November 1, 2016. inspiration, guidance, and understanding. 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. Rastogi, N., & Trivedi, M. K. (2016). Tesla The SolarCity Acquisition should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. Strategic attributes and performance in the BCG matrixA PIMS-based analysis of industrial product businesses. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. Management and Administrative Sciences Review, 2(2), 196-206. 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. Cash Cows are those strategic business units with high market share and low market growth rate. 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. European Journal of Forest Research, 126(3), 413-420. 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. Button waist with zip fly provides a classic look and feel . I believe that Solarcity Tesla can make a transition even by keeping these people on board. Enphase acquired Sofdesk in 2021 . It needs to concentrate on reliability of the practices within the business. 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 . Stay informed. 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. . The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. ", 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%. This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. A few of them were fulfilled, however some were mismatched with the company. 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. 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. 2023 CNBC LLC. 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. It has to come from the data provided within the case study rather than data from outside world. 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, Join our newsletter. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. One more location, where she found that her expectation was mismatched with the business was team effort. 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. To do comprehensive PESTEL analysis of case study Tesla: The SolarCity Acquisition , we have researched numerous components under the six factors of PESTEL analysis. Posted by Peter Williams on In the Texas Business School, Tesla: The SolarCity Acquisition case study solution following strategic tools are used - 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. ~ 0.0 Page). How to calculate Weighted Average Market Share using BCG Growth Share Matrix All personnel or all hands conferences. 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. 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. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. Place the order on the website to get your customized case solution done. Subscribe to our newsletter to receive news on update. 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. Boston: Irwin McGrawHill. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. 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. All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. The following are the very best practices that the business executes in socializing and on boarding of newbies: We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. Solarcity Tesla needs to adjust its marketing strategy accordingly. submission, reproduction, or any other misuse in any manner. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile 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. The article written below is not related to the actual case in discussion, It is for formatting purposes only. 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. Aug-09-2018. Analyse the companys price points and devise strategies that could be based on competition, value or cost. - According to Zhichuan Frank Li, Tomiwa Ademidun . Similar would be the case for any other business unit or department such as human resources, finance, IT etc. 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. Less Net Cash Out Flowt0 / (1+r)t0. 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. The plaintiffs argued that Musk was only able to get the SolarCity acquisition approved by misrepresenting the financial well-being of SolarCity, saying it should be cash-flow positive within six months. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. 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. Porter, M. E. (2001). Exploring SWOT analysis where are we now? It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. 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. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. Evidences should be both compelling and consistent. Subscribe now to get your discount coupon *Only CNBC. View our privacy policy. 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. Analyse the companys products and devise strategies to improve the product offering of the company. Feedback pursuing may likewise support brand-new staff members. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. Management, 3rd edition. Warning! The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. Accordingly, we never encourage or endorse its direct The alternate solution for Tesla The SolarCity Acquisition is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. 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. 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. This is doing the Tesla The SolarCity Acquisition Case Solution. The organization can enter into new markets with new products. This is known as market development strategy. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. For example why the change effort failed in the case and what can be done to rectify it. 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. 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. "Should be able to do all those before the shareholder vote. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. It's final: With no more barriers to the deal, Tesla is buying SolarCity. You can hire Texas Business School professinoals to revolutionize your strategy & business. pv magazine offers daily updates of the latest photovoltaics news. This brings us to the latest update in this multi-pronged legal battle. 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. Each resource is assessed in terms of how rare it is. At other times, finding the issue is the job of the person analysing the case. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them. The firms primary and support activities are listed down. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. Pearson education. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. The process can also be done to competitors to understand their competitive advantages and competitive strategies. On June 21, 2016, Tesla, a top producer of electric vehicles, posted on its blog that it has made an offer to purchase SolarCity Corporation, a top producer of solar panels, in an all-stock deal that might be worth more than $2.5 billion in Tesla stock. It includes the bargaining power of suppliers in an industry. It helps in the strategic analysis of Tesla The SolarCity Acquisition. 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 Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. Now she felt disinterested to operate in the business. This could be mentioned at the start of the reading, the middle or the end. 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. If a resource is high on all of these 4, then it brings long-term competitive advantage. There was less possibility to be used in US. If I remained in the place of Tesla The Solarcity Acquisition Case Study Solution, I would have gone over the entire issues that I had actually faced in the entire year, and had actually demanded sharing all the concern with my manger. 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. 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. Case study solutions are career defining. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Investors were skeptical of the deal from. 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. A long-running romance demands a great deal of dedication and lots of emotional financial investment . As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. All Rights Reserved. Porter, M. E. (1985). It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. - 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 PESTEL analysis particularly looks at the macro environmental factors that affect the industry. SolarCity filed for their IPO in 2012. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. 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 . If a country doesnt have independent judiciary then there is no point entry into such a country for business. You can go about it in a similar way as is done for a finance and accounting case study. It also should look at the potential opportunities and threats that these competitors pose on the company. It can include recommendations on how the organisation can work towards achieving these strategic objectives. 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." 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. Made with sweat-wicking fabric. If the . So, in other words, she had ups and downs in the whole year that she had actually invested in the company. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. 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. 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. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. 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. Question: Refer to the Tesla SolarCity acquisition case study. In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . The value chain and competitive advantage. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. Help, Academic It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. The trial has been postponed indefinitely and a new date has not yet been set. Tesla The Solarcity Acquisition Case Study Analysis was for this reason, thrilled when she was entitled to sign up with the corporation, and report to its office in US for her preparatory training. - Environmental regulations can impact the cost structure of Solarcity Tesla. The business can embrace any of the following interaction techniques for socializing practices: International Journal of Modern Social Sciences, 2(1), 34-43. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) 2019 Texas Business School. A Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Teslas $2.6 billion acquisition of SolarCity. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. Stars are those strategic business units with high market share and high market growth rate. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. Analyse the companys promotion mix. 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. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. 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. Enhancement in socializing practices What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. If you find any employee lazy in your group, do not devote your day on focusing on the way that your lazy subordinate is constantly utilizing Facebook and other social networks at the office. This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. 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. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. 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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). Conclusions MBA & EMBA professionals should state their conclusions at the very start. 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. The firm in Tesla: The SolarCity Acquisition needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible. We want to hear from you. In these cases, recommendations need to be made for these people. 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. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. Try to make very first day at company unexpected. BCG analysis should comprise not only growth share of industry & Solarcity Tesla business unit but also Solarcity Tesla - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. 2). The third step of solving the Tesla The SolarCity Acquisition Case Study is Tesla The SolarCity Acquisition Financial Analysis. Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. - 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. In the EU countries, firms are required to make special provision for privacy issues and other laws. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. 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 task subordinate did not ask to do any work. 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 . Catching up on the Musk-Tesla-SolarCity acquisition case pv magazine International Gfeedit, World News: Latest news, breaking news,- TODAYNEWS.com, 5 Controversies That Will Forever Haunt Elon Musk - LEETjobs. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes.

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