tesla the solarcity acquisition case solution tesla the solarcity acquisition case solution

Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. Journal of Strategy and Management, 3(3), 215-251. 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. to get Coupon Code. If you need help with something similar, Management, 3rd edition. The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. - 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. It has to come from the data provided within the case study rather than data from outside world. Each resource is assessed in terms of how rare it is. If its none, then it can be regarded as a competitive disadvantage. It helps in the strategic analysis of Tesla The SolarCity Acquisition. Actionable and practical solutions can then be developed by keeping these factors into perspective. Proposal, Question Solarcity Tesla needs to restructure its IT policies to accommodate these changes. 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. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. The value chain and competitive advantage. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. Exploring SWOT analysis where are we now? Made with sweat-wicking fabric. And conflicts among other Tesla Board members were not completely neutralized. Pickton, D. W., & Wright, S. (1998). Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. r = discount rate or return that could be earned . 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). The organization can develop new products for the existing market. The internal resources of Tesla The SolarCity Acquisition are listed down. Solarcity Tesla needs to adjust its marketing strategy accordingly. European Journal of Forest Research, 126(3), 413-420. 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. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. and cannot be used for research or reference purposes. The company was headquartered in Fremont, California, before being purchased by Tesla Inc. in 2016 for $2.6 billion. Thank you for your email subscription. 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. This part consists of solutions that address issues faced by the organisation on a strategic level. Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. All personnel or all hands conferences. 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. The company should keep it in mind, while carrying out such steps. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) All Rights Reserved. pv magazine offers daily updates of the latest photovoltaics news. Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. Moreover, I would have advised the following action plan: 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. 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. Fitted waist with belt loops. Home >> Ivey >> Tesla The Solarcity Acquisition. To summarize, the following expectations were mismatched with the business: Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Be lively to the degree that who, when and what on boarding. This is known as the problem identification stage. 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. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. It also lays down the changes needed to be made as well as the assumptions in the process. Aug-09-2018. Posted by Peter Williams on IIBMS. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. 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. Registering workers with a precise mixture of mental and social capabilities is a hard obligation. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. 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. 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 . - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. Had he lost, Musk could have had to pay upwards of $2 billion. What are the resources needed to increase profitability (VRIO Analysis) . 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. 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. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. Dissertation Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. 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. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. 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. - 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. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) Elon Musk Testifies To Defend Tesla's $2.6 Billion Acquisition of SolarCity in Shareholder Lawsuit. This is known as market development strategy. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. But the share price dropped for both of companies when SolarCity accepted the 2.6 $ billion acquisition offer which counted as half of its value one year ago. This brings us to the latest update in this multi-pronged legal battle. 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. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. Kim, W. C., & Mauborgne, R. (2004). Proposal, Assignment Writing By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. Design and perform official orientation programs. The second step of the solution is to come up with a business level strategy. At some point she had totally free riders in the groups who never worked, however took the credit, sometime she learned a lot and had good experience with the team. 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. Required fields are marked *. Both companies had similar products and could be a strong strategic fit. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. SolarCity was widely considered one of the best solar companies in the years leading up to . (2013a). In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. If you have BIG dreams to score BIG, think out The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. The business should recruit the employees that have the skills that match with the objectives of the business. Evidences Finally you should provide evidences to support your reasons. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. 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 choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. 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. If a country doesnt have independent judiciary then there is no point entry into such a country for business. 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 . 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. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: - 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. Solarcity Tesla should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. But, as the coronavirus pandemic has impacted everything from the finances of Americans to the future of college, the court proceedings for the Tesla-Musk-SolarCity battle were postponed on March 13. The organization can enter into new markets with new products. Tesla: The SolarCity Acquisition case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. 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. It includes the bargaining power of suppliers in an industry. Stay informed. ~ 0.0 Page). Pearson education. Enhancement in socializing practices Academic writing has no room for errors and mistakes. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. All Rights Reserved. Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. 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. Less interaction with new employee. Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. Further information on data privacy can be found in our Data Protection Policy. 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 . Re-allocating of the task to the new office. 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. Among the significant problem with the business is the lack of communication and support from the managers in the business. inspiration, guidance, and understanding. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. Specifying the people "on board" and the people that are not. Please be mindful of our community standards. - Little dangers of armed conflict Based on the research done by international foreign policy institutions, it is safe to conclude that there is very little probability of country entering into an armed conflict with another state. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. The 4 elements of the marketing mix are Product, Price, Place and Promotions. 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. The viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. Button waist with zip fly provides a classic look and feel . This is an analysis carried out to know about the internal strengths and capabilities 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. These are usually in the form of strategies that the organisation can adopt. Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. Analyse the companys price points and devise strategies that could be based on competition, value or cost. These can usually be developed using the company history is provided in the case. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. 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. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. 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. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. . You can download Excel Template of Case Study Solution & Analysis of Tesla: The SolarCity Acquisition, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, SWOT Analysis of Tesla: The SolarCity Acquisition, PESTEL /PEST / STEP Analysis of Tesla: The SolarCity Acquisition Case Study, 5C Marketing Analysis of Tesla: The SolarCity Acquisition, 4P Marketing Analysis of Tesla: The SolarCity Acquisition, Porter Five Forces Analysis and Solution of Tesla: The SolarCity Acquisition, Porter Value Chain Analysis and Solution of Tesla: The SolarCity Acquisition, Case Memo & Recommendation Memo of Tesla: The SolarCity Acquisition, Blue Ocean Analysis and Solution of Tesla: The SolarCity Acquisition, Marketing Strategy and Analysis Tesla: The SolarCity Acquisition, VRIO /VRIN Analysis & Solution of Tesla: The SolarCity Acquisition, PESTEL / STEP / PEST Analysis of Tesla: The SolarCity Acquisition, Case Study Solution of Tesla: The SolarCity Acquisition, SWOT Analysis and Solution of Tesla: The SolarCity Acquisition, Joe Mandato, Pete McNerney and Empathetics Case Study Solution & Analysis, Managing Diversity and Inclusion at Yelp (B) Case Study Solution & Analysis, Ethics and Integrity in Business: Navigating Ethical Risks and Transgressions in the Workplace (A) Case Study Solution & Analysis, Branding BY-HEALTH: The Value of Transparency Case Study Solution & Analysis, Club Sportif MAA: Staying Ahead of the Game Case Study Solution & Analysis, CEO Succession at Cisco, Video Supplement Case Study Solution & Analysis, Hisense's Internationalization Dilemma: Co-Operation with Loewe Case Study Solution & Analysis, Kangaroo Tail Winery Limited (C) Case Study Solution & Analysis, An Inside Perspective on Carbon Disclosure Case Study Solution & Analysis, The One Fund Case Study Solution & Analysis, Position among Retailers and Wholesalers companyname retail strategy, Yes, firm has strong relationship with retailers and wholesalers, Difficult to imitate though not impossible, Yes, over the years company has used it successfully, Ability to Attract Talent in Various Local & Global Markets, Yes, Solarcity Tesla strategy is built on successful innovation and localization of products, Yes, as talent is critical to firm's growth, Vision of the Leadership for Next Set of Challenges, Not based on information provided in the case.