Actionable and practical solutions can then be developed by keeping these factors into perspective. Is this merger a good idea? r = discount rate or return that could be earned . Market overview: Large-scale storage systems, Market overview: Microgrid control systems, The smarter E Europe 2019 special edition, Energy Storage North America Special 2018, Clean Power Research: Solar data solutions to maximize PV project performance. Proposal, Question Although, your objective is to alter the 'resisters to champions', which is not constantly possible. Arranging events in a timeline allows one to predict the next few events that are likely to take place. ANSOFF matrix, environment, and growth-an interactive triangle. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. 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 . Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Help, Academic - 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. 2 min read. Enhancement in socializing practices Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. Strategies can be devised to improve the availability of the companys products. This article is only an example Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. It is also important to understand what stakeholders are affected by the problem and how. Providing personnel with as much right truths as possible, before hand they start functioning for the company. What are external factors that are impacting the business environment (PESTEL Analysis) In the EU countries, firms are required to make special provision for privacy issues and other laws. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf. How it can improve the profitability in a given industry (Porter Value Chain Analysis) This brings us to the latest update in this multi-pronged legal battle. 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. Moreover, I would have advised the following action plan: It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. 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. 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. Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. 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. The company should keep it in mind, while carrying out such steps. The solution consists of recommended strategies to overcome this central issue. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. - High customer loyalty & repeat purchase among existing customers Solarcity Tesla old customers are still loyal to the firm even though it has limited success with millennial. Mason, OH: South-Western, Cengage Learning. Info gained from administrators and coworkers is a primary part of finding out about the business's brand-new environment. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. - 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. The organization can enter into new markets with new products. To do comprehensive PESTEL analysis of case study Tesla: The SolarCity Acquisition , we have researched numerous components under the six factors of PESTEL analysis. The business needs to supply a reasonable job preview to its workers, and corporation culture is alternative administrative approach to allow new employee socialization. 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. Green Data Dash. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. For Tesla The SolarCity Acquisition, based on 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, the recommendations and action plan are as follows: Baron, E. (2015). Feedback pursuing may likewise support brand-new staff members. Sign up for free newsletters and get more CNBC delivered to your inbox. Your email address will not be published. International Journal of Modern Social Sciences, 2(1), 34-43. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. - According to Zhichuan Frank Li, Tomiwa Ademidun . Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. Kim, W. C., & Mauborgne, R. (2004). Another five of Teslas directors were direct or indirect owners of SolarCity stock. This is known as market development strategy. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. 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. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. 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. A greatly chaotic life goes into a very organized one. We want to hear from you. The challenge in front of the protagonist, of Tesla: The SolarCity Acquisition, is to not only build a competitive position of the organization but also to sustain it over a period of time. 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 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. 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. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. 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. Porter, M. E. (1985). Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. 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. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. Those against Musk and this purchase of SolarCity also believed that the outspoken entrepreneur sought to convince Tesla shareholders that the deal was a good one by promoting the unveiling of a SolarCity product that didnt yet exist: glass solar roof tiles. 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. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. 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. 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. Evaluating Alternatives / SWOT Analysis of Tesla: The SolarCity Acquisition case study, STEP 5. Catching up on the Musk-Tesla-SolarCity acquisition case pv magazine International Gfeedit, World News: Latest news, breaking news,- TODAYNEWS.com, 5 Controversies That Will Forever Haunt Elon Musk - LEETjobs. Analyse the companys products and devise strategies to improve the product offering of the company. 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. These solutions will also be the Tesla The SolarCity Acquisition case answers. Boston: Irwin McGrawHill. 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. No reply from the mangers in the brand-new office. 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. This is known as a diversification strategy. If you read nothing else on strategy, read thesebest-selling articles., 71. If both are on the same page then it makes sense to enter, otherwise it doesnt. 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. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. ", A little-known renewable energy stock could rally more than 20%, UBS says, Goldman Sachs upgrades Shell to buy, says oil giant can surge 40%. Academy of Management Journal, 25(3), 510-531. 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. Blue ocean strategy. 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. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. Some argued that Musk was able to get the Tesla board to approve the purchase of SolarCity by misrepresenting the financial health of the company, saying it would be cash-flow positive within six months of the purchase. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Less Net Cash Out Flowt0 / (1+r)t0. Identifying the importance of these activities in the cost of the product and the differentiation they produce. SolarCity was widely considered one of the best solar companies in the years leading up to . Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: Why you choose one course of action over the other. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them. But, as the coronavirus pandemic has impacted everything from the finances of Americans to the future of college, the court proceedings for the Tesla-Musk-SolarCity battle were postponed on March 13. The company was headquartered in Fremont, California, before being purchased by Tesla Inc. in 2016 for $2.6 billion. Rastogi, N., & Trivedi, M. K. (2016). View our privacy policy. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. These factors are also responsible for the future growth and challenges within the industry. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. - 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. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. 2023 CNBC LLC. Tesla bought SolarCity in 2016. 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. 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. Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. CNBC. 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. Case study solutions are career defining. In the Texas Business School, Tesla: The SolarCity Acquisition case study solution following strategic tools are used - 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. 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. Lastly, a timeline of the issues and events in the case needs to be made. External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. A variety of actions might occur that might transform their "champ" position to "resister" position. Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. 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. Hill, C., & Jones, G. (2010). Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). Warning! The Tesla acquisition of SolarCity closed in November 2016. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. 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 shareholders also alleged that Musk controlled the board of Tesla, even though he appeared to recuse himself from some deal negotiations concerning SolarCity. 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. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. The company should set up lunch and discovering sessions. Question: Refer to the Tesla SolarCity acquisition case study. Panagiotou, G. (2003). The trial started . NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . Hurley Dry-Fit Chino Short. We are here to help. PESTEL analysis of " Tesla: The SolarCity Acquisition" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors. The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. 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. Service, Dissertation Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so. This could be mentioned at the start of the reading, the middle or the end. All the guidelines and guidelines, work concern, documents, paperwork and the reporting day were a bit laborious. We are expecting that more than 100 people may well gather in connection with this trial. Competitive advantage: creating and sustaining superior performance (Vol. Order your custom solution now. It involves coming up with new and unique products or ideas through innovation. The objective of the case should be focused on. An effective company socializing procedure can effect in effective staff, with positive work outlook who keep on dealing with the business for a longer period. Try to make very first day at company unexpected. 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. Dogs are those strategic business units with low market share and low growth rate. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. 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. Exploring SWOT analysis where are we now? During his testimony, contradicting those emails, Musk repeatedly argued that Solar City would have been able to raise capital even if it hadn't been acquired by Tesla. At the initiation of the task, Tesla The Solarcity Acquisition Case Study Analysis felt it to be challenging to adjust in her regular with her work. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Create link between the companies and crucial stake holders Help, Academic Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. A few of them were fulfilled, however some were mismatched with the company. Corruption level Solarcity Tesla needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market.

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