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Question: Refer to the Tesla SolarCity acquisition case study. - 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. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. 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. Net Cash In Flowtn / (1+r)tn. 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. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. Strengths and Weaknesses are result of Solarcity Tesla internal factors, while opportunities and threats arise from developments in external environment in which Solarcity Tesla operates. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf. 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. submission, reproduction, or any other misuse in any manner. Hill, C., & Jones, G. (2010). She understood that a lot of the important things had altered in the office in addition to the changes in the method she was, at the initiation of the job. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. 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. You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Teslas co-founder and CEO, Elon Musk, believed that the merger would generate significant cost and revenue synergies, based on his vision of the future of transportation, energy storage, and a green economy. The first step of the solution is to come up with a corporate level strategy for the organisation. Your email address will not be published. Evidences Finally you should provide evidences to support your reasons. Re-allocating of the task to the new office. (1979, March). It is important to have more than one solution to the case study. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. 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. 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. WILMINGTON, Del. Understanding Business Processes, 50-66. 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. 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. Socialization and Beginner on boarding practices in other industries 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 . After this, the relevant tools and models are used, which help in the case study analysis and case study solution. What are external factors that are impacting the business environment (PESTEL Analysis) 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). 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, 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. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. This can be done by using company history. 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. She made numerous buddies, delighted in the training classes and learned a lot about behavior and the mindset that one ought to have at the office. It is also important to understand what stakeholders are affected by the problem and how. 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. Help, Academic pv magazine offers daily updates of the latest photovoltaics news. Vice Chancellor Joseph R. Slights, who decided the case shortly before retiring, sided with Musk, writing: "Elon was more involved in the process than a conflicted fiduciary should be. The article written below is not related to the actual case in discussion, It is for formatting purposes only. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Getting the responsibility for the effort and arrangement of implementation. 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. How it can improve the profitability in a given industry (Porter Value Chain Analysis) It can further impact the cost of doing business in certain markets. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation. Competitive advantage: creating and sustaining superior performance (Vol. New York: Free Press. Bartol. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. At training sessions, Tesla The Solarcity Acquisition Case Study Help had dealt with her schoolmates and they all had become friends and did all the work together. One is also required to provide how these recommendations would be implemented. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. In a nutshell, if I was in the location of Tesla The Solarcity Acquisition Case Study Solution, I would have sustained to stay in the business with possible action plan in her scenarios. The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. The company should set up lunch and discovering sessions. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. on WhatsApp for any queries. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. It involves looking at the current market share of the company and its competitors. Export restrictions on products Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Order your custom solution now. All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. 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. These can usually be developed using the company history is provided in the case. Elon Musk is testifying Monday morning in a lawsuit over Tesla's 2016 acquisition of SolarCity, a $2.6 billion transaction that a group of shareholders allege was a "bailout" of the failing . Reasons At the second stage provide the reasons for the conclusions. Tesla: The SolarCity Acquisition will also provide insight into areas such as wordlist , strategy, leadership, sales and marketing, and negotiations. Tesla The Solarcity Acquisition Case Study Help. 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 . It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. International Journal of Modern Social Sciences, 2(1), 34-43. Aug-09-2018. Create link between the companies and crucial stake holders Identify the market growth of each strategic business unit. Amanda is strategy expert at Texas Business School . Mason, OH: South-Western, Cengage Learning. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. According to the plaintiffs, as Tesla's controlling stockholder, Elon caused Tesla's servile Board to approve the Acquisition of an insolvent SolarCity at a patently unfair price, following a highly flawed process, in order to bail out his (2013). Why you choose one course of action over the other. 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. In the EU countries, firms are required to make special provision for privacy issues and other laws. Identify the relative market share of each strategic business unit. You can use Porter Five Forces to analyze the industry in which Solarcity Tesla operates in and what are the levers of profitability in those segments differentiation, Financial analysis, Manufacturing, Mergers & acquisitions. Proposal, Assignment Writing Solarcity Tesla needs to adjust its marketing strategy accordingly. Green Data Dash. The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. Integrity, Marketing strategy of Tesla The SolarCity Acquisition, Marketing Mix Of Tesla The SolarCity Acquisition, Tesla The SolarCity Acquisition Case Study Solution, 3-Joe-Smith-s-Closing-Analysis-A-Spanish-Version, 23558-The-Multichannel-Challenge-at-Natura-in-Beauty-and-Personal-Care, 23559-Masdar-City-Initiative-One-Step-in-the-United-Arab-Emirates-Journey-to-a-New-Energy-Economy, 23560-Neuromarketing-Inside-the-Mind-of-the-Consumer, 23561-Strategies-for-Higher-Education-in-the-Digital-Age, 23564-Diversity-s-New-Frontier-Diversity-of-Thought, 23565-Leadership-Forum-The-Role-of-the-LGBTQ-Ally, 23566-Updating-the-Image-of-the-Ideal-Worker, 23567-Whitening-and-Self-Presentation-in-the-Labour-Market. Thank you for your email subscription. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. 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. 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. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. 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. Management and Administrative Sciences Review, 2(2), 196-206. 2). Tesla CEO Elon Musk is expected in court on Monday to defend his role in Tesla's $2.6 billion acquisition of SolarCity in 2016. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Elon Musk Testifies To Defend Tesla's $2.6 Billion Acquisition of SolarCity in Shareholder Lawsuit. 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. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. 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. 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. Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. The matter could be appealed to the Delaware Supreme Court. Bringing SWOT into Focus. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. We are expecting that more than 100 people may well gather in connection with this trial. Relative Weighted Average Market Share Vs Largest Competitor. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. please submit your details here. Get this delivered to your inbox, and more info about our products and services. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) A rare resource is one that is not commonly used by competitors. It also lays down the changes needed to be made as well as the assumptions in the process. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. Task beyond the command on the field. It has to come from the data provided within the case study rather than data from outside world. VRIO and VRIN analysis can help the firm. 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. Providing personnel with as much right truths as possible, before hand they start functioning for the company. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. Proposal, Question 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. 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. 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. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. The organization can enter into new markets with new products. Key Points. 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. 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. Kim, W. C., & Mauborgne, R. (2004). Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. This shows how through a step-by-step procedure as to how the central issue can be resolved. 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. Stay informed. Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. - 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. Going into 2016, SolarCity stock was already plunging and the company was going through . Additionally, Musk and his cousins, who served as CEO and CTO at SolarCity, founded the solar installer in 2006, while Musk served as the companys chairman. Tesla shareholders backed the acquisition, with an . The Tesla acquisition of SolarCity closed in November 2016. This article is only an example 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. 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. All Rights Reserved. Environment & PEST analysis: an approach to the external business environment. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. The viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. inspiration, guidance, and understanding. 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. The three step case study solution approach comprises Lastly, a timeline of the issues and events in the case needs to be made. 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. Strategic Management Theory: An Integrated Approach, Ninth Ed. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. These factors are also responsible for the future growth and challenges within the industry. You can hire Texas Business School professinoals to revolutionize your strategy & business. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. PESTLE Analysis. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. 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. A Division of NBCUniversal. On boarding discusses the treatment that helps brand-new personnels that get the info, abilities, and actions which are needed to thrive in their new corporation. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). to get Coupon Code. Identifying the importance of these activities in the cost of the product and the differentiation they produce. Further information on data privacy can be found in our Data Protection Policy. (2015). This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. The business needs to supply a reasonable job preview to its workers, and corporation culture is alternative administrative approach to allow new employee socialization. Fitted waist with belt loops. At EMBA PRO, we provide corporate level professional case study solution. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. One-to-one discussions. Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. Data is a real-time snapshot *Data is delayed at least 15 minutes. Accordingly, we never encourage or endorse its direct Panagiotou, G. (2003). 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. 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. 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. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. 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. Managers need to assess these factors even before entering the market. She strove to clear all the evaluation that the business draws from the fresh graduates. 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. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. 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. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Department and business department conferences. In fact, Lynn . Analyse the companys price points and devise strategies that could be based on competition, value or cost. 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.
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