By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! Elon Musk defends Tesla's $2.6B acquisition of SolarCity in Delaware The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. SolarCity filed for their IPO in 2012. 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. 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. Strategic Change, 7(2), 101-109. 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 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. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. 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. Had he lost, Musk could have had to pay upwards of $2 billion. It also helps one in developing the case study solutions. Shareholders have sued Musk alleging that the deal . By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. How it can improve the profitability in a given industry (Porter Value Chain Analysis) This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Catching up on the Musk-Tesla-SolarCity acquisition case pv magazine International Gfeedit, World News: Latest news, breaking news,- TODAYNEWS.com, 5 Controversies That Will Forever Haunt Elon Musk - LEETjobs. The article written below is not related to the actual case in discussion, It is for formatting purposes only. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. Feel free to connect with us if you need business research. 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 company should set up lunch and discovering sessions. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. - 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. This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. The HBR case studies may present issues faced by a part of the organisation. The first step of the solution is to come up with a corporate level strategy for the organisation. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. 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. The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. 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. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. It is also important to understand what stakeholders are affected by the problem and how. Tesla: The SolarCity Acquisition Case Study Solution & Analysis / MBA Help, Academic 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. Kotler, P., & Armstrong, G. (2010). The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. Reasons At the second stage provide the reasons for the conclusions. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. Among the significant problem with the business is the lack of communication and support from the managers in the business. Environment & PEST analysis: an approach to the external business environment. 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. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. (2013a). Conclusions MBA & EMBA professionals should state their conclusions at the very start. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. Each resource is assessed in terms of how rare it is. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. It helps in communicating the points directly and the direction one took. Tesla The Solarcity Acquisition - Case Study Solution Bringing SWOT into Focus. If the Merger does not occur, Tesla and SolarCity may incur these costs without realizing any of the benefits of the Merger being completed.In addition, if the Merger is not completed, Tesla and/or SolarCity may experience negative reactions from the financial markets and from their respective customers and employees.Tesla and/or SolarCity could also be subject to litigation related to any . 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. Pearson education. It has been estimated that its shares are worth as much as $1.2 billion and its shares in the Solarcity Group are valued at $100 million. The internal resources of Tesla The SolarCity Acquisition are listed down. 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. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. The dismissal was based on the argument that Musk wasnt the controlling stockholder, since he didnt own a majority of the stock in either company. Catching up on the Elon Musk-Tesla-SolarCity acquisition case Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. It includes the bargaining power of suppliers in an industry. The Possible locations of Mismatched Expectation in between Tesla The Solarcity Acquisition Case Study Help and Company Strategic Management Theory: An Integrated Approach, Ninth Ed. Foreign Direct Investment Policies Government policies favors local companies over international policies, Solarcity Tesla in case study Tesla: The SolarCity Acquisition should understand in minute details regarding the Foreign Direct Investment policies of the prospective market. A Division of NBCUniversal. Here's how SolarCity became Tesla Energy: - money.yahoo.com In the EU countries, firms are required to make special provision for privacy issues and other laws. Tesla CEO Musk goes to trial Monday on $2.6 billion SolarCity deal - CNBC 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. 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. This is doing the Tesla The SolarCity Acquisition Case Solution. These are the threats that the industry faces due to new entrants. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. This is known as market penetration strategy. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. Kim, W. C., & Mauborgne, R. (2004). Both companies had similar products and could be a strong strategic fit. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. 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. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. 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. Task beyond the command on the field. This could be mentioned at the start of the reading, the middle or the end. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. 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. 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. A rare resource is one that is not commonly used by competitors. Going into 2016, SolarCity stock was already plunging and the company was going through . It also lays down the changes needed to be made as well as the assumptions in the process. Hill, C., & Jones, G. (2010). CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. Re-allocating of the task to the new office. VRIO and VRIN analysis can help the firm. Tesla and SolarCity | Tesla So, in other words, she had ups and downs in the whole year that she had actually invested in the company. You need to make efforts to block them out, and must focus on your work. 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. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. 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. New York: Free Press. 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. Sign up for free newsletters and get more CNBC delivered to your inbox. Identifying the importance of these activities in the cost of the product and the differentiation they produce. And conflicts among other Tesla Board members were not completely neutralized. If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit. Lastly, a timeline of the issues and events in the case needs to be made. 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. Question Marks are those strategic business units with high market share and low market growth rate. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. 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. 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. - 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. Gupta, A. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. European Journal of Forest Research, 126(3), 413-420. PDF The Acquisition of SolarCity by Tesla A Good Step or Not? - Atlantis Press Both companies had similar products and could be a strong strategic fit. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. Join our newsletter. Tesla The Solarcity Acquisition Case Study Solution & Analysis The shareholders argued Musk breached his fiduciary duties, squandered Teslas assets and unjustly enriched himself by pushing to buy the money-losing solar company in which he was the biggest investor, according to Reuters. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. 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. One-to-one discussions. These solutions will also be the Tesla The SolarCity Acquisition case answers. The firms primary and support activities are listed down. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. 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. Your email address will not be published. Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. Create link between the companies and crucial stake holders Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. (2015). NPV: Tesla: The SolarCity Acquisition Net Present Value Case Analysis It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. BCG Growth Share Matrix is very valuable tool to analyze Solarcity Tesla strategic positioning in various sectors that it operates in and strategic options that are available to it. The next step is of understanding the company; its people, their priorities and the overall culture. Through energetically pursuing feedback, new employees can rapidly learn about activities that are required to be altered to know which actions fit in finest with corporation culture and potential customers. The company should satisfy some goals for socialization practices. Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Feedback pursuing may likewise support brand-new staff members. One is also required to provide how these recommendations would be implemented. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). Tesla directors settle, isolating Musk as SolarCity trial looms To do comprehensive PESTEL analysis of case study Tesla: The SolarCity Acquisition , we have researched numerous components under the six factors of PESTEL analysis. 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. Providing personnel with as much right truths as possible, before hand they start functioning for the company. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. 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 problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. The Tesla The SolarCity Acquisition case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. SolarCity was insolvent when Tesla paid $2.6 billion to buy it, lawsuit Management Decision, 50(8), 1396-1411. SolarCity - Wikipedia If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. Check your email The shareholders also alleged that Musk controlled the board of Tesla, even though he appeared to recuse himself from some deal negotiations concerning SolarCity. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. It has to come from the data provided within the case study rather than data from outside world. It involves looking at the current market share of the company and its competitors. The acquisition is a key improvement on the Solarcity deal. Strategies can be devised to improve the availability of the companys products. 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. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. Analyse the companys price points and devise strategies that could be based on competition, value or cost. Freedom of Press is critical for fair trade and transparency. 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 . By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. 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.