Assignment 2 Semester 1 2026
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Due Date: 21 April 2026
QUESTION 1
Absorptive capacity is an organisation’s ability to notice valuable information from outside
the business, understand it, combine it with what it already knows, and then use it to
improve performance and innovate (Venter and Botha, 2022). Tesla shows a high absorptive
capacity in practice, mainly because its culture and management approach push fast
learning, fast decisions, and rapid innovation, although strong central control can sometimes
narrow what information gets prioritised (Case study: Meyer, 2019b)
1. Acquisition of external information
Tesla actively seeks external signals about technology trends, customer expectations, and
environmental pressures. Its focus on electric mobility, batteries, and renewable energy
suggests it continuously watches market shifts and regulatory and sustainability demands,
then responds quickly through product and process innovation (Case study: Meyer, 2019b)
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