tesla the solarcity acquisition case solution

The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. As the name suggests Value Chain framework is developed by Michael Porter in 1980s and it is primarily used for analyzing Solarcity Tesla relative cost and value structure. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. Slights also acknowledged in his opinion: "As of trial, Tesla continued to rely on other solar companies to manufacture, produce, install and sell parts of its solar products. No reply from the mangers in the brand-new office. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. They likewise arrange different training session that provide awareness on how to handle different bothersome situation. Please be mindful of our community standards. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. This is known as the problem identification stage. We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. This would be the better way to engage all the newbies in the business. In 2016, electric car manufacturer Tesla announced that it was making an offer to acquire solar panel manufacturer SolarCity in an all-stock offer worth $2.6 billion in Tesla stock. The trial has been postponed indefinitely and a new date has not yet been set. correct email will be accepted, (Approximately - 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. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Moreover, I would have advised the following action plan: 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. Required fields are marked *. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. Design and perform official orientation programs. Constant implementation on boarding. 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. SolarCity was founded in 2006 by brothers Peter and Lyndon Rive, based on a suggestion for a solar company concept by their cousin, Elon Musk, who was the chairman and helped start the company. They had actually made a strong bond with each other, but unexpectedly throughout training they were relocated at various domains, which was not anticipated by Tesla The Solarcity Acquisition Case Study Help, she felt lonesome and her good friends motivated her to participate in the classes. Academic writing has no room for errors and mistakes. The external environment analysis of Tesla: The SolarCity Acquisition will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm. If you find any employee lazy in your group, do not devote your day on focusing on the way that your lazy subordinate is constantly utilizing Facebook and other social networks at the office. - 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. ANSOFF matrix, environment, and growth-an interactive triangle. Key Points. These can usually be developed using the company history is provided in the case. If the . The task subordinate did not ask to do any work. Management Decision, 50(8), 1396-1411. SolarCity filed for their IPO in 2012. Less Net Cash Out Flowt0 / (1+r)t0. This is doing the Tesla The SolarCity Acquisition Case Solution. You can hire Texas Business School professinoals to revolutionize your strategy & business. This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. The dismissal was based on the argument that Musk wasnt the controlling stockholder, since he didnt own a majority of the stock in either company. : A review of academic research from the last decade. Thank you for your email subscription. Stay informed. Another five of Teslas directors were direct or indirect owners of SolarCity stock. 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, One more location, where she found that her expectation was mismatched with the business was team effort. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. In January of this yeaar, every single one of Teslas directors, with the exception of Elon Musk, agreed to a $60 million settlement to resolve shareholder disputes regarding the Tesla acquisition of SolarCity in 2016. With profits in the surplus of $6 billion in year, and a worldwide headcount of about 100,000, it was the business that many Worlds desired to end up being an employee of. This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. 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. Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. A long-running romance demands a great deal of dedication and lots of emotional financial investment . 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. Lastly, a timeline of the issues and events in the case needs to be made. Hold Ctrl or Cmd to select multiple editions. Strategic Change, 7(2), 101-109. Foreign Direct Investment Policies Government policies favors local companies over international policies, Solarcity Tesla in case study Tesla: The SolarCity Acquisition should understand in minute details regarding the Foreign Direct Investment policies of the prospective market. 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. How it can improve the profitability in a given industry (Porter Value Chain Analysis) All personnel or all hands conferences. Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. His work, which has been featured in outlets like The Wall Street Journal and The Washington Post, provides consumers with a personal finance measuring stick and can help them make informed finance decisions. Each of these resources are assessed in terms of the value it brings to the organization. What are the resources needed to increase profitability (VRIO Analysis) The case solution first identifies the central issue to the TESLA THE SOLARCITY ACQUISITION - STUDENT SPREADSHEET case study, and the relevant stakeholders affected by this issue. One-to-one discussions. 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. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. This can be done by using company history. Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. Even though the problem statement is essentially casecategory challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Solarcity Tesla, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more. Save my name, email, and website in this browser for the next time I comment. Understanding Business Processes, 50-66. When Tesla bought SolarCity in November 2016, Elon Musk billed the deal as a match made in green energy heaven: Combine a hot electric car company with the nation's then-largest provider of. Management, 3rd edition. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. This is known as market development strategy. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. You can use Porter Five Forces to analyze the industry in which Solarcity Tesla operates in and what are the levers of profitability in those segments differentiation, Financial analysis, Manufacturing, Mergers & acquisitions. 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. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. 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The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. One is also required to provide how these recommendations would be implemented. Analyse the companys promotion mix. Develop and applied composed on boarding strategies. Do not carry out that someone who helps the program in the start, will sustain to do so in future. The company should keep it in mind, while carrying out such steps. Through energetically pursuing feedback, new employees can rapidly learn about activities that are required to be altered to know which actions fit in finest with corporation culture and potential customers. Shareholders believed Tesla's acquisition of SolarCity in 2016 was a bailout of a company owned by two of Musk's cousins, which was unfair to them. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. It involves looking at the current market share of the company and its competitors. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. If both are on the same page then it makes sense to enter, otherwise it doesnt. The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. New York: Free Press. All Rights Reserved. Lastly, the overall rivalry or competition within the industry is analysed. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. Obviously, some approaches would work well than others, in the business. This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. (2013a). Feedback pursuing may likewise support brand-new staff members. Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). This is known as a diversification strategy. It has to come from the data provided within the case study rather than data from outside world. Almost all of the case studies contain well defined situations. 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. In the EU countries, firms are required to make special provision for privacy issues and other laws. 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. Don has been a part of three successful exits in the solar + storage industry. The glaring omission from the January settlement agreement was Musk, who has every intention of proceeding to trial and defending himself and his company against the claims made against him and the $2.6 billion SolarCity purchase. 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. If the Merger does not occur, Tesla and SolarCity may incur these costs without realizing any of the benefits of the Merger being completed.In addition, if the Merger is not completed, Tesla and/or SolarCity may experience negative reactions from the financial markets and from their respective customers and employees.Tesla and/or SolarCity could also be subject to litigation related to any . It also helps one in developing the case study solutions. Environment & PEST analysis: an approach to the external business environment. Tesla's Plan to Buy SolarCity Has Major Flaws. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. Elon Musk Testifies To Defend Tesla's $2.6 Billion Acquisition of SolarCity in Shareholder Lawsuit. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) Create link between the companies and crucial stake holders Amanda is strategy expert at Texas Business School . At other times, finding the issue is the job of the person analysing the case. European Journal of Forest Research, 126(3), 413-420. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. November 1, 2016. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Rauch, P. (2007). It's final: With no more barriers to the deal, Tesla is buying SolarCity. - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. Hill, C., & Jones, G. (2010). The shareholders argued Musk breached his fiduciary duties, squandered Teslas assets and unjustly enriched himself by pushing to buy the money-losing solar company in which he was the biggest investor, according to Reuters. The company was headquartered in Fremont, California, before being purchased by Tesla Inc. in 2016 for $2.6 billion. 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. Musk initially . The matter could be appealed to the Delaware Supreme Court. Bartol. Socializing of the company, or on boarding, is a treatment through which new workers transfer from being business outsiders, and end up being business insiders. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. Dogs are those strategic business units with low market share and low growth rate. The three step case study solution approach comprises An important tool that helps in addressing the central issue of the case and coming up with Tesla The SolarCity Acquisition HBR case solution is the SWOT analysis. - Inflation rate is one of the key criteria to consider for Solarcity Tesla before entering into a new market. Boston: Irwin McGrawHill. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. Going into 2016, SolarCity stock was already plunging and the company was going through layoffs. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. It is important to have more than one solution to the case study. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. Pearson education. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. - High customer loyalty & repeat purchase among existing customers Solarcity Tesla old customers are still loyal to the firm even though it has limited success with millennial. This is shown through a proper implementation framework. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. SWOT analysis will help us in not only getting a better insight into Solarcity Tesla present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage. At the end of the very first year, she felt that the business had actually appointed her a job that was beyond her command, and the task was offered in the restricted time, in which it was difficult to finish the task. 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. Export restrictions on products Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. Vice Chancellor Joseph R. Slights, who decided the case shortly before retiring, sided with Musk, writing: "Elon was more involved in the process than a conflicted fiduciary should be. An effective company socializing procedure can effect in effective staff, with positive work outlook who keep on dealing with the business for a longer period. Proposal, Question Identify the relative market share of each strategic business unit. Place the order on the website to get your customized case solution done. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. Once all the factors mentioned in the Tesla: The SolarCity Acquisition case study are organized based on SWOT analysis, just remove the non essential factors. The fresh graduates need face to face interaction with their managers. International Journal of Modern Social Sciences, 2(1), 34-43. April 27 (Reuters) - Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk did not unjustly enrich himself when he guided the electric vehicle maker in 2016 to acquire SolarCity Corp, where. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. June 21, 2016 3:09 p.m. PT. 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. Tesla is officially in the solar roof business, says Elon Musk. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. 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. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. This could be mentioned at the start of the reading, the middle or the end. At EMBA PRO, we provide corporate level professional case study solution. Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. All your payments are secure with Paypal security. (2013). A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. Arranging events in a timeline allows one to predict the next few events that are likely to take place. Our model papers and solutions are purely meant for It can include recommendations on how the organisation can work towards achieving these strategic objectives. Panagiotou, G. (2003). Kim, W. C., & Mauborgne, R. (2004). These are the threats that the industry faces due to new entrants. Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. Sign up for free newsletters and get more CNBC delivered to your inbox. The third step is not compulsory but depends from case to case. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. Service, Dissertation But, as the coronavirus pandemic has impacted everything from the finances of Americans to the future of college, the court proceedings for the Tesla-Musk-SolarCity battle were postponed on March 13. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. Had he lost, Musk could have had to pay upwards of $2 billion. 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. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. Accessed July 12, 2021. Dissertation The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. 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. It includes the bargaining power of buyers in the industry. Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. A few of them were fulfilled, however some were mismatched with the company. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used. Made with sweat-wicking fabric. Consumer protection Different countries have different consumer protection laws. If you read nothing else on strategy, read thesebest-selling articles., 71. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. As Director of Communications at LendEDU, Mike Brown uses data, usually from surveys and publicly available resources, to identify emerging personal finance trends and tell unique stories. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Cash Cows are those strategic business units with high market share and low market growth rate. Please place the order on the website to get your own originally done case solution. Tesla The Solarcity Acquisition Case Study Analysis was for this reason, thrilled when she was entitled to sign up with the corporation, and report to its office in US for her preparatory training. 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. Task beyond the command on the field. Rastogi, N., & Trivedi, M. K. (2016). PESTLE Analysis. 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. ", 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%. The business should recruit the employees that have the skills that match with the objectives of the business. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. of the box and hire Case48 with BIG enough reputation. The 4 elements of the marketing mix are Product, Price, Place and Promotions. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . 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 . The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in.

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