2). Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. Tesla: The SolarCity Acquisition is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Green Data Dash. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Each of these resources are assessed in terms of the value it brings to the organization. Despite these challenges, Tesla's value has massively increased following the Acquisition.". All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. Socialization and Beginner on boarding practices in other industries 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. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. 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. But not everyone is negative. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. Even though the problem statement is essentially casecategory challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Solarcity Tesla, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more. November 1, 2016. Create link between the companies and crucial stake holders 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. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. Proposal, Question Identify the relative market share of each strategic business unit. and cannot be used for research or reference purposes. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. Less interaction with new employee. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. 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. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. 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. The trial started . SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. The following goals can be fulfilled: The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Each resource is assessed in terms of how rare it is. 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. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. The organization can develop new products for the existing market. What's swot in strategic analysis? Going into 2016, SolarCity stock was already plunging and the company was going through layoffs. The company should set up lunch and discovering sessions. The internal resources of Tesla The SolarCity Acquisition are listed down. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. Net Cash In Flowtn / (1+r)tn. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. (SolarCity) and with Tesla's financial advisor for the deal without the knowledge of the Tesla Board. 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. SolarCity shareholders will receive 0.11 share of Tesla, worth $20.75 based on Thursday's closing price, for each SolarCity share, making the deal worth about $2.1 billion. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. 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. WILMINGTON, Del. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas Government policies have significant impact on the business environment of any country. Consumer protection Different countries have different consumer protection laws. For example why the change effort failed in the case and what can be done to rectify it. This issue may be analysed for a manager or employee as well. All your payments are secure with Paypal security. Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. This is known as a diversification strategy. Dogs are those strategic business units with low market share and low growth rate. This part consists of solutions that address issues faced by the organisation on a strategic level. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. The firms primary and support activities are listed down. 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. 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. The three step case study solution approach comprises In January of this yeaar, every single one of Teslas directors, with the exception of Elon Musk, agreed to a $60 million settlement to resolve shareholder disputes regarding the Tesla acquisition of SolarCity in 2016. Department and business department conferences. Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. Strategies can be devised to improve the availability of the companys products. Enhancement in socializing practices Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. Bringing SWOT into Focus. 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. inspiration, guidance, and understanding. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. 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. Lastly, the overall rivalry or competition within the industry is analysed. 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. 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. Constant implementation on boarding. 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. 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. 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. Or how the marketing budget can be better spent using social media rather than traditional media. to get Coupon Code. Direct and prospective action plan The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. Posted by Peter Williams on 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. Made with sweat-wicking fabric. The company should keep it in mind, while carrying out such steps. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. Evidences should be both compelling and consistent. 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. All personnel or all hands conferences. The company's major goal must be to change as many 'resisters' as possible through various robust interaction networks and circulation of information, and for those you can not keep them involved in this program. It shows that one has been clarified with the HBR fundamentals on the topic. The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. Tesla: The SolarCity Acquisition case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Obviously, some approaches would work well than others, in the business. Nixon, J., & Helms, M. M. (2010). Don has been a part of three successful exits in the solar + storage industry. 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. Question Marks are those strategic business units with high market share and low market growth rate.
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