tesla the solarcity acquisition case solution

It is also important to understand what stakeholders are affected by the problem and how. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. Green Data Dash. 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. 2019 Texas Business School. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. 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. Task beyond the command on the field. It also should look at the potential opportunities and threats that these competitors pose on the company. It shows that one has been clarified with the HBR fundamentals on the topic. This can be done by using company history. 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. If the tariffs are high then it will be extremely difficult to compete with the local competitors. Tesla The Solarcity Acquisition Case Study Help. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. The organization can enter into new markets with new products. It helps in the strategic analysis of Tesla The SolarCity Acquisition. Usage creativity, and promote the process. Business Strategy Review, 14(2), 8-10. 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. 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. Bringing SWOT into Focus. This part consists of solutions that address issues faced by the organisation on a strategic level. Pickton, D. W., & Wright, S. (1998). So, recommendations and suggestions need to address the strategy of the marketing department in this case. SolarCity shareholders will receive 0.11 share of Tesla, worth $20.75 based on Thursday's closing price, for each SolarCity share, making the deal worth about $2.1 billion. April 27 (Reuters) - Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk did not unjustly enrich himself when he guided the electric vehicle maker in 2016 to acquire SolarCity Corp, where. Or how the marketing budget can be better spent using social media rather than traditional media. Texas Business School approach of case study analysis Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. (2015). - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. We want to hear from you. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. Another five of Teslas directors were direct or indirect owners of SolarCity stock. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. Free Management E-Books. Had he lost, Musk could have had to pay upwards of $2 billion. The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . The company should set up lunch and discovering sessions. 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 solution may state that objectives that these people need to achieve and how these objectives would be achieved. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. Tesla: The SolarCity Acquisition case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. The company can challenge competitors from various companies. 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Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. If you have BIG dreams to score BIG, think out SWOT analysis will help us in not only getting a better insight into Solarcity Tesla present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage. The third step is not compulsory but depends from case to case. - Inflation rate is one of the key criteria to consider for Solarcity Tesla before entering into a new market. Rauch, P. (2007). Tesla acquired SolarCity in 2016. Corruption level Solarcity Tesla needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. 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. 100% money back guarantee if the quality doesn't match the promise, If the work we produce contain plagiarism then we payback 1000 USD. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. Shareholders believed Tesla's acquisition of SolarCity in 2016 was a bailout of a company owned by two of Musk's cousins, which was unfair to them. Competitive advantage: creating and sustaining superior performance (Vol. Conclusions MBA & EMBA professionals should state their conclusions at the very start. 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. Pearson education. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. In some HBR case studies, one may be required to analyse an issue at a department. 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. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis. 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. 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. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. on WhatsApp for any queries. Investors were skeptical of the deal from. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. r = discount rate or return that could be earned . If both are on the same page then it makes sense to enter, otherwise it doesnt. For Tesla The SolarCity Acquisition, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows: Baron, E. (2015). please submit your details here. Please place the order on the website to get your own originally done case solution. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. It shows that the details provided in the case have been properly analysed. 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. This procedure of understanding to establish a reliable member of the business is diverse from expert socialization, which stresses on finding out the standards of one's business. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. Socialization and Beginner on boarding practices in other industries 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. Do not carry out that someone who helps the program in the start, will sustain to do so in future. Perform standard concepts prior to the first day at business. For example, strengths will be used as an advantage in solving the issue. Posted by Peter Williams on We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. Be lively to the degree that who, when and what on boarding. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . Check your email Fitted waist with belt loops. This article is only an example The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Management, 3rd edition. - Environmental regulations can impact the cost structure of Solarcity Tesla. 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. inspiration, guidance, and understanding. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. Save my name, email, and website in this browser for the next time I comment. - 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. This is shown through a proper implementation framework. Hold Ctrl or Cmd to select multiple editions. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. Analyse the companys distribution and reach. PESTLE Analysis. In the EU countries, firms are required to make special provision for privacy issues and other laws. Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. 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. To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market. 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 . It's final: With no more barriers to the deal, Tesla is buying SolarCity. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. Strategic Change, 7(2), 101-109. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. These can usually be developed using the company history is provided in the case. If a resource is high on all of these 4, then it brings long-term competitive advantage. November 1, 2016. Sign up for free newsletters and get more CNBC delivered to your inbox. All Rights Reserved. According to Zhichuan Frank Li, Tomiwa Ademidun of Tesla: The SolarCity Acquisition case study, Solarcity Tesla can use this trend to expand in adjacent areas Financial analysis, Manufacturing, Mergers & acquisitions. The firms primary and support activities are listed down. Hill, C., & Jones, G. (2010). This is doing the Tesla The SolarCity Acquisition Case Solution. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. The trial started . Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. While Elon Musk, the CEO of Tesla and chairman of SolarCity, calls the deal a "no-brainer," the $2.6 billion acquisition has drawn widespread scorn. - 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. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. It needs to concentrate on reliability of the practices within the business. Both companies had similar products and could be a strong strategic fit. Porter, M. E. (1985). 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. Tesla shareholders alleged the company's acquisition of the solar installer amounted to a bailout, pushed through by Musk who sat on both company boards at the time. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. New York: Free Press. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Place these strategic business units in one of four categories. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). Exploring SWOT analysis where are we now? The business must arrange the corporate occasions, so the workers can connect with each other. The organization can penetrate into existing markets with its existing products. 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. Proposal, Question Key Points. It includes the threat of substitute products. This issue may be analysed for a manager or employee as well. Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. Tesla CEO Elon Musk finds himself in the news quite often, from groundbreaking SpaceX launches to contentious tweets. European Journal of Forest Research, 126(3), 413-420. Feel free to connect with us if you need business research. The second step of the solution is to come up with a business level strategy. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. 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 . Design and perform official orientation programs. Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. 8 Tips to Help You Prepare for the Case Method. The case-presiding judge Joseph Slights offered the following statement: Please know that this was not an easy decision to reach, given the time and resources I know you have dedicated to prepare for this trial, and the last minute nature of this decision. External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. 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. Place the order on the website to get your customized case solution done. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. 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. (1979, March). pv magazine offers daily updates of the latest photovoltaics news. If the . Managers need to assess these factors even before entering the market. Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. 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. One more location, where she found that her expectation was mismatched with the business was team effort. 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. Stars are those strategic business units with high market share and high market growth rate. Order your custom solution now. in. Accessed July 12, 2021. Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. 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. Chat with us Dissertation 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. Home >> Ivey >> Tesla The Solarcity Acquisition. Michael Porter Five Forces of Strategy are . This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. 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. Net Cash In Flowtn / (1+r)tn. With that said, the Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way.". 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. 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. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Feedback pursuing may likewise support brand-new staff members. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! The plaintiffs argued that Musk was only able to get the SolarCity acquisition approved by misrepresenting the financial well-being of SolarCity, saying it should be cash-flow positive within six months. Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. Integrity, Marketing strategy of Tesla The SolarCity Acquisition, Marketing Mix Of Tesla The SolarCity Acquisition, Tesla The SolarCity Acquisition Case Study Solution, 3-Joe-Smith-s-Closing-Analysis-A-Spanish-Version, 23558-The-Multichannel-Challenge-at-Natura-in-Beauty-and-Personal-Care, 23559-Masdar-City-Initiative-One-Step-in-the-United-Arab-Emirates-Journey-to-a-New-Energy-Economy, 23560-Neuromarketing-Inside-the-Mind-of-the-Consumer, 23561-Strategies-for-Higher-Education-in-the-Digital-Age, 23564-Diversity-s-New-Frontier-Diversity-of-Thought, 23565-Leadership-Forum-The-Role-of-the-LGBTQ-Ally, 23566-Updating-the-Image-of-the-Ideal-Worker, 23567-Whitening-and-Self-Presentation-in-the-Labour-Market. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. 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. (SolarCity) and with Tesla's financial advisor for the deal without the knowledge of the Tesla Board. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. Create link between the companies and crucial stake holders Tesla shareholders alleged the company's acquisition of the solar installer amounted to a bailout, pushed through by Musk who sat on both company boards at the time. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. Button waist with zip fly provides a classic look and feel . Bartol. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. Highlight the pros and cons of the deal. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. . Men's chino short. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. A fuzzy quantitative VRIO-based framework for evaluating organizational activities. 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. Specifying the people "on board" and the people that are not. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. Kotler, P., & Armstrong, G. (2010). The fresh graduates need face to face interaction with their managers. It includes the bargaining power of buyers in the industry. 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. "Should be able to do all those before the shareholder vote. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The acquisition amounted, they argue, to a bail-out by one of his start-ups (Tesla) of another one (SolarCity), which damaged the formerand thus their investments. Strategic Management Theory: An Integrated Approach, Ninth Ed. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. Dogs are those strategic business units with low market share and low growth rate. A greatly chaotic life goes into a very organized one. They also alleged that due diligence by outside firms including Evercore was rushed to hide SolarCity's troubles. Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. 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. Tesla bought SolarCity in 2016. The alternate solution for Tesla The SolarCity Acquisition is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - 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 mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. The Possible locations of Mismatched Expectation in between Tesla The Solarcity Acquisition Case Study Help and Company Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. The objective of the case should be focused on. The organization can enter new markets with its existing products. 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. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. 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. 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 . The 4 elements of the marketing mix are Product, Price, Place and Promotions. Academy of Management Journal, 25(3), 510-531. She thought about the task assigned to her as a video game so that she might take pleasure in the work. The next step is of understanding the company; its people, their priorities and the overall culture. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. Proposal, Assignment Writing A long-running romance demands a great deal of dedication and lots of emotional financial investment . It helps in communicating the points directly and the direction one took. Data is a real-time snapshot *Data is delayed at least 15 minutes. Subscribe to our newsletter to receive news on update. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. Management and Administrative Sciences Review, 2(2), 196-206. At other times, finding the issue is the job of the person analysing the case. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. 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 . 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. 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.

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