Year 12 IB Extended Essays 2018

+3 The costs associated with extrinsic motivation are delaying debt payment, hence an important restraining force. However, money spent on motivating aims to increase productivity, increased productivity could cover costs in the long-term. Hence, not a strong restraining force. + 3 Tesla’s value in the stock market increased significantly. Although, Tesla did not break even yet, a rocketing share price is bound to keep current shareholders’ in place and attract new ones, due to immense capital gain. Investors are critical to Tesla’s lifespan, + 2 If debts have not been payed in time, banks can overthrow the CEO and take ownership of the company, and potentially selling it for the money in debt. However, this is easily resolvable if production goals are met. Tesla’s current stock price as well as number of investors are rocketing. For this reason, it is not the highest weighted restraining force but still impactful. therefore, a relatively strong driving force.

Tesla motivates employees through lavishing them with free leisure activities, in return for a hope in increasing productivity. His motivational strategies have indeed attracted more people (an increase of 111.1% of employees in 1 year). These strategies are ultimately costing the business more money, operating margin haѕ dropped overall ѕince 2016 with extra operating expenѕeѕ over $5 billion during the paѕt three yearѕ.

Weaknesses

Although Tesla is not profitable, shareholders remain interested, and just as motivated towards Tesla’s future innovations as stock price went up 333.7% in the last 4 year. Consumer demands also reflect the success of Tesla. If demands are not being met, consumer satisfaction decreases, and hinders company’s maximum profitability capacity. It also can reduce the consumer base long-term for bad “word-of-mouth”. Due to its major impact, it is a strong restraining force.

Opportunity

Banks are not receiving returns from Tesla due to $3 billion debt problem (Mullany, 2018).

Threats

18