SolarCity was widely considered one of the best solar companies in the years leading up to . Feel free to connect with us if you need business research. 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 acquisition is a key improvement on the Solarcity deal. Hold Ctrl or Cmd to select multiple editions. Rithik Khanna- Telsa Final.docx - Finance in a Global Perspective CASE You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Got a confidential news tip? Tesla The Solarcity Acquisition - Case Study Solution The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. It is also important to understand what stakeholders are affected by the problem and how. 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. 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. Please place the order on the website to get your own originally done case solution. If you need help with something similar, 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. Gupta, A. All Rights Reserved. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. Help, Academic 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. Accessed July 12, 2021. 7 Effective Steps to Solve Case Study. 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. - Increase in Consumer Disposable Income Solarcity Tesla can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. If you have BIG dreams to score BIG, think out A detailed implementation framework helps in distinguishing between an average and an above average case study answer. - 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. (1979, March). To summarize, the following expectations were mismatched with the business: Tesla: The SolarCity Acquisition - Harvard Business Publishing These can usually be developed using the company history is provided in the case. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations. Solved VRIO / VRIN : Tesla: The SolarCity Acquisition Analysis Proposal, Assignment Writing It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. It includes the bargaining power of buyers in the industry. This is known as market penetration strategy. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. Shareholders also argued, in the suit, that Musk unveiled a product that didn't yet function glass solar roof tiles to convince investors that there was real intellectual property and a product close to commercial viability in SolarCity. Question Marks are those strategic business units with high market share and low market growth rate. Tesla The Solarcity Acquisition Case Study Help. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. In the EU countries, firms are required to make special provision for privacy issues and other laws. 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 . It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. 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. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. This would be the better way to engage all the newbies in the business. - According to Zhichuan Frank Li, Tomiwa Ademidun . If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. Evidences Finally you should provide evidences to support your reasons. Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. How it can improve the profitability in a given industry (Porter Value Chain Analysis) This content is protected by copyright and may not be reused. and cannot be used for research or reference purposes. Tesla's .6bn SolarCity acquisition lawsuit ruled in favor of Elon 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. Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. 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. 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. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. 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. Tesla The SolarCity Acquisition Case Study Solution 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. Getting the responsibility for the effort and arrangement of implementation. The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. 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. to get Coupon Code. 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. Catching up on the Elon Musk-Tesla-SolarCity acquisition case Going into 2016, SolarCity stock was already plunging and the company was going through . SolarCity filed for their IPO in 2012. 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. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. Case solution for tesla the solarcity acquisition - Issuu Musk denied that he placed any pressure on the Tesla board to go through with the transaction. . It shows that the details provided in the case have been properly analysed. 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 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. A Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Teslas $2.6 billion acquisition of SolarCity. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. Elon Musk defends Tesla's $2.6B acquisition of SolarCity in Delaware Our model papers and solutions are purely meant for NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . Obviously, some approaches would work well than others, in the business. Amanda is strategy expert at Texas Business School . Aug-09-2018. Both companies had similar products and could be a strong strategic fit. Neither Tesla nor the directors gave comment on the partial settlement but court filings had Tesla officials defending the SolarCity acquisition by saying both the process and the price of this acquisition were inherently fair to Teslas shareholders.. Tesla The SolarCity Acquisition should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. If you read nothing else on strategy, read thesebest-selling articles., 71. 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. Chat with us 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. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . 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. But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) Re-allocating of the task to the new office. Tesla The Solarcity Acquisition Case Study Solution & Analysis 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 trial started . Blue ocean strategy. It can include recommendations on how the organisation can work towards achieving these strategic objectives. 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.. Tesla Investor Day 2023: Musk's 'Master Plan' Sees Sustainable Energy 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. Elon Musk wins shareholder lawsuit over Tesla-SolarCity deal - CNBC Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Despite these challenges, Tesla's value has massively increased following the Acquisition.". SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. This is sample work and not applicable to real case study. At EMBA PRO, we provide corporate level professional case study solution. It helps in the strategic analysis of Tesla The SolarCity Acquisition. The business must arrange the corporate occasions, so the workers can connect with each other. She understood that every worker was passionate and worked proudly in the company so, she should also be happy to be a part of the business. These are the threats that the industry faces due to new entrants. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. The challenge in front of the protagonist, of Tesla: The SolarCity Acquisition, is to not only build a competitive position of the organization but also to sustain it over a period of time. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. The organization can penetrate into existing markets with its existing products. Government policies have significant impact on the business environment of any country. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. The external environment analysis of Tesla: The SolarCity Acquisition will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. Both companies had similar products and could be a strong strategic fit. Elon Musk defends SolarCity deal against shareholder lawsuit | Tesla in. External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. Highlight the pros and cons of the deal. 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). 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. The glaring omission from the January settlement agreement was Musk, who has every intention of proceeding to trial and defending himself and his company against the claims made against him and the $2.6 billion SolarCity purchase. 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. 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. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. Place the order on the website to get your customized case solution done. Given that, workers are slowly fluctuating tasks to deal with brand-new business, socialization is very important just as much for the workers as it is for the companies. Journal of Strategy and Management, 3(3), 215-251. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. 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 . WILMINGTON, Del. Please be mindful of our community standards. Almost all of the case studies contain well defined situations. Strategies will be devised which makes use of a few or all of these elements. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: 2023 CNBC LLC. We want to hear from you. Tesla's Plan to Buy SolarCity Has Major Flaws. 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. 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. This could be mentioned at the start of the reading, the middle or the end. One more location, where she found that her expectation was mismatched with the business was team effort. All personnel or all hands conferences. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. - High customer loyalty & repeat purchase among existing customers Solarcity Tesla old customers are still loyal to the firm even though it has limited success with millennial.