Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. Tesla shareholders alleged the company's acquisition of the solar installer amounted to a bailout, pushed through by Musk who sat on both company boards at the time. The solution consists of recommended strategies to overcome this central issue. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. 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. The business must arrange the corporate occasions, so the workers can connect with each other. Strategic Management Theory: An Integrated Approach, Ninth Ed. The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. Develop and applied composed on boarding strategies. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. 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. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. 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. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. They had actually made a strong bond with each other, but unexpectedly throughout training they were relocated at various domains, which was not anticipated by Tesla The Solarcity Acquisition Case Study Help, she felt lonesome and her good friends motivated her to participate in the classes. If the tariffs are high then it will be extremely difficult to compete with the local competitors. All the guidelines and guidelines, work concern, documents, paperwork and the reporting day were a bit laborious. 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. Among the significant problem with the business is the lack of communication and support from the managers in the business. 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. Please place the order on the website to get your own originally done case solution. Conclusions MBA & EMBA professionals should state their conclusions at the very start. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. Environment & PEST analysis: an approach to the external business environment. VRIO and VRIN analysis can help the firm. One is also required to provide how these recommendations would be implemented. 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. 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, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. The first step of the solution is to come up with a corporate level strategy for the organisation. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. Moreover, I would have advised the following action plan: 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. 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. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. This is known as the problem identification stage. K, & Martin, D. (1998). The third step is not compulsory but depends from case to case. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. 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. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. "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. This is known as product development strategy. Independence of judiciary It is critical for fair business practices. Enphase acquired Sofdesk in 2021 . 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. It can further impact the cost of doing business in certain markets. - 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. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. Shareholders have sued Musk alleging that the deal . The firms primary and support activities are listed down. Understanding Business Processes, 50-66. Or how the marketing budget can be better spent using social media rather than traditional media. By subscribing to our newsletter youll be eligible for a 10% discount on magazine subscriptions! 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. Exploring SWOT analysis where are we now? 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, 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. Constant implementation on boarding. 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. Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. 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 . Mason, OH: South-Western, Cengage Learning. She thought about the task assigned to her as a video game so that she might take pleasure in the work. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) Management and Administrative Sciences Review, 2(2), 196-206. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Stay informed. Don has been a part of three successful exits in the solar + storage industry. It has to come from the data provided within the case study rather than data from outside world. Get this delivered to your inbox, and more info about our products and services. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. Tesla: The SolarCity Acquisition will also provide insight into areas such as wordlist , strategy, leadership, sales and marketing, and negotiations. Service, Dissertation A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Managers need to assess these factors even before entering the market. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) 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 shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. Once all the factors mentioned in the Tesla: The SolarCity Acquisition case study are organized based on SWOT analysis, just remove the non essential factors. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . 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. The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. There was less possibility to be used in US. Despite these challenges, Tesla's value has massively increased following the Acquisition.". The trial has been postponed indefinitely and a new date has not yet been set. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. 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. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. The matter could be appealed to the Delaware Supreme Court. We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. Tesla The Solarcity Acquisition Case Study Analysis was for this reason, thrilled when she was entitled to sign up with the corporation, and report to its office in US for her preparatory training. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. Evidences should be both compelling and consistent. Why you choose one course of action over the other. - According to Zhichuan Frank Li, Tomiwa Ademidun . Proposal, Question Create link between the companies and crucial stake holders Your email address will not be published. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. Lastly, a timeline of the issues and events in the case needs to be made. 'Tesla The Solarcity Acquisition' was one of World's topmost IT services corporations, with workplaces in many locations around the world. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. This is known as the problem identification stage. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. Posted by Peter Williams on All the six elements are explained in context with Tesla: The SolarCity Acquisition macro-environment and how it impacts the businesses of the firm. For example, strengths will be used as an advantage in solving the issue. As the name suggests Value Chain framework is developed by Michael Porter in 1980s and it is primarily used for analyzing Solarcity Tesla relative cost and value structure. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. Solarcity Tesla needs to adjust its marketing strategy accordingly. Tesla bought SolarCity in 2016. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf. But not everyone is negative. 7 Effective Steps to Solve Case Study. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. Tesla shareholders backed the acquisition, with an . All personnel or all hands conferences. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. Proposal, Assignment Writing Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . SolarCity was widely considered one of the best solar companies in the years leading up to . 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. For example why the change effort failed in the case and what can be done to rectify it. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. If its none, then it can be regarded as a competitive disadvantage. 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. View our privacy policy. The organization can enter into new markets with new products. 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. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. 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. Subscribe to our newsletter to receive news on update. It involves looking at the current market share of the company and its competitors. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. Got a confidential news tip? Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - The company can challenge competitors from various companies. 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 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. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. on WhatsApp for any queries. Bringing SWOT into Focus. This is known as a diversification strategy. 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. 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. 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. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. Providing personnel with as much right truths as possible, before hand they start functioning for the company. The next step is of understanding the company; its people, their priorities and the overall culture. Case study solutions are career defining. A Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Teslas $2.6 billion acquisition of SolarCity. You can go about it in a similar way as is done for a finance and accounting case study. Feedback pursuing may likewise support brand-new staff members. Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis).
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