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. Posted by Peter Williams on In addition, when you have possibilities to go over the issues with your supervisor, let him know that your subordinates were not working, so you may end up being the leader and at the very same time, you need to tell your subordinate to collaborate to meet the due dates and goals of the company. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . 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. This content is protected by copyright and may not be reused. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so. Among the significant problem with the business is the lack of communication and support from the managers in the business. Tesla is officially in the solar roof business, says Elon Musk. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. Your email address will not be published. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. 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. The three step case study solution approach comprises 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. It involves coming up with new and unique products or ideas through innovation. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. So, in other words, she had ups and downs in the whole year that she had actually invested in the company. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. Cash Cows are those strategic business units with high market share and low market growth rate. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. Actionable and practical solutions can then be developed by keeping these factors into perspective. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. Tesla bought SolarCity in 2016. At the starting of the job, each staff member has some expectations with the business, which relate to the values, culture and the lifestyle of the business. 2019 Texas Business School. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. Less interaction with new employee. 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 . The 4 elements of the marketing mix are Product, Price, Place and Promotions. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. 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. Some argued that Musk was able to get the Tesla board to approve the purchase of SolarCity by misrepresenting the financial health of the company, saying it would be cash-flow positive within six months of the purchase. 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 . We are expecting that more than 100 people may well gather in connection with this trial. 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. The solution consists of recommended strategies to overcome this central issue. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. 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. inspiration, guidance, and understanding. Managers need to assess these factors even before entering the market. Key Points. This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. Check your email Solved VRIO / VRIN : Tesla: The SolarCity Acquisition Analysis Further information on data privacy can be found in our Data Protection Policy. During his testimony, contradicting those emails, Musk repeatedly argued that Solar City would have been able to raise capital even if it hadn't been acquired by Tesla. This issue may be analysed for a manager or employee as well. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. pv magazine offers daily updates of the latest photovoltaics news. 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. 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. Dogs are those strategic business units with low market share and low growth rate. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. It helps in the strategic analysis of Tesla The SolarCity Acquisition. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. The business should recruit the employees that have the skills that match with the objectives of the business. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. Join our newsletter. In these cases, recommendations need to be made for these people. International Journal of Modern Social Sciences, 2(1), 34-43. Evaluating Alternatives / SWOT Analysis of Tesla: The SolarCity Acquisition case study, STEP 5. Each resource is assessed whether it could be imitated by competition easily or not. Tesla's Plan to Buy SolarCity Has Major Flaws. Integrity, Marketing strategy of Tesla The SolarCity Acquisition, Marketing Mix Of Tesla The SolarCity Acquisition, Tesla The SolarCity Acquisition Case Study Solution, 3-Joe-Smith-s-Closing-Analysis-A-Spanish-Version, 23558-The-Multichannel-Challenge-at-Natura-in-Beauty-and-Personal-Care, 23559-Masdar-City-Initiative-One-Step-in-the-United-Arab-Emirates-Journey-to-a-New-Energy-Economy, 23560-Neuromarketing-Inside-the-Mind-of-the-Consumer, 23561-Strategies-for-Higher-Education-in-the-Digital-Age, 23564-Diversity-s-New-Frontier-Diversity-of-Thought, 23565-Leadership-Forum-The-Role-of-the-LGBTQ-Ally, 23566-Updating-the-Image-of-the-Ideal-Worker, 23567-Whitening-and-Self-Presentation-in-the-Labour-Market. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. 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. This could be mentioned at the start of the reading, the middle or the end. Your email address will not be published. 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. (2013). 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. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. 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. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Sign up for free newsletters and get more CNBC delivered to your inbox. 1. Save my name, email, and website in this browser for the next time I comment. Question: Refer to the Tesla SolarCity acquisition case study. Tesla's .6bn SolarCity acquisition lawsuit ruled in favor of Elon The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. Elon Musk Is Called to Defend Tesla's Purchase of SolarCity - The Wall A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. Home >> Ivey >> Tesla The Solarcity Acquisition. 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. Catching up on the Elon Musk-Tesla-SolarCity acquisition case Even though the problem statement is essentially casecategory challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Solarcity Tesla, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more. 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. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case Tesla: The SolarCity Acquisition. 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. Enhancement in socializing practices - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. 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. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. 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. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. - Inflation rate is one of the key criteria to consider for Solarcity Tesla before entering into a new market. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. 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. It can include recommendations on how the organisation can work towards achieving these strategic objectives. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. When Tesla The Solarcity Acquisition Case Study Solution joined the company, in the starting she felt the business was a little bit of an alienation. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. June 21, 2016 3:09 p.m. PT. Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. Analyse the companys products and devise strategies to improve the product offering of the company. For example, strengths will be used as an advantage in solving the issue. VRIO and VRIN analysis can help the firm. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. r = discount rate or return that could be earned . If a country doesnt have independent judiciary then there is no point entry into such a country for business. This can be done by using company history. Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. 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. You can hire Texas Business School professinoals to revolutionize your strategy & business. IIBMS. 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. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. 2 min read. Tesla's Risky SolarCity Acquisition Wins Shareholder Approval It involves looking at the current market share of the company and its competitors. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. - Increase in Consumer Disposable Income Solarcity Tesla can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. 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. Subscribe now to get your discount coupon *Only This shows how through a step-by-step procedure as to how the central issue can be resolved. Elon Musk defends SolarCity deal against shareholder lawsuit | Tesla SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. It is important to have more than one solution to the case study. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. New York: Free Press. Question Marks are those strategic business units with high market share and low market growth rate. 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. Strategic Change, 7(2), 101-109. Academic writing has no room for errors and mistakes. Exploring SWOT analysis where are we now? Abstract In 2016, electric car manufacturer Tesla announced that it was making an offer to acquire solar panel manufacturer SolarCity in an all-stock offer worth $2.6 billion in Tesla stock. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. In fact, Lynn . The second step of the solution is to come up with a business level strategy. It also helps one in developing the case study solutions. 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. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. A greatly chaotic life goes into a very organized one. A Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Teslas $2.6 billion acquisition of SolarCity. Where t = time period, in this case year 1, year 2 and so on. 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. 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. It shows that the details provided in the case have been properly analysed. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. 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. If you read nothing else on strategy, read thesebest-selling articles., 71. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - 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. Tesla adds solar to its portfolio through SolarCity acquisition ", 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%. to get Coupon Code. If you need help with something similar, The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: Don has been a part of three successful exits in the solar + storage industry. Identify the relative market share of each strategic business unit. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. Help, Academic 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. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. What are external factors that are impacting the business environment (PESTEL Analysis) Lastly, a timeline of the issues and events in the case needs to be made. Despite these challenges, Tesla's value has massively increased following the Acquisition.". Strategies will be devised which makes use of a few or all of these elements. Another five of Teslas directors were direct or indirect owners of SolarCity stock. Net Cash In Flowtn / (1+r)tn. The first step of the solution is to come up with a corporate level strategy for the organisation. 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. Identifying the importance of these activities in the cost of the product and the differentiation they produce. Strategic attributes and performance in the BCG matrixA PIMS-based analysis of industrial product businesses. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. Slights also acknowledged in his opinion: "As of trial, Tesla continued to rely on other solar companies to manufacture, produce, install and sell parts of its solar products. The Tesla acquisition of SolarCity closed in November 2016. This is known as product development strategy. The external environment analysis of Tesla: The SolarCity Acquisition will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm. 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.

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