Porter, M. E. (1985). It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. June 21, 2016 3:09 p.m. PT. Environment & PEST analysis: an approach to the external business environment. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. SolarCity 2023 Review (History, Lawsuits & Tesla Acquisition) - EcoWatch 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 business needs to supply a reasonable job preview to its workers, and corporation culture is alternative administrative approach to allow new employee socialization. please submit your details here. Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. Data is a real-time snapshot *Data is delayed at least 15 minutes. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. 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. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. 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.. It can include recommendations on how the organisation can work towards achieving these strategic objectives. A variety of actions might occur that might transform their "champ" position to "resister" position. 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. 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. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. Re-allocating of the task to the new office. 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. NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . 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 . - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. Rauch, P. (2007). 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. 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. 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. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. Made with sweat-wicking fabric. 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 . Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. If both are on the same page then it makes sense to enter, otherwise it doesnt. It needs to concentrate on reliability of the practices within the business. Catching up on the Elon Musk-Tesla-SolarCity acquisition case The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. Tesla Energy - Wikipedia Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. Another location, where Tesla The Solarcity Acquisition Case Study Help's expectation was mismatched with the business was enjoyable aspect. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. This is known as a diversification strategy. 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. pv magazine offers daily updates of the latest photovoltaics news. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. - 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 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. 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. Socialization and Beginner on boarding practices in other industries Don has been a part of three successful exits in the solar + storage industry. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) The trial started . 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. It also lays down the changes needed to be made as well as the assumptions in the process. Journal of Strategy and Management, 3(3), 215-251. 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. Constant implementation on boarding. This issue may be analysed for a manager or employee as well. This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. 2023 CNBC LLC. In the EU countries, firms are required to make special provision for privacy issues and other laws. I believe that Solarcity Tesla can make a transition even by keeping these people on board. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. 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 . It's final: With no more barriers to the deal, Tesla is buying SolarCity. The company was headquartered in Fremont, California, before being purchased by Tesla Inc. in 2016 for $2.6 billion. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. . 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. Tesla The Solarcity Acquisition Case Study Solution + Analysis The level of tariffs will determine the viability of the business model that the firm is contemplating. The following are the very best practices that the business executes in socializing and on boarding of newbies: It includes the bargaining power of suppliers in an industry. Solved VRIO / VRIN : Tesla: The SolarCity Acquisition Analysis Don Harris - Vice President of Software Sales - FlexGen | LinkedIn 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. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. The value chain and competitive advantage. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. 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. to get Coupon Code. Solarcity Tesla needs to adjust its marketing strategy accordingly. Strategic Change, 7(2), 101-109. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations. 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. Analyse the companys promotion mix. The acquisition amounted, they argue, to a bail-out by one of his start-ups (Tesla) of another one (SolarCity), which damaged the formerand thus their investments. The article written below is not related to the actual case in discussion, It is for formatting purposes only. This is known as market development strategy. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Now That Tesla Has Approval to Buy SolarCity, Here's What a Combined Company Might Look Like 70 On November 17, Tesla shareholders approved the acquisition of SolarCity in an all-stock. The solution consists of recommended strategies to overcome this central issue. 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. Strategies can be devised to improve the availability of the companys products. 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. "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. It includes the threat of substitute products. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. Be lively to the degree that who, when and what on boarding. 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. 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. 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. Porter, M.E. Pearson education. She made numerous buddies, delighted in the training classes and learned a lot about behavior and the mindset that one ought to have at the office. Solved Refer to the Tesla SolarCity acquisition case | Chegg.com This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. 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 . The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. 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. This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. All Rights Reserved. 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. 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 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. Tesla The SolarCity Acquisition should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. Elon Musk defends Tesla's $2.6B acquisition of SolarCity in Delaware Enphase acquired Sofdesk in 2021 . The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. This is sample work and not applicable to real case study. 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. Additionally, Musk and his cousins, who served as CEO and CTO at SolarCity, founded the solar installer in 2006, while Musk served as the companys chairman. You can hire Texas Business School professinoals to revolutionize your strategy & business. (2015). Management and Administrative Sciences Review, 2(2), 196-206. 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. 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. Try to make very first day at company unexpected. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. Mason, OH: South-Western, Cengage Learning. The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Get this delivered to your inbox, and more info about our products and services. ANSOFF matrix, environment, and growth-an interactive triangle. Tesla's Musk Defended SolarCity Deal in Delaware Court - Investopedia In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. Tesla: The SolarCity Acquisition - Harvard Business Publishing The three step case study solution approach comprises While, unsuccessful socialization can cause impulsive with drawl of personnel from their new jobs or to their incompetence on the task, which often resumes the work and choice phase for the business, causing increased cost of time and resources. Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. 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. Each of these resources are assessed in terms of the value it brings to the organization. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. Tesla The SolarCity Acquisition Case Study Solution 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. Tesla The SolarCity Acquisition Case Analysis and Case Solution Evidences should be both compelling and consistent. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. 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 . Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. 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 . Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. The company should set up lunch and discovering sessions. ~ 0.0 Page). Proposal, Assignment Writing 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. This is known as market penetration strategy. In a nutshell, if I was in the location of Tesla The Solarcity Acquisition Case Study Solution, I would have sustained to stay in the business with possible action plan in her scenarios. Amanda is strategy expert at Texas Business School . It can further impact the cost of doing business in certain markets. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. Judge rules for Elon Musk in $13 bln lawsuit over Tesla-SolarCity deal The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. 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. One more location, where she found that her expectation was mismatched with the business was team effort. Given that, workers are slowly fluctuating tasks to deal with brand-new business, socialization is very important just as much for the workers as it is for the companies. Both companies had similar products and could be a strong strategic fit. This part consists of solutions that address issues faced by the organisation on a strategic level. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. To summarize, the following expectations were mismatched with the business: The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. Hurley Dry-Fit Chino Short. Elon Musk wins shareholder lawsuit over Tesla-SolarCity deal - CNBC 7 Effective Steps to Solve Case Study. Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. Specifying the people "on board" and the people that are not. It shows that one has been clarified with the HBR fundamentals on the topic. Aug-09-2018. Conclusions MBA & EMBA professionals should state their conclusions at the very start. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. 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. 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. The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! Accessed July 12, 2021. Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . Actionable and practical solutions can then be developed by keeping these factors into perspective. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. How to calculate Weighted Average Market Share using BCG Growth Share Matrix In other words, the synergistic integration that Tesla hoped for is still a work in progress. SolarCity shareholders will receive 0.11 share of Tesla, worth $20.75 based on Thursday's closing price, for each SolarCity share, making the deal worth about $2.1 billion. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. Do not carry out that someone who helps the program in the start, will sustain to do so in future. 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. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. Case solution for tesla the solarcity acquisition - Issuu Kotler, P., & Armstrong, G. (2010).