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). We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. 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. 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. Hold Ctrl or Cmd to select multiple editions. Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. Posted by Peter Williams on These factors are also responsible for the future growth and challenges within the industry. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. correct email will be accepted, (Approximately She went through with the procedure of technical training, where she had to face lots of issues and hard situations. It also helps one in developing the case study solutions. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. 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. Each resource is assessed in terms of how rare it is. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. European Journal of Forest Research, 126(3), 413-420. What are the resources needed to increase profitability (VRIO Analysis) Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. 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.. 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. To satisfy the customer's requirements and market goals according to the needed time, the task are needed to be completed in a restricted time. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. Environment & PEST analysis: an approach to the external business environment. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study. Design and perform official orientation programs. Our immersive learning methodology from case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Finance & Accounting field, and broaden their skill set. Strategic Change, 7(2), 101-109. Key Points. The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. It can include recommendations on how the organisation can work towards achieving these strategic objectives. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. They likewise arrange different training session that provide awareness on how to handle different bothersome situation. Feel free to connect with us if you need business research. Enphase acquired Sofdesk in 2021 . 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 includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. All your payments are secure with Paypal security. Don has been a part of three successful exits in the solar + storage industry. It includes the threat of substitute products. Some argued that Musk was able to get the Tesla board to approve the purchase of SolarCity by misrepresenting the financial health of the company, saying it would be cash-flow positive within six months of the purchase. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. It shows that one has been clarified with the HBR fundamentals on the topic. Home >> Ivey >> Tesla The Solarcity Acquisition. 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. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. At EMBA PRO, we provide corporate level professional case study solution. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. ~ 0.0 Page). Stay informed. Actionable and practical solutions can then be developed by keeping these factors into perspective. We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. Perform standard concepts prior to the first day at business. Green Data Dash. on WhatsApp for any queries. Management Decision, 50(8), 1396-1411. 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. A long-running romance demands a great deal of dedication and lots of emotional financial investment . The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. All the guidelines and guidelines, work concern, documents, paperwork and the reporting day were a bit laborious. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. ", 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%. If you have BIG dreams to score BIG, think out The Tesla acquisition of SolarCity closed in November 2016. Highlight the pros and cons of the deal. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. 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. Boston: Irwin McGrawHill. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. Specifying the people "on board" and the people that are not. 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. Solarcity Tesla should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets. academic writing services at least once in their lifetime! - 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. Pearson education. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. Tesla bought SolarCity in 2016. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. VRIO and VRIN analysis can help the firm. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. The HBR case studies may present issues faced by a part of the organisation. Kotler, P., & Armstrong, G. (2010). Direct and prospective action plan In the Texas Business School, Tesla: The SolarCity Acquisition case study solution following strategic tools are used - 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. You need to make efforts to block them out, and must focus on your work. - Property rights are also an area of concern for Solarcity Tesla as it needs to make significant Financial analysis, Manufacturing, Mergers & acquisitions infrastructure investment just to enter new market. Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. 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. From pv magazine USA In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. This is doing the Tesla The SolarCity Acquisition Case Solution. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. Tesla shareholders backed the acquisition, with an . The objective of the case should be focused on. Our model papers and solutions are purely meant for 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. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. Another five of Teslas directors were direct or indirect owners of SolarCity stock. One more location, where she found that her expectation was mismatched with the business was team effort. 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. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. 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. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. Consumer protection Different countries have different consumer protection laws. Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. This tool is used in the case study analysis as follows: Recognizing value creating activities and enhancing the value that they create allow Tesla The SolarCity Acquisition to increase its competitive advantage. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. Your email address will not be published. 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. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. 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. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. CNBC. 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. This is known as market penetration strategy. 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. Made with sweat-wicking fabric. Please be mindful of our community standards. Conclusions MBA & EMBA professionals should state their conclusions at the very start. - According to Zhichuan Frank Li, Tomiwa Ademidun . Data is a real-time snapshot *Data is delayed at least 15 minutes. 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 these cases, recommendations need to be made for these people. Help, Academic 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. June 21, 2016 3:09 p.m. PT. 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. Analyse the companys products and devise strategies to improve the product offering of the company. Be lively to the degree that who, when and what on boarding. All personnel or all hands conferences. A variety of actions might occur that might transform their "champ" position to "resister" position. 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. Order your custom solution now. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. 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. Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. Management and Administrative Sciences Review, 2(2), 196-206. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. 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. Save my name, email, and website in this browser for the next time I comment. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. Mr. Musk, who is expected to take the stand in the nonjury trial as early as Monday, was chairman of both companies at the time. 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. 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. And conflicts among other Tesla Board members were not completely neutralized. The 4 elements of the marketing mix are Product, Price, Place and Promotions. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. Once all the factors mentioned in the Tesla: The SolarCity Acquisition case study are organized based on SWOT analysis, just remove the non essential factors. 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. Tesla The Solarcity Acquisition Case Study Help. Constant implementation on boarding. Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. Both companies had similar products and could be a strong strategic fit. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. 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. This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Reasons At the second stage provide the reasons for the conclusions. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Tesla The SolarCity Acquisition operates in. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. This is known as a diversification strategy. 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. The solution consists of recommended strategies to overcome this central issue. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. 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. Providing personnel with as much right truths as possible, before hand they start functioning for the company. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. The task subordinate did not ask to do any work. If you need help with something similar, So, in other words, she had ups and downs in the whole year that she had actually invested in the company. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. 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. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. 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. 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. Join our newsletter. Blue ocean strategy. : A review of academic research from the last decade. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. Amanda is strategy expert at Texas Business School . At the initiation of the task, Tesla The Solarcity Acquisition Case Study Analysis felt it to be challenging to adjust in her regular with her work. The three step case study solution approach comprises Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. 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. This could be mentioned at the start of the reading, the middle or the end. (2013). Warning! 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. 2019 Texas Business School. Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This is known as the problem identification stage. The trial started . The matter could be appealed to the Delaware Supreme Court. Government policies have significant impact on the business environment of any country. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. View our privacy policy. Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. 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." Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Now That Tesla Has Approval to Buy SolarCity, Here's What a Combined Company Might Look Like 70 On November 17, Tesla shareholders approved the acquisition of SolarCity in an all-stock. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. This is sample work and not applicable to real case study. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. 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. Chat with us One-to-one discussions. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. 2023 CNBC LLC. Info gained from administrators and coworkers is a primary part of finding out about the business's brand-new environment. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. Feedback pursuing may likewise support brand-new staff members. Dogs are those strategic business units with low market share and low growth rate. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. Moreover, I would have advised the following action plan: Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. - 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. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. Service, Dissertation inspiration, guidance, and understanding. 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.
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