đukić, 2012). The reason why companies are able to make the decision of whether to embrace v