Reference no: EM133036438

You are the President and CEO of a large North American manufacturer of automobiles with the capacity to produce vehicles that use gasoline or electricity or both(i.e. hybrid). Your company's marketshare has been growing steadily for the past 10 years, but your electric division has only achieved 20% of the marketshare of a differentiated brand such as Tesla. Tesla's stock valuation is currently $150 billion (370,000 vehicles delivered). Projections for 2020 were 500,000. Assume that these projections were met. You have been offered fair market value+10% for share Tesla; however, the cost of capital is well within your reach for expansion into international markets. [Hint: select one specific country with which you have familiarity with its infrastructure and work from that perspective; use learnings from Walmart's experience in Germany and elsewhere and the Tato Nano experience in India] you could make qualitative analyses (real or hypothetical). You are free to make claims regarding advantageous features of your vehicles for competitive purposes as you organize a type of due diligence process. Discuss all relevant factors of your proposed corporate strategic management and choices. differentiation by greenfield versus acquisition; how to add value through diversification; how to avoid destroying value through diversification; what recommendations for a good fit or proper degree of integration would be necessary with Tesla etc.

What are your substantiated recommendations?

Provide considerations for analysis (industry- such as the general environment and company-external) that details your pitch before your Board of Directors.