Michael Porter Five Forces of Strategy are . Warning! She strove to clear all the evaluation that the business draws from the fresh graduates. Socialization and Beginner on boarding practices in other industries Experience and actions of Tesla The Solarcity Acquisition Case Study Help. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. It is important to have more than one solution to the case study. 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. 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 . Here's what every major analyst thought of Tesla's investor day, Top auto analyst Jonas stays bullish on Tesla, says investor day showed competition can't keep up, JPMorgan downgrades electric vehicle stock Nio, says expectations are too high. 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. "Should be able to do all those before the shareholder vote. I believe that Solarcity Tesla can make a transition even by keeping these people on board. At the starting of the job, each staff member has some expectations with the business, which relate to the values, culture and the lifestyle of the business. Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. Pearson education. : A review of academic research from the last decade. All the guidelines and guidelines, work concern, documents, paperwork and the reporting day were a bit laborious. 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. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. The following goals can be fulfilled: Strategies can be devised to improve the availability of the companys products. Tesla's Risky SolarCity Acquisition Wins Shareholder Approval We want to hear from you. We are expecting that more than 100 people may well gather in connection with this trial. "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. Rastogi, N., & Trivedi, M. K. (2016). When the trial eventually gets underway, how the outspoken and brash Musk handles his testimony and behavior will likely be a key determinant of the outcome. Strategic Change, 7(2), 101-109. Task beyond the command on the field. Catching up on the Elon Musk-Tesla-SolarCity acquisition case Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. The organization can enter new markets with its existing products. Elon Musk defends SolarCity deal against shareholder lawsuit | Tesla At EMBA PRO, we provide corporate level professional case study solution. TESLA THE SOLARCITY ACQUISITION - STUDENT SPREADSHEET Case Analysis and 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. By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. (2015). Getting the responsibility for the effort and arrangement of implementation. 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. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. Tesla CEO Elon Musk is expected in court on Monday to defend his role in Tesla's $2.6 billion acquisition of SolarCity in 2016. Hurley Dry-Fit Chino Short. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. Tesla: The SolarCity Acquisition - Harvard Business Publishing Tesla officially acquires SolarCity TechCrunch 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. Our model papers and solutions are purely meant for Relative Weighted Average Market Share Vs Largest Competitor. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. Another five of Teslas directors were direct or indirect owners of SolarCity stock. What are external factors that are impacting the business environment (PESTEL Analysis) The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Academy of Management Journal, 25(3), 510-531. SolarCity filed for their IPO in 2012. 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. It has to come from the data provided within the case study rather than data from outside world. Don Harris - Vice President of Software Sales - FlexGen | LinkedIn Tesla Investor Day 2023: Musk's 'Master Plan' Sees Sustainable Energy But not everyone is negative. 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. Stars are those strategic business units with high market share and high market growth rate. Because according to my understanding about the city of World, the competitors is very high in IT corporations, and likewise it is really tough to get utilized in these sectors, so if someone gets used in such a famous company, she should stay with it whether it is field related to work or not. 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 company can challenge competitors from various companies. This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. Green Data Dash. 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. 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. A Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Teslas $2.6 billion acquisition of SolarCity. 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. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The next step is of understanding the company; its people, their priorities and the overall culture. Both companies had similar products and could be a strong strategic fit. 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. In other words, the synergistic integration that Tesla hoped for is still a work in progress. Please be mindful of our community standards. Business Strategy Review, 14(2), 8-10. Place the order on the website to get your customized case solution done. At the end of the first year, she felt that the association with the business was getting bit worse because she felt that she was designated the project that was beyond her command, with extremely restricted time and there was no one to help her out in the task. The steps to be followed in this analysis is as follows: The strategies identified from the Tesla The SolarCity Acquisition BCG matrix and included in the case pdf. The first step of the solution is to come up with a corporate level strategy for the organisation. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. 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. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. The abilities they gain from their training session must be implemented in their work, and for that, the manager is responsible to aware them about their mindset and lacking at field work. Porter, M.E. 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. 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. All Rights Reserved. Home >> Ivey >> Tesla The Solarcity Acquisition. Shareholders have sued Musk alleging that the deal . Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. The second step of the solution is to come up with a business level strategy. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Pickton, D. W., & Wright, S. (1998). Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. The trial has been postponed indefinitely and a new date has not yet been set. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. The acquisition is a key improvement on the Solarcity deal. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Is this merger a good idea? Constant implementation on boarding. To tackle the menace of corruption a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm. 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. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. 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. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. 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. NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . 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 company's major goal must be to change as many 'resisters' as possible through various robust interaction networks and circulation of information, and for those you can not keep them involved in this program. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. Evidences Finally you should provide evidences to support your reasons. External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. Gupta, A. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Panagiotou, G. (2003). 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 thought about the task assigned to her as a video game so that she might take pleasure in the work. The company should set up lunch and discovering sessions. 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 . Management, 3rd edition. Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. Tesla's Plan to Buy SolarCity Has Major Flaws. 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. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. (2013a). We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. With profits in the surplus of $6 billion in year, and a worldwide headcount of about 100,000, it was the business that many Worlds desired to end up being an employee of. Lastly, a timeline of the issues and events in the case needs to be made. Join our newsletter. Published by HBR Publications. Hill, C., & Jones, G. (2010). - 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. 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. It has been estimated that its shares are worth as much as $1.2 billion and its shares in the Solarcity Group are valued at $100 million. Reasons At the second stage provide the reasons for the conclusions. Going into 2016, SolarCity stock was already plunging and the company was going through . 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 Value chain analysis of Tesla The SolarCity Acquisition helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Why you choose one course of action over the other. Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Or how the marketing budget can be better spent using social media rather than traditional media. What are the resources needed to increase profitability (VRIO Analysis) WILMINGTON, Del. Tesla's Musk Defended SolarCity Deal in Delaware Court - Investopedia These are the threats that the industry faces due to new entrants. 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. correct email will be accepted, (Approximately VRIO and VRIN analysis can help the firm. 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. How to calculate Weighted Average Market Share using BCG Growth Share Matrix The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. 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. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. This is known as a diversification strategy. Strategic Management Theory: An Integrated Approach, Ninth Ed. There was less possibility to be used in US. During the trial, Musk said the SolarCity deal was part of his "master plan," which he had written in 2006 and was meant to accelerate the advent of sustainable energy.