All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Texas Business School approach of case study analysis Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. 7 Effective Steps to Solve Case Study. please submit your details here. Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. Musk initially . The following are the very best practices that the business executes in socializing and on boarding of newbies: Order your custom solution now. Enhancement in socializing practices 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. 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. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. 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. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. The company should satisfy some goals for socialization practices. Porter, M.E. 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. With that said, the Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way.". Button waist with zip fly provides a classic look and feel . 8 Tips to Help You Prepare for the Case Method. 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 . - 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. Accordingly, we never encourage or endorse its direct As Director of Communications at LendEDU, Mike Brown uses data, usually from surveys and publicly available resources, to identify emerging personal finance trends and tell unique stories. This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. Consumer protection Different countries have different consumer protection laws. It shows that the details provided in the case have been properly analysed. Kotler, P., & Armstrong, G. (2010). 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. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Integrity, Essay Writing Hurley Dry-Fit Chino Short. The organization can penetrate into existing markets with its existing products. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Tesla CEO Elon Musk finds himself in the news quite often, from groundbreaking SpaceX launches to contentious tweets. Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. 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. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. 2 min read. There was less possibility to be used in US. Tesla is officially in the solar roof business, says Elon Musk. 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. A variety of actions might occur that might transform their "champ" position to "resister" position. BCG Growth Share Matrix is very valuable tool to analyze Solarcity Tesla strategic positioning in various sectors that it operates in and strategic options that are available to it. Less interaction with new employee. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. 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. Question: Refer to the Tesla SolarCity acquisition case study. 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. 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. By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. Men's chino short. 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. Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. The objective of the case should be focused on. 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. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). 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. 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. 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. Identifying the importance of these activities in the cost of the product and the differentiation they produce. The matter could be appealed to the Delaware Supreme Court. It also should look at the potential opportunities and threats that these competitors pose on the company. - Environmental regulations can impact the cost structure of Solarcity Tesla. VRIO and VRIN analysis can help the firm. Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. 2019 Texas Business School. 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. These are the threats that the industry faces due to new entrants. I believe that Solarcity Tesla can make a transition even by keeping these people on board. You can go about it in a similar way as is done for a finance and accounting case study. It can include recommendations on how the organisation can work towards achieving these strategic objectives. 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. Chat with us Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. Porter, M. E. (1985). The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. Net Cash In Flowtn / (1+r)tn. Obviously, some approaches would work well than others, in the business. 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). In the EU countries, firms are required to make special provision for privacy issues and other laws. Despite these challenges, Tesla's value has massively increased following the Acquisition.". The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. She understood that a lot of the important things had altered in the office in addition to the changes in the method she was, at the initiation of the job. 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. Bartol. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. 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. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. Principles of marketing. This shows how through a step-by-step procedure as to how the central issue can be resolved. In fact, Lynn . 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. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . Save my name, email, and website in this browser for the next time I comment. Analyse the companys promotion mix. Bringing SWOT into Focus. Further information on data privacy can be found in our Data Protection Policy. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. 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. 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. 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. Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. A long-running romance demands a great deal of dedication and lots of emotional financial investment . Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. and cannot be used for research or reference purposes. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. At EMBA PRO, we provide corporate level professional case study solution. The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . A greatly chaotic life goes into a very organized one. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. 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. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. ", 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%. The Tesla The SolarCity Acquisition case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. 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 value chain and competitive advantage. The third step of solving the Tesla The SolarCity Acquisition Case Study is Tesla The SolarCity Acquisition Financial Analysis. Create link between the companies and crucial stake holders 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. Management and Administrative Sciences Review, 2(2), 196-206. Case study solutions are career defining. Or how the marketing budget can be better spent using social media rather than traditional media. NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . 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. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. All Rights Reserved. Where t = time period, in this case year 1, year 2 and so on. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. What are the resources needed to increase profitability (VRIO Analysis) 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. If a resource is high on all of these 4, then it brings long-term competitive advantage. It includes the bargaining power of buyers in the industry. 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. Sign up for free newsletters and get more CNBC delivered to your inbox. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. - Property rights are also an area of concern for Solarcity Tesla as it needs to make significant Financial analysis, Manufacturing, Mergers & acquisitions infrastructure investment just to enter new market. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis. It helps in communicating the points directly and the direction one took. 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. Usage creativity, and promote the process. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. All personnel or all hands conferences. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. Free Management E-Books. Data is a real-time snapshot *Data is delayed at least 15 minutes. This issue may be analysed for a manager or employee as well. 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. WILMINGTON, Del. Getting the responsibility for the effort and arrangement of implementation. Tesla: The SolarCity Acquisition is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. The business should recruit the employees that have the skills that match with the objectives of the business. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. 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. Key Points. Elon Musk is testifying Monday morning in a lawsuit over Tesla's 2016 acquisition of SolarCity, a $2.6 billion transaction that a group of shareholders allege was a "bailout" of the failing . 'Tesla The Solarcity Acquisition' was one of World's topmost IT services corporations, with workplaces in many locations around the world. 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 CNBC. - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. Evidences Finally you should provide evidences to support your reasons. 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. 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. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Your email address will not be published. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Task beyond the command on the field. . Neither Tesla nor the directors gave comment on the partial settlement but court filings had Tesla officials defending the SolarCity acquisition by saying both the process and the price of this acquisition were inherently fair to Teslas shareholders.. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study. Strategic Management Theory: An Integrated Approach, Ninth Ed. It involves coming up with new and unique products or ideas through innovation. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. Academy of Management Journal, 25(3), 510-531. submission, reproduction, or any other misuse in any manner. At the initiation of the task, Tesla The Solarcity Acquisition Case Study Analysis felt it to be challenging to adjust in her regular with her work. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. 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. It is important to have more than one solution to the case study. 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. 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 . At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. 2023 CNBC LLC. Analyse the companys distribution and reach. Shareholders have sued Musk alleging that the deal . 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. Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. Required fields are marked *. It includes the bargaining power of suppliers in an industry. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. Nixon, J., & Helms, M. M. (2010). This is shown through a proper implementation framework. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations: The case study analysis and solution, and Tesla The SolarCity Acquisition case answers should be written down in the Tesla The SolarCity Acquisition case memo, clearly identifying which part shows what. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Solarcity Tesla can be market leader in the industry without being a dominant player or segment leader in any of the segment. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. Exploring SWOT analysis where are we now? She understood that every worker was passionate and worked proudly in the company so, she should also be happy to be a part of the business. We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. For example why the change effort failed in the case and what can be done to rectify it. No reply from the mangers in the brand-new office. Subscribe now to get your discount coupon *Only Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. 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. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. Had he lost, Musk could have had to pay upwards of $2 billion. : A review of academic research from the last decade. Corruption level Solarcity Tesla needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. Both companies had similar products and could be a strong strategic fit. They also alleged that due diligence by outside firms including Evercore was rushed to hide SolarCity's troubles. (2015). When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. Dissertation 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. View our privacy policy.
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