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Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. Investors were skeptical of the deal from. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. Develop and applied composed on boarding strategies. (2013a). - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. 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. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. 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. All your payments are secure with Paypal security. Business Strategy Review, 14(2), 8-10. Enhancement in socializing practices When Tesla bought SolarCity in November 2016, Elon Musk billed the deal as a match made in green energy heaven: Combine a hot electric car company with the nation's then-largest provider of. 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. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. pv magazine offers daily updates of the latest photovoltaics news. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Panagiotou, G. (2003). The company should satisfy some goals for socialization practices. So, in other words, she had ups and downs in the whole year that she had actually invested in the company. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. 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. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. 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. Help, Academic 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. 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. Actionable and practical solutions can then be developed by keeping these factors into perspective. Your email address will not be published. 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. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. 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. Cash Cows are those strategic business units with high market share and low market growth rate. 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. The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. It also lays down the changes needed to be made as well as the assumptions in the process. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. In the Texas Business School, Tesla: The SolarCity Acquisition case study solution following strategic tools are used - 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. All the guidelines and guidelines, work concern, documents, paperwork and the reporting day were a bit laborious. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. What are the resources needed to increase profitability (VRIO Analysis) 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. 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. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. Be lively to the degree that who, when and what on boarding. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. Managers need to assess these factors even before entering the market. All Rights Reserved. Try to make very first day at company unexpected. Rastogi, N., & Trivedi, M. K. (2016). The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. 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. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. At other times, finding the issue is the job of the person analysing the case. These factors are also responsible for the future growth and challenges within the industry. The conferences were chockfull with discussions from diverse divisions of the company, and comprised organizational details, standards, worths, and the life of the employees in the company, with interactive games. 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. This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. SolarCity was widely considered one of the best solar companies in the years leading up to . The business should recruit the employees that have the skills that match with the objectives of the business. Identify the relative market share of each strategic business unit. Department and business department conferences. 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. 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. Our model papers and solutions are purely meant for 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. 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. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. The acquisition is a key improvement on the Solarcity deal. 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. 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. Obviously, some approaches would work well than others, in the business. Data is a real-time snapshot *Data is delayed at least 15 minutes. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. According to emails that were part of evidence in the trial, Musk wrote an e-mail to SolarCity CFO Brad Buss on Sept. 18, 2016, saying that to get Tesla investors on board with the deal, SolarCity needed to get a handle on its liquidity problem and sign a letter of intent for a contract with Panasonic. 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. I believe that Solarcity Tesla can make a transition even by keeping these people on board. June 21, 2016 3:09 p.m. PT. Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. Amanda is strategy expert at Texas Business School . What's swot in strategic analysis? The task subordinate did not ask to do any work. Porter, M. E. (2001). Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Among the significant problem with the business is the lack of communication and support from the managers in the business. Analyse the companys products and devise strategies to improve the product offering of the company. Stay informed. Making matters worse, it was alleged that Musk knew of SolarCitys financial troubles at the time of the deal so it appeared to be more of a bailout than an acquisition. 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. But not everyone is negative. Create link between the companies and crucial stake holders It needs to concentrate on reliability of the practices within the business. 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. 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. The matter could be appealed to the Delaware Supreme Court. 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. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so. - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. Competitive advantage: creating and sustaining superior performance (Vol. The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. Please place the order on the website to get your own originally done case solution. The fresh graduates need face to face interaction with their managers. 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. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. Providing personnel with as much right truths as possible, before hand they start functioning for the company. Subscribe now to get your discount coupon *Only Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. 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. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. 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. Warning! Hill, C., & Jones, G. (2010). 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. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. The third step is not compulsory but depends from case to case. Pickton, D. W., & Wright, S. (1998). 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. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. (1979, March). One additional director, Brad Buss, is no longer part of Teslas board, but was at the time of the deal and was also part of the settlement. Tesla bought SolarCity in 2016. 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." 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 . - 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. 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. 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. These are the threats that the industry faces due to new entrants. The organization can develop new products for the existing market. 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. A variety of actions might occur that might transform their "champ" position to "resister" position. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. Order your custom solution now. If you need help with something similar, Solarcity Tesla needs to adjust its marketing strategy accordingly. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. Kim, W. C., & Mauborgne, R. (2004). If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Men's chino short. Conclusions MBA & EMBA professionals should state their conclusions at the very start. 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. Directors of Tesla Inc settled a shareholder lawsuit over the company's 2016 acquisition of SolarCity Corp, leaving Chief Executive Officer Elon Musk as the lone defendant facing claims that Tesla . Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). This is also a strategic tool that is used to analyse the competitive environment of the industry in which Tesla The SolarCity Acquisition operates in. It can include recommendations on how the organisation can work towards achieving these strategic objectives. 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. 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. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Button waist with zip fly provides a classic look and feel . Published by HBR Publications. The objective of the case should be focused on. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. Strategic Change, 7(2), 101-109. 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 part consists of solutions that address issues faced by the organisation on a strategic level. The 4 elements of the marketing mix are Product, Price, Place and Promotions. 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. Journal of Strategy and Management, 3(3), 215-251. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. 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 . "Should be able to do all those before the shareholder vote. 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. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. Analyse the companys distribution and reach. She thought about the task assigned to her as a video game so that she might take pleasure in the work. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Mason, OH: South-Western, Cengage Learning. Both companies had similar products and could be a strong strategic fit. You can hire Texas Business School professinoals to revolutionize your strategy & business. 8 Tips to Help You Prepare for the Case Method. Please be mindful of our community standards. All personnel or all hands conferences. A greatly chaotic life goes into a very organized one. Evidences should be both compelling and consistent. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. 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. Or how the marketing budget can be better spent using social media rather than traditional media. In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . 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 . This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. 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 Value, Rareness, and Imitability, then it brings an unused competitive advantage. of the box and hire Case48 with BIG enough reputation. This is known as market penetration strategy. 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 level of tariffs will determine the viability of the business model that the firm is contemplating. We are here to help. Get this delivered to your inbox, and more info about our products and services. Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. Stars are those strategic business units with high market share and high market growth rate. There was less possibility to be used in US. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. To satisfy the customer's requirements and market goals according to the needed time, the task are needed to be completed in a restricted time. He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. 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 essential point that is to be kept in mind is you must utilize multiple approaches to make sure that you reach the utmost number of employees within the company, which gives better outcomes for them. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. ", A little-known renewable energy stock could rally more than 20%, UBS says, Goldman Sachs upgrades Shell to buy, says oil giant can surge 40%. With that said, the Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way.". 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,