tesla the solarcity acquisition case solution

Market overview: Large-scale storage systems, Market overview: Microgrid control systems, The smarter E Europe 2019 special edition, Energy Storage North America Special 2018, Clean Power Research: Solar data solutions to maximize PV project performance. Academy of Management Journal, 25(3), 510-531. To do comprehensive PESTEL analysis of case study Tesla: The SolarCity Acquisition , we have researched numerous components under the six factors of PESTEL analysis. At other times, finding the issue is the job of the person analysing the case. But not everyone is negative. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Pearson education. This is known as market development strategy. 2). A detailed implementation framework helps in distinguishing between an average and an above average case study answer. BCG analysis should comprise not only growth share of industry & Solarcity Tesla business unit but also Solarcity Tesla - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Kim, W. C., & Mauborgne, R. (2004). For Tesla The SolarCity Acquisition, based on 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, the recommendations and action plan are as follows: Baron, E. (2015). If both are on the same page then it makes sense to enter, otherwise it doesnt. According to Zhichuan Frank Li, Tomiwa Ademidun of Tesla: The SolarCity Acquisition case study, Solarcity Tesla can use this trend to expand in adjacent areas Financial analysis, Manufacturing, Mergers & acquisitions. Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. Help, Academic The organization can penetrate into existing markets with its existing products. Going into 2016, SolarCity stock was already plunging and the company was going through layoffs. Principles of marketing. Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. Enhancement in socializing practices 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. Subscribe now to get your discount coupon *Only Chat with us 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. What are external factors that are impacting the business environment (PESTEL 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. (2013). 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. Be lively to the degree that who, when and what on boarding. International Journal of Modern Social Sciences, 2(1), 34-43. Bringing SWOT into Focus. On boarding discusses the treatment that helps brand-new personnels that get the info, abilities, and actions which are needed to thrive in their new corporation. Each resource is assessed whether it could be imitated by competition easily or not. 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. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. 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. Tesla is officially in the solar roof business, says Elon Musk. Had he lost, Musk could have had to pay upwards of $2 billion. submission, reproduction, or any other misuse in any manner. The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. It also lays down the changes needed to be made as well as the assumptions in the process. One additional director, Brad Buss, is no longer part of Teslas board, but was at the time of the deal and was also part of the settlement. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Exploring SWOT analysis where are we now? Accessed July 12, 2021. June 21, 2016 3:09 p.m. PT. Both companies had similar products and could be a strong strategic fit. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. 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. This is sample work and not applicable to real case study. VRIO stands for Value of the resource that Solarcity Tesla possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Solarcity Tesla. Bartol. (2013). This brings us to the latest update in this multi-pronged legal battle. Shareholders have sued Musk alleging that the deal . 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. Cash Cows are those strategic business units with high market share and low market growth rate. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. please submit your details here. Our model papers and solutions are purely meant for 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. 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. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. 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. Tesla bought SolarCity in 2016. Analyse the companys price points and devise strategies that could be based on competition, value or cost. 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. Create link between the companies and crucial stake holders 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. Our immersive learning methodology from case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Finance & Accounting field, and broaden their skill set. 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. Identify the market growth of each strategic business unit. The alternate solution for Tesla The SolarCity Acquisition is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. Place these strategic business units in one of four categories. It includes the bargaining power of buyers in the industry. And conflicts among other Tesla Board members were not completely neutralized. Strategic Change, 7(2), 101-109. 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 . If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. Aug-09-2018. 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. This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. 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. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases. 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. His attorneys have framed the acquisition as an opportunity to realize his long-held goal of creating a vertically integrated sustainable energy company.. A primary question in the case is whether Mr. Musk, who owned roughly 22% of Tesla at the time, controlled the . 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. 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. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. The process can also be done to competitors to understand their competitive advantages and competitive strategies. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. Porter, M.E. It includes the bargaining power of suppliers in an industry. Question Marks are those strategic business units with high market share and low market growth rate. The case study does not end at just providing recommendations to the issues at hand. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. It is also important to understand what stakeholders are affected by the problem and how. It helps in the strategic analysis of Tesla The SolarCity Acquisition. Why you choose one course of action over the other. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case Tesla: The SolarCity Acquisition. Accordingly, we never encourage or endorse its direct The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. 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. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. "Should be able to do all those before the shareholder vote. Stars are those strategic business units with high market share and high market growth rate. 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. 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. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. Another five of Teslas directors were direct or indirect owners of SolarCity stock. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. Do not carry out that someone who helps the program in the start, will sustain to do so in future. The third step of solving the Tesla The SolarCity Acquisition Case Study is Tesla The SolarCity Acquisition Financial Analysis. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. 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. Please be mindful of our community standards. The business needs to supply a reasonable job preview to its workers, and corporation culture is alternative administrative approach to allow new employee socialization. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. It can include recommendations on how the organisation can work towards achieving these strategic objectives. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. Management and Administrative Sciences Review, 2(2), 196-206. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). This part consists of solutions that address issues faced by the organisation on a strategic level. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. To tackle the menace of corruption a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. Now she felt disinterested to operate in the business. Evidences Finally you should provide evidences to support your reasons. Conclusions MBA & EMBA professionals should state their conclusions at the very start. Tesla shareholders backed the acquisition, with an . He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. Strategies will be devised which makes use of a few or all of these elements. 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. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. 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. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. In other words, the synergistic integration that Tesla hoped for is still a work in progress. During his testimony, contradicting those emails, Musk repeatedly argued that Solar City would have been able to raise capital even if it hadn't been acquired by Tesla. 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. Feedback pursuing may likewise support brand-new staff members. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. Both companies had similar products and could be a strong strategic fit. If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. How They Teach the Case Method At Harvard Business School. Competitive advantage: creating and sustaining superior performance (Vol. Published by HBR Publications. 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. If a resource is only valuable, then its a competitive parity. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations. The firm in Tesla: The SolarCity Acquisition needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. 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. Stay informed. 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. All Rights Reserved. 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. A greatly chaotic life goes into a very organized one. - 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. Tesla The Solarcity Acquisition had actually just finished her bachelor's degree in the field of 'engineering in the electronics and interactions stream' from the famous organization in US . This tool is used in the case study analysis as follows: Recognizing value creating activities and enhancing the value that they create allow Tesla The SolarCity Acquisition to increase its competitive advantage. There was less possibility to be used in US. Almost all of the case studies contain well defined situations. They likewise arrange different training session that provide awareness on how to handle different bothersome situation. 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. On June 21, 2016, Tesla, a top producer of electric vehicles, posted on its blog that it has made an offer to purchase SolarCity Corporation, a top producer of solar panels, in an all-stock deal that might be worth more than $2.5 billion in Tesla stock. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. Environment & PEST analysis: an approach to the external business environment. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. Back in 2016, Tesla acquired solar panel manufacturer SolarCity, billing the $2.6 billion deal as an opportunity to create "the world's only vertically integrated sustainable energy company." Tesla The SolarCity Acquisition should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. Some argued that Musk was able to get the Tesla board to approve the purchase of SolarCity by misrepresenting the financial health of the company, saying it would be cash-flow positive within six months of the purchase. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. Fitted waist with belt loops. 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 Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. This is shown through a proper implementation framework. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study. The business must arrange the corporate occasions, so the workers can connect with each other. The company should keep it in mind, while carrying out such steps. This content is protected by copyright and may not be reused. Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. I believe that Solarcity Tesla can make a transition even by keeping these people on board. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. If you read nothing else on strategy, read thesebest-selling articles., 71. This issue may be analysed for a manager or employee as well. The first step of the solution is to come up with a corporate level strategy for the organisation. Tesla shareholders alleged the company's . The trial started . New personnel ask enquiries about diverse functions of their tasks, corporation events, and concerns, and take an energetic part in producing the sense of their atmosphere. Abstract 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. 7 Effective Steps to Solve Case Study. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. 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. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. 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. She understood that every worker was passionate and worked proudly in the company so, she should also be happy to be a part of the business. 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. The objective of the case should be focused on. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. The 4 elements of the marketing mix are Product, Price, Place and Promotions. Among the significant problem with the business is the lack of communication and support from the managers in the business. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. Don has been a part of three successful exits in the solar + storage industry. In fact, Lynn . 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. Registering workers with a precise mixture of mental and social capabilities is a hard obligation. 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. 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. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. This is known as product development strategy. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them. In these cases, recommendations need to be made for these people. The following goals can be fulfilled: European Journal of Forest Research, 126(3), 413-420. of the box and hire Case48 with BIG enough reputation.

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