Tesla acquired SolarCity in 2016. The three step case study solution approach comprises 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. Accessed July 12, 2021. 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. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. This is known as product development strategy. Proposal, Assignment Writing 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. 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. It also should look at the potential opportunities and threats that these competitors pose on the company. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. 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. CNBC. 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. Task beyond the command on the field. You need to make efforts to block them out, and must focus on your work. Blue ocean strategy. Hill, C., & Jones, G. (2010). For example why the change effort failed in the case and what can be done to rectify it. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. Management and Administrative Sciences Review, 2(2), 196-206. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. Help, Academic To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. It involves looking at the current market share of the company and its competitors. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. Save my name, email, and website in this browser for the next time I comment. If the Merger does not occur, Tesla and SolarCity may incur these costs without realizing any of the benefits of the Merger being completed.In addition, if the Merger is not completed, Tesla and/or SolarCity may experience negative reactions from the financial markets and from their respective customers and employees.Tesla and/or SolarCity could also be subject to litigation related to any . So, in other words, she had ups and downs in the whole year that she had actually invested in the company. Please be mindful of our community standards. New York: Free Press. There was less possibility to be used in US. Tesla: The SolarCity Acquisition will also provide insight into areas such as wordlist , strategy, leadership, sales and marketing, and negotiations. One-to-one discussions. The matter could be appealed to the Delaware Supreme Court. Feedback pursuing may likewise support brand-new staff members. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. Strategies will be devised which makes use of a few or all of these elements. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. Stars are those strategic business units with high market share and high market growth rate. Almost all of the case studies contain well defined situations. Strategic attributes and performance in the BCG matrixA PIMS-based analysis of industrial product businesses. It has been estimated that its shares are worth as much as $1.2 billion and its shares in the Solarcity Group are valued at $100 million. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. The Tesla The SolarCity Acquisition case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. Obviously, some approaches would work well than others, in the business. Tesla The Solarcity Acquisition Case Study Help. 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. 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. In these cases, recommendations need to be made for these people. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. Tesla is officially in the solar roof business, says Elon Musk. Don has been a part of three successful exits in the solar + storage industry. 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. The following goals can be fulfilled: to get Coupon Code. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. 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. These solutions will also be the Tesla The SolarCity Acquisition case answers. Why you choose one course of action over the other. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. 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. 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. Identify the relative market share of each strategic business unit. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. The HBR case studies may present issues faced by a part of the organisation. 2023 CNBC LLC. Case study solutions are career defining. - According to Zhichuan Frank Li, Tomiwa Ademidun . They had actually made a strong bond with each other, but unexpectedly throughout training they were relocated at various domains, which was not anticipated by Tesla The Solarcity Acquisition Case Study Help, she felt lonesome and her good friends motivated her to participate in the classes. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. Rauch, P. (2007). How to calculate Weighted Average Market Share using BCG Growth Share Matrix This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. According to emails that were part of evidence in the trial, Musk wrote an e-mail to SolarCity CFO Brad Buss on Sept. 18, 2016, saying that to get Tesla investors on board with the deal, SolarCity needed to get a handle on its liquidity problem and sign a letter of intent for a contract with Panasonic. Each resource is assessed whether it could be imitated by competition easily or not. 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. Had he lost, Musk could have had to pay upwards of $2 billion. To tackle the menace of corruption a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm. If you have BIG dreams to score BIG, think out Green Data Dash. Rastogi, N., & Trivedi, M. K. (2016). Department and business department conferences. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. It includes the bargaining power of buyers in the industry. Lack of practical capabilities in the business, and the possible jobs to be untaken for a significant variety of time need to be avoided in the business. 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. The organization can enter new markets with its existing products. Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Hurley Dry-Fit Chino Short. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. Order your custom solution now. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. of the box and hire Case48 with BIG enough reputation. We want to hear from you. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. 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. Freedom of Press is critical for fair trade and transparency. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) The case study does not end at just providing recommendations to the issues at hand. 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. The four-hour presentation was long on Musk's vision to build the next phase of Tesla's growth around a sustainable energy future by moving into products like heat pumps, but short on any . 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. This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. The entryway into the company was just the start of the journey, and the newly picked employees needed to reveal themselves valuable for business, by clearing all the assessments at the end of their training. 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. Tesla CEO Elon Musk wrapped up his testimony before the Delaware Court of Chancery on Tuesday afternoon, after spending around 9 hours defending his company's 2016. - Inflation rate is one of the key criteria to consider for Solarcity Tesla before entering into a new market. 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. - Consumer buying behavior and consumer buying process Solarcity Tesla should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Solarcity Tesla wants to enter. SolarCity filed for their IPO in 2012. 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. Texas Business School approach of case study analysis Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. As the name suggests Value Chain framework is developed by Michael Porter in 1980s and it is primarily used for analyzing Solarcity Tesla relative cost and value structure. 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. Do not carry out that someone who helps the program in the start, will sustain to do so in future. If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit. The company should satisfy some goals for socialization practices. The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. 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 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. The value chain and competitive advantage. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. In other words, the synergistic integration that Tesla hoped for is still a work in progress. Subscribe to our newsletter to receive news on update. The second step of the solution is to come up with a business level strategy. Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. 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. 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. Design and perform official orientation programs. 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. 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. Abstract 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. Be lively to the degree that who, when and what on boarding. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. WILMINGTON, Del. Amanda is strategy expert at Texas Business School . Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. At the starting of the job, each staff member has some expectations with the business, which relate to the values, culture and the lifestyle of the business. This is shown through a proper implementation framework. SolarCity shareholders will receive 0.11 share of Tesla, worth $20.75 based on Thursday's closing price, for each SolarCity share, making the deal worth about $2.1 billion. Bartol. Going into 2016, SolarCity stock was already plunging and the company was going through layoffs. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. It helps in the strategic analysis of Tesla The SolarCity Acquisition. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. 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. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf. While, unsuccessful socialization can cause impulsive with drawl of personnel from their new jobs or to their incompetence on the task, which often resumes the work and choice phase for the business, causing increased cost of time and resources. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. Aug-09-2018. 2). 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. 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. At this point, if any employee feels stressed due to his work and time limitation, he should immediately talk to the supervisor and share his issue. on WhatsApp for any queries. According to Zhichuan Frank Li, Tomiwa Ademidun of Tesla: The SolarCity Acquisition case study, Solarcity Tesla can use this trend to expand in adjacent areas Financial analysis, Manufacturing, Mergers & acquisitions. The business needs to supply a reasonable job preview to its workers, and corporation culture is alternative administrative approach to allow new employee socialization. Kotler, P., & Armstrong, G. (2010). One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. Got a confidential news tip? Develop and applied composed on boarding strategies. 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. please submit your details here. Socialization and Beginner on boarding practices in other industries 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. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. Net Cash In Flowtn / (1+r)tn. You can download Excel Template of Case Study Solution & Analysis of Tesla: The SolarCity Acquisition, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, SWOT Analysis of Tesla: The SolarCity Acquisition, PESTEL /PEST / STEP Analysis of Tesla: The SolarCity Acquisition Case Study, 5C Marketing Analysis of Tesla: The SolarCity Acquisition, 4P Marketing Analysis of Tesla: The SolarCity Acquisition, Porter Five Forces Analysis and Solution of Tesla: The SolarCity Acquisition, Porter Value Chain Analysis and Solution of Tesla: The SolarCity Acquisition, Case Memo & Recommendation Memo of Tesla: The SolarCity Acquisition, Blue Ocean Analysis and Solution of Tesla: The SolarCity Acquisition, Marketing Strategy and Analysis Tesla: The SolarCity Acquisition, VRIO /VRIN Analysis & Solution of Tesla: The SolarCity Acquisition, PESTEL / STEP / PEST Analysis of Tesla: The SolarCity Acquisition, Case Study Solution of Tesla: The SolarCity Acquisition, SWOT Analysis and Solution of Tesla: The SolarCity Acquisition, Joe Mandato, Pete McNerney and Empathetics Case Study Solution & Analysis, Managing Diversity and Inclusion at Yelp (B) Case Study Solution & Analysis, Ethics and Integrity in Business: Navigating Ethical Risks and Transgressions in the Workplace (A) Case Study Solution & Analysis, Branding BY-HEALTH: The Value of Transparency Case Study Solution & Analysis, Club Sportif MAA: Staying Ahead of the Game Case Study Solution & Analysis, CEO Succession at Cisco, Video Supplement Case Study Solution & Analysis, Hisense's Internationalization Dilemma: Co-Operation with Loewe Case Study Solution & Analysis, Kangaroo Tail Winery Limited (C) Case Study Solution & Analysis, An Inside Perspective on Carbon Disclosure Case Study Solution & Analysis, The One Fund Case Study Solution & Analysis, Position among Retailers and Wholesalers companyname retail strategy, Yes, firm has strong relationship with retailers and wholesalers, Difficult to imitate though not impossible, Yes, over the years company has used it successfully, Ability to Attract Talent in Various Local & Global Markets, Yes, Solarcity Tesla strategy is built on successful innovation and localization of products, Yes, as talent is critical to firm's growth, Vision of the Leadership for Next Set of Challenges, Not based on information provided in the case.