Join our newsletter. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. What are the resources needed to increase profitability (VRIO Analysis) 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. 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. Elon Musk took the stand on Monday to defend Tesla's 2016 acquisition of SolarCity against a lawsuit by shareholders seeking to recoup the $2.6bn the company paid for the ailing solar panel . Tesla CEO Elon Musk finds himself in the news quite often, from groundbreaking SpaceX launches to contentious tweets. 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. Lastly, the overall rivalry or competition within the industry is analysed. Management Decision, 50(8), 1396-1411. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . 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. 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. The HBR case studies may present issues faced by a part of the organisation. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Principles of marketing. The task subordinate did not ask to do any work. June 21, 2016 3:09 p.m. PT. Bartol. No reply from the mangers in the brand-new office. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. Integrity, Essay Writing We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. This is known as the problem identification stage. in. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf. Both companies had similar products and could be a strong strategic fit. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. Because according to my understanding about the city of World, the competitors is very high in IT corporations, and likewise it is really tough to get utilized in these sectors, so if someone gets used in such a famous company, she should stay with it whether it is field related to work or not. After the $2.6 billion deal went through for Tesla to buy SolarCity, Tesla shareholders filed a lawsuit against Tesla/SolarCity/Musk and sought $2.6 billion in damages or the cost of the SolarCity acquisition. These are the threats that the industry faces due to new entrants. The acquisition is a key improvement on the Solarcity deal. All your payments are secure with Paypal security. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. 8 Tips to Help You Prepare for the Case Method. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. It shows that one has been clarified with the HBR fundamentals on the topic. Strategic attributes and performance in the BCG matrixA PIMS-based analysis of industrial product businesses. A rare resource is one that is not commonly used by competitors. In these cases, recommendations need to be made for these people. Solarcity Tesla needs to adjust its marketing strategy accordingly. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. With that said, the Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way.". As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. The following are the very best practices that the business executes in socializing and on boarding of newbies: Highlight the pros and cons of the deal. - 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. The four-hour presentation was long on Musk's vision to build the next phase of Tesla's growth around a sustainable energy future by moving into products like heat pumps, but short on any . Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. Strategies can be devised to improve the availability of the companys products. PESTLE Analysis. This part consists of solutions that address issues faced by the organisation on a strategic level. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. What's swot in strategic analysis? Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. 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. 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. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. 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. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It includes the bargaining power of buyers in the industry. It's final: With no more barriers to the deal, Tesla is buying SolarCity. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. These can usually be developed using the company history is provided in the case. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis. 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. Service, Dissertation Musk denied that he placed any pressure on the Tesla board to go through with the transaction. 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. The company should keep it in mind, while carrying out such steps. This is doing the Tesla The SolarCity Acquisition Case Solution. All personnel or all hands conferences. . Another location, where Tesla The Solarcity Acquisition Case Study Help's expectation was mismatched with the business was enjoyable aspect. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. The following goals can be fulfilled: 2023 CNBC LLC. Required fields are marked *. Rauch, P. (2007). 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. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). All Rights Reserved. Tesla bought SolarCity in 2016. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. Strategic Management Theory: An Integrated Approach, Ninth Ed. You need to make efforts to block them out, and must focus on your work. 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 . Proposal, Assignment Writing The objective of the case should be focused on. Analyse the companys price points and devise strategies that could be based on competition, value or cost. 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. Going into 2016, SolarCity stock was already plunging and the company was going through . The steps to be followed in this analysis is as follows: The strategies identified from the Tesla The SolarCity Acquisition BCG matrix and included in the case pdf. The company can challenge competitors from various companies. In other words, the synergistic integration that Tesla hoped for is still a work in progress. Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. Finally which business to continue, where to invest further and from which to get out (BCG Growth Share 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. (SolarCity) and with Tesla's financial advisor for the deal without the knowledge of the Tesla Board. The organization can enter new markets with its existing products. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Design and perform official orientation programs. 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. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. Both companies had similar products and could be a strong strategic fit. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. Aug-09-2018. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. Investors were skeptical of the deal from. (2013). 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. - 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. This is doing the Tesla The SolarCity Acquisition Case Solution. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. A greatly chaotic life goes into a very organized one. VRIO and VRIN analysis can help the firm. He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. 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. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Panagiotou, G. (2003). Kotler, P., & Armstrong, G. (2010). The shareholders also alleged that Musk controlled the board of Tesla, even though he appeared to recuse himself from some deal negotiations concerning SolarCity. 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. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. 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. A variety of actions might occur that might transform their "champ" position to "resister" position. 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. - 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. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. You can hire Texas Business School professinoals to revolutionize your strategy & business. 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. Question Marks are those strategic business units with high market share and low market growth rate. Identify the market growth of each strategic business unit. Enhancement in socializing practices Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. SolarCity filed for their IPO in 2012. Had he lost, Musk could have had to pay upwards of $2 billion. Registering workers with a precise mixture of mental and social capabilities is a hard obligation. Don has been a part of three successful exits in the solar + storage industry. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. Tesla's Plan to Buy SolarCity Has Major Flaws. The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. The fresh graduates need face to face interaction with their managers. 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. Elon Musk Testifies To Defend Tesla's $2.6 Billion Acquisition of SolarCity in Shareholder Lawsuit. This is shown through a proper implementation framework. 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. 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. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. 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. Direct and prospective action plan The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. 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 . That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. 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. Kim, W. C., & Mauborgne, R. (2004). 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. Market overview: Large-scale storage systems, Market overview: Microgrid control systems, The smarter E Europe 2019 special edition, Energy Storage North America Special 2018, Clean Power Research: Solar data solutions to maximize PV project performance. Sign up for free newsletters and get more CNBC delivered to your inbox. Solution, Assignment Writing It also should look at the potential opportunities and threats that these competitors pose on the company. Key Points. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. Blue ocean strategy. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. 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. Help, Academic The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. Moreover, I would have advised the following action plan: 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. Develop and applied composed on boarding strategies. Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. Mason, OH: South-Western, Cengage Learning. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. Chat with us How to calculate Weighted Average Market Share using BCG Growth Share Matrix You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. A long-running romance demands a great deal of dedication and lots of emotional financial investment . Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. . - 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. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. In some HBR case studies, one may be required to analyse an issue at a department. 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. Usage creativity, and promote the process. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. : A review of academic research from the last decade. Socialization and Beginner on boarding practices in other industries 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. The organization can develop new products for the existing market. Do not carry out that someone who helps the program in the start, will sustain to do so in future. A Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Teslas $2.6 billion acquisition of SolarCity. 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. 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. 2019 Texas Business School. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. Why you choose one course of action over the other. Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. Help, Academic 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. Management and Administrative Sciences Review, 2(2), 196-206. 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. 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 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. There was less possibility to be used in US. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. Warning! Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. Journal of Strategy and Management, 3(3), 215-251. Going into 2016, SolarCity stock was already plunging and the company was going through layoffs. The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. 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 the strategic analysis of Tesla The SolarCity Acquisition. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. It shows that the details provided in the case have been properly analysed. 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. 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. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. 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. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. Tesla shareholders alleged the company's .