How it can improve the profitability in a given industry (Porter Value Chain Analysis) Now she felt disinterested to operate in the business. The Tesla acquisition of SolarCity closed in November 2016. The objective of the case should be focused on. (2015). Independence of judiciary It is critical for fair business practices. 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 . Perform standard concepts prior to the first day at business. The 4 elements of the marketing mix are Product, Price, Place and Promotions. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. Subscribe to our newsletter to receive news on update. The following goals can be fulfilled: This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. I believe that Solarcity Tesla can make a transition even by keeping these people on board. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. - Environmental regulations can impact the cost structure of Solarcity Tesla. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. During his testimony, contradicting those emails, Musk repeatedly argued that Solar City would have been able to raise capital even if it hadn't been acquired by Tesla. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. 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. Warning! Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. This is shown through a proper implementation framework. SolarCity was insolvent when Tesla paid $2.6 billion to buy it, lawsuit You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Moreover, I would have advised the following action plan: 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. The case-presiding judge Joseph Slights offered the following statement: Please know that this was not an easy decision to reach, given the time and resources I know you have dedicated to prepare for this trial, and the last minute nature of this decision. Amanda is strategy expert at Texas Business School . At EMBA PRO, we provide corporate level professional case study solution. This is doing the Tesla The SolarCity Acquisition Case Solution. Rastogi, N., & Trivedi, M. K. (2016). Analyse the companys distribution and reach. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. 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. Why you choose one course of action over the other. According to Zhichuan Frank Li, Tomiwa Ademidun of Tesla: The SolarCity Acquisition case study, Solarcity Tesla can use this trend to expand in adjacent areas Financial analysis, Manufacturing, Mergers & acquisitions. For Tesla The SolarCity Acquisition, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows: Baron, E. (2015). It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. Environment & PEST analysis: an approach to the external business environment. Academic writing has no room for errors and mistakes. Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. Hurley Dry-Fit Chino Short. 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.. 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. 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. Do not carry out that someone who helps the program in the start, will sustain to do so in future. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. Now That Tesla Has Approval to Buy SolarCity, Here's What a Combined These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. Kulkarni, N. (2018). Lastly, the overall rivalry or competition within the industry is analysed. 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. It helps in communicating the points directly and the direction one took. Here's how SolarCity became Tesla Energy: - money.yahoo.com Get this delivered to your inbox, and more info about our products and services. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. The second step of the solution is to come up with a business level strategy. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. in. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. Dogs are those strategic business units with low market share and low growth rate. Tesla CEO Musk goes to trial Monday on $2.6 billion SolarCity deal - CNBC Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. Save my name, email, and website in this browser for the next time I comment. Registering workers with a precise mixture of mental and social capabilities is a hard obligation. 1. Elon Musk wins shareholder lawsuit over Tesla-SolarCity deal - CNBC Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. These factors are also responsible for the future growth and challenges within the industry. 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. - Increase in Consumer Disposable Income Solarcity Tesla can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. Less interaction with new employee. PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Tesla: The SolarCity Acquisition case study. Where t = time period, in this case year 1, year 2 and so on. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. Panagiotou, G. (2003). The timeline also helps in understanding the continuous challenges that are being faced by the organisation. It is important to have more than one solution to the case study. Evidences Finally you should provide evidences to support your reasons. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. 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. 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. New York: Free Press. 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. All Rights Reserved. Develop and applied composed on boarding strategies. 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. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. 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. This is doing the Tesla The SolarCity Acquisition Case Solution. SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. Stay informed. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. ANSOFF matrix, environment, and growth-an interactive triangle. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. Blue ocean strategy. There was less possibility to be used in US. Specifying the people "on board" and the people that are not. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review 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. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) 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. Competitive advantage: creating and sustaining superior performance (Vol. We are here to help. Tesla: The SolarCity Acquisition will also provide insight into areas such as wordlist , strategy, leadership, sales and marketing, and negotiations. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. 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. 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. Almost all of the case studies contain well defined situations. If both are on the same page then it makes sense to enter, otherwise it doesnt. - 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. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. - 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. 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. 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. 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. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. What are external factors that are impacting the business environment (PESTEL Analysis) The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. Judge rules for Elon Musk in $13 bln lawsuit over Tesla-SolarCity deal 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. 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. The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. 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. In the Court of Chancery of The State of Delaware 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. Proposal, Question But not everyone is negative. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. 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. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. pv magazine offers daily updates of the latest photovoltaics news. Identify the relative market share of each strategic business unit. Tesla shareholders backed the acquisition, with an . 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. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. April 27 (Reuters) - Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk did not unjustly enrich himself when he guided the electric vehicle maker in 2016 to acquire SolarCity Corp, where. This could be mentioned at the start of the reading, the middle or the end. Free Management E-Books. Tesla: The Solarcity Acquisition - The Case Centre 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. Check your email The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. It's final: With no more barriers to the deal, Tesla is buying SolarCity. Going into 2016, SolarCity stock was already plunging and the company was going through . Accessed July 12, 2021. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. Tesla The SolarCity Acquisition Case Study Solution How They Teach the Case Method At Harvard Business School.