Evidences should be both compelling and consistent. Journal of Strategy and Management, 3(3), 215-251. It is important to have more than one solution to the case study. It also lays down the changes needed to be made as well as the assumptions in the process. The value chain and competitive advantage. Place the order on the website to get your customized case solution done. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. in. 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. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. Less Net Cash Out Flowt0 / (1+r)t0. If a resource is only valuable, then its a competitive parity. 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. 8 Tips to Help You Prepare for the Case Method. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. 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. Actionable and practical solutions can then be developed by keeping these factors into perspective. 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. The matter could be appealed to the Delaware Supreme Court. 1. 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. Stay informed. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. Strengths and Weaknesses are result of Solarcity Tesla internal factors, while opportunities and threats arise from developments in external environment in which Solarcity Tesla operates. Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. It also should look at the potential opportunities and threats that these competitors pose on the company. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. 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. Academy of Management Journal, 25(3), 510-531. So, in other words, she had ups and downs in the whole year that she had actually invested in the company. Be lively to the degree that who, when and what on boarding. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. Tesla The Solarcity Acquisition Case Study Solution + Analysis Got a confidential news tip? Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. The shareholders argued Musk breached his fiduciary duties, squandered Teslas assets and unjustly enriched himself by pushing to buy the money-losing solar company in which he was the biggest investor, according to Reuters. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. Cash Cows are those strategic business units with high market share and low market growth rate. NPV: Tesla: The SolarCity Acquisition Net Present Value Case Analysis 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. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. 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. 7 Effective Steps to Solve Case Study. The solution consists of recommended strategies to overcome this central issue. 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. 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. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. 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. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. There was less possibility to be used in US. 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. All the guidelines and guidelines, work concern, documents, paperwork and the reporting day were a bit laborious. Analyse the companys promotion mix. Nixon, J., & Helms, M. M. (2010). The following steps are required to carry out a marketing mix analysis and include this in the case study analysis. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. Try to make very first day at company unexpected. 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. The first step of the solution is to come up with a corporate level strategy for the organisation. The viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. Lastly, the overall rivalry or competition within the industry is analysed. 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. - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases. 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 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. 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. Elon Musk Is Called to Defend Tesla's Purchase of SolarCity - The Wall If the . In some HBR case studies, one may be required to analyse an issue at a department. "Three things need to happen to change investor sentiment: SolarCity solving its liquidity crisis, an LOI with Panasonic to address solar cell production risk, and a joint product demo," Musk wrote. 2019 Texas Business School. Solarcity Tesla should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets. The trial started . 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. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. Perform standard concepts prior to the first day at business. As in training, she shared her expectations of discovering with bit enjoyable, and everybody began laughing screamingly, which was the habits she didn't expect in the business. This is sample work and not applicable to real case study. Task beyond the command on the field. CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. 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. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. The business must arrange the corporate occasions, so the workers can connect with each other. This shows how through a step-by-step procedure as to how the central issue can be resolved. 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. Re-allocating of the task to the new office. If you read nothing else on strategy, read thesebest-selling articles., 71. Tesla The Solarcity Acquisition had actually just finished her bachelor's degree in the field of 'engineering in the electronics and interactions stream' from the famous organization in US . 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 challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. on WhatsApp for any queries. To satisfy the customer's requirements and market goals according to the needed time, the task are needed to be completed in a restricted time. Create link between the companies and crucial stake holders Tesla: The Solarcity Acquisition - The Case Centre - 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. To summarize, the following expectations were mismatched with the business: 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. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. pv magazine offers daily updates of the latest photovoltaics news. 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. Specifying the people "on board" and the people that are not. This content is protected by copyright and may not be reused. The business needs to supply a reasonable job preview to its workers, and corporation culture is alternative administrative approach to allow new employee socialization. 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. The company should keep it in mind, while carrying out such steps. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. For example why the change effort failed in the case and what can be done to rectify it. The company should set up lunch and discovering sessions. The shareholders also alleged that Musk controlled the board of Tesla, even though he appeared to recuse himself from some deal negotiations concerning SolarCity. Our model papers and solutions are purely meant for 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. Solarcity Tesla needs to adjust its marketing strategy accordingly. One is also required to provide how these recommendations would be implemented. 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. Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. 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. 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. 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. Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. 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. Elon Musk wins shareholder lawsuit over Tesla-SolarCity deal - CNBC SolarCity was insolvent when Tesla paid $2.6 billion to buy it, lawsuit Data is a real-time snapshot *Data is delayed at least 15 minutes. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. 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. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. 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. Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. All personnel or all hands conferences. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. Most recent surveys suggest that around 76 % students try professional In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Direct and prospective action plan Our immersive learning methodology from case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Finance & Accounting field, and broaden their skill set. 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. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. These are usually in the form of strategies that the organisation can adopt. Men's chino short. Tesla is officially in the solar roof business, says Elon Musk. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. Subscribe now to get your discount coupon *Only According to emails that were part of evidence in the trial, Musk wrote an e-mail to SolarCity CFO Brad Buss on Sept. 18, 2016, saying that to get Tesla investors on board with the deal, SolarCity needed to get a handle on its liquidity problem and sign a letter of intent for a contract with Panasonic. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. 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. 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. (2013). The following are the very best practices that the business executes in socializing and on boarding of newbies: 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. Enhancement in socializing practices Tesla officially acquires SolarCity TechCrunch 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. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. Going into 2016, SolarCity stock was already plunging and the company was going through . Rithik Khanna- Telsa Final.docx - Finance in a Global Perspective CASE Panagiotou, G. (2003). SolarCity - Wikipedia 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. A variety of actions might occur that might transform their "champ" position to "resister" position. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. What are the resources needed to increase profitability (VRIO Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) The internal resources of Tesla The SolarCity Acquisition are listed down. You need to make efforts to block them out, and must focus on your work. Catching up on the Elon Musk-Tesla-SolarCity acquisition case - 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. 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. View our privacy policy. Principles of marketing. Accordingly, we never encourage or endorse its direct Where t = time period, in this case year 1, year 2 and so on. This can be done by using company history. But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. Elon Musk's SolarCity Trial Nears Conclusion With $2 Billion at Stake Warning! 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. ANSOFF matrix, environment, and growth-an interactive triangle. 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. 2023 CNBC LLC. . 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. 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. 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. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. 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. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. Pearson education. Aug-09-2018. 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 . Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. VRIO and VRIN analysis can help the firm. The HBR case studies may present issues faced by a part of the organisation. Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. Each resource is assessed in terms of how rare it is. Management, 3rd edition. Is this merger a good idea? Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. Tesla The Solarcity Acquisition Case Study Solution | Tesla The - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. SolarCity 2023 Review (History, Lawsuits & Tesla Acquisition) - EcoWatch Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. Hill, C., & Jones, G. (2010). Tesla The Solarcity Acquisition Case Study Help. 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. This brings us to the latest update in this multi-pronged legal battle. Evidences Finally you should provide evidences to support your reasons. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. They had actually made a strong bond with each other, but unexpectedly throughout training they were relocated at various domains, which was not anticipated by Tesla The Solarcity Acquisition Case Study Help, she felt lonesome and her good friends motivated her to participate in the classes. This is doing the Tesla The SolarCity Acquisition Case Solution. This part consists of solutions that address issues faced by the organisation on a strategic level. Tesla shareholders alleged the company's . Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. Dissertation The process can also be done to competitors to understand their competitive advantages and competitive strategies. Gupta, A. 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. inspiration, guidance, and understanding. Socialization and Beginner on boarding practices in other industries Shareholders believed Tesla's acquisition of SolarCity in 2016 was a bailout of a company owned by two of Musk's cousins, which was unfair to them. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. Analyse the companys price points and devise strategies that could be based on competition, value or cost. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. The trial has been postponed indefinitely and a new date has not yet been set. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. Enphase acquired Sofdesk in 2021 . Experience and actions of Tesla The Solarcity Acquisition Case Study Help. 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. Boston: Irwin McGrawHill. The business should recruit the employees that have the skills that match with the objectives of the business. It can include recommendations on how the organisation can work towards achieving these strategic objectives. It shows that one has been clarified with the HBR fundamentals on the topic. 2). 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 case-presiding judge Joseph Slights offered the following statement: Please know that this was not an easy decision to reach, given the time and resources I know you have dedicated to prepare for this trial, and the last minute nature of this decision. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. Tesla The Solarcity Acquisition Case Study Solution & Analysis Kim, W. C., & Mauborgne, R. (2004). All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. 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.