Business Strategy Review, 14(2), 8-10. Kotler, P., & Armstrong, G. (2010). Dogs are those strategic business units with low market share and low growth rate. 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. ANSOFF matrix, environment, and growth-an interactive triangle. The glaring omission from the January settlement agreement was Musk, who has every intention of proceeding to trial and defending himself and his company against the claims made against him and the $2.6 billion SolarCity purchase. Obviously, some approaches would work well than others, in the business. When Tesla The Solarcity Acquisition Case Study Solution joined the company, in the starting she felt the business was a little bit of an alienation. In addition, when you have possibilities to go over the issues with your supervisor, let him know that your subordinates were not working, so you may end up being the leader and at the very same time, you need to tell your subordinate to collaborate to meet the due dates and goals of the company. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. 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. If both are on the same page then it makes sense to enter, otherwise it doesnt. Evaluating Alternatives / SWOT Analysis of Tesla: The SolarCity Acquisition case study, STEP 5. It has to come from the data provided within the case study rather than data from outside world. Vice Chancellor Joseph R. Slights, who decided the case shortly before retiring, sided with Musk, writing: "Elon was more involved in the process than a conflicted fiduciary should be. Socialization and Beginner on boarding practices in other industries This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. Design and perform official orientation programs. r = discount rate or return that could be earned . And conflicts among other Tesla Board members were not completely neutralized. Specifying the people "on board" and the people that are not. Porter, M. E. (1985). There was less possibility to be used in US. "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. K, & Martin, D. (1998). This is known as the problem identification stage. 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To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. Identify the relative market share of each strategic business unit. Green Data Dash. The company should set up lunch and discovering sessions. 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. (1979, March). 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. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. 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. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. Journal of Strategy and Management, 3(3), 215-251. The Tesla The SolarCity Acquisition case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The next step is of understanding the company; its people, their priorities and the overall culture. 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.. Our model papers and solutions are purely meant for Management and Administrative Sciences Review, 2(2), 196-206. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Analyse the companys price points and devise strategies that could be based on competition, value or cost. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) Strategic attributes and performance in the BCG matrixA PIMS-based analysis of industrial product businesses. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. The organization can enter into new markets with new products. Please be mindful of our community standards. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. The article written below is not related to the actual case in discussion, It is for formatting purposes only. The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. Despite these challenges, Tesla's value has massively increased following the Acquisition.". inspiration, guidance, and understanding. Subscribe now to get your discount coupon *Only Consumer protection Different countries have different consumer protection laws. But not everyone is negative. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. Evidences Finally you should provide evidences to support your reasons. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. You can use Porter Five Forces to analyze the industry in which Solarcity Tesla operates in and what are the levers of profitability in those segments differentiation, Financial analysis, Manufacturing, Mergers & acquisitions. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. It includes the bargaining power of suppliers in an industry. PESTEL analysis of " Tesla: The SolarCity Acquisition" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors. Tesla shareholders alleged the company's . Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. Conclusions MBA & EMBA professionals should state their conclusions at the very start. Arranging events in a timeline allows one to predict the next few events that are likely to take place. The business can embrace any of the following interaction techniques for socializing practices: At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. 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 . A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. 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. Free Management E-Books. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. This is sample work and not applicable to real case study. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. 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. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. Usage creativity, and promote the process. Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Enphase acquired Sofdesk in 2021 . Less interaction with new employee. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The fresh graduates need face to face interaction with their managers. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. The organization can develop new products for the existing market. 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. Posted by Peter Williams on It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. This is known as the problem identification stage. This issue may be analysed for a manager or employee as well. 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. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Tesla The SolarCity Acquisition Case Study Solution that the business unit should focus on costs. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. What are external factors that are impacting the business environment (PESTEL Analysis) The company can challenge competitors from various companies. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. Place the order on the website to get your customized case solution done. Each of these resources are assessed in terms of the value it brings to the organization. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. 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. The organization can penetrate into existing markets with its existing products. The viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. Rastogi, N., & Trivedi, M. K. (2016). According to the plaintiffs, as Tesla's controlling stockholder, Elon caused Tesla's servile Board to approve the Acquisition of an insolvent SolarCity at a patently unfair price, following a highly flawed process, in order to bail out his 2). VRIO stands for Value of the resource that Solarcity Tesla possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Solarcity Tesla. As the name suggests Value Chain framework is developed by Michael Porter in 1980s and it is primarily used for analyzing Solarcity Tesla relative cost and value structure. The value chain and competitive advantage. This article is only an example By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. 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. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. Tesla bought SolarCity in 2016. Task beyond the command on the field. 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. Get this delivered to your inbox, and more info about our products and services. It also lays down the changes needed to be made as well as the assumptions in the process. New personnel ask enquiries about diverse functions of their tasks, corporation events, and concerns, and take an energetic part in producing the sense of their atmosphere. 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 . Save my name, email, and website in this browser for the next time I comment. Lastly, the overall rivalry or competition within the industry is analysed. Pickton, D. W., & Wright, S. (1998). Managers need to assess these factors even before entering the market. A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) - 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. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. So, in other words, she had ups and downs in the whole year that she had actually invested in the company. This could be mentioned at the start of the reading, the middle or the end. 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. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). It shows that one has been clarified with the HBR fundamentals on the topic. Principles of marketing. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. Perform standard concepts prior to the first day at business. Environment & PEST analysis: an approach to the external business environment. - 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. 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. 8 Tips to Help You Prepare for the Case Method. PESTLE Analysis. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. The business must arrange the corporate occasions, so the workers can connect with each other. Aug-09-2018. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. These solutions will also be the Tesla The SolarCity Acquisition case answers. The three step case study solution approach comprises The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. Analyse the companys promotion mix. 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. This content is protected by copyright and may not be reused. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. A rare resource is one that is not commonly used by competitors. Actionable and practical solutions can then be developed by keeping these factors into perspective. SolarCity was widely considered one of the best solar companies in the years leading up to . The second step of the solution is to come up with a business level strategy. 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. . Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. Hurley Dry-Fit Chino Short. 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. Management, 3rd edition. Hill, C., & Jones, G. (2010). Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. The internal resources of Tesla The SolarCity Acquisition are listed down. 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. 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. - 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. Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. How it can improve the profitability in a given industry (Porter Value Chain Analysis) 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. 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. All Rights Reserved. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. Please place the order on the website to get your own originally done case solution. As in training, she shared her expectations of discovering with bit enjoyable, and everybody began laughing screamingly, which was the habits she didn't expect in the business. Constant implementation on boarding. 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. 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. Required fields are marked *. This is shown through a proper implementation framework. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. It can further impact the cost of doing business in certain markets. 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. Accessed July 12, 2021. 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 . In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . VRIO and VRIN analysis can help the firm. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. Help, Academic Thank you for your email subscription. - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. Shareholders also argued, in the suit, that Musk unveiled a product that didn't yet function glass solar roof tiles to convince investors that there was real intellectual property and a product close to commercial viability in SolarCity. 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. This part consists of solutions that address issues faced by the organisation on a strategic level. Reasons At the second stage provide the reasons for the conclusions. 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. This would be the better way to engage all the newbies in the business. Academy of Management Journal, 25(3), 510-531. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. 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 . The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. A few of them were fulfilled, however some were mismatched with the company. Getting the responsibility for the effort and arrangement of implementation. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. Registering workers with a precise mixture of mental and social capabilities is a hard obligation. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. Got a confidential news tip? of the box and hire Case48 with BIG enough reputation. Management Decision, 50(8), 1396-1411. These factors are also responsible for the future growth and challenges within the industry. Most recent surveys suggest that around 76 % students try professional 2019 Texas Business School. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Understanding Business Processes, 50-66.

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