MNG3702
ASSIGNMENT 2 2026
UNIQUE NO.
DUE DATE: 21 APRIL 2026
, Strategic Implementation and Control IIIB
Question 1: Absorptive Capacity of Tesla Inc.
Definition of absorptive capacity: Absorptive capacity refers to an organisation’s
ability to recognise the value of new external knowledge, assimilate it, transform it, and
apply it for commercial and strategic advantage.
Judgement on Tesla’s absorptive capacity:
1. Acquisition: Tesla demonstrates a very strong ability to identify and acquire
valuable external knowledge through continuous market scanning, R&D
partnerships, recruitment of top global talent, and exposure to emerging clean-
energy technologies.
2. Assimilation: Tesla effectively analyses and understands new knowledge by
encouraging first-principles thinking, rapid learning, and knowledge sharing
through small meetings and direct communication channels.
3. Transformation: Tesla excels at combining newly acquired knowledge with
existing internal capabilities, as seen in the integration of battery technology,
software engineering, and vehicle manufacturing.
4. Exploitation: Tesla successfully applies transformed knowledge commercially
through innovative electric vehicles, energy storage solutions, and continuous
product improvements, maintaining a strong competitive advantage.
Tesla has a high absorptive capacity, supporting sustained innovation and strategic
success.
ASSIGNMENT 2 2026
UNIQUE NO.
DUE DATE: 21 APRIL 2026
, Strategic Implementation and Control IIIB
Question 1: Absorptive Capacity of Tesla Inc.
Definition of absorptive capacity: Absorptive capacity refers to an organisation’s
ability to recognise the value of new external knowledge, assimilate it, transform it, and
apply it for commercial and strategic advantage.
Judgement on Tesla’s absorptive capacity:
1. Acquisition: Tesla demonstrates a very strong ability to identify and acquire
valuable external knowledge through continuous market scanning, R&D
partnerships, recruitment of top global talent, and exposure to emerging clean-
energy technologies.
2. Assimilation: Tesla effectively analyses and understands new knowledge by
encouraging first-principles thinking, rapid learning, and knowledge sharing
through small meetings and direct communication channels.
3. Transformation: Tesla excels at combining newly acquired knowledge with
existing internal capabilities, as seen in the integration of battery technology,
software engineering, and vehicle manufacturing.
4. Exploitation: Tesla successfully applies transformed knowledge commercially
through innovative electric vehicles, energy storage solutions, and continuous
product improvements, maintaining a strong competitive advantage.
Tesla has a high absorptive capacity, supporting sustained innovation and strategic
success.
