MNG3702
ASSIGNMENT 2
Strategy Implementation And Control
Closing date: 21 April 2026
Time: 12:00
, Question 1
According to Venter and Botha (2022:265), absorptive capacity is the ability of an
organisation to recognize the value of external knowledge, acquire it, assimilate it,
transform it and apply it to improve performance and solve business problems. It is a
strategic capability and, as with all resources and capabilities, it differs from organisation
to organisation, so that some have a higher absorptive capacity than others and would
accordingly be able to learn much faster and to adapt more quickly to their environments,
or to innovate.
According to Venter and Botha (2022:265), there are four dimensions that determine the
absorptive capacity of an organisation. These four dimensions will be used to make a
judgement with regards to the absorptive capacity of Tesla Inc.
Judgement of Tesla’s absorptive capacity using the four dimensions:
Acquisition of external information - refers to the ability of the organisation to acquire
relevant information from its external environment. Tesla actively obtains external
knowledge through global facilities, partnerships, and research into renewable energy
and battery technology. It monitors market trends and competitors in the automotive and
energy industries.
Assimilation of acquired information - refers to the ability of the organisation to
analyse and make sense of the acquired information. Tesla trains employees,
encourages constant learning, skip-level communication, and small meetings. This helps
employees understand and interpret new technological information quickly.
Transformation of knowledge - refers to the abilities of the organisation to combine new
knowledge with existing knowledge and to develop new insights. Tesla integrates new
knowledge with existing expertise by combining software, battery technology, solar
ASSIGNMENT 2
Strategy Implementation And Control
Closing date: 21 April 2026
Time: 12:00
, Question 1
According to Venter and Botha (2022:265), absorptive capacity is the ability of an
organisation to recognize the value of external knowledge, acquire it, assimilate it,
transform it and apply it to improve performance and solve business problems. It is a
strategic capability and, as with all resources and capabilities, it differs from organisation
to organisation, so that some have a higher absorptive capacity than others and would
accordingly be able to learn much faster and to adapt more quickly to their environments,
or to innovate.
According to Venter and Botha (2022:265), there are four dimensions that determine the
absorptive capacity of an organisation. These four dimensions will be used to make a
judgement with regards to the absorptive capacity of Tesla Inc.
Judgement of Tesla’s absorptive capacity using the four dimensions:
Acquisition of external information - refers to the ability of the organisation to acquire
relevant information from its external environment. Tesla actively obtains external
knowledge through global facilities, partnerships, and research into renewable energy
and battery technology. It monitors market trends and competitors in the automotive and
energy industries.
Assimilation of acquired information - refers to the ability of the organisation to
analyse and make sense of the acquired information. Tesla trains employees,
encourages constant learning, skip-level communication, and small meetings. This helps
employees understand and interpret new technological information quickly.
Transformation of knowledge - refers to the abilities of the organisation to combine new
knowledge with existing knowledge and to develop new insights. Tesla integrates new
knowledge with existing expertise by combining software, battery technology, solar
