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. 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. Directors of Tesla Inc settled a shareholder lawsuit over the company's 2016 acquisition of SolarCity Corp, leaving Chief Executive Officer Elon Musk as the lone defendant facing claims that Tesla . 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. submission, reproduction, or any other misuse in any manner. 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. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. Tesla bought SolarCity in 2016. Pearson education. Direct and prospective action plan You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Accessed July 12, 2021. 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. Subscribe to our newsletter to receive news on update. Strategic Management Theory: An Integrated Approach, Ninth Ed. Highlight the pros and cons of the deal. Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Don has been a part of three successful exits in the solar + storage industry. 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. New personnel ask enquiries about diverse functions of their tasks, corporation events, and concerns, and take an energetic part in producing the sense of their atmosphere. The acquisition is a key improvement on the Solarcity deal. June 21, 2016 3:09 p.m. PT. Each resource is assessed in terms of how rare it is. Hurley Dry-Fit Chino Short. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. 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. and cannot be used for research or reference purposes. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. Solution, Assignment Writing Accessed July 12, 2021. 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. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. It includes the bargaining power of suppliers in an industry. All your payments are secure with Paypal security. - 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. This procedure of understanding to establish a reliable member of the business is diverse from expert socialization, which stresses on finding out the standards of one's business. What's swot in strategic analysis? Each of these resources are assessed in terms of the value it brings to the organization. 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 . 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. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. It has to come from the data provided within the case study rather than data from outside world. 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. Kim, W. C., & Mauborgne, R. (2004). - 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 matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. 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. Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. A Division of NBCUniversal. pv magazine offers daily updates of the latest photovoltaics news. Obviously, some approaches would work well than others, in the business. Info gained from administrators and coworkers is a primary part of finding out about the business's brand-new environment. 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. Another helpful tool in finding the case solutions is of Porter's Five Forces 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. : A review of academic research from the last decade. - Environmental regulations can impact the cost structure of Solarcity Tesla. "Three things need to happen to change investor sentiment: SolarCity solving its liquidity crisis, an LOI with Panasonic to address solar cell production risk, and a joint product demo," Musk wrote. If a resource is only valuable, then its a competitive parity. 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. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. 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. Elon Musk took the stand on Monday to defend Tesla's 2016 acquisition of SolarCity against a lawsuit by shareholders seeking to recoup the $2.6bn the company paid for the ailing solar panel . 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. The Value chain analysis of Tesla The SolarCity Acquisition helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. 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. Place these strategic business units in one of four categories. He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. Analyse the companys products and devise strategies to improve the product offering of the company. 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. In other words, the synergistic integration that Tesla hoped for is still a work in progress. 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. What are external factors that are impacting the business environment (PESTEL Analysis) The third step of solving the Tesla The SolarCity Acquisition Case Study is Tesla The SolarCity Acquisition Financial Analysis. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. Published by HBR Publications. Strategic Change, 7(2), 101-109. Place the order on the website to get your customized case solution done. Or how the marketing budget can be better spent using social media rather than traditional media. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. 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. If you need help with something similar, 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. Enphase acquired Sofdesk in 2021 . 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. 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. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Specifying the people "on board" and the people that are not. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. inspiration, guidance, and understanding. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. But not everyone is negative. Lastly, the overall rivalry or competition within the industry is analysed. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. It's final: With no more barriers to the deal, Tesla is buying SolarCity. 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. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. 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. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. One more location, where she found that her expectation was mismatched with the business was team effort. Required fields are marked *. A variety of actions might occur that might transform their "champ" position to "resister" position. The first step of the solution is to come up with a corporate level strategy for the organisation. Dissertation 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. November 1, 2016. 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. Porter, M. E. (2001). Cash Cows are those strategic business units with high market share and low market growth rate. Why you choose one course of action over the other. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. The viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. One is also required to provide how these recommendations would be implemented. It is also important to understand what stakeholders are affected by the problem and how. In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. 100% money back guarantee if the quality doesn't match the promise, If the work we produce contain plagiarism then we payback 1000 USD. Hill, C., & Jones, G. (2010). Analyse the companys distribution and reach. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. 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. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. Green Data Dash. This is doing the Tesla The SolarCity Acquisition Case Solution. Feedback pursuing may likewise support brand-new staff members. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. - Increase in Consumer Disposable Income Solarcity Tesla can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Going into 2016, SolarCity stock was already plunging and the company was going through layoffs. SolarCity filed for their IPO in 2012. Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. Kotler, P., & Armstrong, G. (2010). Strategic attributes and performance in the BCG matrixA PIMS-based analysis of industrial product businesses. 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. Warning! 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. Both companies had similar products and could be a strong strategic fit. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. Relative Weighted Average Market Share Vs Largest Competitor. Help, Academic A greatly chaotic life goes into a very organized one. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability.