Compare and Contrast two organizational models – Leadership and Change 4103
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ANSWER
This essay compares and contrasts the organisation models of Tesla Energy formally SolarCity Corporation and Amazon. Tesla Energy is based in San Mateo, California, the United States of America founded in 2006. The company is global deals services revolving around solar energy. By 2013, the company was the leading company in solar installation in the country in residential environments. The major company product for Tesla Energy is the production, distribution of the solar panel technology, a device designed to harvest pure energy from the sun and utilize it for both domestic and commercial usage. Amazon is a 1994 American multinational technology company with headquarters in Seattle, Washington, United States, focusing on e-commerce, artificial intelligence, cloud computing and digital streaming. Amazon is one of the top technological companies in the world. Its products and services include components such as the Amazon Alexa, a virtual assistance artificial intelligence technology, Amazon Grocery, an online service that delivers groceries to customers’ homes and Amazon Delivery, a service that delivers products from one location of production to another location of consumption.
Amazon has the hierarchical organisation model with a senior management team that includes the Chief Executive Officers and three vice presidents all reporting to the company’s founder Jeff Bezos. The organisation features three distinct components the hierarchical corporate structure being the major one due to the huge size of the business since the company is the largest internet retailer in the world serving more than 647,000 people worldwide. Secondly, the model serves to ensure a lot of flexibility in business to allow for adapting of change that is often frequent and necessary drifting the external market regularly (Ritala 2014). These changes prompt heavy investment in the innovation of e-commerce to allow for trending technologies such as artificial intelligence and machine learning. Lastly, the model is designed to ensure the stability of top management. Selection of top management is based on experience and commitment mission and vision to be the world’s most customer-centric company by building a place where people can come to find and discover anything they might want to buy online (Ritala 2014). All the key personnel in the company have been at the company for decades sharing in its growth and development while contributing religiously to its success.
Tesla Energy has a functional or U-form organisation structure headed by a board of directors and a senior management team in research and development, production, marketing, human resources, information technology and finance administration. The mission and vision of the company are, “To reshape the energy landscape by making solar power accessible and affordable for everyone” (Wiki SolarCity Corporation), the performance of the company is measured in terms of the amount of energy produced annually in megawatts. The Organization model for the company is multi-domestic, in that, the entire operations of the company are designed to achieve maximum local responsiveness. This means production, marketing, research and development, human resources, information technology and finance and administration vary in each country of operation with a general board of directors based in the global headquarters in San Mateo, California, United States of America (Wiki SolarCity Corporation). The company has a collection of shared norms and values-driven by the motivation to provide an alternative for sources of energy in this case solar energy which is a clean and environmental friendly against sources that pollute the environment like diesel and coal. Motivation to employees is under a design reward system where innovation and creativity are highly recommended and encouraged to compete effectively and stay up to date with changes in technology.
References
Ritala, P., Golnam, A., & Wegmann, A. (2014). Coopetition-based business models: The case of Amazon. com. Industrial marketing management, 43(2), 236-249.
Wiki SolarCity Corporation. Organizational Design. Retrieved on 2nd August 2020 from https://sites.google.com/site/wikisolarcity/home/strategy-into-action
