At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. 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. If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit. To summarize, the following expectations were mismatched with the business: The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. The organization can develop new products for the existing market. Create link between the companies and crucial stake holders Solution, Assignment Writing Hill, C., & Jones, G. (2010). 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. This article is only an example 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. All Rights Reserved. Despite these challenges, Tesla's value has massively increased following the Acquisition.". One more location, where she found that her expectation was mismatched with the business was team effort. The company should set up lunch and discovering sessions. We are expecting that more than 100 people may well gather in connection with this trial. After the $2.6 billion deal went through for Tesla to buy SolarCity, Tesla shareholders filed a lawsuit against Tesla/SolarCity/Musk and sought $2.6 billion in damages or the cost of the SolarCity acquisition. of the box and hire Case48 with BIG enough reputation. November 1, 2016. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). in. Providing personnel with as much right truths as possible, before hand they start functioning for the company. What are external factors that are impacting the business environment (PESTEL Analysis) Both companies had similar products and could be a strong strategic fit. 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. 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. The acquisition is a key improvement on the Solarcity deal. Strategic Management Theory: An Integrated Approach, Ninth Ed. The task subordinate did not ask to do any work. With that said, the Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way.". The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Elon Musk, chief executive officer of Tesla Inc., arrives at court during the SolarCity trial in Wilmington, Delaware, U.S., on Tuesday, July 13, 2021. 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. Info gained from administrators and coworkers is a primary part of finding out about the business's brand-new environment. Design and perform official orientation programs. 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External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. Place these strategic business units in one of four categories. 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. 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. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. Further information on data privacy can be found in our Data Protection Policy. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. The organization can penetrate into existing markets with its existing products. 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. These solutions will also be the Tesla The SolarCity Acquisition case answers. VRIO and VRIN analysis can help the firm. In other words, the synergistic integration that Tesla hoped for is still a work in progress. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. Posted by Peter Williams on The firms primary and support activities are listed down. For example, strengths will be used as an advantage in solving the issue. 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. While Elon Musk, the CEO of Tesla and chairman of SolarCity, calls the deal a "no-brainer," the $2.6 billion acquisition has drawn widespread scorn. 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, Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. Specifying the people "on board" and the people that are not. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. 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. Please place the order on the website to get your own originally done case solution. The four-hour presentation was long on Musk's vision to build the next phase of Tesla's growth around a sustainable energy future by moving into products like heat pumps, but short on any . Stars are those strategic business units with high market share and high market growth rate. We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. Direct and prospective action plan - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. 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." Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. The viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. Tesla shareholders alleged the company's . - Environmental regulations can impact the cost structure of Solarcity Tesla. 8 Tips to Help You Prepare for the Case Method. 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 . The Possible locations of Mismatched Expectation in between Tesla The Solarcity Acquisition Case Study Help and Company Going into 2016, SolarCity stock was already plunging and the company was going through . PESTLE Analysis. June 21, 2016 3:09 p.m. PT. Musk initially . Shareholders also argued, in the suit, that Musk unveiled a product that didn't yet function glass solar roof tiles to convince investors that there was real intellectual property and a product close to commercial viability in SolarCity. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. 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. The business can embrace any of the following interaction techniques for socializing practices: 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. 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. It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. Please be mindful of our community standards. 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. . Another five of Teslas directors were direct or indirect owners of SolarCity stock. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. Case study solutions are career defining. Identify the market growth of each strategic business unit. Strategies will be devised which makes use of a few or all of these elements. Moreover, I would have advised the following action plan: Business Strategy Review, 14(2), 8-10. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. 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. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. 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. 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. - 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. Competitive advantage: creating and sustaining superior performance (Vol. This is known as the problem identification stage. Dogs are those strategic business units with low market share and low growth rate. Evidences should be both compelling and consistent. This part consists of solutions that address issues faced by the organisation on a strategic level. 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. Socialization and Beginner on boarding practices in other industries If both are on the same page then it makes sense to enter, otherwise it doesnt. International Journal of Modern Social Sciences, 2(1), 34-43. It includes the bargaining power of buyers in the industry. A rare resource is one that is not commonly used by competitors. It involves coming up with new and unique products or ideas through innovation. In fact, Lynn . Management Decision, 50(8), 1396-1411. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: 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. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. This brings us to the latest update in this multi-pronged legal battle. Key Points. It helps in the strategic analysis of Tesla The SolarCity Acquisition. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. 7 Effective Steps to Solve Case Study. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. The Tesla The SolarCity Acquisition case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. 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. 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. Actionable and practical solutions can then be developed by keeping these factors into perspective. Tesla Energy Operations, Inc. is the clean energy division of Tesla, Inc. that develops, manufactures, sells and installs photovoltaic solar energy generation systems, battery energy storage products, as well as other related products and services to residential, commercial and industrial customers. on WhatsApp for any queries. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. Blue ocean strategy. CNBC. No reply from the mangers in the brand-new office. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. 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. View our privacy policy. Boston: Irwin McGrawHill. While, unsuccessful socialization can cause impulsive with drawl of personnel from their new jobs or to their incompetence on the task, which often resumes the work and choice phase for the business, causing increased cost of time and resources. NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . Hold Ctrl or Cmd to select multiple editions. The Value chain analysis of Tesla The SolarCity Acquisition helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. Sign up for free newsletters and get more CNBC delivered to your inbox. Each resource is assessed in terms of how rare it is. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. 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. 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 Analyse the companys price points and devise strategies that could be based on competition, value or cost. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. Tesla shareholders backed the acquisition, with an . Arranging events in a timeline allows one to predict the next few events that are likely to take place. 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. Get this delivered to your inbox, and more info about our products and services. Thank you for your email subscription. The level of tariffs will determine the viability of the business model that the firm is contemplating. It also lays down the changes needed to be made as well as the assumptions in the process. r = discount rate or return that could be earned . - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international 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. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. In some HBR case studies, one may be required to analyse an issue at a department. It can further impact the cost of doing business in certain markets. It has to come from the data provided within the case study rather than data from outside world. This is known as market development strategy. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. 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. She thought about the task assigned to her as a video game so that she might take pleasure in the work. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. 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. 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. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Tesla The SolarCity Acquisition operates in. 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. Each of these resources are assessed in terms of the value it brings to the organization. The value chain and competitive advantage. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. Develop and applied composed on boarding strategies. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. It reinforces the social companies that does not only form how people work together in the business, however also supplies the restrictions of the act, and the standards of conference. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. How it can improve the profitability in a given industry (Porter Value Chain Analysis) 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. Question: Refer to the Tesla SolarCity acquisition case study. This is doing the Tesla The SolarCity Acquisition Case Solution. Where t = time period, in this case year 1, year 2 and so on. 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. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. 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 . Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. It includes the bargaining power of suppliers in an industry. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. pv magazine offers daily updates of the latest photovoltaics news. Relative Weighted Average Market Share Vs Largest Competitor. It also should look at the potential opportunities and threats that these competitors pose on the company. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. . If its none, then it can be regarded as a competitive disadvantage. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. Green Data Dash. It helps in communicating the points directly and the direction one took. 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. 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 . Proposal, Question It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation. 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. Kim, W. C., & Mauborgne, R. (2004). But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. - Inflation rate is one of the key criteria to consider for Solarcity Tesla before entering into a new market. 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. 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. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. Almost all of the case studies contain well defined situations. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. Rastogi, N., & Trivedi, M. K. (2016). These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. 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. 1. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Tesla The SolarCity Acquisition Case Study Solution that the business unit should focus on costs. This can be done by using company history. 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. Tesla CEO Elon Musk finds himself in the news quite often, from groundbreaking SpaceX launches to contentious tweets. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these. Constant implementation on boarding. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. Additionally, Musk and his cousins, who served as CEO and CTO at SolarCity, founded the solar installer in 2006, while Musk served as the companys chairman. 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. By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. How to calculate Weighted Average Market Share using BCG Growth Share Matrix Strategic Change, 7(2), 101-109. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. 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. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions.