For example, in an automotive organization, such as Tesla Inc., the CEO must strive to achieve cost efficiency and lean organizational context,while also producing innovative products, such as novel electric cars by allocating the appropriate funding. He must, therefore, pursue controlled expenses for the everyday needs to maintain the core business comprised of existing products/technologies, while also focusing on the creative and viable innovative projects in R&D departments. Otherwise, research shows that an organization that only uses exploration or only pursues innovative activities will normally suffer from the fact that it never gains the returns on its knowledge, while an organization that only uses exploitation or only pursues cost efficiency will normally suffer from obsolescence.