MNG3702 ASSESSMENT 2 SEMESTER 1 2026 Introduction 2 Question 1: Absorptive Capacity of Tesla Inc. 2 Question 3: Leadership and Management at Tesla 7 Evaluation of Elon Musk 8 Question 4: Organisational Commitment to Responsibility and Sustainability 8 5

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Table of Contents
Introduction ................................................................................................................ 3

Question 1: Absorptive Capacity of Tesla Inc. ............................................................ 3

Question 3: Leadership and Management at Tesla .................................................... 8

Evaluation of Elon Musk ............................................................................................. 9

Question 4: Organisational Commitment to Responsibility and Sustainability ............ 9

5.1 Organisational Structure at Tesla Inc. ................................................................ 12

5.2 Major Challenge and Recommendation ............................................................. 12

Question 6: Strategic Risk Management Process .................................................... 13

Question 7: Organisational Change at Twitter .......................................................... 15

7.1 Contextual Segments of the Change Kaleidoscope and Application to Twitter .. 16

7.2 Key Change Management Decisions and Application to Twitter ........................ 18

Question 8: Comparison of Organisational Culture at Tesla and Twitter Using the
Iceberg Model .......................................................................................................... 20

Layers of Organisational Culture and Comparison ................................................... 20

Conclusion ............................................................................................................... 23

Reference List .......................................................................................................... 24




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Introduction

In the contemporary global business environment, organisations operate within highly
dynamic and competitive contexts characterised by technological disruption, evolving
stakeholder expectations and increasing pressure to pursue sustainable development.
As a result, strategic management has become essential for organisations seeking to
maintain competitiveness, manage organisational change and ensure long-term
organisational performance. Strategic management involves analysing internal
capabilities, understanding the external environment and implementing strategies that
enable organisations to adapt to changing conditions while creating value for
stakeholders. This assignment examines key strategic management concepts through
the analysis of two prominent technology organisations, Tesla, Inc. and Twitter. These
organisations provide valuable case examples for understanding how leadership,
organisational structure, organisational culture and strategic capabilities influence
business performance and strategic decision-making. The discussion explores several
strategic management themes, including absorptive capacity, resource allocation,
leadership and management roles, organisational sustainability commitments,
organisational structure, strategic risk management and organisational change. In
addition, the assignment analyses organisational culture through Edward Hall’s
Iceberg model and evaluates how cultural dynamics influence employee behaviour
and organisational outcomes. By applying theoretical frameworks from strategic
management literature to the Tesla and Twitter case studies, the assignment
demonstrates how organisations develop strategic capabilities, respond to
environmental pressures and implement organisational change in order to achieve
long-term competitive advantage.

Question 1: Absorptive Capacity of Tesla Inc.

In dynamic and technology-driven industries, organisations must continuously learn
from their external environments in order to sustain competitive advantage. One of the
most important capabilities enabling such learning is absorptive capacity. Firms that
develop strong absorptive capacity are better able to recognise valuable external
knowledge, incorporate it into internal processes, and translate it into innovative
products and services. The concept is therefore particularly relevant in industries

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