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. "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. Key Points. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. The business must arrange the corporate occasions, so the workers can connect with each other. 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. This is known as the problem identification stage. The viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. 2 min read. In the EU countries, firms are required to make special provision for privacy issues and other laws. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. The organization can penetrate into existing markets with its existing products. Gupta, A. Principles of marketing. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. 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. 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. please submit your details here. If both are on the same page then it makes sense to enter, otherwise it doesnt. Providing personnel with as much right truths as possible, before hand they start functioning for the company. 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. Independence of judiciary It is critical for fair business practices. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Investors were skeptical of the deal from. Your email address will not be published. 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. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. 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. 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. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. Case study solutions are career defining. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. Elon Musk wins shareholder lawsuit over Tesla-SolarCity deal - CNBC This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. 7 Effective Steps to Solve Case Study. 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. The company was headquartered in Fremont, California, before being purchased by Tesla Inc. in 2016 for $2.6 billion. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. A fuzzy quantitative VRIO-based framework for evaluating organizational activities. 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. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. The first step of the solution is to come up with a corporate level strategy for the organisation. Perform standard concepts prior to the first day at business. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. If its none, then it can be regarded as a competitive disadvantage. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. 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. The next step is of understanding the company; its people, their priorities and the overall culture. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. Tesla: The SolarCity Acquisition case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. June 21, 2016 3:09 p.m. PT. Tesla's acquisition of SolarCity officially closed Monday morning, bringing together Elon Musk's electric vehicle company with the solar energy company founded by his cousins Lyndon and Peter . The three step case study solution approach comprises Freedom of Press is critical for fair trade and transparency. Both companies had similar products and could be a strong strategic fit. At the end of the very first year, she felt that the business had actually appointed her a job that was beyond her command, and the task was offered in the restricted time, in which it was difficult to finish the task. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. 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. It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. Solved VRIO / VRIN : Tesla: The SolarCity Acquisition Analysis 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. At other times, finding the issue is the job of the person analysing the case. 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. Porter, M.E. 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. This issue may be analysed for a manager or employee as well. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. Question Marks are those strategic business units with high market share and low market growth rate. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. 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. WILMINGTON, Del. Amanda is strategy expert at Texas Business School . Managers need to assess these factors even before entering the market. Join our newsletter. Net Cash In Flowtn / (1+r)tn. It reinforces the social companies that does not only form how people work together in the business, however also supplies the restrictions of the act, and the standards of conference. Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Solarcity Tesla should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets. To summarize, the following expectations were mismatched with the business: Shareholders have sued Musk alleging that the deal . Tesla The SolarCity Acquisition Case Analysis and Case Solution Rauch, P. (2007). The organization can develop new products for the existing market. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. 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. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. The trial has been postponed indefinitely and a new date has not yet been set. Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. Relative Weighted Average Market Share Vs Largest Competitor. No reply from the mangers in the brand-new office. 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. 8 Tips to Help You Prepare for the Case Method. Enphase acquired Sofdesk in 2021 . - Environmental regulations can impact the cost structure of Solarcity Tesla. - 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. 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. Tesla The Solarcity Acquisition - Case Study Solution Understanding Business Processes, 50-66. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. Be lively to the degree that who, when and what on boarding. This would be the better way to engage all the newbies in the business. Journal of Strategy and Management, 3(3), 215-251. These are usually in the form of strategies that the organisation can adopt. So, recommendations and suggestions need to address the strategy of the marketing department in this case. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. These solutions will also be the Tesla The SolarCity Acquisition case answers. New York: Free Press. Is this merger a good idea? Management Decision, 50(8), 1396-1411. K, & Martin, D. (1998). Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. Going into 2016, SolarCity stock was already plunging and the company was going through . It also should look at the potential opportunities and threats that these competitors pose on the company. Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. Exploring SWOT analysis where are we now? - 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. 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. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Strategic Change, 7(2), 101-109. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. 2019 Texas Business School. 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. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. 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. SolarCity filed for their IPO in 2012. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. It is also important to understand what stakeholders are affected by the problem and how. 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. Subscribe to our newsletter to receive news on update. A few of them were fulfilled, however some were mismatched with the company. It shows that one has been clarified with the HBR fundamentals on the topic. The following are the very best practices that the business executes in socializing and on boarding of newbies: Elon Musk's SolarCity Trial Nears Conclusion With $2 Billion at Stake Hill, C., & Jones, G. (2010). Sign up for free newsletters and get more CNBC delivered to your inbox. 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. Less interaction with new employee. 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. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. 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 . A Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Teslas $2.6 billion acquisition of SolarCity. 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 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. Rastogi, N., & Trivedi, M. K. (2016). Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. Create link between the companies and crucial stake holders Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. European Journal of Forest Research, 126(3), 413-420. 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. Bartol. Tesla: The SolarCity Acquisition will also provide insight into areas such as wordlist , strategy, leadership, sales and marketing, and negotiations. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. Environment & PEST analysis: an approach to the external business environment. 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 HBR case studies may present issues faced by a part of the organisation. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Solarcity Tesla is facing right now. - Consumer buying behavior and consumer buying process Solarcity Tesla should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Solarcity Tesla wants to enter. 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. Socializing of the company, or on boarding, is a treatment through which new workers transfer from being business outsiders, and end up being business insiders. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. ~ 0.0 Page). Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Elon Musk wraps testimony in SolarCity trial - CNBC SolarCity was insolvent when Tesla paid $2.6 billion to buy it, lawsuit Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. A Division of NBCUniversal. 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. We are expecting that more than 100 people may well gather in connection with this trial. Feedback pursuing may likewise support brand-new staff members. Tesla's Plan to Buy SolarCity Has Major Flaws. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. It involves looking at the current market share of the company and its competitors. 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. Free Management E-Books. 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. VRIO and VRIN analysis can help the firm. pv magazine offers daily updates of the latest photovoltaics news. Tesla bought SolarCity in 2016. Your email address will not be published. Re-allocating of the task to the new office. SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. Develop and applied composed on boarding strategies. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. Analyse the companys products and devise strategies to improve the product offering of the company. 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.. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) SolarCity 2023 Review (History, Lawsuits & Tesla Acquisition) - EcoWatch This is doing the Tesla The SolarCity Acquisition Case Solution. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. Analyse the companys promotion mix. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. correct email will be accepted, (Approximately Management, 3rd edition. Tesla Energy - Wikipedia Tesla CEO Elon Musk wrapped up his testimony before the Delaware Court of Chancery on Tuesday afternoon, after spending around 9 hours defending his company's 2016. There was less possibility to be used in US. Accordingly, we never encourage or endorse its direct How They Teach the Case Method At Harvard Business School. Most recent surveys suggest that around 76 % students try professional Academic writing has no room for errors and mistakes. Dogs are those strategic business units with low market share and low growth rate. Lastly, a timeline of the issues and events in the case needs to be made. Usage creativity, and promote the process. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market. 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. Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. With profits in the surplus of $6 billion in year, and a worldwide headcount of about 100,000, it was the business that many Worlds desired to end up being an employee of. Vice Chancellor Joseph R. Slights, who decided the case shortly before retiring, sided with Musk, writing: "Elon was more involved in the process than a conflicted fiduciary should be. Tesla is officially in the solar roof business, says Elon Musk. 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. Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. IIBMS. Lack of practical capabilities in the business, and the possible jobs to be untaken for a significant variety of time need to be avoided in the business. 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. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. If a country doesnt have independent judiciary then there is no point entry into such a country for business. Conclusions MBA & EMBA professionals should state their conclusions at the very start. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. Tesla shareholders alleged the company's acquisition of the solar installer amounted to a bailout, pushed through by Musk who sat on both company boards at the time. You can hire Texas Business School professinoals to revolutionize your strategy & business. Pearson education. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry.