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. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. 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. European Journal of Forest Research, 126(3), 413-420. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. 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. At other times, finding the issue is the job of the person analysing the case. Data is a real-time snapshot *Data is delayed at least 15 minutes. One is also required to provide how these recommendations would be implemented. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. 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 . Another five of Teslas directors were direct or indirect owners of SolarCity stock. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. - Environmental regulations can impact the cost structure of Solarcity Tesla. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. A rare resource is one that is not commonly used by competitors. Independence of judiciary It is critical for fair business practices. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. She strove to clear all the evaluation that the business draws from the fresh graduates. Texas Business School approach of case study analysis Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. The business must arrange the corporate occasions, so the workers can connect with each other. 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. If a country doesnt have independent judiciary then there is no point entry into such a country for business. Elon Musk, chief executive officer of Tesla Inc., arrives at court during the SolarCity trial in Wilmington, Delaware, U.S., on Tuesday, July 13, 2021. For example why the change effort failed in the case and what can be done to rectify it. r = discount rate or return that could be earned . Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. (2013). 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. There was less possibility to be used in US. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. Each of these resources are assessed in terms of the value it brings to the organization. Department and business department conferences. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. in. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. Dissertation 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. 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. It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. 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. And conflicts among other Tesla Board members were not completely neutralized. It reinforces the social companies that does not only form how people work together in the business, however also supplies the restrictions of the act, and the standards of conference. Analyse the companys products and devise strategies to improve the product offering of the company. 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. Highlight the pros and cons of the deal. Now she felt disinterested to operate in the business. 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. It also lays down the changes needed to be made as well as the assumptions in the process. What are the resources needed to increase profitability (VRIO Analysis) Try to make very first day at company unexpected. It involves looking at the current market share of the company and its competitors. An important tool that helps in addressing the central issue of the case and coming up with Tesla The SolarCity Acquisition HBR case solution is the SWOT analysis. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Your email address will not be published. At the end of the very first year, she felt that the business had actually appointed her a job that was beyond her command, and the task was offered in the restricted time, in which it was difficult to finish the task. 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. At EMBA PRO, we provide corporate level professional case study solution. Less interaction with new employee. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. 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. 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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. The acquisition is a key improvement on the Solarcity deal. Accordingly, we never encourage or endorse its direct International Journal of Modern Social Sciences, 2(1), 34-43. 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. Actionable and practical solutions can then be developed by keeping these factors into perspective. A greatly chaotic life goes into a very organized one. Going into 2016, SolarCity stock was already plunging and the company was going through . Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. 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." In other words, the synergistic integration that Tesla hoped for is still a work in progress. 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. The following goals can be fulfilled: The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. (2013). Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. Chat with us 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 . Moreover, I would have advised the following action plan: 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. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. The internal resources of Tesla The SolarCity Acquisition are listed down. Amanda is strategy expert at Texas Business School . Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. WILMINGTON, Del. The task subordinate did not ask to do any work. You can use Porter Five Forces to analyze the industry in which Solarcity Tesla operates in and what are the levers of profitability in those segments differentiation, Financial analysis, Manufacturing, Mergers & acquisitions. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. The company should set up lunch and discovering sessions. The process can also be done to competitors to understand their competitive advantages and competitive strategies. 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. Further information on data privacy can be found in our Data Protection Policy. We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. Blue ocean strategy. 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. 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. - 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. Warning! Elon Musk Testifies To Defend Tesla's $2.6 Billion Acquisition of SolarCity in Shareholder Lawsuit. 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. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. Journal of Strategy and Management, 3(3), 215-251. Accessed July 12, 2021. This is known as product development strategy. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. 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. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. Managers need to assess these factors even before entering the market. 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. This is doing the Tesla The SolarCity Acquisition Case Solution. please submit your details here. These can usually be developed using the company history is provided in the case. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) Almost all of the case studies contain well defined situations. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. Proposal, Question Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. It includes the threat of substitute products. If the . 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. Strategic Change, 7(2), 101-109. It includes the bargaining power of suppliers in an industry. Green Data Dash. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . Stars are those strategic business units with high market share and high market growth rate. The Possible locations of Mismatched Expectation in between Tesla The Solarcity Acquisition Case Study Help and Company Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. of the box and hire Case48 with BIG enough reputation. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. The first step of the solution is to come up with a corporate level strategy for the organisation. 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 viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. Management Decision, 50(8), 1396-1411. Proposal, Assignment Writing Don has been a part of three successful exits in the solar + storage industry. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. The organization can develop new products for the existing market. Government policies have significant impact on the business environment of any country. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. 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. Evidences should be both compelling and consistent. Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. 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. This is known as the problem identification stage. Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. It shows that the details provided in the case have been properly analysed. Tesla CEO Elon Musk finds himself in the news quite often, from groundbreaking SpaceX launches to contentious tweets. Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. If its none, then it can be regarded as a competitive disadvantage. The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. You can hire Texas Business School professinoals to revolutionize your strategy & business. All Rights Reserved. - 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. In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . We are here to help. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - This shows how through a step-by-step procedure as to how the central issue can be resolved. 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. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Panagiotou, G. (2003). Key Points. 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.. 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. The business should recruit the employees that have the skills that match with the objectives of the business. 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.