Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. ", 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%. Understanding Business Processes, 50-66. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. Sign up for free newsletters and get more CNBC delivered to your inbox. Constant implementation on boarding. to get Coupon Code. A greatly chaotic life goes into a very organized one. Strategies will be devised which makes use of a few or all of these elements. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. Import restrictions on products Before entering the new market, Solarcity Tesla in case study Tesla: The SolarCity Acquisition" should look into the import restrictions that may be present in the prospective market. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. (1979, March). Porter, M. E. (2001). Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. Consumer protection Different countries have different consumer protection laws. Thank you for your email subscription. The business should recruit the employees that have the skills that match with the objectives of the business. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. - Inflation rate is one of the key criteria to consider for Solarcity Tesla before entering into a new market. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. How it can improve the profitability in a given industry (Porter Value Chain Analysis) Strategic Management Theory: An Integrated Approach, Ninth Ed. It can include recommendations on how the organisation can work towards achieving these strategic objectives. You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Pickton, D. W., & Wright, S. (1998). 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. Design and perform official orientation programs. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. 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. Evidences Finally you should provide evidences to support your reasons. Both companies had similar products and could be a strong strategic fit. Investors were skeptical of the deal from. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. Those against Musk and this purchase of SolarCity also believed that the outspoken entrepreneur sought to convince Tesla shareholders that the deal was a good one by promoting the unveiling of a SolarCity product that didnt yet exist: glass solar roof tiles. Further information on data privacy can be found in our Data Protection Policy. 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. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas She went through with the procedure of technical training, where she had to face lots of issues and hard situations. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. The business must arrange the corporate occasions, so the workers can connect with each other. Identify the relative market share of each strategic business unit. Question: Refer to the Tesla SolarCity acquisition case study. Now That Tesla Has Approval to Buy SolarCity, Here's What a Combined Company Might Look Like 70 On November 17, Tesla shareholders approved the acquisition of SolarCity in an all-stock. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. 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. Musk initially . They also alleged that due diligence by outside firms including Evercore was rushed to hide SolarCity's troubles. The firms primary and support activities are listed down. A rare resource is one that is not commonly used by competitors. Moreover, I would have advised the following action plan: The case-presiding judge Joseph Slights offered the following statement: Please know that this was not an easy decision to reach, given the time and resources I know you have dedicated to prepare for this trial, and the last minute nature of this decision. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Shareholders have sued Musk alleging that the deal . She thought about the task assigned to her as a video game so that she might take pleasure in the work. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. Another location, where Tesla The Solarcity Acquisition Case Study Help's expectation was mismatched with the business was enjoyable aspect. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. At training sessions, Tesla The Solarcity Acquisition Case Study Help had dealt with her schoolmates and they all had become friends and did all the work together. If a resource is only valuable, then its a competitive parity. Nixon, J., & Helms, M. M. (2010). We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. This is sample work and not applicable to real case study. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. The case study does not end at just providing recommendations to the issues at hand. . If a resource is high on all of these 4, then it brings long-term competitive advantage. 2). We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. Aug-09-2018. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. Tesla: The SolarCity Acquisition is a Harvard Business (HBR) Case Study on casecategory , Texas Business School provides HBR case study assignment help for just $9. Elon Musk was acting as a proper chief executive officer as Tesla Inc. weighed the purchase of power provider SolarCity in 2016, his longtime ally and fellow Tesla director . Place the order on the website to get your customized case solution done. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. : A review of academic research from the last decade. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. Task beyond the command on the field. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. It is important to have more than one solution to the case study. 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. (2013). Each resource is assessed in terms of how rare it is. (2013). Corruption level Solarcity Tesla needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. It also helps one in developing the case study solutions. 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. Analyse the companys price points and devise strategies that could be based on competition, value or cost. Among the significant problem with the business is the lack of communication and support from the managers in the business. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. Freedom of Press is critical for fair trade and transparency. All personnel or all hands conferences. Analyse the companys promotion mix. Orientation was the part of the training where the freshly designated staff members were acquainted with the company's life in basic and business in specific. 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. - 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. The following goals can be fulfilled: Management, 3rd edition. Cash Cows are those strategic business units with high market share and low market growth rate. The 4 elements of the marketing mix are Product, Price, Place and Promotions. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. This is doing the Tesla The SolarCity Acquisition Case Solution. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 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. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) 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. Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. Getting the responsibility for the effort and arrangement of implementation. 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. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. 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. 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. 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. It shows that the details provided in the case have been properly analysed. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. 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). Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. These are the threats that the industry faces due to new entrants. The shareholders also alleged that Musk controlled the board of Tesla, even though he appeared to recuse himself from some deal negotiations concerning SolarCity. International Journal of Modern Social Sciences, 2(1), 34-43. This could be mentioned at the start of the reading, the middle or the end. 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. Competitive advantage: creating and sustaining superior performance (Vol. The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. How They Teach the Case Method At Harvard Business School. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. This part consists of solutions that address issues faced by the organisation on a strategic level. 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. 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. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. 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. Hold Ctrl or Cmd to select multiple editions. These factors are also responsible for the future growth and challenges within the industry. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. Got a confidential news tip? Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. 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. A long-running romance demands a great deal of dedication and lots of emotional financial investment . But not everyone is negative. Making matters worse, it was alleged that Musk knew of SolarCitys financial troubles at the time of the deal so it appeared to be more of a bailout than an acquisition. This is known as market penetration strategy. 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 . 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. The level of tariffs will determine the viability of the business model that the firm is contemplating. Management Decision, 50(8), 1396-1411. What are external factors that are impacting the business environment (PESTEL Analysis) Kim, W. C., & Mauborgne, R. (2004). This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. In the EU countries, firms are required to make special provision for privacy issues and other laws. New York: Free Press. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. - 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. The Tesla acquisition of SolarCity closed in November 2016. inspiration, guidance, and understanding. 8 Tips to Help You Prepare for the Case Method. 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 . One more location, where she found that her expectation was mismatched with the business was team effort. Published by HBR Publications. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. Subscribe now to get your discount coupon *Only The third step is not compulsory but depends from case to case. 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. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Solarcity Tesla should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets. European Journal of Forest Research, 126(3), 413-420. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. Bartol. Most recent surveys suggest that around 76 % students try professional 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. Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. Please be mindful of our community standards. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. Actionable and practical solutions can then be developed by keeping these factors into perspective. The company's major goal must be to change as many 'resisters' as possible through various robust interaction networks and circulation of information, and for those you can not keep them involved in this program. ANSOFF matrix, environment, and growth-an interactive triangle. It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. This is known as product development strategy. A fuzzy quantitative VRIO-based framework for evaluating organizational activities. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. It helps in the strategic analysis of Tesla The SolarCity Acquisition. 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. Many believe that the massive deal was not properly scrutinized and SolarCitys financial peril was hidden by a rushed analysis of the companys finances by an outside firm. A Division of NBCUniversal. 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. 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. Do not carry out that someone who helps the program in the start, will sustain to do so in future. 2023 CNBC LLC. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. Data is a real-time snapshot *Data is delayed at least 15 minutes. It helps in communicating the points directly and the direction one took. 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. Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. Button waist with zip fly provides a classic look and feel . So, in other words, she had ups and downs in the whole year that she had actually invested in the company. Proposal, Assignment Writing - Demographic shifts in the economy are also a good social indicator for Solarcity Tesla to predict not only overall trend in market but also demand for Solarcity Tesla product among its core customer segments. The HBR case studies may present issues faced by a part of the organisation. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Solarcity Tesla can be market leader in the industry without being a dominant player or segment leader in any of the segment. Is this merger a good idea? Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. 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. It involves looking at the current market share of the company and its competitors. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. These can usually be developed using the company history is provided in the case. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. 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.. Independence of judiciary It is critical for fair business practices. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. Integrity, Essay Writing He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. 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.. Registering workers with a precise mixture of mental and social capabilities is a hard obligation. 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. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. 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. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. A variety of actions might occur that might transform their "champ" position to "resister" position. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. A Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Teslas $2.6 billion acquisition of SolarCity. The company should satisfy some goals for socialization practices. 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. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. Strategic attributes and performance in the BCG matrixA PIMS-based analysis of industrial product businesses. in. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Analyse the companys distribution and reach. Strategic Change, 7(2), 101-109. Pearson education. Lastly, the overall rivalry or competition within the industry is analysed. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. 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. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. 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. 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. It also should look at the potential opportunities and threats that these competitors pose on the company. Made with sweat-wicking fabric. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you read nothing else on strategy, read thesebest-selling articles., 71.
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