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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. 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. A long-running romance demands a great deal of dedication and lots of emotional financial investment . One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. 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. Political factors impact seven key decision making areas economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. Dissertation Government policies have significant impact on the business environment of any country. please submit your details here. You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Through energetically pursuing feedback, new employees can rapidly learn about activities that are required to be altered to know which actions fit in finest with corporation culture and potential customers. 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. Question: Refer to the Tesla SolarCity acquisition case study. But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. Conclusions MBA & EMBA professionals should state their conclusions at the very start. Feel free to connect with us if you need business research. The shareholders also alleged that Musk controlled the board of Tesla, even though he appeared to recuse himself from some deal negotiations concerning SolarCity. Texas Business School approach of case study analysis Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. Michael Porter Five Forces of Strategy are . One of the biggest issues with the deal was that Elon Musk was the largest shareholder of both Tesla and SolarCity at the time of the acquisition. It helps in communicating the points directly and the direction one took. CNBC. IIBMS. One-to-one discussions. Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. The level of tariffs will determine the viability of the business model that the firm is contemplating. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. It involves coming up with new and unique products or ideas through innovation. 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. Net Cash In Flowtn / (1+r)tn. 2 min read. Green Data Dash. 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. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. 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. You can go about it in a similar way as is done for a finance and accounting case study. Management Decision, 50(8), 1396-1411. Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. 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. The viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. Competitive advantage: creating and sustaining superior performance (Vol. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. Direct and prospective action plan To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. 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. 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. 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. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Please place the order on the website to get your own originally done case solution. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. His work, which has been featured in outlets like The Wall Street Journal and The Washington Post, provides consumers with a personal finance measuring stick and can help them make informed finance decisions. 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. One more location, where she found that her expectation was mismatched with the business was team effort. As Director of Communications at LendEDU, Mike Brown uses data, usually from surveys and publicly available resources, to identify emerging personal finance trends and tell unique stories. The objective of the case should be focused on. A few of them were fulfilled, however some were mismatched with the company. Tesla The Solarcity Acquisition Case Study Help. 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. Freedom of Press is critical for fair trade and transparency. Identify the market growth of each strategic business unit. The task subordinate did not ask to do any work. Button waist with zip fly provides a classic look and feel . 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. Rastogi, N., & Trivedi, M. K. (2016). (SolarCity) and with Tesla's financial advisor for the deal without the knowledge of the Tesla Board. Aug-09-2018. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Relative Weighted Average Market Share Vs Largest Competitor. Principles of marketing. 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. Kim, W. C., & Mauborgne, R. (2004). The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations: The case study analysis and solution, and Tesla The SolarCity Acquisition case answers should be written down in the Tesla The SolarCity Acquisition case memo, clearly identifying which part shows what. 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. But not everyone is negative. It needs to concentrate on reliability of the practices within the business. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. 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. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. She thought about the task assigned to her as a video game so that she might take pleasure in the work. 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. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. 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. 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. 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The organization can enter into new markets with new products. It includes the threat of substitute products. Key Points. 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. 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. This is known as a diversification strategy. It shows that the details provided in the case have been properly analysed. 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. Highlight the pros and cons of the deal. Proposal, Question Lastly, a timeline of the issues and events in the case needs to be made. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. Mason, OH: South-Western, Cengage Learning. The acquisition was a huge blow to the entire Solarcity Group, which is a leading player in B2B trading, and it will be another huge blow to B2B. Case study solutions are career defining. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. Almost all of the case studies contain well defined situations. K, & Martin, D. (1998). 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 first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. At training sessions, Tesla The Solarcity Acquisition Case Study Help had dealt with her schoolmates and they all had become friends and did all the work together. 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. 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. In fact, Lynn . ", 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%. Your email address will not be published. Required fields are marked *. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Solarcity Tesla is facing right now. Strategies can be devised to improve the availability of the companys products. The following goals can be fulfilled: 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. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. What's swot in strategic analysis? If the . Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. 2019 Texas Business School. 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. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. Why you choose one course of action over the other. The value chain and competitive advantage. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. Our model papers and solutions are purely meant for 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. They also alleged that due diligence by outside firms including Evercore was rushed to hide SolarCity's troubles. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. 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. Subscribe to our newsletter to receive news on update. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. Proposal, Assignment Writing Both companies had similar products and could be a strong strategic fit. How to calculate Weighted Average Market Share using BCG Growth Share Matrix For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. 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. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf. A greatly chaotic life goes into a very organized one. With that said, the Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way.". Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. Accordingly, we never encourage or endorse its direct Thank you for your email subscription. June 21, 2016 3:09 p.m. PT. 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. Further information on data privacy can be found in our Data Protection Policy. Do not carry out that someone who helps the program in the start, will sustain to do so in future. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. 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. Vice Chancellor Joseph R. Slights, who decided the case shortly before retiring, sided with Musk, writing: "Elon was more involved in the process than a conflicted fiduciary should be.