The objective of the case should be focused on. 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 good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. The third step of solving the Tesla The SolarCity Acquisition Case Study is Tesla The SolarCity Acquisition Financial Analysis. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. Proposal, Question This is doing the Tesla The SolarCity Acquisition Case Solution. The business must arrange the corporate occasions, so the workers can connect with each other. This article is only an example Sign up for free newsletters and get more CNBC delivered to your inbox. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. Solarcity Tesla should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets. Back in 2016, Tesla acquired solar panel manufacturer SolarCity, billing the $2.6 billion deal as an opportunity to create "the world's only vertically integrated sustainable energy company." 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. IIBMS. By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment. This is known as market development strategy. 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. Each resource is assessed whether it could be imitated by competition easily or not. Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . on WhatsApp for any queries. The task subordinate did not ask to do any work. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. It shows that the details provided in the case have been properly analysed. A Division of NBCUniversal. If a resource is only valuable, then its a competitive parity. Michael Porter Five Forces of Strategy are . . 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. The Tesla The SolarCity Acquisition case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. (1979, March). 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. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. In some HBR case studies, one may be required to analyse an issue at a department. Free Management E-Books. Why you choose one course of action over the other. Button waist with zip fly provides a classic look and feel . This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. She understood that a lot of the important things had altered in the office in addition to the changes in the method she was, at the initiation of the job. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. If its none, then it can be regarded as a competitive disadvantage. 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. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. Hurley Dry-Fit Chino Short. Obviously, some approaches would work well than others, in the business. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. Getting the responsibility for the effort and arrangement of implementation. Amanda is strategy expert at Texas Business School . Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. It also should look at the potential opportunities and threats that these competitors pose on the company. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. Dissertation It involves looking at the current market share of the company and its competitors. One-to-one discussions. The following are the very best practices that the business executes in socializing and on boarding of newbies: 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. If a resource is high on all of these 4, then it brings long-term competitive advantage. However, most Wall Street analysts were highly skeptical of the deal, voicing concerns that the merger would burden Tesla with excessive debt and that Musk was using the deal to advance his personal interests (at the expense of public shareholders) and bail out Tesla. 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. November 1, 2016. At this point, if any employee feels stressed due to his work and time limitation, he should immediately talk to the supervisor and share his issue. Management Decision, 50(8), 1396-1411. So, in other words, she had ups and downs in the whole year that she had actually invested in the company. Solarcity Tesla needs to adjust its marketing strategy accordingly. Analyse the companys products and devise strategies to improve the product offering of the company. Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The next step is of understanding the company; its people, their priorities and the overall culture. Order your custom solution now. 'Tesla The Solarcity Acquisition' was one of World's topmost IT services corporations, with workplaces in many locations around the world. Tesla's Plan to Buy SolarCity Has Major Flaws. You can download Excel Template of Case Study Solution & Analysis of Tesla: The SolarCity Acquisition, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, SWOT Analysis of Tesla: The SolarCity Acquisition, PESTEL /PEST / STEP Analysis of Tesla: The SolarCity Acquisition Case Study, 5C Marketing Analysis of Tesla: The SolarCity Acquisition, 4P Marketing Analysis of Tesla: The SolarCity Acquisition, Porter Five Forces Analysis and Solution of Tesla: The SolarCity Acquisition, Porter Value Chain Analysis and Solution of Tesla: The SolarCity Acquisition, Case Memo & Recommendation Memo of Tesla: The SolarCity Acquisition, Blue Ocean Analysis and Solution of Tesla: The SolarCity Acquisition, Marketing Strategy and Analysis Tesla: The SolarCity Acquisition, VRIO /VRIN Analysis & Solution of Tesla: The SolarCity Acquisition, PESTEL / STEP / PEST Analysis of Tesla: The SolarCity Acquisition, Case Study Solution of Tesla: The SolarCity Acquisition, SWOT Analysis and Solution of Tesla: The SolarCity Acquisition, Joe Mandato, Pete McNerney and Empathetics Case Study Solution & Analysis, Managing Diversity and Inclusion at Yelp (B) Case Study Solution & Analysis, Ethics and Integrity in Business: Navigating Ethical Risks and Transgressions in the Workplace (A) Case Study Solution & Analysis, Branding BY-HEALTH: The Value of Transparency Case Study Solution & Analysis, Club Sportif MAA: Staying Ahead of the Game Case Study Solution & Analysis, CEO Succession at Cisco, Video Supplement Case Study Solution & Analysis, Hisense's Internationalization Dilemma: Co-Operation with Loewe Case Study Solution & Analysis, Kangaroo Tail Winery Limited (C) Case Study Solution & Analysis, An Inside Perspective on Carbon Disclosure Case Study Solution & Analysis, The One Fund Case Study Solution & Analysis, Position among Retailers and Wholesalers companyname retail strategy, Yes, firm has strong relationship with retailers and wholesalers, Difficult to imitate though not impossible, Yes, over the years company has used it successfully, Ability to Attract Talent in Various Local & Global Markets, Yes, Solarcity Tesla strategy is built on successful innovation and localization of products, Yes, as talent is critical to firm's growth, Vision of the Leadership for Next Set of Challenges, Not based on information provided in the case. Question: Refer to the Tesla SolarCity acquisition case study. Consumer protection Different countries have different consumer protection laws. Analyse the companys price points and devise strategies that could be based on competition, value or cost. 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. And conflicts among other Tesla Board members were not completely neutralized. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. 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. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. The shareholders argued Musk breached his fiduciary duties, squandered Teslas assets and unjustly enriched himself by pushing to buy the money-losing solar company in which he was the biggest investor, according to Reuters. Despite these challenges, Tesla's value has massively increased following the Acquisition.". Your email address will not be published. inspiration, guidance, and understanding. The Tesla: The SolarCity Acquisition case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. 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. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. (SolarCity) and with Tesla's financial advisor for the deal without the knowledge of the Tesla Board. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. 1. This issue may be analysed for a manager or employee as well. Academy of Management Journal, 25(3), 510-531. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. - 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. All Rights Reserved. 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. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. BCG analysis should comprise not only growth share of industry & Solarcity Tesla business unit but also Solarcity Tesla - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Both companies had similar products and could be a strong strategic fit. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. - 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. At some point she had totally free riders in the groups who never worked, however took the credit, sometime she learned a lot and had good experience with the team. The solution consists of recommended strategies to overcome this central issue. The dismissal was based on the argument that Musk wasnt the controlling stockholder, since he didnt own a majority of the stock in either company. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. Even though the problem statement is essentially casecategory challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Solarcity Tesla, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more. All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. in. Now she felt disinterested to operate in the business. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Integrity, Essay Writing 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. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. The case solution first identifies the central issue to the TESLA THE SOLARCITY ACQUISITION - STUDENT SPREADSHEET case study, and the relevant stakeholders affected by this issue. 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. SolarCity filed for their IPO in 2012. The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. 8 Tips to Help You Prepare for the Case Method. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. Join our newsletter. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. 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. 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. It includes the bargaining power of buyers in the industry. The organization can enter into new markets with new products. 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. It is also important to understand what stakeholders are affected by the problem and how. Less interaction with new employee. By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! 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. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. Proposal, Assignment Writing The following goals can be fulfilled: BCG Growth Share Matrix is very valuable tool to analyze Solarcity Tesla strategic positioning in various sectors that it operates in and strategic options that are available to it. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. One is also required to provide how these recommendations would be implemented. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. Tesla bought SolarCity in 2016. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Concerns were raised over possible conflicts of interest, given that Musk owned over 20% of the stock, and sat on the board of directors of both companies. A variety of actions might occur that might transform their "champ" position to "resister" position. Do not carry out that someone who helps the program in the start, will sustain to do so in future. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. 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. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. Posted by Peter Williams on Place the order on the website to get your customized case solution done. View our privacy policy. VRIO and VRIN analysis can help the firm. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Both companies had similar products and could be a strong strategic fit. 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. The article written below is not related to the actual case in discussion, It is for formatting purposes only. Identify the market growth of each strategic business unit. 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. If the Merger does not occur, Tesla and SolarCity may incur these costs without realizing any of the benefits of the Merger being completed.In addition, if the Merger is not completed, Tesla and/or SolarCity may experience negative reactions from the financial markets and from their respective customers and employees.Tesla and/or SolarCity could also be subject to litigation related to any . This is doing the Tesla The SolarCity Acquisition Case Solution. This is shown through a proper implementation framework. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case Tesla: The SolarCity Acquisition. They also alleged that due diligence by outside firms including Evercore was rushed to hide SolarCity's troubles. 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. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Going into 2016, SolarCity stock was already plunging and the company was going through layoffs. 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.. Design and perform official orientation programs. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. The first step of the solution is to come up with a corporate level strategy for the organisation. 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 The company was headquartered in Fremont, California, before being purchased by Tesla Inc. in 2016 for $2.6 billion. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. A few of them were fulfilled, however some were mismatched with the company. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. I believe that Solarcity Tesla can make a transition even by keeping these people on board. She thought about the task assigned to her as a video game so that she might take pleasure in the work. This shows how through a step-by-step procedure as to how the central issue can be resolved. The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. There was less possibility to be used in US. Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 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. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) This part consists of solutions that address issues faced by the organisation on a strategic level. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. It helps in communicating the points directly and the direction one took. This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. For example why the change effort failed in the case and what can be done to rectify it. Environment & PEST analysis: an approach to the external business environment. 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.
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