Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 6

terms of increasing production capacity and overcoming the classic cycle of technological products. What was achieved was that relatively cheap cars were quickly made available to the average consumer, cars of excellent quality and of a very high standard of technology. V. R esearch- A nalysis a) Organizational structure of TESLA INC Tesla, Inc. has a structure that supports continuous, organizational development. In the case of Tesla, the structure has taken a traditional form, taking into account the administrative focus and control, as well as the rational operational expansion in the global market. As stressed, the company's goal was to innovate in something that has never been done before - to make high-tech products more accessible to the average buyer as quickly as possible. The effectiveness of Musk’s leadership depends on the ability of the organizational structure to support the implementation of new strategies for the development and improvement of business operations. The company has optimized its ability to implement new strategies and manage its business activities, through its structure, which also affects organizational change. Tesla's structure creates capabilities that allow for strong control of the company, despite its growing international operations, and despite the fact that growth can increase complexity and challenges. For example, global expansion requires a broader commitment of senior executives, in terms of emphasizing and clarifying the corporate strategy and the direction it should take (Kontra and Theofanidis, 2014). Tesla has a functional or U-shaped organizational structure. The structure of this form uses the organizational functioning as the main determining factor. For example, the company has one group of employees for engineering, another for sales, etc. Some features of other types of organizational structures are also present in Tesla, although to a lesser extent. In this case of analysis, functional-based grouping of tasks, is the most relevant structural feature in terms of categorization. The following features are important in Tesla’s structure (Kontra and Theofanidis, 2014): • Functional hierarchy • Central Management • Departments Functional Hierarchy - The most important feature of Tesla's structure is the hierarchy based on global operation. This hierarchy includes functional groups that oversee domestic and international practices and operations. This feature is commonly seen in traditional organizational structures, where the goal is to ensure strong control over operations. The following nodes guide the global hierarchy: • President & CEO • Funding • Technology • Global sales and services • Engineering • Legal Central Management: The focus of concentration is the strong control over the entire organization through the decisions produced by a core team. The heads of the offices are the headquarters of the company, which directly control all operations. Under this structure, the company has little support for the autonomy of its regional or global offices. Headquarters make most of the decisions. Various departments: This feature of the structure focuses on the extent of geographical or other types of parts in the Tesla automotive industry. These sections are used to implement different marketing strategies and campaigns and to organize financial records and reports. The main parts of the company in its organizational structure are (1) the automotive industry and (2) the production and storage of energy. These divisions are less important than the hierarchy based on the functioning of the organization. Finally, the company is vertically integrated, which means that it produces its products in Gigafactory, while it has direct distribution channels (Tesla online stores and physical stores of the company) (Fourweekmba, 2022). VI. C onclusions/ S uggestions Tesla has benefited from its structure in terms of effective control of its operations worldwide. Another advantage is the ease of implementing new strategies throughout the organization. As there is not enough decentralization, important decisions can be made and implemented quickly and efficiently, without friction. The various departments of the company around the world, support the central management, through their reports and the analyses they provide. In these ways, the company under study can grow internationally and enhance its competitive advantage. But the following must be understood - the company under study is an extremely rare case, where its vision and strategy, from the beginning, was "so ahead of its time", that all that remained was the practical implementation. Therefore, the centralized nature of Tesla's structure can support the fulfillment of its vision. It is uncommon for an entrepreneur to grasp the idea of breaking the life cycle of new technology, and aim to achieve efficiency, to support a highly innovative idea. Usually, organizations are either innovative or efficient, and the above combination is rather, extremely rare. Organizations can learn from the study of the specific company, on how the structure can be used in 37 Global Journal of Management and Business Research Volume XXII Issue VI Version I Year 2022 ( ) A © 2022 Global Journals Organizational Structure as a Fundamental Function of Effective Management. The Case of Tesla