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NG3702 Assignment 2 Semester 1 2026
Question 1: Absorptive Capacity of Tesla Inc. [6 marks]
Definition of absorptive capacity (2 marks):
Absorptive capacity is an organisation’s ability to recognize
the value of new information, assimilate it, and apply it to
commercial ends. It enables companies to innovate, respond
to market changes, and maintain competitive advantage.
Judgement on Tesla’s absorptive capacity based on four
dimensions (4 marks):
1. Acquisition of knowledge: Tesla demonstrates a strong
ability to acquire new knowledge by investing in
research and development, partnering with experts, and
employing highly skilled employees. This enables the
company to stay at the forefront of electric vehicle and
sustainable energy innovation.
2. Assimilation of knowledge: Tesla’s organisational
culture supports rapid learning and assimilation.
Employees are encouraged to share insights across
teams through small meetings and skip-level
communications, ensuring knowledge flows efficiently.
3. Transformation of knowledge: Tesla successfully
transforms knowledge into actionable strategies. Its
“Move Fast” and “Do the Impossible” culture allows
employees to convert technological insights into
innovative products, such as advanced electric vehicles
and energy storage solutions.
4. Exploitation of knowledge: Tesla excels in exploiting
knowledge to achieve market success. Its ability to
, lOMoARcPSD|44389878
translate innovative ideas into high-quality products and
scale them globally reflects a high level of exploitation,
contributing to market leadership in electric vehicles and
renewable energy solutions.
Overall judgement: Tesla Inc. possesses a high absorptive
capacity, enabling it to continuously innovate, integrate
cutting-edge technologies, and maintain competitive
advantage globally.
Question 2: Resource Allocation in Tesla Inc. [6 marks]
Three key elements of strategy implementation (6 marks):
1. Financial Resources: Allocating capital to high-priority
areas ensures strategic goals are achievable. Tesla
invests heavily in R&D, new production facilities, and
technology development to maintain its competitive
edge.
2. Human Resources: Effective allocation involves
assigning the right people to the right tasks. Tesla hires
highly motivated, skilled employees and empowers them
to innovate, take responsibility, and contribute to the
company’s growth. Programs like Performance
Acceleration ensure employees rapidly adapt and
develop expertise.
3. Technological Resources: Allocating technology
strategically supports innovation. Tesla prioritizes
cutting-edge manufacturing technology, advanced
battery systems, and software development for
M
, lOMoARcPSD|44389878
NG3702 Assignment 2 Semester 1 2026
Question 1: Absorptive Capacity of Tesla Inc. [6 marks]
Definition of absorptive capacity (2 marks):
Absorptive capacity is an organisation’s ability to recognize
the value of new information, assimilate it, and apply it to
commercial ends. It enables companies to innovate, respond
to market changes, and maintain competitive advantage.
Judgement on Tesla’s absorptive capacity based on four
dimensions (4 marks):
1. Acquisition of knowledge: Tesla demonstrates a strong
ability to acquire new knowledge by investing in
research and development, partnering with experts, and
employing highly skilled employees. This enables the
company to stay at the forefront of electric vehicle and
sustainable energy innovation.
2. Assimilation of knowledge: Tesla’s organisational
culture supports rapid learning and assimilation.
Employees are encouraged to share insights across
teams through small meetings and skip-level
communications, ensuring knowledge flows efficiently.
3. Transformation of knowledge: Tesla successfully
transforms knowledge into actionable strategies. Its
“Move Fast” and “Do the Impossible” culture allows
employees to convert technological insights into
innovative products, such as advanced electric vehicles
and energy storage solutions.
4. Exploitation of knowledge: Tesla excels in exploiting
knowledge to achieve market success. Its ability to
, lOMoARcPSD|44389878
translate innovative ideas into high-quality products and
scale them globally reflects a high level of exploitation,
contributing to market leadership in electric vehicles and
renewable energy solutions.
Overall judgement: Tesla Inc. possesses a high absorptive
capacity, enabling it to continuously innovate, integrate
cutting-edge technologies, and maintain competitive
advantage globally.
Question 2: Resource Allocation in Tesla Inc. [6 marks]
Three key elements of strategy implementation (6 marks):
1. Financial Resources: Allocating capital to high-priority
areas ensures strategic goals are achievable. Tesla
invests heavily in R&D, new production facilities, and
technology development to maintain its competitive
edge.
2. Human Resources: Effective allocation involves
assigning the right people to the right tasks. Tesla hires
highly motivated, skilled employees and empowers them
to innovate, take responsibility, and contribute to the
company’s growth. Programs like Performance
Acceleration ensure employees rapidly adapt and
develop expertise.
3. Technological Resources: Allocating technology
strategically supports innovation. Tesla prioritizes
cutting-edge manufacturing technology, advanced
battery systems, and software development for
