Elon Musk wraps testimony in SolarCity trial - CNBC Tesla The Solarcity Acquisition Case Study Help. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. Management and Administrative Sciences Review, 2(2), 196-206. Tesla bought SolarCity in 2016. Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. 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. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. The conferences were chockfull with discussions from diverse divisions of the company, and comprised organizational details, standards, worths, and the life of the employees in the company, with interactive games. Shareholders believed Tesla's acquisition of SolarCity in 2016 was a bailout of a company owned by two of Musk's cousins, which was unfair to them. Develop and applied composed on boarding strategies. These factors are also responsible for the future growth and challenges within the industry. SWOT analysis will help us in not only getting a better insight into Solarcity Tesla present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage. please submit your details here. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. At other times, finding the issue is the job of the person analysing the case. 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. 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. Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. 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. Tesla: The Solarcity Acquisition - The Case Centre The fresh graduates need face to face interaction with their managers. 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. Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. SolarCity 2023 Review (History, Lawsuits & Tesla Acquisition) - EcoWatch The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. The acquisition is a key improvement on the Solarcity deal. Each resource is assessed in terms of how rare it is. 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. What are external factors that are impacting the business environment (PESTEL Analysis) 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. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. 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. Michael Porter Five Forces of Strategy are . Bartol. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. It's final: With no more barriers to the deal, Tesla is buying SolarCity. This brings us to the latest update in this multi-pronged legal battle. 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. Elon Musk was acting as a proper chief executive officer as Tesla Inc. weighed the purchase of power provider SolarCity in 2016, his longtime ally and fellow Tesla director . If you read nothing else on strategy, read thesebest-selling articles., 71. (2013). 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. The Tesla acquisition of SolarCity closed in November 2016. In January of this yeaar, every single one of Teslas directors, with the exception of Elon Musk, agreed to a $60 million settlement to resolve shareholder disputes regarding the Tesla acquisition of SolarCity in 2016. 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. 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. It can further impact the cost of doing business in certain markets. 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. What are the resources needed to increase profitability (VRIO Analysis) The value chain and competitive advantage. Freedom of Press is critical for fair trade and transparency. Identify the relative market share of each strategic business unit. By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment. The 4 elements of the marketing mix are Product, Price, Place and Promotions. Tesla The Solarcity Acquisition - Case Study Solution We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. It also helps one in developing the case study solutions. 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 third step is not compulsory but depends from case to case. 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. Blue ocean strategy. In these cases, recommendations need to be made for these people. He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. 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Strategic Management Theory: An Integrated Approach, Ninth Ed. . 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. This would be the better way to engage all the newbies in the business. Obviously, some approaches would work well than others, in the business. 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. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. 2019 Texas Business School. Elon Musk defends SolarCity deal against shareholder lawsuit | Tesla Each of these resources are assessed in terms of the value it brings to the organization. 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. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas Chat with us If the tariffs are high then it will be extremely difficult to compete with the local competitors. Elon Musk Testifies To Defend Tesla's $2.6 Billion Acquisition of SolarCity in Shareholder Lawsuit. Analyse the companys price points and devise strategies that could be based on competition, value or cost. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. Proposal, Question 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. Lastly, a timeline of the issues and events in the case needs to be made. Strategies can be devised to improve the availability of the companys products. - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. Tesla's .6bn SolarCity acquisition lawsuit ruled in favor of Elon CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. Your email address will not be published. Catching up on the Elon Musk-Tesla-SolarCity acquisition case Academic writing has no room for errors and mistakes. The first step of the solution is to come up with a corporate level strategy for 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. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. Key Points. On boarding discusses the treatment that helps brand-new personnels that get the info, abilities, and actions which are needed to thrive in their new corporation. Re-allocating of the task to the new office. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. 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. In other words, the synergistic integration that Tesla hoped for is still a work in progress. Tesla: The SolarCity Acquisition will also provide insight into areas such as wordlist , strategy, leadership, sales and marketing, and negotiations. Don has been a part of three successful exits in the solar + storage industry. Rastogi, N., & Trivedi, M. K. (2016). This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. Relative Weighted Average Market Share Vs Largest Competitor. All Rights Reserved. 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. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. Government policies have significant impact on the business environment of any country. 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. A few of them were fulfilled, however some were mismatched with the company. SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. Tesla Investor Day 2023: Musk's 'Master Plan' Sees Sustainable Energy The viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. View our privacy policy. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). Tesla: The SolarCity Acquisition Case Study Solution [7 Steps] 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. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. 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. Sign up for free newsletters and get more CNBC delivered to your inbox. Catching up on the Musk-Tesla-SolarCity acquisition case By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! Investors were skeptical of the deal from. If both are on the same page then it makes sense to enter, otherwise it doesnt. 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. 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. 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. Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. PDF The Acquisition of SolarCity by Tesla A Good Step or Not? - Atlantis Press 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. Help, Academic This is known as the problem identification stage. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . 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. The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. These can usually be developed using the company history is provided in the case. The level of tariffs will determine the viability of the business model that the firm is contemplating. and cannot be used for research or reference purposes. Both companies had similar products and could be a strong strategic fit. Nixon, J., & Helms, M. M. (2010). PESTLE Analysis. Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. Most recent surveys suggest that around 76 % students try professional One more location, where she found that her expectation was mismatched with the business was team effort. How it can improve the profitability in a given industry (Porter Value Chain Analysis) This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. These are usually in the form of strategies that the organisation can adopt. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. Get this delivered to your inbox, and more info about our products and services. Highlight the pros and cons of the deal. Concerns were raised over possible conflicts of interest, given that Musk owned over 20% of the stock, and sat on the board of directors of both companies. Tesla Energy - Wikipedia Boston: Irwin McGrawHill. K, & Martin, D. (1998). In every corporation, it is important to practice a variety of approaches to socialize BPI policies. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. 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. Tesla's Musk Defended SolarCity Deal in Delaware Court - Investopedia What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. Perform standard concepts prior to the first day at business. Tesla: The SolarCity Acquisition case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Hill, C., & Jones, G. (2010). - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. - 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. 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. Integrity, Marketing strategy of Tesla The SolarCity Acquisition, Marketing Mix Of Tesla The SolarCity Acquisition, Tesla The SolarCity Acquisition Case Study Solution, 3-Joe-Smith-s-Closing-Analysis-A-Spanish-Version, 23558-The-Multichannel-Challenge-at-Natura-in-Beauty-and-Personal-Care, 23559-Masdar-City-Initiative-One-Step-in-the-United-Arab-Emirates-Journey-to-a-New-Energy-Economy, 23560-Neuromarketing-Inside-the-Mind-of-the-Consumer, 23561-Strategies-for-Higher-Education-in-the-Digital-Age, 23564-Diversity-s-New-Frontier-Diversity-of-Thought, 23565-Leadership-Forum-The-Role-of-the-LGBTQ-Ally, 23566-Updating-the-Image-of-the-Ideal-Worker, 23567-Whitening-and-Self-Presentation-in-the-Labour-Market. The next step is of understanding the company; its people, their priorities and the overall culture. Tesla shareholders backed the acquisition, with an . The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . (SolarCity) and with Tesla's financial advisor for the deal without the knowledge of the Tesla Board. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. 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. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. Further information on data privacy can be found in our Data Protection Policy. The second step of the solution is to come up with a business level strategy. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. Kim, W. C., & Mauborgne, R. (2004). So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. A long-running romance demands a great deal of dedication and lots of emotional financial investment . How to calculate Weighted Average Market Share using BCG Growth Share Matrix The matter could be appealed to the Delaware Supreme Court. Foreign Direct Investment Policies Government policies favors local companies over international policies, Solarcity Tesla in case study Tesla: The SolarCity Acquisition should understand in minute details regarding the Foreign Direct Investment policies of the prospective market. It also lays down the changes needed to be made as well as the assumptions in the process. Do not carry out that someone who helps the program in the start, will sustain to do so in future. Tesla: Merging with SolarCity - Case - Harvard Business School Solarcity Tesla needs to restructure its IT policies to accommodate these changes. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. Elon Musk Is Called to Defend Tesla's Purchase of SolarCity - The Wall This can be done by using company history. Kulkarni, N. (2018). Rauch, P. (2007). Dogs are those strategic business units with low market share and low growth rate. Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. 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. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. Among the significant problem with the business is the lack of communication and support from the managers in the business. The company should satisfy some goals for socialization practices. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. 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. The following are the very best practices that the business executes in socializing and on boarding of newbies: Your email address will not be published. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. Solved VRIO / VRIN : Tesla: The SolarCity Acquisition Analysis In the EU countries, firms are required to make special provision for privacy issues and other laws. 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. 7 Effective Steps to Solve Case Study. 1. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. One is also required to provide how these recommendations would be implemented. 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. Tesla adds solar to its portfolio through SolarCity acquisition The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. The business must arrange the corporate occasions, so the workers can connect with each other. Principles of marketing. Actionable and practical solutions can then be developed by keeping these factors into perspective. Create link between the companies and crucial stake holders A detailed implementation framework helps in distinguishing between an average and an above average case study answer. Going into 2016, SolarCity stock was already plunging and the company was going through layoffs.