Tesla: Current Issues Tesla announced the delay for “Model 3” production, again. Since March 2016, half a...

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General Management

Tesla: Current Issues

Tesla announced the delay for “Model 3” production, again.

Since March 2016, half a million people have preordered thevehicle.

In February 2017, the company said it would be able to produce5,000 vehicles a week, but in November Musk called it a “productionhell” and pushed back productivity until the end of March 2018.

In January 2018, the goal post moved again, until the end ofJune.

In March of this year, people received emails stating that thecompany was adjusting their “Model 3” delivery to a later window oflate 2018 or early 2019.

Not delivering orders is not a great way to build aloyal customer base.

Issues. Continued...

Workers bring complaints about mistreating employees andharassment.

Workers have also complained about aggressive production goalsleading some to “pass out” on production floors.

Workers claim that their health is secondary to teslaproductivity.

Tesla is Spending more money thangenerating.

After 10 years of losses, in 2013 Tesla announced its first-everquarterly profit. Then in February 2018, the company announced thatit ended 2017 with its largest quarterly loss ever. $675million

Workers bring complaints about mistreating employees andharassment.

Workers have also complained about aggressive production goalsleading some to “pass out” on production floors.

Workers claim that their health is secondary to teslaproductivity.

Tesla is Spending more money thangenerating.

After 10 years of losses, in 2013 Tesla announced its first-everquarterly profit. Then in February 2018, the company announced thatit ended 2017 with its largest quarterly loss ever. $675million.

Ethical Quandaries

Ethical Principles (Steiner & Steiner)

The Organization Ethic- Be loyal to theorganization. ( Model 3 ongoing delays )( EmployeeMistreatments)

The Rights Ethic- Each person has protectionsand entitlements that others have a duty to respect. ( EmployeeMistreatments )

The Theory of Justice- Each person should actfairly toward others in order to maintain the bond of community. (Employee Mistreatments )

The Doctrine of the Mean- Avoid behavior thatis excessive or deficient of a virtue. ( Twitter Bankrupt Jokes )(Employee Mistreatments )

The Intuition Ethic- What is good or right isunderstood by an inner moral sense and felt as intuition. ( Model 3ongoing delays )( Vehicle Malfunctions )( Employee Mistreatments)(Twitter Bankrupt Jokes )

Global Business Standard Codex

Fiduciary Principle- Duty to act in the bestinterest of stakeholders.( Model 3 ongoing delays )( VehicleMalfunctions )( Employee Mistreatments)( Twitter Bankrupt jokes)

Reliability Principle- Duty to honorcommitments made to the firm/ organization. ( Model 3 ongoingdelays )( Vehicle Malfunctions )( Employee Mistreatments)( TwitterBankrupt jokes )

Transparency Principle- Duty to conductbusiness in a truthful and an open manner. ( Model 3 ongoing delays)( Vehicle Malfunctions )( Employee Mistreatments )

Dignity Principle- Respect the dignity of allindividuals. ( Employee Mistreatments )

Fairness Principle- Stakeholders have a vestedinterest in the firm and should be treated fairly. ( Model 3ongoing delays )( Vehicle Malfunctions )( Employee Mistreatments)(Twitter Bankrupt jokes )

Analysis of how to deal with thequandaries?

Answer & Explanation Solved by verified expert
4.4 Ratings (813 Votes)
Tesla is in a situation where it needs to strike balance between two contradicting scenarios a It needs to honour the customer commitment by delivering their products on time keep their word in line with the reputation it enjoys in the opinion of the customers It also    See Answer
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