Launching tesla smartphone model pi project

Table of Contents I INTRODUCTION 1.1 OVERVIEW ABOUT BUSINESS 1.2 VISION, MISSION, CORE VALUE 1.3 INTRODUCTION ABOUT THE PROJECT II APPROACHES TO PROJECT SCREENING 2.1 ANALYTICAL HIERARCHY MODEL 2.2 NET PRESENT VALUE III STAKEHOLDERS ANALYSIS IV OPPORTUNITIES AND CHALLENGES 12 V STATEMENT OF WORK 14 5.1 INTRODUCTION AND BACKGROUND .14 5.2 OBJECTIVES 14 5.3 LIMITATIONS 14 5.5 MILESTONES 15 5.6 APPROACH 15 5.7 CONSTRAINTS 15 VI WORK BREAKDOWN STRUCTURE 16 VII RESPONSIBILITY MATRIX 17 VIII THE ESTIMATED BUDGET 19 8.1 TOP DOWN .19 8.2 TIME PHASED - COSTING 20 IX AN IN-DEPTH SCHEDULE 21 9.1 DURATION TABLE .21 9.2 GANTT CHART 21 9.3 AON NETWORK 22 X RISK ANALYSIS 25 10.1 RISK BREAKDOWN STRUCTURE 25 10.2 QUALITATIVE RISK ASSESSMENT 26 10.3 QUANTITATIVE RISK ASSESSMENT 29 10.4 RISK MITIGATION STRATEGIES 30 XI CONCLUSION 33 REFERENCES 34 GROUP MEMBER CONTRIBUTION 34 Q1 A project has the activity duration and cost information indicated in the table where all times are in weeks There is a penalty of $5,500 per week for every week the project extends beyond 43 weeks What is the lowest total cost for completing this project? AON network Paths: ABEH: 44 weeks ABDFH: 44 weeks ACDFH: 48 weeks => Critical path ACGH: 46 weeks Decrease weeks of activity F, new Paths is: ABEH: 44 weeks ABDFH: 42 weeks ACDFH: 46 weeks => Critical path ACGH: 46 weeks => Critical path Decrease weeks of activity H, new Paths is: ABEH: 41 weeks ABDFH: 39 weeks ACDFH: 43 weeks => Critical path ACGH: 43 weeks => Critical path There is a penalty of $5,500 per week for every week the project extends beyond 43 weeks After decrease weeks of activity F, the total cost for completing project is: $126,000 + $1,500*2 + $5,500*3 = $145,500 After decrease weeks of activity H, the total cost for completing project is: $126,000 + $1,500*2 + $3,000*3 = $138,000 After decrease week of activity A, the total cost for completing project is $126,000 + $1,500*2 + $3,000*3 + $4,000 =$142,000 Therefore, the lowest total cost for completing the project is $138,000 in 43 weeks Launching Tesla Smartphone Model Pi Project I Introduction 1.1 Overview about business Tesla is an American multinational automotive and clean energy company headquartered in Austin, Texas Tesla designs and manufactures electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services Tesla is one of the world's most valuable companies and remains the world's most valuable automaker with a market capitalization of more than US$550 billion In 2021, the company had the most worldwide sales of battery electric vehicles and plug-in electric vehicles, capturing 21% of the battery-electric (purely electric) market and 14% of the plug-in market (which includes plugin hybrids) 1.2 Vision, mission, core value Vision Tesla’s vision statement is “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.” The vision statement acknowledges that the world has come to an era where only renewable energy should be prioritized In the case of Tesla, the focus is on the use of electric energy to power all motor vehicles Mission Tesla’s mission statement is “to accelerate the world’s transition to sustainable energy.” The mission statement by Tesla shows the shift towards business approaches that are more futuristic The focus on sustainability indicates the compliance of the company with global demands of business methods that align with calls for green energy Tesla adopted this mission statement after abandoning the earlier one whose focus was on transitioning the world to sustainable transport In this case, the company demonstrates its focus on energy as the critical aspect of its business Core values Tesla’s core values comprise “doing the best, taking risks, respect, constant learning, and environmental consciousness.” Tesla applies these values as the principles that govern the overall attitudes and practices of all stakeholders and its workforce 1.3 Introduction about the project - Project: Launch of the Tesla Smartphone Model Pi - Time of project: year - Total investment: $5,000,000 This is a project to launch Tesla's phone to the international market This international project can bring huge profits to the company in the future.In the first half of 2023, the product will be in the testing stage, Tesla's management and Board of Directors are sure that, if the project is successful, Tesla will compete with Apple or Samsung - Industry Giants telephone industry It will be a new breakthrough for the company and open up a new opportunity for them II Approaches to Project Screening 2.1 Analytical Hierarchy Model Tesla Smartphone Financial – 65.25% Model Pi Total A1: Long term – 75% A2: Short term – 25% Strategic – 24.15% B1: Increasing Market Share – 30% B2: Strengthening Brand Awareness – 35% B3: Developing Effective Communication – 35% IT infrastructure – 10.6% C1: Minimizing Project Risk – 54.34% C2: Updating with new technologies – 45.66% 100% Allocating Weights To Criteria A B C A 1/3 1/6 B 1/3 C Total 10 4.3 1.5 It is clear that financial criterion has a much more significant impact on our project rather than two other criteria The table above illustrates the proportion importance of each criterion on the first hierarchy level All of them have subcriteria The financial benefits criterion receives a weighting value of 65.25% which is split into Long-term benefits (75%) and Short-term benefits (25%) That means the long-term financial benefits play a more crucial role than short-term financial benefits Then, by those configurations, these two criteria receive an overall weighting of: A1 = 0.6525 x 0.75 = 0.4893 A2 = 0.6525 x 0.25 = 0.1631 Next, weighting value for the Contribution to Organization Strategy criterion which have three subcriteria: Increasing market share (30%), Strengthening brand awareness (35%), and Developing effective communication (35%) that equals to 24.15% Those values are translated on the first level equal to: B1 = 0.2415 x 0.3 = 0.0724 B2 = 0.2415 x 0.35 = 0.0845 B3 = 0.2415 x 0.35 = 0.0845 Finally, the Contribution to IT infrastructure criterion was valued at 10.6% with two subcriteria: Minimizing project risks and Updating with new technologies Since the product of this project is a high-tech device, the top objectives in the operation would be to control the risks created from technologies skillfully On the first level, these values are transformed: C1 = 0.106 x 0.5434 = 0.0576 C2 = 0.106 0.4566 = 0.0483 Assigning Numerical Values To Evaluation Dimensions Our evaluation scale has five dimensions which are poor, fair, good, very good, and excellent In this figure, for purposes of illustration, we have assigned the values of 0.0, 0.1, 0.3, 0.6, and 1.00, respectively, to these dimensions · Poor – 0.00 · Fair – 0.1 · Good – 0.3 · Very Good – 0.6 · Excellent – 1.00 Evaluating Project Proposals In the final step, we are going to evaluate possible alternatives to see which is the most potential project to implement We would multiply the numeric evaluation of the project by the weights assigned to the evaluation criteria and then add the results for all criteria Those two projects have received nearly the same result which is a record 0.1341 of difference However, the higher result observed at the Model Pi Project of 0.9476 in total Although both of them are interesting choices to take into consideration, the Model Pi Project is the best option to implement for our company 2.2 Net Present Value In this project, the initial investment will be $5,000,000 We assume that the discount factor rate equals to 10%, the tax rate of 7.5% according to the U.S imposed tax on electronics (BDO Tax News, 2019) • Income Statement Analysis Year Quantity 150,000 240,000 350,000 500,000 Price ($) 550 550 570 600 82,500,000 132,000,000 199,500,000 300,000,000 3,150,000 5,250,000 7,150,000 8,200,000 Fixed Cost 15,500,000 20,000,000 33,500,000 40,500,000 Income Before Tax 63,850,000 106,750,000 158,850,000 251,300,000 4,788,750 8,006,250 11,913,750 18,847,500 59,061,250 98,743,750 146,936,250 232,452,500 Sales Variable Cost Tax (7.5%) Income After Tax • Net Present Value Year Initial Investment -5,000,000 Income After Tax Net Cashflow -5,000,000 59,061,250 98,743,750 146,936,250 232,452,500 59,061,250 98,743,750 146,936,250 232,452,500 0.90909 0.82645 64,967,375 119,479,938 Discount Factor (10%) NPV -5,000,000 NPV 715,353,167 0.75131 195,572,149 340,333,705  The NPV of the Model Pi project is positive which means that our project is possible to implement III Stakeholders analysis The owner of the project is Tesla Inc because Tesla is the main source of funding and uses the project's supply capacity The other stakeholders of this project are: Project developers (developing the phone), planning leader (designing the project plan), Managers (coordinating the staff ), suppliers (who provide the raw materials), distributors (sending products to customers) investors (who provide financial backing for the enterprise), and customers (purchasing the cars) Issues 0.68301 Stakeholders Interests Obligation Address Tesla Inc - Earn revenue - Increase brand’s awareness - Provide None financing for the project - Take main responsibility for the project - Finalize the last resort Project developers - High income - Achievements - Opportunities of promotion - Creating the - Unsatisfactor - The team should phone that could y blueprints meet weekly meet the and trials, with the project standards set by need a lot of owner, to be able the project’s adjustments to agree from the owner very beginning of the idea, then continuously update the project owner on the production None process Planning leader - Accumulate more experience and achievements in the field of planning design forconstruction projects - High income Make a plan according to the requirements of the project owner (financial, operational, investment, ) Receive feedback from the project owner about the plan and then make adjustments Manager - Salary - Manage the - Achievements project to run - Opportunities effectively and of getting finish on time promotion - Outlining the responsibilities of the participants - Project progress management - Periodically update the project’s owner on the project's status Staff - High income Different working styles lead to misunderstandi ng the project owner's intentions So the plan may be adjusted many times Requirements should be as detailed and understandable as possible Conflict - Make sure that between each team opposing member's tasks personalities are clearly occurs soon stated after the project - Plan feedback management sessions, team is formed, monthly particularly meetings to when there is improve limited contact communication among the within the team members - The team should be transparent in discussing group objectives as well as problems that impede progress or have an effect on the team's strategy, tactics, and efforts - Finish all the - Conflict tasks that are between assigned by the opposing managers personalities in a team - Delay deadlines - The team should be transparent in discussing group objectives as well as problems that impede progress or have an effect on the 8.2 Time phased - costing IX An in-depth schedule 9.1 Duration table 9.2 Gantt Chart 9.3 AON Network X Risk analysis 10.1 Risk Breakdown Structure LOW HIGH 10.2 Qualitative Risk Assessment 10.2 Qualitative Risk Assessment Code Name Economic Downturn Rating Explanation High Consequences - Low Likelihood The economic recession is approaching and puts a lot of pressure on all businesses because it entails increasing constraints in the supply chain and inflationary pressure Businesses will face human resource shortages, supplier capacity issues, shipping delays, shocking shipping costs, low inventory levels and plunging demand New product development projects are more risky Therefore, companies must have a clear and careful strategy, especially focusing on investing in technology, otherwise it will seriously affect the project results Profit Risk Potential High Consequences - High Likelihood This is a project that requires high creativity and careful preparation, but that is not beyond Tesla's ability Given the company's influence and strength, Tesla has the ability to limit uncertainty in its risk management process However, the risk of potential profits is still possible and can directly affect the revenue of the business Currency Risk High Consequences – Low Likelihood With an international project, businesses cannot avoid exchange rate risk when entering different markets If that market does not have a strong currency, the business will be at a greater disadvantage in terms of the exchange rate between the two currencies At the moment, currency fluctuations are high and have a significant impact on the operations and profits of companies Customer Acceptance High Consequences - Low Likelihood The product line of this campaign is highly innovative and quite new compared to the previous phone line Therefore, it is quite difficult for customers to accept and put their trust in such a breakthrough product Without a strategy to get there, the campaign will fail Competitors Low Consequences - High Likelihood The influence of competitors in this case is not too severe because there are not too many competitors with product lines like Tesla nor technological capabilities and influence on par with Tesla in the market Tesla is still in a strong enough position to lead the way and can take on any competitor Government Regulation Low Consequences - Low Likelihood The success of an international campaign depends on whether it complies with government regulations in the market it enters Regulations may vary by country and at different times depending on the industry of the campaign However, with a team of professional Tesla employees, it is not difficult for the company to grasp the government's regulations in the market they are covering With its experience and ability, Tesla can create a suitable product and meet the standards of the local government Changes Technology in High Consequences – High Likelihood In a fast-paced technological development era like nowadays, there is an increasing number of new highly advanced equipment which would influence dramatically to every industry involved In particular, our project is directly affected by this enormous impact, therefore if we are unable to keep up with technological advancements, this issue will have an impact on the effectiveness of all production processes and operational activities That’s why it would leave a high consequence to our project Data Breaches High Consequences – Low Likelihood Data breaches occur when sensitive information is stolen or leaked to unintended parties Breaches can happen from external attacks such as hacks, malware, or phishing scams that would leave tons of harmful effects to both business and customers Customers may have suspiciousness on the quality of products or bad experience due to this However, this could hardly happen because Tesla has been good at controlling this problem Effective Communications Low Consequences – Low Likelihood Tesla has been doing great with their effective communications so that the probability for this risk is considered low Also, a successful project could be made by many factors and quality management skills Communication is one of many key factors to the sustainable development of the company 10 Staffing Performance High Consequences – Low Likelihood Staffing Performance is a crucial direct effect to the success of the project Because employees are essential to an organization’s productivity, profitability, ultimate and those other positive results couldn’t happen without stellar employee performance This issue has been proven by many previous outcomes of Tesla which brought a strong brand reputation to the company So that’s why the probability of risk is low 11 Contract Risk Low Consequences – Low Likelihood Tesla has been active worldwide for many years and achieved a significant number of results This approved their prestige in the industry which will be advantageous for them to connect different parties, not likely a risk 12 Low Consequences – Low Likelihood Resources Priorities Tesla has a high awareness of how they would utilize their resources in the operational activities very clearly This project would inherit many previous technical achievements as a resource Tesla would hardly make a mistake in prioritizing appropriate resources 10.3 Quantitative Risk Assessment Probability of Failure (Pf) Level Low Moderate High Score 0.2 0.3 0.5 Consequences of Failure (Cf) Level Low Moderate High Code Level Score 0.2 0.3 0.5 Level Economic Impacts (A) Level Economic Downturn Profit Potential Risk Currency Risk External Market Impacts (B) Technological Impacts (C) Customer Acceptance Competitors Government Regulations Changes in Technology Data Breaches Scoring P = 0.2 C = 0.3 P = 0.3 C = 0.5 P = 0.2 C = 0.3 P = 0.2 C = 0.5 P = 0.3 C = 0.2 P = 0.2 C = 0.2 P = 0.3 C = 0.5 P = 0.2 C = 0.3 Internal Quality Management (D) 10 11 Effective Communication Staffing Performance Contract Risk Organizational Risk (E) 12 Resources Priorities Probability of Failure (Pf) = Consequences of Failure (Cf) 𝑃𝑎+ 𝑃𝑏+ 𝑃𝑐+ 𝑃𝑑+𝑃𝑒 = = P = 0.2 C = 0.2 P = 0.2 C = 0.3 P = 0.2 C = 0.2 P = 0.2 C = 0.2 𝐶𝑎+ 𝐶𝑏+ 𝐶𝑐+ 𝐶𝑑+𝐶𝑒 = (0.2+0.3+0.2) + (0.2+0.3+0.2)+(0.3+0.2)+(0.2+0.2)+(0.2+0.2) (0.3+0.5+0.3) + (0.5+0.2+0.2)+(0.5+0.3)+(0.2+0.3)+(0.2+0.2) 12 12  Pf = 0.225  Cf = 0.308 RF = Pf + Cf – (Pf x Cf) = 0.463 10.4 Risk Mitigation Strategies Code Name Assessment Risk Navigation Economic Downturn High Minimize Consequences Low Likelihood In order to minimize economic risks, the company needs to look for more domestic partners to cooperate in the process of production, sales and transportation From there, the company can reduce costs and limit the impact if economic risks occur Profit Potential High Minimize Risk Consequences High Likelihood To minimize the risk from profit potential risk, the company needs to limit its dependence on large customers or large distributors Finding more customers and improving internal management techniques can help a company expand its supply chain and ensure tight control of the source, thereby reducing profit risk Currency Risk High Minimize Consequences Low Likelihood For international companies, in order to hedge against exchange rate risk, businesses can also choose partners who are banks with good trade finance ability, using guaranteed derivative financial instruments for scientifically planned activities Customer Acceptance High Contingency Reserves Consequences Low Likelihood In order to be accepted by customers, the company needs to improve product quality and implement campaigns to attract customers This is extremely important because it directly affects revenue It can take a long time and requires a lot of change, so having unique and creative plans and budgeting for the costs incurred is extremely important Competitors Low Minimize Consequences High Likelihood The competition is not much nor the competition is not too high compared to Tesla so it is not a big concern The company only needs to study and identify the characteristics of the competitors thereby minimizing their potential impact on the campaign results Government Regulation Low Accept Consequences Low Likelihood Government regulations are irreversible and inevitable, forcing all businesses to follow, so the company will accept and the accompanying insignificant consequences Changes Technology in High Partner with Advisors Consequences High Likelihood Advisors on keeping up with technology trends will be specialists in this area and responsible for Adoption of Industry 4.0 technology should be proactive rather than reactive Keep up with technological advancements and avoid waiting until they become necessities Data Breaches High Minimize Consequences Low Likelihood This risk has a low probability of occurring, thus it is better for us to keep its likelihood as low as possible by consistently enhancing our data protection measures Effective Communication Low Managing Consulting Services Consequences Low Likelihood Employee communication is crucial to maintaining the effectiveness of the organizational structure across all functional operations Understanding employee demand enables the business to identify areas for improvement 10 Staffing Performance High Minimize Consequences Low Likelihood This risk has a low likelihood to happen so it is best for us to keep its probability as minimal as possible 11 Contract Risk Low Transfer Consequences Low Likelihood To face this risk, the company decided to use a fixed price contract to avoid causing as much loss as possible 12 Resources Priorities Low Mentoring Training Consequences Low Likelihood In their initial few days of work, employees receive training courses to help them grasp the corporate policies and working environment This not only lowers the likelihood of it happening but also makes organizational processes run more efficiently XI Conclusion The term "extraordinary smartphone from Elon Musk" is gradually becoming a reality after a period of storming in the newspapers This is a serious affirmation that Tesla will enter the smartphone market and Tesla Model Pi will be an unrivaled "trophy" in the technology world Are you ready to experience an unprecedented breakthrough in human history? REFERENCES Tống Nam Tuấn Vũ, 2022 “Bất ngờ xuất hình ảnh concept điện thoại Tesla Model Pi, liệu Tesla âm thầm dấn thân vào thị trường smartphone?” Available at: https://www.thegioididong.com/tin-tuc/bat-ngo-xuat-hien-hinh-anh-concept-teslamodel-pi-moi-nhat-1420042 Tesla Mission and Vision Analysis Available at: https://mission- statement.com/tesla/ BDO Tax News Dec 2019 United States Sales Tax and Digital Goods [online] Available at: https://www.bdo.global/en-gb/microsites/tax-newsletters/indirect-taxnews/issue-4-2019/united-states-%C2%A0sales-tax-and-digital-goods Group Member Contribution Student’s Name Student ID Contribution Nguyễn Anh Quang 19071483 100% Nguyễn Phượng Anh 19071292 100% Bùi Xuân Bách 19071314 100% Trần Thu Huyền 19071384 100% Hoàng Khánh Linh 19071402 100% Phạm Nguyệt Nhi 19071455 100% ... 1.3 Introduction about the project - Project: Launch of the Tesla Smartphone Model Pi - Time of project: year - Total investment: $5,000,000 This is a project to launch Tesla'' s phone to the international... the project is to successfully bring the Tesla Smartphone Model Pi to affordable consumers within year at a cost of no more than $5.000.000 5.3 Limitations Satellite smartphone Tesla Model Pi. .. Tesla Model Pi, liệu Tesla âm thầm dấn thân vào thị trường smartphone? ” Available at: https://www.thegioididong.com/tin-tuc/bat-ngo-xuat-hien-hinh-anh-concept-teslamodel -pi- moi-nhat-1420042 Tesla