and cannot be used for research or reference purposes. The Tesla acquisition of SolarCity closed in November 2016. View our privacy policy. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. Providing personnel with as much right truths as possible, before hand they start functioning for the company. What's swot in strategic analysis? The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. Got a confidential news tip? . This is known as market development strategy. Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. The value chain and competitive advantage. Michael Porter Five Forces of Strategy are . If a country doesnt have independent judiciary then there is no point entry into such a country for business. 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 . 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 . Do not carry out that someone who helps the program in the start, will sustain to do so in future. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. Porter, M. E. (2001). 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. 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. 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. 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. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. Constant implementation on boarding. 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. Sign up for free newsletters and get more CNBC delivered to your inbox. Key Points. 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 has to come from the data provided within the case study rather than data from outside world. Blue ocean strategy. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. Feel free to connect with us if you need business research. Department and business department conferences. His work, which has been featured in outlets like The Wall Street Journal and The Washington Post, provides consumers with a personal finance measuring stick and can help them make informed finance decisions. All your payments are secure with Paypal security. The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. A greatly chaotic life goes into a very organized one. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. So, recommendations and suggestions need to address the strategy of the marketing department in this 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. A greatly chaotic life goes into a very organized one. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. Button waist with zip fly provides a classic look and feel . Had he lost, Musk could have had to pay upwards of $2 billion. 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. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. Fitted waist with belt loops. Dogs are those strategic business units with low market share and low growth rate. Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. Place the order on the website to get your customized case solution done. - 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. Academy of Management Journal, 25(3), 510-531. But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. 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. Usage creativity, and promote the process. Integrity, Essay Writing 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. 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. 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. Back in 2016, Tesla acquired solar panel manufacturer SolarCity, billing the $2.6 billion deal as an opportunity to create "the world's only vertically integrated sustainable energy company." The fresh graduates need face to face interaction with their managers. This brings us to the latest update in this multi-pronged legal battle. If the . 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. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. Analyse the companys products and devise strategies to improve the product offering of the company. This is known as the problem identification stage. 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. 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, The following are the very best practices that the business executes in socializing and on boarding of newbies: Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. Identifying the importance of these activities in the cost of the product and the differentiation they produce. 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. The 4 elements of the marketing mix are Product, Price, Place and Promotions. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. Our model papers and solutions are purely meant for Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. 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. Be lively to the degree that who, when and what on boarding. Tesla's Plan to Buy SolarCity Has Major Flaws. She strove to clear all the evaluation that the business draws from the fresh graduates. - Inflation rate is one of the key criteria to consider for Solarcity Tesla before entering into a new market. Kulkarni, N. (2018). Musk denied that he placed any pressure on the Tesla board to go through with the transaction. K, & Martin, D. (1998). So, in other words, she had ups and downs in the whole year that she had actually invested in 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. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. 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. What are external factors that are impacting the business environment (PESTEL Analysis) 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. One is also required to provide how these recommendations would be implemented. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. Rastogi, N., & Trivedi, M. K. (2016). (2013a). In other words, the synergistic integration that Tesla hoped for is still a work in progress. Chat with us - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. Warning! Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Elon Musk Testifies To Defend Tesla's $2.6 Billion Acquisition of SolarCity in Shareholder Lawsuit. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. 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. The following goals can be fulfilled: 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. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. - 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. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. 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. (2013). 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. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. 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. Aug-09-2018. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. All Rights Reserved. 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. 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. Lastly, a timeline of the issues and events in the case needs to be made. Where t = time period, in this case year 1, year 2 and so on. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. Consumer protection Different countries have different consumer protection laws. 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. Management Decision, 50(8), 1396-1411. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. Investors were skeptical of the deal from. It shows that the details provided in the case have been properly analysed. 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. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. How it can improve the profitability in a given industry (Porter Value Chain Analysis) Proposal, Question Each resource is assessed whether it could be imitated by competition easily or not. Highlight the pros and cons of the deal. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. Proposal, Assignment Writing At EMBA PRO, we provide corporate level professional case study solution. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. And conflicts among other Tesla Board members were not completely neutralized. VRIO and VRIN analysis can help the firm. When Tesla bought SolarCity in November 2016, Elon Musk billed the deal as a match made in green energy heaven: Combine a hot electric car company with the nation's then-largest provider of. 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. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. Each of these resources are assessed in terms of the value it brings to the organization. Registering workers with a precise mixture of mental and social capabilities is a hard obligation. 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. BCG analysis should comprise not only growth share of industry & Solarcity Tesla business unit but also Solarcity Tesla - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. To satisfy the customer's requirements and market goals according to the needed time, the task are needed to be completed in a restricted time. Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. This part consists of solutions that address issues faced by the organisation on a strategic level. Or how the marketing budget can be better spent using social media rather than traditional media. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Gupta, A. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. Enphase acquired Sofdesk in 2021 . WILMINGTON, Del. 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. Tesla shareholders backed the acquisition, with an . Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. This issue may be analysed for a manager or employee as well. If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit. Tesla Energy Operations, Inc. is the clean energy division of Tesla, Inc. that develops, manufactures, sells and installs photovoltaic solar energy generation systems, battery energy storage products, as well as other related products and services to residential, commercial and industrial customers. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. Tesla is officially in the solar roof business, says Elon Musk. But not everyone is negative. Feedback pursuing may likewise support brand-new staff members. It is also important to understand what stakeholders are affected by the problem and how. It shows that one has been clarified with the HBR fundamentals on the topic. The acquisition is a key improvement on the Solarcity deal. ", 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%. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . Please be mindful of our community standards. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. Import restrictions on products Before entering the new market, Solarcity Tesla in case study Tesla: The SolarCity Acquisition" should look into the import restrictions that may be present in the prospective market. Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. Analyse the companys price points and devise strategies that could be based on competition, value or cost. 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 timeline also helps in understanding the continuous challenges that are being faced by the organisation. This is doing the Tesla The SolarCity Acquisition Case Solution. It helps in the strategic analysis of Tesla The SolarCity Acquisition. The trial started . The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. Environment & PEST analysis: an approach to the external business environment. Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. SolarCity was widely considered one of the best solar companies in the years leading up to . Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. If both are on the same page then it makes sense to enter, otherwise it doesnt. in. 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. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. Create link between the companies and crucial stake holders Musk initially . You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 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 third step of solving the Tesla The SolarCity Acquisition Case Study is Tesla The SolarCity Acquisition Financial Analysis. Business Strategy Review, 14(2), 8-10. These are the threats that the industry faces due to new entrants. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: 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). It needs to concentrate on reliability of the practices within the business. Task beyond the command on the field. A rare resource is one that is not commonly used by competitors. 2023 CNBC LLC. June 21, 2016 3:09 p.m. PT. Place these strategic business units in one of four categories. The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . The shareholders also alleged that Musk controlled the board of Tesla, even though he appeared to recuse himself from some deal negotiations concerning SolarCity. Kim, W. C., & Mauborgne, R. (2004). 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. Check your email This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. They also alleged that due diligence by outside firms including Evercore was rushed to hide SolarCity's troubles. Info gained from administrators and coworkers is a primary part of finding out about the business's brand-new environment. 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. Independence of judiciary It is critical for fair business practices. SolarCity filed for their IPO in 2012. This is known as the problem identification stage. Reasons At the second stage provide the reasons for the conclusions. Export restrictions on products Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Identify the relative market share of each strategic business unit. Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. 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. 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.