Key Points. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. It helps in communicating the points directly and the direction one took. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. 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. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. These factors are also responsible for the future growth and challenges within the industry. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. Analyse the companys products and devise strategies to improve the product offering of the company. It is important to have more than one solution to the case study. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. This brings us to the latest update in this multi-pronged legal battle. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. In other words, the synergistic integration that Tesla hoped for is still a work in progress. (2013). Management Decision, 50(8), 1396-1411. Moreover, I would have advised the following action plan: But not everyone is negative. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. Develop and applied composed on boarding strategies. 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. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. This is known as the problem identification stage. November 1, 2016. Lastly, a timeline of the issues and events in the case needs to be made. 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. View our privacy policy. Tesla acquired SolarCity in 2016. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. The HBR case studies may present issues faced by a part of the organisation. The organization can develop new products for the existing market. A greatly chaotic life goes into a very organized one. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. It can further impact the cost of doing business in certain markets. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. If a resource is high on all of these 4, then it brings long-term competitive advantage. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. : A review of academic research from the last decade. Bartol. - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. Shareholders have sued Musk alleging that the deal . 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. 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 . Be lively to the degree that who, when and what on boarding. Journal of Strategy and Management, 3(3), 215-251. 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. 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. It also should look at the potential opportunities and threats that these competitors pose on the company. Aug-09-2018. Men's chino short. submission, reproduction, or any other misuse in any manner. 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. 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. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. Here's what every major analyst thought of Tesla's investor day, Top auto analyst Jonas stays bullish on Tesla, says investor day showed competition can't keep up, JPMorgan downgrades electric vehicle stock Nio, says expectations are too high. 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. Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. 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. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. - 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. Question Marks are those strategic business units with high market share and low market growth rate. Our model papers and solutions are purely meant for This issue may be analysed for a manager or employee as well. Hold Ctrl or Cmd to select multiple editions. 2 min read. The organization can enter new markets with its existing products. Less interaction with new employee. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. It includes the bargaining power of buyers in the industry. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. Case study solutions are career defining. Environment & PEST analysis: an approach to the external business environment. The process can also be done to competitors to understand their competitive advantages and competitive strategies. 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. Free Management E-Books. Enhancement in socializing practices This is known as market development strategy. If a resource is only valuable, then its a competitive parity. This part consists of solutions that address issues faced by the organisation on a strategic level. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. For example, strengths will be used as an advantage in solving the issue. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. 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. 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. 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. Tesla The Solarcity Acquisition Case Study Help. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. 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.. A Division of NBCUniversal. 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. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. 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. on WhatsApp for any queries. - Inflation rate is one of the key criteria to consider for Solarcity Tesla before entering into a new market. This is doing the Tesla The SolarCity Acquisition Case Solution. These can usually be developed using the company history is provided in the case. This is known as a diversification strategy. Getting the responsibility for the effort and arrangement of implementation. 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. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. . Tesla shareholders backed the acquisition, with an . Tesla The Solarcity Acquisition had actually just finished her bachelor's degree in the field of 'engineering in the electronics and interactions stream' from the famous organization in US . Solution, Assignment Writing correct email will be accepted, (Approximately We are here to help. 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 some point she had totally free riders in the groups who never worked, however took the credit, sometime she learned a lot and had good experience with the team. "Should be able to do all those before the shareholder vote. Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. A Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Teslas $2.6 billion acquisition of SolarCity. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. Why you choose one course of action over the other. 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. To do comprehensive PESTEL analysis of case study Tesla: The SolarCity Acquisition , we have researched numerous components under the six factors of PESTEL analysis. How They Teach the Case Method At Harvard Business School. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. The acquisition was a huge blow to the entire Solarcity Group, which is a leading player in B2B trading, and it will be another huge blow to B2B. Socialization and Beginner on boarding practices in other industries 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. 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. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-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. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. 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. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. The company can challenge competitors from various companies. Had he lost, Musk could have had to pay upwards of $2 billion. It helps in the strategic analysis of Tesla The SolarCity Acquisition. 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. Proposal, Question Try to make very first day at company unexpected. At other times, finding the issue is the job of the person analysing the case. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. 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. In some HBR case studies, one may be required to analyse an issue at a department. In addition, when you have possibilities to go over the issues with your supervisor, let him know that your subordinates were not working, so you may end up being the leader and at the very same time, you need to tell your subordinate to collaborate to meet the due dates and goals of the company. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. According to Zhichuan Frank Li, Tomiwa Ademidun of Tesla: The SolarCity Acquisition case study, Solarcity Tesla can use this trend to expand in adjacent areas Financial analysis, Manufacturing, Mergers & acquisitions. Warning! Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. Despite these challenges, Tesla's value has massively increased following the Acquisition.". Chat with us Please be mindful of our community standards. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Tesla: The SolarCity Acquisition case study. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Tesla The SolarCity Acquisition operates in. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. Got a confidential news tip? A rare resource is one that is not commonly used by competitors. Don has been a part of three successful exits in the solar + storage industry. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. Government policies have significant impact on the business environment of any country. - Environmental regulations can impact the cost structure of Solarcity Tesla. Tesla shareholders alleged the company's . The solution may state that objectives that these people need to achieve and how these objectives would be achieved. The business needs to supply a reasonable job preview to its workers, and corporation culture is alternative administrative approach to allow new employee socialization. You can download Excel Template of Case Study Solution & Analysis of Tesla: The SolarCity Acquisition, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, SWOT Analysis of Tesla: The SolarCity Acquisition, PESTEL /PEST / STEP Analysis of Tesla: The SolarCity Acquisition Case Study, 5C Marketing Analysis of Tesla: The SolarCity Acquisition, 4P Marketing Analysis of Tesla: The SolarCity Acquisition, Porter Five Forces Analysis and Solution of Tesla: The SolarCity Acquisition, Porter Value Chain Analysis and Solution of Tesla: The SolarCity Acquisition, Case Memo & Recommendation Memo of Tesla: The SolarCity Acquisition, Blue Ocean Analysis and Solution of Tesla: The SolarCity Acquisition, Marketing Strategy and Analysis Tesla: The SolarCity Acquisition, VRIO /VRIN Analysis & Solution of Tesla: The SolarCity Acquisition, PESTEL / STEP / PEST Analysis of Tesla: The SolarCity Acquisition, Case Study Solution of Tesla: The SolarCity Acquisition, SWOT Analysis and Solution of Tesla: The SolarCity Acquisition, Joe Mandato, Pete McNerney and Empathetics Case Study Solution & Analysis, Managing Diversity and Inclusion at Yelp (B) Case Study Solution & Analysis, Ethics and Integrity in Business: Navigating Ethical Risks and Transgressions in the Workplace (A) Case Study Solution & Analysis, Branding BY-HEALTH: The Value of Transparency Case Study Solution & Analysis, Club Sportif MAA: Staying Ahead of the Game Case Study Solution & Analysis, CEO Succession at Cisco, Video Supplement Case Study Solution & Analysis, Hisense's Internationalization Dilemma: Co-Operation with Loewe Case Study Solution & Analysis, Kangaroo Tail Winery Limited (C) Case Study Solution & Analysis, An Inside Perspective on Carbon Disclosure Case Study Solution & Analysis, The One Fund Case Study Solution & Analysis, Position among Retailers and Wholesalers companyname retail strategy, Yes, firm has strong relationship with retailers and wholesalers, Difficult to imitate though not impossible, Yes, over the years company has used it successfully, Ability to Attract Talent in Various Local & Global Markets, Yes, Solarcity Tesla strategy is built on successful innovation and localization of products, Yes, as talent is critical to firm's growth, Vision of the Leadership for Next Set of Challenges, Not based on information provided in the case. Conclusions MBA & EMBA professionals should state their conclusions at the very start. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. 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. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. And conflicts among other Tesla Board members were not completely neutralized. 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. Tesla: The SolarCity Acquisition case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. 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. 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. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. What's swot in strategic analysis? Help, Academic K, & Martin, D. (1998). The firms primary and support activities are listed down. This is doing the Tesla The SolarCity Acquisition Case Solution. - 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. "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. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The matter could be appealed to the Delaware Supreme Court. Now That Tesla Has Approval to Buy SolarCity, Here's What a Combined Company Might Look Like 70 On November 17, Tesla shareholders approved the acquisition of SolarCity in an all-stock. Michael Porter Five Forces of Strategy are . Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. We are expecting that more than 100 people may well gather in connection with this trial. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. At EMBA PRO, we provide corporate level professional case study solution. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Order your custom solution now. Accessed July 12, 2021. The first step of the solution is to come up with a corporate level strategy for the organisation. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. The objective of the case should be focused on. . It involves coming up with new and unique products or ideas through innovation. 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. Hill, C., & Jones, G. (2010). The third step is not compulsory but depends from case to case. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. Where t = time period, in this case year 1, year 2 and so on. She thought about the task assigned to her as a video game so that she might take pleasure in the work. 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. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. 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 should enhance the value creating activities within its value chain. The business must arrange the corporate occasions, so the workers can connect with each other. One more location, where she found that her expectation was mismatched with the business was team effort. Our immersive learning methodology from case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Finance & Accounting field, and broaden their skill set. 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. Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. You can go about it in a similar way as is done for a finance and accounting case study. VRIO and VRIN analysis can help the firm. Highlight the pros and cons of the deal. WILMINGTON, Del. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: - 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. It is also important to understand what stakeholders are affected by the problem and how.