tesla the solarcity acquisition case solution

This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. This could be mentioned at the start of the reading, the middle or the end. (2013). Exploring SWOT analysis where are we now? 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. 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. It needs to concentrate on reliability of the practices within the business. If you have BIG dreams to score BIG, think out Identifying the importance of these activities in the cost of the product and the differentiation they produce. ", 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 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. Each resource is assessed in terms of how rare it is. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. Aug-09-2018. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. 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. 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. Dogs are those strategic business units with low market share and low growth rate. The Tesla acquisition of SolarCity closed in November 2016. But the share price dropped for both of companies when SolarCity accepted the 2.6 $ billion acquisition offer which counted as half of its value one year ago. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Green Data Dash. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis. - According to Zhichuan Frank Li, Tomiwa Ademidun . 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. - 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. Kim, W. C., & Mauborgne, R. (2004). Tesla shareholders backed the acquisition, with an . 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. The objective of the case should be focused on. How it can improve the profitability in a given industry (Porter Value Chain Analysis) She thought about the task assigned to her as a video game so that she might take pleasure in the work. 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. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. Nixon, J., & Helms, M. M. (2010). academic writing services at least once in their lifetime! - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. Pearson education. 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. Going into 2016, SolarCity stock was already plunging and the company was going through . Academic writing has no room for errors and mistakes. We want to hear from you. Consumer protection Different countries have different consumer protection laws. Investors were skeptical of the deal from. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. A few of them were fulfilled, however some were mismatched with the company. Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. She strove to clear all the evaluation that the business draws from the fresh graduates. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. The organization can enter new markets with its existing products. One additional director, Brad Buss, is no longer part of Teslas board, but was at the time of the deal and was also part of the settlement. Conclusions MBA & EMBA professionals should state their conclusions at the very start. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. On boarding discusses the treatment that helps brand-new personnels that get the info, abilities, and actions which are needed to thrive in their new corporation. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. (SolarCity) and with Tesla's financial advisor for the deal without the knowledge of the Tesla Board. On June 21, 2016, Tesla, a top producer of electric vehicles, posted on its blog that it has made an offer to purchase SolarCity Corporation, a top producer of solar panels, in an all-stock deal that might be worth more than $2.5 billion in Tesla stock. Proposal, Assignment Writing Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Feel free to connect with us if you need business research. Once all the factors mentioned in the Tesla: The SolarCity Acquisition case study are organized based on SWOT analysis, just remove the non essential factors. Relative Weighted Average Market Share Vs Largest Competitor. Obviously, some approaches would work well than others, in the business. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. With that said, the Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way.". 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These are the threats that the industry faces due to new entrants. A greatly chaotic life goes into a very organized one. To summarize, the following expectations were mismatched with the business: 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 . Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. 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. Task beyond the command on the field. Analyse the companys promotion mix. 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. 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. Back in 2016, Tesla acquired solar panel manufacturer SolarCity, billing the $2.6 billion deal as an opportunity to create "the world's only vertically integrated sustainable energy company." A long-running romance demands a great deal of dedication and lots of emotional financial investment . "Should be able to do all those before the shareholder vote. Socialization and Beginner on boarding practices in other industries Competitive advantage: creating and sustaining superior performance (Vol. 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. 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. During the trial, Musk said the SolarCity deal was part of his "master plan," which he had written in 2006 and was meant to accelerate the advent of sustainable energy. Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). 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. Order your custom solution now. This is known as a diversification strategy. If you need help with something similar, To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. 2). The second step of the solution is to come up with a business level strategy. Amanda is strategy expert at Texas Business School . Shareholders have sued Musk alleging that the deal . 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. Fitted waist with belt loops. 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. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. It helps in communicating the points directly and the direction one took. 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. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. Save my name, email, and website in this browser for the next time I comment. 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. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. Analyse the companys products and devise strategies to improve the product offering of the company. 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. - Inflation rate is one of the key criteria to consider for Solarcity Tesla before entering into a new market. 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. 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. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. ANSOFF matrix, environment, and growth-an interactive triangle. It is also important to understand what stakeholders are affected by the problem and how. The article written below is not related to the actual case in discussion, It is for formatting purposes only. For example why the change effort failed in the case and what can be done to rectify it. The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. 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. This is doing the Tesla The SolarCity Acquisition Case Solution. 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 . You can go about it in a similar way as is done for a finance and accounting case study. This article is only an example 2023 CNBC LLC. 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. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. It has been estimated that its shares are worth as much as $1.2 billion and its shares in the Solarcity Group are valued at $100 million. Integrity, Essay Writing 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 dismissal was based on the argument that Musk wasnt the controlling stockholder, since he didnt own a majority of the stock in either company. And while I certainly would not characterize this trial, or any other trial, as non-essential, it is not expedited and no irreparable harm will flow from an adjournment.. Hurley Dry-Fit Chino Short. Hill, C., & Jones, G. (2010). Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. Most recent surveys suggest that around 76 % students try professional Solution, Assignment Writing "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. Musk initially . Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. It includes the bargaining power of buyers in the industry. - High customer loyalty & repeat purchase among existing customers Solarcity Tesla old customers are still loyal to the firm even though it has limited success with millennial. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. Direct and prospective action plan Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. SolarCity was widely considered one of the best solar companies in the years leading up to . When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. Where t = time period, in this case year 1, year 2 and so on. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. 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. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Elon Musk Testifies To Defend Tesla's $2.6 Billion Acquisition of SolarCity in Shareholder Lawsuit. The company was headquartered in Fremont, California, before being purchased by Tesla Inc. in 2016 for $2.6 billion. The organization can penetrate into existing markets with its existing products. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. Government policies have significant impact on the business environment of any country. If a country doesnt have independent judiciary then there is no point entry into such a country for business. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) Among the significant problem with the business is the lack of communication and support from the managers in the business. 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.. - 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. It shows that one has been clarified with the HBR fundamentals on the topic. 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. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. 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. Help, Academic Both companies had similar products and could be a strong strategic fit. The level of tariffs will determine the viability of the business model that the firm is contemplating. If both are on the same page then it makes sense to enter, otherwise it doesnt. In some HBR case studies, one may be required to analyse an issue at a department. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. Create link between the companies and crucial stake holders 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. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. The internal resources of Tesla The SolarCity Acquisition are listed down. 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. 'Tesla The Solarcity Acquisition' was one of World's topmost IT services corporations, with workplaces in many locations around the world. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. Enphase acquired Sofdesk in 2021 . Do not carry out that someone who helps the program in the start, will sustain to do so in future. If a resource is only valuable, then its a competitive parity. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. 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 fresh graduates need face to face interaction with their managers. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. Elon Musk was acting as a proper chief executive officer as Tesla Inc. weighed the purchase of power provider SolarCity in 2016, his longtime ally and fellow Tesla director . - 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. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. Rastogi, N., & Trivedi, M. K. (2016). The first step of the solution is to come up with a corporate level strategy for the organisation. Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. Academy of Management Journal, 25(3), 510-531. External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. 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. Subscribe now to get your discount coupon *Only The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. European Journal of Forest Research, 126(3), 413-420. To tackle the menace of corruption a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm. This is doing the Tesla The SolarCity Acquisition Case Solution. IIBMS. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. 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. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: 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. What are external factors that are impacting the business environment (PESTEL Analysis) Both companies had similar products and could be a strong strategic fit. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. Each of these resources are assessed in terms of the value it brings to the organization. Bartol. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. Key Points. Question Marks are those strategic business units with high market share and low market growth rate. - Demographic shifts in the economy are also a good social indicator for Solarcity Tesla to predict not only overall trend in market but also demand for Solarcity Tesla product among its core customer segments. How to calculate Weighted Average Market Share using BCG Growth Share Matrix In every corporation, it is important to practice a variety of approaches to socialize BPI policies. Stay informed. 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. Info gained from administrators and coworkers is a primary part of finding out about the business's brand-new environment. Accordingly, we never encourage or endorse its direct Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. This is known as market development strategy. Many believe that the massive deal was not properly scrutinized and SolarCitys financial peril was hidden by a rushed analysis of the companys finances by an outside firm. Arranging events in a timeline allows one to predict the next few events that are likely to take place. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. 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. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. This can be done by using company history. Button waist with zip fly provides a classic look and feel . Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . The solution may state that objectives that these people need to achieve and how these objectives would be achieved. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. Strategic Management Theory: An Integrated Approach, Ninth Ed. Try to make very first day at company unexpected. Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. 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. It also helps one in developing the case study solutions. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization.

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