The most crucial characteristic of Tesla’s corporate structure is a hierarchy based on functions in its global organization. This hierarchy includes functional groups or offices that control domestic and international operations. This feature is usually observed in traditional corporate structures, where companies maintain strict managerial control over their activities (Grant, 2016). In the organizational structure of Tesla, the following functional units manage and represent the global hierarchy:
Tesla uses centralization in its corporate structure, which focuses on managerial control over the entire organization through decisions made by a central group or team. In this case, the heads of the global hierarchy offices form the corporation’s main headquarters, which directly controls all operations (Grant, 2016). In this organizational structure, Tesla minimally maintains the autonomy of its regional or foreign offices (Kim, 2020). Divisions, as a characteristic of the corporate structure, focus on the scale of geographical or other types of divisions in the Tesla automotive business. The company’s main divisions in its corporate structure are the automotive industry and the production and storage of energy.
References
Grant, R.M. (2016). Contemporary strategy analysis (9th ed.). Wiley.
Kim, H. (2020). Analysis of How Tesla Creates Core Innovation Capability. International Journal of Business and Management, 15(6), 42-61.
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