It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. ~ 0.0 Page). Hurley Dry-Fit Chino Short. Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. Tesla: The SolarCity Acquisition will also provide insight into areas such as wordlist , strategy, leadership, sales and marketing, and negotiations. 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. Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. Identifying the importance of these activities in the cost of the product and the differentiation they produce. The following goals can be fulfilled: The company should set up lunch and discovering sessions. The internal resources of Tesla The SolarCity Acquisition are listed down. 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. 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. June 21, 2016 3:09 p.m. PT. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. and cannot be used for research or reference purposes. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. 100% money back guarantee if the quality doesn't match the promise, If the work we produce contain plagiarism then we payback 1000 USD. 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. Green Data Dash. (2013a). In the EU countries, firms are required to make special provision for privacy issues and other laws. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. This content is protected by copyright and may not be reused. 2). Do not carry out that someone who helps the program in the start, will sustain to do so in future. These factors are also responsible for the future growth and challenges within the industry. 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. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) The matter could be appealed to the Delaware Supreme Court. One of the microenvironmental factors are competitors, which are addressed by a competitor 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. You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Is this merger a good idea? Among the significant problem with the business is the lack of communication and support from the managers in the business. 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. To summarize, the following expectations were mismatched with the business: NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . Tesla The Solarcity Acquisition Case Study Analysis was for this reason, thrilled when she was entitled to sign up with the corporation, and report to its office in US for her preparatory training. Both companies had similar products and could be a strong strategic fit. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. 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. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. View our privacy policy. In other words, the synergistic integration that Tesla hoped for is still a work in progress. What are the resources needed to increase profitability (VRIO Analysis) Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. 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. Free Management E-Books. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Published by HBR Publications. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. Each resource is assessed whether it could be imitated by competition easily or not. Subscribe now to get your discount coupon *Only 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. r = discount rate or return that could be earned . Identify the relative market share of each strategic business unit. : A review of academic research from the last decade. As in training, she shared her expectations of discovering with bit enjoyable, and everybody began laughing screamingly, which was the habits she didn't expect in the business. Task beyond the command on the field. SolarCity filed for their IPO in 2012. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. Management and Administrative Sciences Review, 2(2), 196-206. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. 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. And conflicts among other Tesla Board members were not completely neutralized. 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. Direct and prospective action plan As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. Nixon, J., & Helms, M. M. (2010). Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. - 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. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. Each of these resources are assessed in terms of the value it brings to the organization. Be lively to the degree that who, when and what on boarding. If you need help with something similar, K, & Martin, D. (1998). At other times, finding the issue is the job of the person analysing the case. - Solarcity Tesla business model can be easily replicated by competitors According to Zhichuan Frank Li, Tomiwa Ademidun , the business model of Solarcity Tesla can be easily replicated by players in the industry. One more location, where she found that her expectation was mismatched with the business was team effort. 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 the guidelines and guidelines, work concern, documents, paperwork and the reporting day were a bit laborious. It includes the bargaining power of buyers in the industry. to get Coupon Code. 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 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. Accessed July 12, 2021. Texas Business School approach of case study analysis Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. 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. The firms primary and support activities are listed down. Registering workers with a precise mixture of mental and social capabilities is a hard obligation. 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. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently. This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. 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 is a Harvard Business (HBR) Case Study on casecategory , Texas Business School provides HBR case study assignment help for just $9. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. A greatly chaotic life goes into a very organized one. Analyse the companys promotion mix. Evaluating Alternatives / SWOT Analysis of Tesla: The SolarCity Acquisition case study, STEP 5. 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. 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. The Tesla acquisition of SolarCity closed in November 2016. ", 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%. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) Porter, M.E. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. (2013). Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. 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. please submit your details here. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. The first step of the solution is to come up with a corporate level strategy for the organisation. 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. Another location, where Tesla The Solarcity Acquisition Case Study Help's expectation was mismatched with the business was enjoyable aspect. So, in other words, she had ups and downs in the whole year that she had actually invested in the company. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. The next step is of understanding the company; its people, their priorities and the overall culture. 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. This part consists of solutions that address issues faced by the organisation on a strategic level. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. For example, strengths will be used as an advantage in solving the issue. Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. They also alleged that due diligence by outside firms including Evercore was rushed to hide SolarCity's troubles. It also lays down the changes needed to be made as well as the assumptions in the process. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. Despite these challenges, Tesla's value has massively increased following the Acquisition.". Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. 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. But not everyone is negative. 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 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. There was less possibility to be used in US. In a nutshell, if I was in the location of Tesla The Solarcity Acquisition Case Study Solution, I would have sustained to stay in the business with possible action plan in her scenarios. 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. in. 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. Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). Managers need to assess these factors even before entering the market. 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. 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. 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. Feel free to connect with us if you need business research. Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. 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. I believe that Solarcity Tesla can make a transition even by keeping these people on board. Integrity, Essay Writing Question: Refer to the Tesla SolarCity acquisition case study. 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. In some HBR case studies, one may be required to analyse an issue at a department. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. These can usually be developed using the company history is provided in the case. Moreover, I would have advised the following action plan: 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. Enhancement in socializing practices Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. Both companies had similar products and could be a strong strategic fit. The task subordinate did not ask to do any work. Specifying the people "on board" and the people that are not. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. 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. Accordingly, we never encourage or endorse its direct You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Create link between the companies and crucial stake holders Evidences should be both compelling and consistent. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. This is sample work and not applicable to real case study. 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. Relative Weighted Average Market Share Vs Largest Competitor. Help, Academic Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf. It's final: With no more barriers to the deal, Tesla is buying SolarCity. 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. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. How to calculate Weighted Average Market Share using BCG Growth Share Matrix Freedom of Press is critical for fair trade and transparency. Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) CNBC. These are usually in the form of strategies that the organisation can adopt. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Reasons At the second stage provide the reasons for the conclusions.