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The growth of Elon Musk as a businessperson has
been praised and used as a success story that is also applied by
entrepreneurial startups. According to Green 2014), Elon Musk bases his
business ideas on creativity and the need to solve current problems through
innovation. He was born and raised in South Africa before moving to America
where he nurtured his talent and ambition to do business. His story portrays
him as an individual who realized the potential in the use of technology to
provide sustainable solutions to global challenges as well as build businesses.

As such, Elon has been involved in the
emergence of technology-based companies such as PayPal, Tesla, and SpaceX, all of which have been largely successful. Despite the glorious
journey to success by Elon Musk, he has encountered several challenges, which
he has managed to overcome. His success is as a result of proper organizational
skills as well as the tenacity to continue operating despite the numerous
hurdles. However, in as much as Elon’s businesses have been largely successful; it is essential to note that some of his decisions are worth
critiquing because of his unconventional approach to entrepreneurship. This
essay explores the management style of Elon Musk, and the decisions he should make to achieve his further
business ambitions.

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            Organizational issues in
Tesla and SpaceX

as much as Elon Musk is so far a successful entrepreneur, he faces numerous
challenges in the course of business. Sustainable businesses should have a
strategy of combating their problems to achieve
prosperity. As a manager who is determined to drive his companies to achieve
their ambitions, Elon Musk makes decisions that attract both accolade and
criticism at the same time from business experts and financial risk analysts.

For instance, the recent internal email that was sent to his employees to break
down the bureaucracy protocol while passing information at Tesla raised a lot
of controversies, but its implementation
resulted in a proper flow of activities within the company.

of the major challenges that Elon Musk
faces in his career is the increased business risks in his operations. His
innovative ideas result in broken cars, a lot of resources go to waste when his
rockets fail to work, and some of the
users of his products fear using them because of
the public perceptions of the impracticability of the employed concept in the
development of the cars and rockets. For instance, the aggressiveness of the
engineers at SpaceX is crippled by
numerous breakdowns and destructions of the resources put into developing the
space rockets. Similar, a lot of money is employed to develop new hybrid cars which fail to work, thus costing the
company its time and resources that could have been
used in the production of units of car brands that are already in the
market. In as much as the idea of Tesla and SpaceX thrives on innovation, the
approach is subject to various business risks that ought to be resolved for
Elon Musk to have a sustainable presence in the corporate sector (Rana, 2017).

issue of competition is also a major
challenge for Elon Musk. His Tesla Company faces a stiff rivalry from other
actors in the market such as Mercedes Benz, Toyota, Hyundai, and Chevrolet. As such, Elon Musk is prompted
to come up with new ideas for ensuring that
he maintains a solid customer base to
sustain his target profits and continue thriving in business. The competition is normally based on pricing factors, the
quality of the automotive products as well as the general perceptions of the
customers on the products. However, the success story behind Tesla and SpaceX
is based on the resilience of the management style by Elon Musk, as he is
committed to combatting their competitors through innovation and capitalizing
on their weaknesses (Green, 2014). For instance, by the time Elon decided to
invest in the automotive industry, the sector had other players in existence.

However, his entry to the business was informed by the need to address the gap
that existed in the industry, that is, to produce cars that used alternative
fueling methods.

problem of market fluctuations is also a major
challenge that Elon Musk has faced throughout his life as an entrepreneur. It
is essential to observe that Elon Musk has ventured into most industries ranging
from finance, automobiles, and spacecraft.

Such industries are subject to external
factors such as social dynamics as well as the political environment. Due to
the high instability of the external environment to businesses, markets tend to
fluctuate significantly, thus posing a great
risk to investors. As such, Elon Musk has been
subjected to situations where he has to make risky decisions for his
businesses to survive. For instance, the failure of his first three space rockets
was a sign of the end of the SpaceX dream for Elon Musk. However, he, later on,
became successful in the project after his final attempt materialized. Elon
borrowed money and other resources to fund the project which, if it failed,
would adversely affect his progression in business. At this time, the share
prices for his products fluctuated downwards, an indication that further
mistakes would oust him out of business.

mode of handling employees has also been a major
issue of controversy for Elon Musk’s management style. Management experts
describe Elon as an unconventional and revolutionist
type of leader, whose approach to business is both unique and risky. For
instance, Elon is of the view that the traditional and most common approach to
communication in companies is inappropriate as it does not serve the interests
of the company. As such, junior managers in his company
find it difficult to cope with Elon Musk’s leadership because of the
unpredictable nature of his decisions. Besides, some of Elon’s ideas, such as
the building of tunnels to ease traffic seem impartible, thus making it
difficult for his junior managers and employees to implement his business

Elon Must faces a bigger challenge of
actualizing his innovative ideas through implementation and finding the
appropriate personnel to help in achieving his dream. His ideas require a competent team of individuals
who believe in his dream and understand
his management approach. As such, Elon faces a challenge of meeting the expectations
of the impression he creates among the members of the public as well as his
team. The risk of failing to deliver some of his promises such as the prospects
of going to Mars is a substantial challenge to Elon.

            Potential Solutions to the Issues

Musk should develop a strategy to address the concerns for his progress to be
guaranteed in business. One of the solutions to the challenges includes
bringing every stakeholder in his businesses
on board, as this will bolster his team’s ability to achieve their set
objectives. For instance, as a manager, he should take into consideration the
input of his employees as well as business advisors. In as much as Elon depends
on his ideas for progression, he should partner with other agencies such as
risk assessment firms as well as environmental management organizations as this
will ensure that all his decisions are viable regarding
sustainability and profit-generation.     Musk’s
ability to invest in diverse industries, as well as the inventions he has been
able to accomplish, portrays him as a genius (Musk & Katie, 2016). However,
it is essential for Musk to engage other experts extensively when actualizing
his innovations as this will widen his scope of accomplishments. Musk should be
ready to adopt suggestions and ideas from people from diverse fields of
knowledge as this will enable him to build more sustainable businesses and
build brands that overcome emerging concerns.

is also important for Elon Musk to invest
in sufficient Corporate Social Responsibility (CSR) strategies as this will
help improve the relationship with the community in which he conducts his
business. It is essential to note that much of the success of his business is attributed to the sale of cars that he has
managed to achieve over the years, something he would not have achieved without a loyal client base (Murdock,
2010). For this reason, Musk should give back to the community by investing in
non-profit activities such as campaigning for environmental conservation as well
as using his engineering experience to provide solutions to global warming
problems. Elon should also use his influential position to advocate for other
community concerns such as women rights and inequality. Such activities will
portray him as a good business leader who is not only concerned with
profit-making but also improving the welfare of the society.

            Elon Musk’s Communication Strategies

Musk values communication as an imperative
aspect of the success of an organization.

As such, the mechanisms through which his employees pass information within
Tesla determines the result of the
business. As a revolutionary leader, Elon Musk recommends the simplification of
procedures within the organization as this saves both times as well as makes it easy for the employees to manage their
tasks. Elon Musk revealed his preferred communication style when he sent an email
to all employees in Tesla, asking them to share
information without necessarily engaging their managers freely (Bariso, 2017).

The approach recommended by Musk goes against the confines of the conventional
bureaucratic method which recommends reporting to managers, who later on forward
the information to the heads of the recipient departments. According to Musk, this
approach serves the powers of the respective managers but does not help the
company to accomplish its objectives. Elon is also of the view that the restriction
in passing information within the organization limits the ability of the
workers to work and solve organizations problems quickly.

importance of the communication management style recommended by Elon Musk is important in the sense that it trains the
employees to be independent and responsible. For instance, the workers learn
how to address their concerns independently without the support of their
managers. Besides, the employees who operate in such a system feel free to
interact amongst themselves as well as their senior managers, thus promoting teamwork
(Topchik, 2007). In light of this, the bureaucratic systems in which the
employees are supposed to adhere to the established protocol are slow and not
responsive to the urgent needs of the organization. In such a system, the employees are limited to the
demands of their managers, and do not necessarily work for productivity, but rather
to impress their supervisors. Elon Musk’s organizational communication model is
also important as it eliminates the needless procedures in an organization and also
makes the execution of tasks quickly.          

as much as Elon Musk’s recommended communication style is essential for a growing company, it is also dangerous if
not adequately regulated. It is essential
to acknowledge the fact that the nature of information shared by employees
determines the outcome or feedback of the recipient. As such, it is necessary
to monitor the appropriateness of the messages that are shared within the
organization as they are geared to prompt action from the recipients. Organizations face instances where they
experience miscommunications because of the mistakes committed by their
employees (Stanford, 2015). In fact, passing the wrong information can trigger
an unanticipated response that can lead to financial losses or misunderstanding
among the employee. It is due to this realization that companies have
appropriate channels of communication as the messages are filtered and
rephrased appropriately to serve the purposes they are intended to address. In as much as Elon Musk wants the employees at Tesla
to work as a team and serve the interests of the company, he should put in
place measures of ensuring that the manner in which they address their concerns
or relay messages is appropriate, as this will help to instill dripline and objectivity
in the  communication process (Orr, 2016).

shortcoming that is attributed to Elon’s
communication style is the lack of organization of messages, thus resulting in
a possible mix-up. The fact that his recommended system allows the employees to
send messages across and up the hierarchy without much regulation brings about
the risk of information loss and confusion within the organization (Trapp,
2014). Besides, it is possible for the information to get to the wrong recipients,
thus prompting an inappropriate reaction or causing a potential leak of
information to unauthorized personnel. As such, it is imperative for Elon Musk
to value the importance of appropriate communication channels as well as
appreciating the role of supervision in achieving success within the company.

            Management Style and Vision of Elon Musk’s

Musk recognizes the role played by all his personnel within his companies
because they are an integral part of his success (Orr, 2016). However, Musk
fails to demonstrate the need to value the various ranks within the
organizations as he tends to distribute management powers equally among his
employees. For instance, his recommendation those employees should communicate
freely without having to engage their managers tends to demean the individual
heads of departments at Tesla. The role of managers in regulating the
operations of other employees is essential because it ensures that all workers adhere
to the set guidelines within the company, thus limiting their activities and
communication to the recommended extent.

companies are characterized by proper
management structures and an efficient flow of information (Atesmen, 2015). In
as much as hierarchies tend to introduce rigidity in companies, they often regulate the operations of employees by
monitoring their actions and commitment to swerve the interests of the company.

However, too much limitation on the freedom of employees within the
organization is disastrous as it makes it difficult to execute the
problem-solving process. As such, Musk’s communication approach is both advantageous
and limiting in terms of management, thus
making it important for him to modify it
to address its shortcomings.

business model of Elon Musk is tailored to address future challenges rather
than concentrating the current problems. For instance, Musk is so much
determined to assess the viability of Mars being a second home for human beings
through SpaceX. The project has cost him millions of dollars, an amount that he
would have used to develop and diversify his Tesla brands. From the business
perspective, it would have been advisable for Elon Musk to plough back the money for SpaceX and channel it
to Tesla Motors because of the enormous amounts
of profits he gets from the business (Green, 2014). In light of this, Tesla is
a more viable business idea as compared to SpaceX as evidenced by the sale of
cars by the company. Besides, the past failures of SpaceX resulted in the loss
of massive resources which should have been allocated to Tesla to generate more
profits for the company. However, his ambition to tour Mars is not only costly
but also deviates his attention from Tesla, a company with a potential of
dominating the motor industry. As such, it is essential for Elon to focus his
determination to address current challenges such as congestion, pollution and
driving safety rather than investing on spacecraft.


the arguments, it is evident that the success by Elon Musk in his two major companies is
credited to his hard-work and managerial approach that gives the
employees the freedom to0 bring in new ideas as well as share information more
freely. On the same note, Musk also bases his success on innovation, which is
tailored to address problems. In his business practice, Elon has demonstrated
resilience by working hard even after losing his resources to failed projects.

As such the determination to try again despite failure puts him ahead of his
competitors. The ability to keep up with the competition from rival companies
such as Toyota and Mercedes elevates Elon Musk’s business by maintaining a
loyal client base. As such, even in the worst of economic conditions, Elon Musk
makes sales that sustain his companies’ operations because of the attachment
that customers have to his products. Musk’s communication model is outstanding
as it autism at giving the employees more freedom of expression. The fact that
Tesla workers are free to address anyone
and using various channels makes the process of growing
faster. However, this method is criticized
as it has the likelihood of introducing more risks to the business. For
instance, careless employees may pass the
wrong information and to the wrong recipients, thus affecting the business negatively. For this reason, it is essential for Elon Musk to reconsider his
communication approach in the company by putting in place regulative


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