The following are the very best practices that the business executes in socializing and on boarding of newbies: Key Points. 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. 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. Management and Administrative Sciences Review, 2(2), 196-206. Enphase acquired Sofdesk in 2021 . To summarize, the following expectations were mismatched with the business: - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. As Director of Communications at LendEDU, Mike Brown uses data, usually from surveys and publicly available resources, to identify emerging personal finance trends and tell unique stories. Men's chino short. If a country doesnt have independent judiciary then there is no point entry into such a country for business. Investors were skeptical of the deal from. 2019 Texas Business School. How it can improve the profitability in a given industry (Porter Value Chain Analysis) Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. Got a confidential news tip? This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases. Usage creativity, and promote the process. Required fields are marked *. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. Dissertation Slights also acknowledged in his opinion: "As of trial, Tesla continued to rely on other solar companies to manufacture, produce, install and sell parts of its solar products. Help, Academic Tesla is officially in the solar roof business, says Elon Musk. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. Direct and prospective action plan Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. 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. 1. Create link between the companies and crucial stake holders This is known as product development strategy. 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. 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 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. 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. 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. Freedom of Press is critical for fair trade and transparency. WILMINGTON, Del. In other words, the synergistic integration that Tesla hoped for is still a work in progress. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. This is doing the Tesla The SolarCity Acquisition Case Solution. Chat with us Experience and actions of Tesla The Solarcity Acquisition Case Study Help. In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . Evidences should be both compelling and consistent. Specifying the people "on board" and the people that are not. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. Evidences Finally you should provide evidences to support your reasons. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. After the $2.6 billion deal went through for Tesla to buy SolarCity, Tesla shareholders filed a lawsuit against Tesla/SolarCity/Musk and sought $2.6 billion in damages or the cost of the SolarCity acquisition. 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. Another location, where Tesla The Solarcity Acquisition Case Study Help's expectation was mismatched with the business was enjoyable aspect. - 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. Academic writing has no room for errors and mistakes. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. Rauch, P. (2007). Please be mindful of our community standards. 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 . SolarCity was founded in 2006 by brothers Peter and Lyndon Rive, based on a suggestion for a solar company concept by their cousin, Elon Musk, who was the chairman and helped start the company. But not everyone is negative. 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. 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. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. This is shown through a proper implementation framework. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. 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. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. One is also required to provide how these recommendations would be implemented. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. Solution, Assignment Writing 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. 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. Check your email Another five of Teslas directors were direct or indirect owners of SolarCity stock. When Tesla The Solarcity Acquisition Case Study Solution joined the company, in the starting she felt the business was a little bit of an alienation. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. 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. 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. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. The business can embrace any of the following interaction techniques for socializing practices: Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. A few of them were fulfilled, however some were mismatched with the company. If you have BIG dreams to score BIG, think out It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. In these cases, recommendations need to be made for these people. 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. 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. 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. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. . Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. IIBMS. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. June 21, 2016 3:09 p.m. PT. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. Nixon, J., & Helms, M. M. (2010). Tesla shareholders backed the acquisition, with an . The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. 7 Effective Steps to Solve Case Study. Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. Understanding Business Processes, 50-66. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. Get this delivered to your inbox, and more info about our products and services. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Solarcity Tesla is facing right now. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. 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. Exploring SWOT analysis where are we now? 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. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. - 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. This content is protected by copyright and may not be reused. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. Boston: Irwin McGrawHill. In some HBR case studies, one may be required to analyse an issue at a department. It includes the bargaining power of suppliers in an industry. By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment. 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. The trial started . - 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. 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. 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. 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. Kotler, P., & Armstrong, G. (2010). These are the threats that the industry faces due to new entrants. 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. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). The value chain and competitive advantage. One more location, where she found that her expectation was mismatched with the business was team effort. In the EU countries, firms are required to make special provision for privacy issues and other laws. Arranging events in a timeline allows one to predict the next few events that are likely to take place. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. Export restrictions on products Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. These solutions will also be the Tesla The SolarCity Acquisition case answers. His attorneys have framed the acquisition as an opportunity to realize his long-held goal of creating a vertically integrated sustainable energy company.. A primary question in the case is whether Mr. Musk, who owned roughly 22% of Tesla at the time, controlled the . Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. inspiration, guidance, and understanding. 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. Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. The solution consists of recommended strategies to overcome this central issue. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. The business must arrange the corporate occasions, so the workers can connect with each other. 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. The shareholders argued Musk breached his fiduciary duties, squandered Teslas assets and unjustly enriched himself by pushing to buy the money-losing solar company in which he was the biggest investor, according to Reuters. Business Strategy Review, 14(2), 8-10. K, & Martin, D. (1998). 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. This part consists of solutions that address issues faced by the organisation on a strategic level. 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. Strategies can be devised to improve the availability of the companys products. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. 100% money back guarantee if the quality doesn't match the promise, If the work we produce contain plagiarism then we payback 1000 USD. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. - Environmental regulations can impact the cost structure of Solarcity Tesla. 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. Given that, workers are slowly fluctuating tasks to deal with brand-new business, socialization is very important just as much for the workers as it is for the companies. And while I certainly would not characterize this trial, or any other trial, as non-essential, it is not expedited and no irreparable harm will flow from an adjournment.. 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 . Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. Question: Refer to the Tesla SolarCity acquisition case study. Task beyond the command on the field. Service, Dissertation Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - Bartol. Proposal, Question Stay informed. (2013). 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. 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. Both companies had similar products and could be a strong strategic fit. 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. Socialization and Beginner on boarding practices in other industries Mr. Musk, who is expected to take the stand in the nonjury trial as early as Monday, was chairman of both companies at the time. Conclusions MBA & EMBA professionals should state their conclusions at the very start. 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. academic writing services at least once in their lifetime! 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. Because according to my understanding about the city of World, the competitors is very high in IT corporations, and likewise it is really tough to get utilized in these sectors, so if someone gets used in such a famous company, she should stay with it whether it is field related to work or not. 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, One of the biggest issues with the deal was that Elon Musk was the largest shareholder of both Tesla and SolarCity at the time of the acquisition. To do comprehensive PESTEL analysis of case study Tesla: The SolarCity Acquisition , we have researched numerous components under the six factors of PESTEL analysis. Feel free to connect with us if you need business research. This issue may be analysed for a manager or employee as well. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. Department and business department conferences. This article is only an example The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . An important tool that helps in addressing the central issue of the case and coming up with Tesla The SolarCity Acquisition HBR case solution is the SWOT analysis. 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. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. Getting the responsibility for the effort and arrangement of implementation. Don has been a part of three successful exits in the solar + storage industry. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations. Please place the order on the website to get your own originally done case solution. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. If a resource is high on all of these 4, then it brings long-term competitive advantage. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward.