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Value Chain Design1Value Chain DesignPawita RueangphayungsakMBA 550 Business OperationsFebruary 4, 2020Daniel L. HammesCity University of Seattle
Value Chain Design2AbstractThis paper analyzes the value chain design of Tesla Company based on the company'ssupply chain. The author evaluates at each step of the value chain by Porter's Value Chainanalysis model. Furthermore, it categorizes the activities into support activities and primaryactivities. Additionally, the writer also shows awareness of effective resource allocation and itsethical implications.
Value Chain Design3Value Chain DesignThe value chain is a network of facilities and processes that describes the flow ofmaterials, finished products, services, information, and financial transactions from suppliers,through the facilities and processes that create goods and services, and those that deliver them tothe customers (Collier, 2017). Tesla provides electric vehicles with a sustainable energy system;furthermore, Tesla’s value chain is one of the best effective value chain design (Tesla, 2019).Porter's value chain analysis model evaluates the value and loss of amounts of sources in theorganization by analyzing information into primary activities and support activities (Viler, 2010).In order to analyze the Tesla company value chain, there are five primary activities and foursupport activities. Figure1 indicates Tesla’s value chain.Figure 1: Tesla’s Value chain (Yuan et al., 2015)
Value Chain Design4Primary ActivitiesInbound logisticsTesla produces the fundamental elements of the car such as the electric motor, the batterypack, and the charger; however, they purchase the other parts from many suppliers across theU.S., Europe, and Asia (Maverick, 2019). Some of the main suppliers for Tesla’s production areAGC Automotive: windshields, Brembo: brakes, Fisher Dynamics: power seats, Inteva Products:instrument panel, Modine Manufacturing Co.: battery chiller, Sika: acoustic dampers, Stabilus:liftgate gas spring, and ZF Lenksysteme: power steering mechanism (Maverick, 2019). Teslaowns the capitol manufacturing facility and warehouse in Fremont California, United States;otherwise, there are many facilities and warehouses are located in diverse locations includingNorth America, Asia, and Europe such as Livermore, California, Lathrop, California, Sparks,Nevada, Taipei City, Taiwan, Elkridge, Maryland, and Bethlehem, Pennsylvania; additionally, thecompany (Pratap, 2019).

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Term
Spring
Professor
whoknows
Tags
Tesla Motors, value chain design of Tesla Company

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