HOPEACADEMY
MNG3702
ASSIGNMENT 2
Closing date: 21 April 2026
2026
Strategy Implementation And Control
First Examiner: DR AN Moloto
Second Examiner: MR R Tharaga
Closing date: 21 April 2026
Time: 12:00
QUESTIONS
Read the Tesla Inc. case study to answer questions 1 to 6
0 7 6 4 0 3 1 2 2 9
,MNG3702 ASSIGNMENT 2
Strategy Implementation And Control
First Examiner: DR AN Moloto
Second Examiner: MR R Tharaga
Closing date: 21 April 2026
Time: 12:00
QUESTIONS
Read the Tesla Inc. case study to answer questions 1 to 6
Question 1
Make a judgement with regards to the absorptive capacity of Tesla Inc.
In your answer, you need to define the concept absorptive capacity (2
marks) and then make a judgement with regards to the absorptive
capacity of the company 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) [6 marks]
Absorptive capacity refers to an organisation’s ability to recognise the value
of new information, acquire it, understand it, and use it to improve
performance and innovation. According to Cohen and Levinthal (1990),
absorptive capacity helps organisations learn from new knowledge and turn
it into useful products and solutions. It is made up of four dimensions:
acquisition, assimilation, transformation, and exploitation. These
dimensions can be applied to Tesla Inc. using the information from the case
study.
, Acquisition of knowledge means the ability to identify and obtain new
knowledge from the environment. Tesla shows strong acquisition because it
focuses on constant learning and innovation. According to Meyer (2019),
Tesla encourages employees to move fast and respond to trends in the
global market. The company also invests in training and hires talented
employees who are eager to learn. This shows that Tesla actively looks for
new ideas and technologies in electric vehicles and renewable energy.
Assimilation of knowledge refers to understanding and sharing the new
knowledge within the organisation. Tesla’s culture of “reason from first
principles” helps employees understand problems deeply and share
solutions across teams. Meyer (2019) explains that Tesla trains employees
to think differently and solve problems using root causes. This allows new
knowledge to be understood and used by many employees.
Transformation of knowledge means combining new knowledge with
existing knowledge to create better solutions. Tesla transforms knowledge
by turning ideas into innovative products such as advanced electric vehicles
and energy storage systems. The company’s value of “do the impossible”
supports this process (Meyer, 2019).
Exploitation of knowledge is the use of knowledge to create value. Tesla
exploits knowledge by producing and selling electric cars and clean energy
products globally. Its market success and competitiveness show effective
use of knowledge (Meyer, 2019).
MNG3702
ASSIGNMENT 2
Closing date: 21 April 2026
2026
Strategy Implementation And Control
First Examiner: DR AN Moloto
Second Examiner: MR R Tharaga
Closing date: 21 April 2026
Time: 12:00
QUESTIONS
Read the Tesla Inc. case study to answer questions 1 to 6
0 7 6 4 0 3 1 2 2 9
,MNG3702 ASSIGNMENT 2
Strategy Implementation And Control
First Examiner: DR AN Moloto
Second Examiner: MR R Tharaga
Closing date: 21 April 2026
Time: 12:00
QUESTIONS
Read the Tesla Inc. case study to answer questions 1 to 6
Question 1
Make a judgement with regards to the absorptive capacity of Tesla Inc.
In your answer, you need to define the concept absorptive capacity (2
marks) and then make a judgement with regards to the absorptive
capacity of the company 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) [6 marks]
Absorptive capacity refers to an organisation’s ability to recognise the value
of new information, acquire it, understand it, and use it to improve
performance and innovation. According to Cohen and Levinthal (1990),
absorptive capacity helps organisations learn from new knowledge and turn
it into useful products and solutions. It is made up of four dimensions:
acquisition, assimilation, transformation, and exploitation. These
dimensions can be applied to Tesla Inc. using the information from the case
study.
, Acquisition of knowledge means the ability to identify and obtain new
knowledge from the environment. Tesla shows strong acquisition because it
focuses on constant learning and innovation. According to Meyer (2019),
Tesla encourages employees to move fast and respond to trends in the
global market. The company also invests in training and hires talented
employees who are eager to learn. This shows that Tesla actively looks for
new ideas and technologies in electric vehicles and renewable energy.
Assimilation of knowledge refers to understanding and sharing the new
knowledge within the organisation. Tesla’s culture of “reason from first
principles” helps employees understand problems deeply and share
solutions across teams. Meyer (2019) explains that Tesla trains employees
to think differently and solve problems using root causes. This allows new
knowledge to be understood and used by many employees.
Transformation of knowledge means combining new knowledge with
existing knowledge to create better solutions. Tesla transforms knowledge
by turning ideas into innovative products such as advanced electric vehicles
and energy storage systems. The company’s value of “do the impossible”
supports this process (Meyer, 2019).
Exploitation of knowledge is the use of knowledge to create value. Tesla
exploits knowledge by producing and selling electric cars and clean energy
products globally. Its market success and competitiveness show effective
use of knowledge (Meyer, 2019).
