It shows that one has been clarified with the HBR fundamentals on the topic. The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. Government policies have significant impact on the business environment of any country. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. Socialization and Beginner on boarding practices in other industries 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 . The company can challenge competitors from various companies. The organization can develop new products for the existing market. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. This is known as the problem identification stage. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. Getting the responsibility for the effort and arrangement of implementation. Porter, M. E. (1985). Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. Reasons At the second stage provide the reasons for the conclusions. Elon Musk took the stand on Monday to defend Tesla's 2016 acquisition of SolarCity against a lawsuit by shareholders seeking to recoup the $2.6bn the company paid for the ailing solar panel . Feedback pursuing may likewise support brand-new staff members. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) Identifying the importance of these activities in the cost of the product and the differentiation they produce. Bringing SWOT into Focus. Please be mindful of our community standards. Porter, M.E. The company was headquartered in Fremont, California, before being purchased by Tesla Inc. in 2016 for $2.6 billion. In these cases, recommendations need to be made for these people. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Solarcity Tesla is facing right now. This is sample work and not applicable to real case study. Management and Administrative Sciences Review, 2(2), 196-206. The acquisition amounted, they argue, to a bail-out by one of his start-ups (Tesla) of another one (SolarCity), which damaged the formerand thus their investments. Both companies had similar products and could be a strong strategic fit. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. Here's what every major analyst thought of Tesla's investor day, Top auto analyst Jonas stays bullish on Tesla, says investor day showed competition can't keep up, JPMorgan downgrades electric vehicle stock Nio, says expectations are too high. Home >> Ivey >> Tesla The Solarcity Acquisition. 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. 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 proper implementation framework shows that one has clearly understood the case study and the main issue within it. Principles of marketing. 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. 7 Effective Steps to Solve Case Study. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. Chat with us It helps in communicating the points directly and the direction one took. Lastly, a timeline of the issues and events in the case needs to be made. These solutions will also be the Tesla The SolarCity Acquisition case answers. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. One-to-one discussions. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. SolarCity shareholders will receive 0.11 share of Tesla, worth $20.75 based on Thursday's closing price, for each SolarCity share, making the deal worth about $2.1 billion. Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. 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. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. - 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 Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. 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. Obviously, some approaches would work well than others, in the business. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. - According to Zhichuan Frank Li, Tomiwa Ademidun . . - Environmental regulations can impact the cost structure of Solarcity Tesla. 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. The Tesla The SolarCity Acquisition case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. 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. 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. 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. Button waist with zip fly provides a classic look and feel . Management, 3rd edition. If a resource is high on all of these 4, then it brings long-term competitive advantage. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. Try to make very first day at company unexpected. 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. ANSOFF matrix, environment, and growth-an interactive triangle. 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. Boston: Irwin McGrawHill. International Journal of Modern Social Sciences, 2(1), 34-43. Panagiotou, G. (2003). Hurley Dry-Fit Chino Short. The level of tariffs will determine the viability of the business model that the firm is contemplating. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. 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. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. 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. A rare resource is one that is not commonly used by competitors. Another location, where Tesla The Solarcity Acquisition Case Study Help's expectation was mismatched with the business was enjoyable aspect. The matter could be appealed to the Delaware Supreme Court. Both companies had similar products and could be a strong strategic fit. Place the order on the website to get your customized case solution done. This is known as product development strategy. If the . (2013). And conflicts among other Tesla Board members were not completely neutralized. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. 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. Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. This is known as market development strategy. academic writing services at least once in their lifetime! That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. The third step is not compulsory but depends from case to case. 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. Task beyond the command on the field. This could be mentioned at the start of the reading, the middle or the end. External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. 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 . 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. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. Our model papers and solutions are purely meant for These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. 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. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. 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. After completing a year in the business, it was the stage where she had to examine and reflect her journey and experiences, while operating in the business. 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. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). 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. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. Porter, M. E. (2001). - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. Teslas co-founder and CEO, Elon Musk, believed that the merger would generate significant cost and revenue synergies, based on his vision of the future of transportation, energy storage, and a green economy. Strategic Management Theory: An Integrated Approach, Ninth Ed. Net Cash In Flowtn / (1+r)tn. If you read nothing else on strategy, read thesebest-selling articles., 71. - 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. Tesla The Solarcity Acquisition Case Study Help. - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. It is also important to understand what stakeholders are affected by the problem and how. 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. 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. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. Save my name, email, and website in this browser for the next time I comment. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. 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. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. Accessed July 12, 2021. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. 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. The essential point that is to be kept in mind is you must utilize multiple approaches to make sure that you reach the utmost number of employees within the company, which gives better outcomes for them. Free Management E-Books. Got a confidential news tip? Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. Rauch, P. (2007). Mr. Musk, who is expected to take the stand in the nonjury trial as early as Monday, was chairman of both companies at the time. Tesla acquired SolarCity in 2016. - 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. Tesla shareholders alleged the company's . If you need help with something similar, 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. Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. 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. Dogs are those strategic business units with low market share and low growth rate. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. 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 . This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. This issue may be analysed for a manager or employee as well. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. For example why the change effort failed in the case and what can be done to rectify it. If the tariffs are high then it will be extremely difficult to compete with the local competitors. Analyse the companys distribution and reach. Be lively to the degree that who, when and what on boarding. 2 min read. Almost all of the case studies contain well defined situations. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Department and business department conferences. Hill, C., & Jones, G. (2010). 2023 CNBC LLC. Academic writing has no room for errors and mistakes. If its none, then it can be regarded as a competitive disadvantage. Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. It needs to concentrate on reliability of the practices within the business. Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. Where t = time period, in this case year 1, year 2 and so on. The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. . We are here to help. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Service, Dissertation Green Data Dash. Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. 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. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. The business needs to supply a reasonable job preview to its workers, and corporation culture is alternative administrative approach to allow new employee socialization. If a country doesnt have independent judiciary then there is no point entry into such a country for business. For example, strengths will be used as an advantage in solving the issue. Analyse the companys price points and devise strategies that could be based on competition, value or cost. A Division of NBCUniversal. Is this merger a good idea? If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit. Aug-09-2018. It helps in the strategic analysis of Tesla The SolarCity Acquisition. A fuzzy quantitative VRIO-based framework for evaluating organizational activities. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. SolarCity filed for their IPO in 2012. 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. Providing personnel with as much right truths as possible, before hand they start functioning for the company. 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. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. 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. Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. One is also required to provide how these recommendations would be implemented. The first step of the solution is to come up with a corporate level strategy for the organisation. At the end of the first year, she felt that the association with the business was getting bit worse because she felt that she was designated the project that was beyond her command, with extremely restricted time and there was no one to help her out in the task. 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. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . It also should look at the potential opportunities and threats that these competitors pose on the company. Strategic Change, 7(2), 101-109. Usage creativity, and promote the process. Get this delivered to your inbox, and more info about our products and services. Musk initially . 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. It also lays down the changes needed to be made as well as the assumptions in the process. This is shown through a proper implementation framework. The article written below is not related to the actual case in discussion, It is for formatting purposes only. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Tesla's Plan to Buy SolarCity Has Major Flaws. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. I believe that Solarcity Tesla can make a transition even by keeping these people on board. This is known as the problem identification stage. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. 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. She strove to clear all the evaluation that the business draws from the fresh graduates. Amanda is strategy expert at Texas Business School . 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. This article is only an example Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. According to emails that were part of evidence in the trial, Musk wrote an e-mail to SolarCity CFO Brad Buss on Sept. 18, 2016, saying that to get Tesla investors on board with the deal, SolarCity needed to get a handle on its liquidity problem and sign a letter of intent for a contract with Panasonic. 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. The company should satisfy some goals for socialization practices. Kulkarni, N. (2018). 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 may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Highlight the pros and cons of the deal. The shareholders also alleged that Musk controlled the board of Tesla, even though he appeared to recuse himself from some deal negotiations concerning SolarCity. 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. A long-running romance demands a great deal of dedication and lots of emotional financial investment . 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).