Another five of Teslas directors were direct or indirect owners of SolarCity stock. Help, Academic When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Home >> Ivey >> Tesla The Solarcity Acquisition. Tesla shareholders backed the acquisition, with an . The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. 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, November 1, 2016. IIBMS. It shows that the details provided in the case have been properly analysed. 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. All personnel or all hands conferences. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. The process can also be done to competitors to understand their competitive advantages and competitive strategies. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. This is known as market penetration strategy. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. 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 Case Solution and Analysis, Case Study Solution. 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. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. 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 implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. VRIO and VRIN analysis can help the firm. This is sample work and not applicable to real case study. Free Management E-Books. Constant implementation on boarding. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. Case study solutions are career defining. By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! Exploring SWOT analysis where are we now? 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. Tesla's acquisition of SolarCity officially closed Monday morning, bringing together Elon Musk's electric vehicle company with the solar energy company founded by his cousins Lyndon and Peter . The business should recruit the employees that have the skills that match with the objectives of the business. Proposal, Question Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. A rare resource is one that is not commonly used by competitors. 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. This brings us to the latest update in this multi-pronged legal battle. 2023 CNBC LLC. Solution, Assignment Writing Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. 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. His attorneys have framed the acquisition as an opportunity to realize his long-held goal of creating a vertically integrated sustainable energy company.. A primary question in the case is whether Mr. Musk, who owned roughly 22% of Tesla at the time, controlled the . Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. Blue ocean strategy. Less interaction with new employee. The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. It also should look at the potential opportunities and threats that these competitors pose on the company. Key Points. 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. Boston: Irwin McGrawHill. 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. 100% money back guarantee if the quality doesn't match the promise, If the work we produce contain plagiarism then we payback 1000 USD. 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. 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. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. 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. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: If a resource is high on all of these 4, then it brings long-term competitive advantage. However, most Wall Street analysts were highly skeptical of the deal, voicing concerns that the merger would burden Tesla with excessive debt and that Musk was using the deal to advance his personal interests (at the expense of public shareholders) and bail out Tesla. You need to make efforts to block them out, and must focus on your work. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. Panagiotou, G. (2003). Thank you for your email subscription. A greatly chaotic life goes into a very organized one. 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. 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. The alternate solution for Tesla The SolarCity Acquisition is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations. Your email address will not be published. Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. It has to come from the data provided within the case study rather than data from outside world. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. Both companies had similar products and could be a strong strategic fit. They likewise arrange different training session that provide awareness on how to handle different bothersome situation. All Rights Reserved. Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. At other times, finding the issue is the job of the person analysing the case. The third step is not compulsory but depends from case to case. The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. 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. Management Decision, 50(8), 1396-1411. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. 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. Made with sweat-wicking fabric. 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. 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. Porter, M.E. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - 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. If the tariffs are high then it will be extremely difficult to compete with the local competitors. 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. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. It also lays down the changes needed to be made as well as the assumptions in the process. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) Tesla CEO Elon Musk finds himself in the news quite often, from groundbreaking SpaceX launches to contentious tweets. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. - 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. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. . 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. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. Bartol. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. The business must arrange the corporate occasions, so the workers can connect with each other. We are here to help. Each resource is assessed in terms of how rare it is. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Required fields are marked *. 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. 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. External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. Check your email 2 min read. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. It can further impact the cost of doing business in certain markets. In some HBR case studies, one may be required to analyse an issue at a department. Tesla shareholders alleged the company's . It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. 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.