tesla the solarcity acquisition case solution

Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. 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. Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . 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. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. Lastly, a timeline of the issues and events in the case needs to be made. Analyse the companys products and devise strategies to improve the product offering of the company. Analyse the companys distribution and reach. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. - 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. 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 Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. A few of them were fulfilled, however some were mismatched with the company. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. June 21, 2016 3:09 p.m. PT. It's final: With no more barriers to the deal, Tesla is buying SolarCity. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. (2013). Lastly, the overall rivalry or competition within the industry is analysed. (2015). How to calculate Weighted Average Market Share using BCG Growth Share Matrix Porter, M. E. (1985). If you have BIG dreams to score BIG, think out Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. A greatly chaotic life goes into a very organized one. 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. Getting the responsibility for the effort and arrangement of implementation. Exploring SWOT analysis where are we now? Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. Each resource is assessed in terms of how rare it is. 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. Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. In these cases, recommendations need to be made for these people. 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. It also helps one in developing the case study solutions. Feel free to connect with us if you need business research. Develop and applied composed on boarding strategies. Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. No reply from the mangers in the brand-new office. 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. But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. Political factors impact seven key decision making areas economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. Moreover, I would have advised the following action plan: Among the significant problem with the business is the lack of communication and support from the managers in the business. The first step of the solution is to come up with a corporate level strategy for the organisation. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. 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. Market overview: Large-scale storage systems, Market overview: Microgrid control systems, The smarter E Europe 2019 special edition, Energy Storage North America Special 2018, Clean Power Research: Solar data solutions to maximize PV project performance. Further information on data privacy can be found in our Data Protection Policy. Going into 2016, SolarCity stock was already plunging and the company was going through . - Increase in Consumer Disposable Income Solarcity Tesla can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. 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. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. in. If both are on the same page then it makes sense to enter, otherwise it doesnt. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. Texas Business School approach of case study analysis Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. PESTLE Analysis. The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. 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. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. . Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. 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. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. You can go about it in a similar way as is done for a finance and accounting case study. The Possible locations of Mismatched Expectation in between Tesla The Solarcity Acquisition Case Study Help and Company The internal resources of Tesla The SolarCity Acquisition are listed down. 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. ~ 0.0 Page). Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. The essential point that is to be kept in mind is you must utilize multiple approaches to make sure that you reach the utmost number of employees within the company, which gives better outcomes for them. 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. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) 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. 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. Don has been a part of three successful exits in the solar + storage industry. 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. Perform standard concepts prior to the first day at business. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. Our model papers and solutions are purely meant for Solarcity Tesla should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. Is this merger a good idea? Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. Analyse the companys price points and devise strategies that could be based on competition, value or cost. Hurley Dry-Fit Chino Short. This part consists of solutions that address issues faced by the organisation on a strategic level. You can hire Texas Business School professinoals to revolutionize your strategy & business. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. The level of tariffs will determine the viability of the business model that the firm is contemplating. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. Join our newsletter. 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. 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. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. At the end of the very first year, she felt that the business had actually appointed her a job that was beyond her command, and the task was offered in the restricted time, in which it was difficult to finish the task. The organization can enter into new markets with new products. Concerns were raised over possible conflicts of interest, given that Musk owned over 20% of the stock, and sat on the board of directors of both companies. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. 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. NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . Pickton, D. W., & Wright, S. (1998). This is known as a diversification 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. This article is only an example 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. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. IIBMS. Solarcity Tesla needs to adjust its marketing strategy accordingly. 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." These are usually in the form of strategies that the organisation can adopt. ", 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%. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. Panagiotou, G. (2003). The fresh graduates need face to face interaction with their managers. submission, reproduction, or any other misuse in any manner. These are the threats that the industry faces due to new entrants. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. Gupta, A. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Cash Cows are those strategic business units with high market share and low market growth rate. 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 . We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case Tesla: The SolarCity Acquisition. Academic writing has no room for errors and mistakes. This content is protected by copyright and may not be reused. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. If a resource is only valuable, then its a competitive parity. Question: Refer to the Tesla SolarCity acquisition case study. The four-hour presentation was long on Musk's vision to build the next phase of Tesla's growth around a sustainable energy future by moving into products like heat pumps, but short on any . They likewise arrange different training session that provide awareness on how to handle different bothersome situation. Dogs are those strategic business units with low market share and low growth rate. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. This is shown through a proper implementation framework. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. Feedback pursuing may likewise support brand-new staff members. 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. 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. Tesla The Solarcity Acquisition Case Study Help. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. 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's Plan to Buy SolarCity Has Major Flaws. Got a confidential news tip? Management, 3rd edition. WILMINGTON, Del. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. 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. These can usually be developed using the company history is provided in the case. There was less possibility to be used in US. Each of these resources are assessed in terms of the value it brings to the organization. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. Specifying the people "on board" and the people that are not. Hold Ctrl or Cmd to select multiple editions. 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. Rastogi, N., & Trivedi, M. K. (2016). Enhancement in socializing practices r = discount rate or return that could be earned . 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. This would be the better way to engage all the newbies in the business. "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. Save my name, email, and website in this browser for the next time I comment. This shows how through a step-by-step procedure as to how the central issue can be resolved. It also should look at the potential opportunities and threats that these competitors pose on the company. 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. 1. You need to make efforts to block them out, and must focus on your work.