Corporate governance and strategic management

1. Introduction

1.1 Problem statement

In the recent era of globalisation, the organisations try to gain high market share by operating across the international markets. The corporate governance strategy is hereby important for the organisations to manage the business activities and secure future sustainable development. Through corporate governance, it is possible to manage the working activities ethically and restructure the internal operations proficiently by resource utilisation and capability enhancement program (Bhagat and Bolton, 2019). However, due to lack of strategic planning and poor knowledge and expertise, the organisational management team fail to develop good corporate governance for which the multinational corporations fail to follow the ethical practice and legal structure of the business. This raises the issue related to non-compliance and lack of accountability, which deteriorates the performance and productivity of the organisation. It is hereby necessary for the organisations to restructure the internal activities and develop good corporate governance for better management. Through this study, it is possible to explore the problems related to good corporate governance in the organisation and analyse the practices of corporate governance so that it would be possible for Tesla to enhance their performance and proficiency to serve the consumers globally. The major issues related to the corporate governance are lack of accountability and transparency, lack of empowerment and engagement of the stakeholders, poor communication and lack of partnership working practice and poor ethical practices to handle the stakeholders (Adnan, Hay and van Staden, 2018).

1.2 Aim and objectives of the study

The aim of the study is to explore different corporate governance strategies so that the organisation Tesla can restructure their activities to maintain good corporate governance for achieving future success. The objectives of the research are,

To review the theories and practices of good corporate governance

To analyse the activities of Tesla related to corporate governance

To identify the existing issues related to corporate governance in Tesla

To recommend some suitable suggestions for Tesla to develop good strategic planning for meeting the corporate governance practices in the business in long run

1.3 Organisational background

Tesla is an American electric vehicle and clean energy company based on California. The major products of the organisation include electric cars, battery and energy storage from home to grid scale as well as there are other renewable resource related products such as solar panel and solar roof tiles. The organisation is considered as the best-selling plug in and battery electric passenger car manufacturer with 16% market share of plug in segment and 23% of the battery electric car segments in 2020 (Tesla, 2021a). There are more than 70,757 employees in the organisation, where the employees are efficient to provide good quality products and services to all the clients across the international markets. Tesla is successful to serve the customers across different international markets and the revenue in the last financial year was US $ 31.536 billion and net income was US 4721 million. Production outputs in the last year were 509,737 vehicles and the sales volume for their quality and sustainable products is increasing over the period of time. Tesla global vehicle sales were 499,550 units in the last year 2020, with a 35.8% increase over the previous year. In the recent years, the customers are concerned about managing environmental sustainability and hence the demand of the consumers of the electric vehicles is increasing over the period of time (Tesla, 2021b).

2. Literature review

2.1 Corporate governance

Corporate governance is the combination of rules, process and law in the business firm which are helpful to regulate, operate and control the operational activities of the organisation. Corporate governance focuses on strategizing the internal and external factors to reshape the activities of the organisation and has crucial impacts on the interest of the stakeholders. All the stakeholders, engaged with the organisations can maximise their values if the firm is able to improve good corporate governance for better management (Bhagat and Bolton, 2019). The stakeholders are such as shareholders, investors, employees and managers, suppliers and distributors as well as customers, government and social communities as a whole. Good corporate governance is a well-structured enforces structure in the workplace which is beneficial for working ethically and maximising the ethical standard of the firm. There are best ethical practices and formal activities conducted in the workplace which are also advantageous for the corporate leader to lead the staff towards achieving the future success. There are several principles of corporate governance which includes all the shareholders and other stakeholders are treated equally and fairly in the workplace for making sure that there are equal rights of the stakeholders in the workplace for working with others. The corporate leaders try to manage the stakeholders through developing good corporate governance where organisational structure and culture are playing an important role for running the business sustainably (Adnan, Hay and van Staden, 2018). In order to secure future sustainable development, the organisations must follow the corporate governance in the workplace so that ethical practices can be developed and it is possible for the firm to fulfil the organisational aim and objective. The organisations should share the code of conduct for the board members and executives to meet the ethical standard and the policies and procedures are also effective to run the business sustainably. In this regard, as per the principles of the corporate governance, it is necessary to manage transparency and accountability in the workplace for developing trust and loyalty among the stakeholders and manage them efficiently in the workplace with harmony and freedom, where it is possible to maximise the interest of the stakeholders and create values for them (Adnan, Hay and van Staden, 2018). The commitment of the leader is also necessary to be met under good corporate governance in order to retain the loyal and experienced stakeholders in long run and enquire accountability, fairness, diversity and transparency. The human rights are also important to be maximised in the workplace for better management.

2.2 Models of corporate governance

There are different models of corporate governance which are Anglo US model, Japanese model and German model. The Anglo US model is characterised by the ownership of the individuals and increasing intuition, investors and corporations for well-developed legal framework. The major players of the Anglo US model of corporate governance are management, directors and shareholders who are major stakeholders to run the business activities strategically. There are strong interactions between the players and it is possible to manage the activities by developing ethical standard (Paniagua, Rivelles, and Sapena, 2018). Executive compensation, investor’s benefits and growing competitiveness are the major factors that help the shareholders to contribute positively in the business and achieve future sustainable development. Japanese model of corporate governance focus on stock ownership model and there is strong cooperation of working together for achieving the future success (Ciftci et al., 2019). The Japanese culture of working with others includes all the stakeholders including the banks and management, shareholders, employees and others. German model is effective to develop ethical standard with effective collaboration with government and enhance stock ownership practice for running the business strategically (Bhatt, and Bhatt, 2017).

The Four Ps of Corporate Governance refers to people, purposes, process and performance. The corporate leaders are efficient to manage the Four Ps in order to improve ethical standard and improve business efficacy to achieve future sustainable growth. The people are the major resources of the organisation which further enhances the capability of the firm and in this regard the leaders try to manage the stakeholder’s engaged with the organisations. Through developing suitable organisational culture and structure, it is possible to manage the stakeholders and create values for them. Purpose of the corporate governance must be shared with the stakeholders and the purpose of the good corporate governance is to build an environment of trust, transparency and accountability which are necessary for fostering the long term investment, maintaining financial stability and business integrity (Paniagua, Rivelles, and Sapena, 2018). It further supports the long run growth and social development. Process innovation is also necessary for improving creativity and innovation. The process innovation including technological advancement and ethical decision making practice are hereby beneficial to manage the internal process and manage the stakeholders including the employees, customers, suppliers and managers and shareholders (Al Farooque, Buachoom and Hoang, 2019). On the other hand, there are six pillars of good corporate governance which are rules of law, moral integrity, transparency and participation, responsibility and accountability as well as managing effectiveness and efficacy. These are the six pillars through which it is possible for the organisational leaders to manage the ethical standard of the firm and secure future sustainable development (Ciftci et al., 2019). Through fulfilling the pillars and Four Ps management, the multinational corporations can handle their international operations and run the business ethically (Bhatt, and Bhatt, 2017). The legal structure and rules and legislative practice can be developed in the organisation which are beneficial for the corporate leader to run the business operations and handle the stakeholders efficiently.

2.3 Impacts of corporate governance on the business

Good corporate governance has crucial impacts on the organisational activities and business performance, where the corporate leader is able to manage their stakeholders and creates values for them. The corporate leaders are able to manage the ethical practice in the workplace and create good corporate culture so that the stakeholders can perform better and contribute positively in the workplace (Naimah, 2017). It is the responsibility of the corporate leaders to manage the corporate governance and fulfil the interest of the stakeholders in the company. The leader can fulfil the commitment towards each stakeholder including employees, customers, social communities, government, managers and suppliers by managing good ethical practices. Through good corporate governance, it is possible for the leader to retain the stakeholders and manage the business activities ethically (Danoshana and Ravivathani, 2019). The ethical standard of the business can also be maximised through managing corporate governance where corporate culture and internal structure are effective to run the business operations in a systematic way. Harmony and freedom at the workplace can also be maintained well through the corporate governance practice which in turn provides a scope to the leader to provide suitable circumstances to the employees for working efficiently and contributing in the organisational success. Corporate governance is also beneficial for the multinational corporations to create positive branding in the society and establish the organisation ethically and legally. The corporate leaders also can maximise the business profitability and enhance sales volume by serving the customers proficiently (Enache and Hussainey, 2020). The commitment towards the customers can also be maximised through good corporate governance and it is possible for the corporate leaders to manage strong customer’s base and run their operations in the society ethically.

The organisations are efficient to strategize their operational activities ethically and in this regard there is great role of the corporate governance as it provides a scope to the corporate leader to manage the ethical standard and follow legal compliances to manage the workplace activities. The corporate governance standard improves the financial performance as well as there are positive impacts on the internal efficacy and employee’s productivity. The corporate governance practices diminished the threat for the stakeholders and attract more capital for enhancing future performance (Brahmana, Brahmana and Fei Ho, 2018). The corporate leaders are able to manage their stakeholders and retain experienced shareholders for further investment and thus it is possible to arrange funding for running the business successfully and fulfil the business aim and objectives. Ethical decision making practice is one of the crucial strategies of the firm to enhance creativity and innovation and in this regard corporate governance is beneficial for the leader to make ethical decision for the organisations. There is effective empowerment of the stakeholders in the business and collaborative decision can be made by ensuring ethical standard. Power and accountability flow is there under good corporate governance where the board of directors, CEO and senior managers try to cooperate with each other for fair decision making practice is to facilitate effective, entrepreneurial and prudent management which will help the organisations to achieve the long run success (Brahmana, Brahmana and Fei Ho, 2018). The organisations are hereby efficient to run their business activities efficiently and fulfil their responsibilities towards each stakeholder including employees and management team members, CEO and board members, suppliers and distributors, customers and social communities.

2.4 Strategic planning of the organisations

The multinational corporations try to manage strategic planning in order to run their business activities by creating sustainable solutions and innovative and ethical decision can be made under corporate governance. As per the industry life cycle model, there are four stages which are emergence, growth, maturity and decline (Scherer and Voegtlin, 2020). The emergence phase is the initial stage where there is high growth and potential of the organisation to develop good strategic planning for gaining high competitive advantage where there are policy diversification and innovation to the business for gaining the high market share (Naimah, 2017). The organisational growth is the second phase as per the industrial life cycle where there is dominant layer and the organisations try to develop creative solutions to grow the business operational activities. In the maturity phase, there is low growth and high concentration on market penetration for further brand expansion. Gaining high markets hare at low cost are the major strategy of the organisations and in this regard good corporate governance is beneficial to maintain ethical standard and run the business legally (Bae et al., 2018). Hence, the organisations try to gain high competitive advantage over other competitive firms in the market in order to secure future sustainable development and achieve the organisational aim and objectives (Garg, 2020). The organisations mainly focus on product diversification and market expansion tactics to sustain in the competition and perform better in the market to satisfy all the stakeholders. The cost leadership strategy is also beneficial for the organisations to manage their cost of the operations and run their business strategically (Brahmana, Brahmana and Fei Ho, 2018). The ethical and legal structure in this regard further provides a scope to the companies to manage their operations and secure future sustainable development. The organisations try to follow all the legal rules, copyright and intellectual property rights for the authenticity of their products and services. For maximising the customer service experience, the companies also develop innovative process through technological advancement, so that they would be able to maximise customer’s satisfaction.

Good corporate governance can be maximised in the workplace where the corporate leaders try to create good culture in the workplace with harmony and freedom to work, where the employees can choose their working hours, and get suitable circumstances to work with others (Gerged, 2021). The principle of managing effectiveness and efficacy are also necessary, where the corporate leaders focus on managing the people at the workplace, as the employees are the major stakeholders for managing the organisational performance., for performance maximisation, the corporate leaders try to provide good salary, compensation and benefits as well as training and development program so that the leaders can encourage employees creativity and enhance their performance in long run (Al Farooque, Buachoom and Hoang, 2019). On the other hand, the process management is necessary through developing ethical structure workplace. For maximising ethical standard of the organisation, the leaders try to maintain transparency and accountability at the workplace, where the important information and company data are shared with the stakeholders and it is also possible for the leader to engage the stakeholders with the business activities. The leaders also focus on managing fairness and integrity at the workplace in order to develop trust and loyalty among the stakeholders. Managing equality and diversity is one of the major strategic planning for the leaders to lead all the stakeholders toward achieving the future success (Enache and Hussainey, 2020). The leaders try to implement the Equality Act 210 and non-discrimination policies to improve fairness and provide equal opportunity to all the stakeholders in the workplace. Managing the equality and diversity is also beneficial for managing the issue of internal conflict and resistance to change in the workplace. The leaders also try to implement data protection Act 1998 in order to maintain confidentiality of the data and important information and store and handle the information safely. The Health and Safety at workplace Act 1974 is also executed to manage health and safety of the stakeholder’s in the workplace and it is also advantageous to retain the experience stakeholders and provide them safe place to work with others (Admati, 2017). The Human Rights Act 1998 is also effective to fulfil the rights and interest of the stakeholders in the workplace. These are the major strategic planning or developing good corporate governance in the multinational corporations to runt heir operations ethically.

3. Discussion and findings

The primary and secondary data collection method is effective for this study to identify relevant information and data in the organisation Tesla. The finding is important to be represented in a clear and concise way for further in depth analysis and evaluation.

Secondary findings

The secondary data are gathered through reviewing the existing literatures related to the research topic which is strategic planning and corporate governance. Additionally, the case study analysis can be conducted through gathering the information about the corporate governance activities at Tesla through reviewing the website of Tesla and annual report of the company. As per the secondary information, Tesla is efficient to create good corporate structure for running the business efficiently across the international markets. Flexible framework and structure of the organisation are the major strategy of Tesla, where the organisation focuses on developing functions based hierarchical structure as per the departments and internal operations. There are different departments at Tesla which are finance, technology and development, global sales and marketing, customer service, engineering and resource planning and legal. These are the major departments at the organisation where the working activities can be conducted through following suitable hierarchical structure teamwork (Teece, 2018). The corporate structure of Tesla is hereby effective for running their internal working activities strategically. The chief executives and broad members are efficient to manage the internal working activities and direct the employees towards achieving the future success. Thee principle duties of the board of directors are to management and evaluate the strategic planning of Tesla, evaluate the performance of the employees and provide compensation, review the management succession planning, monitor and manage thee internal conflicts of interest and ensure integrity of the financial information. The organisation is efficient to handle their integrity and accountability to share authentic information and data with the organisational stakeholders (Mutlu et al., 2018). Monitoring the whole business process and developing suitable structure are hereby beneficial for Tesla to enhance their operations and manage the organisational information for maximising performance (Tesla, 2021c).

Additionally, fair decision making behaviour is managed well at Tesla, where the corporate leader tries to develop suitable and creative decision which is beneficial for all the stakeholders. The organisation is also efficient to managing competition in the market through new product development and market expansion strategic planning where Tesla is successful to gain high competitive advantage and improve their market share by delivering quality and sustainable automotive products to the consumers (Bae et al., 2018). Tesla is also successful to manage their corporate governance through the practices of information sharing with the stakeholders and providing them equal opportunities for further growth and development. The organisation provides tesla is firmly committed towards managing equality and diversity and they are successful to mitigate the issue of discrimination and diversity (Mutlu et al., 2018). All the stakeholders are treated fairly irrespective of their cultural and demographic background and this practice further provide a scope to the leader to improve ethical standard and lead the stakeholders toward achieving the future success. Hence, tesla is successful to manage the stakeholders through developing suitable organisational culture and structure. The strategic planning of Tesla including product diversification and market expansion are also successful for the business where Tesla gains high competitive advantage and high market share to operate in the global automotive industry and satisfy the clients further. The organisational leader mainly focuses on the commitment towards each stakeholders including the customers, employees, suppliers and distributors, managers and social communities which further provide them a scope to run the business operations sustainably (Tesla, 2021d).

Primary findings

The primary data collection method is conducted through arranging interview with the manager at Tesla and it is effective for this study to gather knowledge and internal information. The researcher is able to maintain confidentiality of the gathered information and ensure that the information will be utilised in the study only. As per the interview transcript, the management of Tesla reveal that the organisation is efficient to handle their stakeholders successfully. The company becomes profitable by enhancing their sales volume and this further provides a scope to the corporate leader of Tesla to fulfil the economic responsibility in the firm. It is beneficial to provide high return on the investment of the stakeholders such as shareholders and investors, employees, managers, suppliers and customers. The organisation is also successful to manage the shareholders by providing them the share of profit as well as there is strong communication and cooperation among the business leader, shareholders and investors at Tesla which further help them to work cooperatively and achieve the future success. The organisational aim is mainly to provide sustainable solution in the automotive industry by delivering high quality electric cars. Tesla also focuses on product diversification strategy and manufacture the electric battery for the cars as well as solar anneal and solar tiles for the benefits of the individuals across the social communities (Bae et al., 2018). Hence, the organisation works responsibly towards the environment and society by delivering quality and sustainable products to the customers. The organisation is also efficient to manage their international operations through strengthening the supply chain and in this regard Tesla is successful to retain the experienced suppliers and distributors by providing them good compensation and sale as well as give suitable circumstances to work with others. The organisational leader is hereby successful to develop good corporate governance by managing the stakeholders and maximising their interest in the workplace through providing monetary and non-monetary incentives (Tesla, 2021c).

As per the interview transcript by the manager of Tesla, it has also revealed that, though there is efficacy of the corporate leader of Tesla in managing good corporate governance, there are several internal issues for which it would be difficult for the organisation to adopt new and creative changes in the workplace. The major issues of the organisation are lack of communication, the internal conflicts of interest among the stakeholders as well as poor cooperation and misunderstanding (Thomas and Maine, 2019). The corporate leader fails to enhance in internal communication and partnership working practice for which the employees cannot understand each other and they cannot even rely on others decision. The issue of internal conflicts and resistance to change arise due to such circumstances where the stakeholders face difficulties to trust the organisational activities further. In addition to this, there is conflict of interest for which the leader cannot manage all the stakeholders. The issue of cultural diversity and conflicts of interest are hereby major issues at the workplace for which the organisation will face problems in developing good corporate governance. The code of ethics at the workplace of Tesla is strong, where the leader is efficient to manage the health and safety for the employees and other stakeholders by providing safety measures and maintaining workplace security. Additionally, there is transparency and accountability management where the leader is able to provide clear and concise information to the employees for better understanding. The organisational leader is able to maintain fairness among the stakeholders as well as manage confidentiality of information while sharing authentic and valid information with different stakeholders. The corporate leader of Tesla is successful to manage the internal workplace with fairness and transparency management, but there are several issues related to management of stakeholders, due to poor communication structure, lack of communication and cooperation (Tesla, 2021d).

4. Critical review of the result

The organisation Tesla is efficient to manage their operations by developing good corporate governance. As per the secondary and primary data and organisational information, the organisation is successful to develop good corporate governance by creating corporate culture and internal structure. As per the findings, there is hierarchical structure in the organisation where the seniority is maintained well. The management team lead the employees towards achieving the future success through providing monetary and non-monetary incentives. The employees are also satisfied with the organisational incentives and compensation structure. Tesla is efficient to fulfil the commitment towards the employees, who are the major stakeholders of the business. As per the findings, there are over 70,757 employees who are efficient to handle the operations and contribute in achieving the organisational success. Tesla is also successful to fulfil their economic responsibility which further provides a scope to the corporate leader to manage the stakeholders where the leader tries to provide high return on the investment of the stakeholders. Hence, managing the stakeholders through providing compensation is one of the tactics to develop good corporate governance and improve ethical standard. People management is effective in Tesla where the corporate leader is successful to provide harmony and freedom at the workplace as well as provide good corporate culture successfully. There is internal collaboration among the departments of Tesla for working cooperatively and achieving the ultimate goal of the organisation (Horak and Cui, 2017). The organisational management team is also strong to handle the employees and monitor the progress of the staff efficiently to achieve future success. The revenue of Tesla in the last financial year was US $ 31.536 billion as well as the company is also successful to improve net income that was US 4721 million. Production outputs in the last year were 509,737 vehicles which indicate that Tesla global vehicle sales were 499,550 units in the last year 2020, with a 35.8% increase over the previous year. Hence, economic performance is one of the critical success factors of Tesla to sustain in the global automotive industry and run their international operations tactfully (Tesla, 2021a).

As per the findings, the internal culture is also effectively handled at Tesla, where the corporate leader is efficient to manage their organisational operations. There is integrity and accountability management at Tesla. Confidentiality of data and information can also be maintained at the workplace, where the database management system of Tesla is strong with technological advancement and software development (Bae et al., 2018). The organisational leader is successful to manage the digital data base and implement cloud computing system for handling the data and manage the stakeholders who can access the information for enhancing their performance. The leader and management team maintain harmony and freedom at the workplace, so that the employees can work under suitable environment for fulfilling their job role and responsibilities (Fenwick and Vermeulen, 2021). There is transparency and respect for each other, where the stakeholders try to maintain fairness in the operations of Tesla as well as they respect others for working cooperatively. Hence, the corporate culture with people management and maintaining workplace culture are beneficial for Tesla to run their business operations and achieve the future success (Alabdullah, Ahmed, and Muneerali, 2019). The health and safety at workplace practice are also implemented in the workplace of Tesla, where it is possible for the leader and management team to provide safe workplace to all the stakeholders to work proficiently and contribute in achieving the organisational objectives. The strategy of maintaining fairness and accountability as well as transparency are beneficial to maintain good organisational structure of Tesla and corporate culture to handle all the stakeholders, engaged with the organisation. As per the findings above, there are equality and diversity management at the workplace, where non-discrimination practices and providing equal scope to all the stakeholders are effective tactics to manage the stakeholders and retain them for long run (Tesla, 2021c).

As per the findings, there are some issues at the workplace of Tesla, which may deteriorate the performance of the organisation. The major issues at the workplace of Tesla are internal conflicts of interest and resistance to change. The employees are not willing to adopt changes at the workplace and there are internal conflicts of interest among the employees, managers, shareholders and suppliers, which raises the problems for the corporate leader of Tesla to manage their operations smoothly (Buallay, Hamdan and Zureigat, 2017). Due to lack of communication and cooperation at the workplace, there is misunderstanding among the shareholders and the leader also fails to share authentic information with the board members and investors at Tesla which raises issues for the organisation to handle the shareholders and run the business efficiently (Perkins and Murmann, 2018). There is funding requirement, where the corporate leader faces difficulties to manage the shareholders for further funding for reducing the electric cars in the market. These are the major issues, which hampers the organisational performance and productivity, the leader fails to manage expatriates and shareholders due to poor communication and partnership working practice (Naciti, 2019). There is lack of empowerment of the shareholders in the organisational decision making behaviour. The shareholders do not get the scope for involving with the organisational internal decision making process and they also do not have effective access of the information at Tesla. Hence, there is lack of initiatives by the corporate leader at Tesla to manage the shareholders and mitigate the issue of internal conflicts of interest and resistance to change (Tesla, 2021d).

Thought there are several issues related to corporate governance at Tesla, the organisation is efficient to manage their production and manufacturing activities in the organisation the production units are efficient to produce electric cars wand launch different car models at the market and thus there are diverse automated products, which may increase the satisfaction of the customers (Alabdullah, Ahmed, and Muneerali, 2019). The consumers can choose the car models, as per their personal choices and preferences as well as budget constraint. The organisation Tesla is also successful to implement the product diversification strategy through producing different car models which are electric cars as well as manufacture the sustainable solutions such as solar panels and solar tiles. The organisation is also successful to expand their business across the international markets and hence, Tesla becomes a reputed organisation in the global automotive industry for delivering high quality and electric cars with latest technological innovation and creativity (Tesla, 2021d). The company is successful to fulfil the economic responsibility and provide high return on the investment of the stakeholders. The organisation is also effective to develop the organisational structure and internal culture with harmony and freedom to work, manage transparency and accountability and respect others at the workplace (Anginer et al., 2018). The organisational management team is also efficient to provide training and developmental programs to the employees, for maximising their effectiveness and efficacy in contributing in the workplace. The findings also reveal that, the organisation provides good compensation structure to the employees and other stakeholders who are engaged with the business activities. The organisation is hereby effective to manage their corporate governance and run the business activities ethically (Alabdullah, Ahmed, and Muneerali, 2019). There are employment rules and fairness at the workplace which also enhances the employment practice of Tesla, which are beneficial for the organisational leader to lead the staff members towards achieving the future success. Confidentiality and business information management as well as cloud computing system and latest software are beneficial for tesla to maintain data safety and security at the workplace and share the data and information with the internal stakeholders for improving their performance and productivity in long run. Hence, the ethical practices at Tesla are beneficial to improve corporate governance and secure future sustainable development in long run (Tesla, 2021e).

5. Recommendations and action plan

As per the discussion and critical analysis, there are several challenges faced by the organisation to manage their stakeholders, which further raise the issue related to corporate governance. The organisation faces the issue of internal conflicts of interest and resistance to change, which are mandatory to be mitigated at the workplace, so that it would be possible for the organisational leader to handle their operations and retain the experienced stakeholders for achieving future company goal. The corporate leader of Tesla needs to manage the shareholders in the organisation for retaining them in long run. The leader in this regard must focus on the compensation structure and return on the investment for the shareholders so that they can contribute in the organisation with their full capabilities. In addition to this, it is necessary for the leader to engage the shareholders in the organisation and provide them the access of information so that they can identify the organisational data and information for better performance management. The organisation faces the issue related to funding and it is important for the leader to manage the shareholders and investors for arranging capital inflow, so that it would be possible to strategize the business proficiently. The organisational leader must focus on enhancing internal and external communication to engage the stakeholders in the business and in this regard implementation of ICT or Information and Communication technology are essential. The implementation of CRM or Customers relationship management and ERP or Enterprise resource planning software are also necessary to be implemented in the workplace for developing digital database management system and create an integrated internal system for working together in long run. Hence, the organisation would be successful in mitigating their existing issues by developing digital database system and handle the stakeholders through the integrated software.

The shareholders are laying a crucial role for Tesla to enhance product diversification and market expansion activities and thus it is necessary for them to manage the shareholders and mitigate the issue of internal conflicts of interest. The shareholders require high return on their investment and on the other hand, the organisational broad members and managers try to maintain profit and net income, which leads to internal conflict of interest. The corporate leader must communicate with the shareholders and manage them through negotiation process so that the interest of corporate leader and the shareholders can be fulfilled together in long run. Hence, collaborative decisions making practice is mandatory to manage the shareholders and mitigate the existing issues at tesla. It is necessary for the corporate leader of Tesla to develop collaborative decision making practice by engaging the stakeholders and empowering them in the organisation, so that different views are gathered for developing creative solutions for Tesla. The engagement with shareholders as well as good communication, fairness in decision making and partnership working practice are hereby major strategic suggestions for the leader of Tesla to manage the expatriates and maintain the efficacy of their international operations.

As per the action plan the organisation must focus on developing good corporate culture and ethical code of conduct at the workplace for mitigating the existing issues related to the corporate governance. The action plan can be developed further which provides a scope to the CEO of Tesla to implement good ethical practices and follow the legal structure to run their business with high ethical standard.

Through the action plan, it is possible for the organisation tesla to create good working culture and retain the shareholders in long run. The organisational leader must focus on engaging the shareholders and mitigate the internal conflicts of interest by engaging them in the decision making practice and empowering them efficiently in the workplace. The leader can enhance ethical standard and improve corporate governance through continuous cooperation and share authentic information with them for better decision making practice. Hence, corporate governance plays a crucial role in Tesla to manage their international operations and achieve the future success through fulfilling the aim of delivering electric cars to the customers across the international markets.

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