tesla the solarcity acquisition case solution

All personnel or all hands conferences. Warning! A Division of NBCUniversal. Analyse the companys distribution and reach. The abilities they gain from their training session must be implemented in their work, and for that, the manager is responsible to aware them about their mindset and lacking at field work. She understood that a lot of the important things had altered in the office in addition to the changes in the method she was, at the initiation of the job. It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Tesla The SolarCity Acquisition Case Study Solution that the business unit should focus on costs. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. The plaintiffs argued that Musk was only able to get the SolarCity acquisition approved by misrepresenting the financial well-being of SolarCity, saying it should be cash-flow positive within six months. 2019 Texas Business School. Socialization and Beginner on boarding practices in other industries Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. If you want to cooperate with us and would like to reuse some of our content, please contact: [email protected]. Getting the responsibility for the effort and arrangement of implementation. Thank you for your email subscription. The level of tariffs will determine the viability of the business model that the firm is contemplating. But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. The organization can develop new products for the existing market. The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . If the . Highlight the pros and cons of the deal. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. The company should satisfy some goals for socialization practices. ", A little-known renewable energy stock could rally more than 20%, UBS says, Goldman Sachs upgrades Shell to buy, says oil giant can surge 40%. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. Save my name, email, and website in this browser for the next time I comment. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. 100% money back guarantee if the quality doesn't match the promise, If the work we produce contain plagiarism then we payback 1000 USD. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. The case study does not end at just providing recommendations to the issues at hand. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. Neither Tesla nor the directors gave comment on the partial settlement but court filings had Tesla officials defending the SolarCity acquisition by saying both the process and the price of this acquisition were inherently fair to Teslas shareholders.. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The third step is not compulsory but depends from case to case. Bartol. Directors of Tesla Inc settled a shareholder lawsuit over the company's 2016 acquisition of SolarCity Corp, leaving Chief Executive Officer Elon Musk as the lone defendant facing claims that Tesla . Blue ocean strategy. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. Create link between the companies and crucial stake holders Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. In a nutshell, if I was in the location of Tesla The Solarcity Acquisition Case Study Solution, I would have sustained to stay in the business with possible action plan in her scenarios. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. Tesla shareholders alleged the company's acquisition of the solar installer amounted to a bailout, pushed through by Musk who sat on both company boards at the time. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these. Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. The HBR case studies may present issues faced by a part of the organisation. The task subordinate did not ask to do any work. The Tesla: The SolarCity Acquisition case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . New York: Free Press. 1. Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. Providing personnel with as much right truths as possible, before hand they start functioning for the company. Our model papers and solutions are purely meant for The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. So, in other words, she had ups and downs in the whole year that she had actually invested in the company. One of the biggest issues with the deal was that Elon Musk was the largest shareholder of both Tesla and SolarCity at the time of the acquisition. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. This content is protected by copyright and may not be reused. Men's chino short. In some HBR case studies, one may be required to analyse an issue at a department. The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. Try to make very first day at company unexpected. A Delaware court ruled in favor of defendant Elon Musk on Wednesday in a shareholder lawsuit over Tesla 's $2.6 billion acquisition of SolarCity. The objective of the case should be focused on. Stars are those strategic business units with high market share and high market growth rate. and cannot be used for research or reference purposes. Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. Tesla CEO Elon Musk is expected in court on Monday to defend his role in Tesla's $2.6 billion acquisition of SolarCity in 2016. This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. Sign up for free newsletters and get more CNBC delivered to your inbox. Freedom of Press is critical for fair trade and transparency. Rastogi, N., & Trivedi, M. K. (2016). Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently. Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. The firms primary and support activities are listed down. Both companies had similar products and could be a strong strategic fit. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - If both are on the same page then it makes sense to enter, otherwise it doesnt. The trial has been postponed indefinitely and a new date has not yet been set. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. The following are the very best practices that the business executes in socializing and on boarding of newbies: Given that, workers are slowly fluctuating tasks to deal with brand-new business, socialization is very important just as much for the workers as it is for the companies. Task beyond the command on the field. They likewise arrange different training session that provide awareness on how to handle different bothersome situation. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. No reply from the mangers in the brand-new office. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. In the Texas Business School, Tesla: The SolarCity Acquisition case study solution following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. This is known as market penetration strategy. You can hire Texas Business School professinoals to revolutionize your strategy & business. At the starting of the job, each staff member has some expectations with the business, which relate to the values, culture and the lifestyle of the business. NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . She made numerous buddies, delighted in the training classes and learned a lot about behavior and the mindset that one ought to have at the office. Strengths and Weaknesses are result of Solarcity Tesla internal factors, while opportunities and threats arise from developments in external environment in which Solarcity Tesla operates. The steps to be followed in this analysis is as follows: The strategies identified from the Tesla The SolarCity Acquisition BCG matrix and included in the case pdf. Consumer protection Different countries have different consumer protection laws. From pv magazine USA In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. Mason, OH: South-Western, Cengage Learning. Why you choose one course of action over the other. Subscribe now to get your discount coupon *Only Porter, M.E. The first step of the solution is to come up with a corporate level strategy for the organisation. Where t = time period, in this case year 1, year 2 and so on. please submit your details here. A rare resource is one that is not commonly used by competitors. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. While Elon Musk, the CEO of Tesla and chairman of SolarCity, calls the deal a "no-brainer," the $2.6 billion acquisition has drawn widespread scorn. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. The article written below is not related to the actual case in discussion, It is for formatting purposes only. Shareholders have sued Musk alleging that the deal . This is sample work and not applicable to real case study. The chief executive officer needed to convince Tesla's shareholders that SolarCity would be a good acquisition target and then determine a fair price to offer. Identify the market growth of each strategic business unit. Despite these challenges, Tesla's value has massively increased following the Acquisition.". - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. When it comes to the business, socialization is a treatment that meaningfully forms corporations in the way that provides important practices for the company to increase the interaction in between the managers and the workers. At this point, if any employee feels stressed due to his work and time limitation, he should immediately talk to the supervisor and share his issue. The trial started . This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. Environment & PEST analysis: an approach to the external business environment. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. 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With that said, the Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way.". And while I certainly would not characterize this trial, or any other trial, as non-essential, it is not expedited and no irreparable harm will flow from an adjournment.. What's swot in strategic analysis? The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. I believe that Solarcity Tesla can make a transition even by keeping these people on board. This is known as the problem identification stage. Political factors impact seven key decision making areas economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies. Analyse the companys price points and devise strategies that could be based on competition, value or cost. Principles of marketing. You need to make efforts to block them out, and must focus on your work. These are the threats that the industry faces due to new entrants. It has to come from the data provided within the case study rather than data from outside world. One is also required to provide how these recommendations would be implemented. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. One more location, where she found that her expectation was mismatched with the business was team effort. The acquisition was a huge blow to the entire Solarcity Group, which is a leading player in B2B trading, and it will be another huge blow to B2B. Strategic attributes and performance in the BCG matrixA PIMS-based analysis of industrial product businesses. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. Academy of Management Journal, 25(3), 510-531. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. Integrity, Essay Writing Although, your objective is to alter the 'resisters to champions', which is not constantly possible. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. Be lively to the degree that who, when and what on boarding. Texas Business School approach of case study analysis Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. IIBMS. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. Catching up on the Musk-Tesla-SolarCity acquisition case pv magazine International Gfeedit, World News: Latest news, breaking news,- TODAYNEWS.com, 5 Controversies That Will Forever Haunt Elon Musk - LEETjobs. A long-running romance demands a great deal of dedication and lots of emotional financial investment . According to the plaintiffs, as Tesla's controlling stockholder, Elon caused Tesla's servile Board to approve the Acquisition of an insolvent SolarCity at a patently unfair price, following a highly flawed process, in order to bail out his This is known as the problem identification stage. When Tesla The Solarcity Acquisition Case Study Solution joined the company, in the starting she felt the business was a little bit of an alienation. pv magazine offers daily updates of the latest photovoltaics news. Enhancement in socializing practices Key Points. We are here to help. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. Feel free to connect with us if you need business research. PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Tesla: The SolarCity Acquisition case study. - Consumer buying behavior and consumer buying process Solarcity Tesla should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Solarcity Tesla wants to enter. To do comprehensive PESTEL analysis of case study Tesla: The SolarCity Acquisition , we have researched numerous components under the six factors of PESTEL analysis. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. correct email will be accepted, (Approximately ~ 0.0 Page). Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. : A review of academic research from the last decade. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market. Direct and prospective action plan Lack of practical capabilities in the business, and the possible jobs to be untaken for a significant variety of time need to be avoided in the business. (2013). The entryway into the company was just the start of the journey, and the newly picked employees needed to reveal themselves valuable for business, by clearing all the assessments at the end of their training. Solarcity Tesla should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets. Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. At the initiation of the task, Tesla The Solarcity Acquisition Case Study Analysis felt it to be challenging to adjust in her regular with her work. The conferences were chockfull with discussions from diverse divisions of the company, and comprised organizational details, standards, worths, and the life of the employees in the company, with interactive games. In mid-2016, the chief executive officer of Tesla, a U.S. manufacturer of electric cars, was interested in acquiring SolarCity, a U.S. solar power manufacturer and distributor. Re-allocating of the task to the new office. Join our newsletter. It also should look at the potential opportunities and threats that these competitors pose on the company. The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. This is shown through a proper implementation framework. The challenge in front of the protagonist, of Tesla: The SolarCity Acquisition, is to not only build a competitive position of the organization but also to sustain it over a period of time. Boston: Irwin McGrawHill. Cash Cows are those strategic business units with high market share and low market growth rate. These factors are also responsible for the future growth and challenges within the industry. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. This procedure of understanding to establish a reliable member of the business is diverse from expert socialization, which stresses on finding out the standards of one's business. It is important to have more than one solution to the case study. Design and perform official orientation programs. Each of these resources are assessed in terms of the value it brings to the organization. Required fields are marked *. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Tesla The SolarCity Acquisition operates in. They also alleged that due diligence by outside firms including Evercore was rushed to hide SolarCity's troubles. To satisfy the customer's requirements and market goals according to the needed time, the task are needed to be completed in a restricted time. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. Had he lost, Musk could have had to pay upwards of $2 billion. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. In addition, when you have possibilities to go over the issues with your supervisor, let him know that your subordinates were not working, so you may end up being the leader and at the very same time, you need to tell your subordinate to collaborate to meet the due dates and goals of the company. When the trial eventually gets underway, how the outspoken and brash Musk handles his testimony and behavior will likely be a key determinant of the outcome. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. PESTEL analysis of " Tesla: The SolarCity Acquisition" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: Tesla is officially in the solar roof business, says Elon Musk. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. Tesla's acquisition of SolarCity officially closed Monday morning, bringing together Elon Musk's electric vehicle company with the solar energy company founded by his cousins Lyndon and Peter . That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. All Rights Reserved. Kulkarni, N. (2018). Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). Concerns were raised over possible conflicts of interest, given that Musk owned over 20% of the stock, and sat on the board of directors of both companies. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. Tesla: The SolarCity Acquisition is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. - Solarcity Tesla business model can be easily replicated by competitors According to Zhichuan Frank Li, Tomiwa Ademidun , the business model of Solarcity Tesla can be easily replicated by players in the industry. Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. . Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so. - Little dangers of armed conflict Based on the research done by international foreign policy institutions, it is safe to conclude that there is very little probability of country entering into an armed conflict with another state. If I remained in the place of Tesla The Solarcity Acquisition Case Study Solution, I would have gone over the entire issues that I had actually faced in the entire year, and had actually demanded sharing all the concern with my manger. r = discount rate or return that could be earned . It reinforces the social companies that does not only form how people work together in the business, however also supplies the restrictions of the act, and the standards of conference. Tesla shareholders alleged the company's acquisition of the solar installer amounted to a bailout, pushed through by Musk who sat on both company boards at the time.

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