Strategic planning team
You are part of the strategic planning team for Tesla Motors, which is considering expanding its operations. The company is evaluating two potential expansion opportunities: increasing capacity at the current Gigafactory location or opening a new facility in a different region. Your task is to analyze these options and provide a recommendation based on the concept of opportunity cost.
Present your findings and recommendations to the executive board. Focus on the concept of opportunity cost and keep your analysis simple and clear.
Introduction to Opportunity Cost:
Explain what opportunity cost is and why it is important in decision-making.
Expansion Options:
Option 1: Increase Capacity at Current Location:
Discuss the benefits of expanding at the current Gigafactory, such as lower initial setup costs and existing infrastructure.
Highlight the opportunity costs, such as the potential missed benefits of a new market.
Option 2: Open a New Facility:
Discuss the benefits of opening a new facility, such as access to new markets and potential tax incentives.
Highlight the opportunity costs, such as higher initial setup costs and logistical challenges.
Recommendation:
Based on the concept of opportunity cost, recommend which option Tesla should pursue.
Provide a clear rationale for your recommendation, considering the trade-offs between the two options.
An introduction explaining opportunity cost.
A discussion of the two expansion options, focusing on their benefits and opportunity costs.
Your recommendation and rationale.
Please remember to use at least two credible scholarly resources.
Paper Format: APA
Answer preview to strategic planning team
APA
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