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. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. Tesla officially acquires SolarCity TechCrunch Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. 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. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. Despite these challenges, Tesla's value has massively increased following the Acquisition.". Academic writing has no room for errors and mistakes. The matter could be appealed to the Delaware Supreme Court. The third step of solving the Tesla The SolarCity Acquisition Case Study is Tesla The SolarCity Acquisition Financial Analysis. 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. How They Teach the Case Method At Harvard Business School. This is known as market development strategy. The company should keep it in mind, while carrying out such steps. 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. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. These solutions will also be the Tesla The SolarCity Acquisition case answers. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . Join our newsletter. 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. Evidences Finally you should provide evidences to support your reasons. Tesla: The SolarCity Acquisition will also provide insight into areas such as wordlist , strategy, leadership, sales and marketing, and negotiations. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. Please be mindful of our community standards. Do not carry out that someone who helps the program in the start, will sustain to do so in future. Going into 2016, SolarCity stock was already plunging and the company was going through . This is shown through a proper implementation framework. 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. This is known as the problem identification stage. (1979, March). The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. 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. 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. Conclusions MBA & EMBA professionals should state their conclusions at the very start. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. . It includes the bargaining power of suppliers in an industry. 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. correct email will be accepted, (Approximately Academy of Management Journal, 25(3), 510-531. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. A greatly chaotic life goes into a very organized one. Each of these resources are assessed in terms of the value it brings to the organization. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment. CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. Task beyond the command on the field. It can further impact the cost of doing business in certain markets. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. SolarCity was widely considered one of the best solar companies in the years leading up to . 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. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. The firms primary and support activities are listed down. 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. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. Made with sweat-wicking fabric. Management and Administrative Sciences Review, 2(2), 196-206. 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. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. 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. Enhancement in socializing practices It involves looking at the current market share of the company and its competitors. The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. If a country doesnt have independent judiciary then there is no point entry into such a country for business. The objective of the case should be focused on. 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 . Hold Ctrl or Cmd to select multiple editions. Or how the marketing budget can be better spent using social media rather than traditional media. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. Tesla The Solarcity Acquisition - Case Study Solution One-to-one discussions. 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. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. This content is protected by copyright and may not be reused. 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. (2015). 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. Obviously, some approaches would work well than others, in the business. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. The company should set up lunch and discovering sessions. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. Tesla shareholders backed the acquisition, with an . Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. 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. Analyse the companys promotion mix. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. 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. 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Tesla: The SolarCity Acquisition is a Harvard Business (HBR) Case Study on casecategory , Texas Business School provides HBR case study assignment help for just $9. You can go about it in a similar way as is done for a finance and accounting case study. The organization can penetrate into existing markets with its existing products. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. Why you choose one course of action over the other. Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. 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. We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. November 1, 2016. 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. We are here to help. WILMINGTON, Del. Another location, where Tesla The Solarcity Acquisition Case Study Help's expectation was mismatched with the business was enjoyable aspect. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. What's swot in strategic analysis? A variety of actions might occur that might transform their "champ" position to "resister" position. Porter, M. E. (1985). Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. 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. 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. Warning! But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. Catching up on the Elon Musk-Tesla-SolarCity acquisition case Tesla shareholders alleged the company's . The company's major goal must be to change as many 'resisters' as possible through various robust interaction networks and circulation of information, and for those you can not keep them involved in this program. The article written below is not related to the actual case in discussion, It is for formatting purposes only. If a resource is only valuable, then its a competitive parity. Pearson education. Tesla's .6bn SolarCity acquisition lawsuit ruled in favor of Elon 7 Effective Steps to Solve Case Study. 'Tesla The Solarcity Acquisition' was one of World's topmost IT services corporations, with workplaces in many locations around the world. The business should recruit the employees that have the skills that match with the objectives of the business. Place the order on the website to get your customized case solution done. Porter, M.E. 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. inspiration, guidance, and understanding. r = discount rate or return that could be earned . 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. Both companies had similar products and could be a strong strategic fit. 2023 CNBC LLC. View our privacy policy. Don Harris - Vice President of Software Sales - FlexGen | LinkedIn The task subordinate did not ask to do any work. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. Each resource is assessed in terms of how rare it is. Tesla CEO Elon Musk finds himself in the news quite often, from groundbreaking SpaceX launches to contentious tweets. A Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Teslas $2.6 billion acquisition of SolarCity.