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MNG3702 EXAMINATION GUIDE 2023
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passmatetutorials@gmail.com MNG3702 EXAM GUIDE 2023062621185/0680538213/0717513144
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, passmatetutorials@gmail.com MNG3702 EXAM GUIDE 2023
062621185/0680538213/0717513144
Question 1
Make a judgement with regards to the absorptive capacity of Tesla Inc. In your
answer, you need to do the following:
1.1 Define the concept absorptive capacity. (2 marks)
Absorptive capacity is defined as the ability of an organisation to recognise the value
of new, external information in order to assimilate as a useful tool to address its
problems. For example, in Tesla`s mission statement, one can argue that, the
organisation has the ability to look into the future as it priorities renewable energy to
solve current global problems.
1.2 Make a judgement with regards to the absorptive capacity of Tesla Inc.
based on the four dimensions that determine the absorptive capacity of an
organisation. (4 marks of which 1 mark will be allocated for each one of the
four dimensions of absorptive capacity and the application thereof to Tesla
and 1 mark to the judgement of the absorptive capacity of the company)
Acquisition, assimilation, transformation, and exploitation are the four fundamental
pillars that support absorption capability. The first two dimensions represent
prospective absorptive capacity, whereas the latter two dimensions represent
achieved absorptive capacity.
Acquisition of new information
The ability of an organisation to obtain important external information is referred to
as the acquisition dimension. This might be due to dominating reasoning, which
dictates that managers limit information to what they deem critical.
Case application: Through the organisational culture, Tesla Inc.’s management
optimizes employees to achieve creative and innovative behaviours. These
behaviours are essential to maintaining the technological innovation that forms part
of the company’s foundation.
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