Experience and actions of Tesla The Solarcity Acquisition Case Study Help. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. Perform standard concepts prior to the first day at business. 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. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. 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 . European Journal of Forest Research, 126(3), 413-420. - 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. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. June 21, 2016 3:09 p.m. PT. PDF The Acquisition of SolarCity by Tesla A Good Step or Not? - Atlantis Press SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. Elon Musk defends Tesla's $2.6B acquisition of SolarCity in Delaware Because according to my understanding about the city of World, the competitors is very high in IT corporations, and likewise it is really tough to get utilized in these sectors, so if someone gets used in such a famous company, she should stay with it whether it is field related to work or not. Strategic Management Theory: An Integrated Approach, Ninth Ed. Tesla shareholders backed the acquisition, with an . Identify the relative market share of each strategic business unit. 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. Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. The company should keep it in mind, while carrying out such steps. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: A greatly chaotic life goes into a very organized one. 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. These factors are also responsible for the future growth and challenges within the industry. His attorneys have framed the acquisition as an opportunity to realize his long-held goal of creating a vertically integrated sustainable energy company.. A primary question in the case is whether Mr. Musk, who owned roughly 22% of Tesla at the time, controlled the . This is known as the problem identification stage. (2013). Almost all of the case studies contain well defined situations. Check your email Tesla shareholders alleged the company's . Tesla The SolarCity Acquisition should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. Panagiotou, G. (2003). Subscribe now to get your discount coupon *Only The timeline also helps in understanding the continuous challenges that are being faced by the organisation. In addition, when you have possibilities to go over the issues with your supervisor, let him know that your subordinates were not working, so you may end up being the leader and at the very same time, you need to tell your subordinate to collaborate to meet the due dates and goals of the company. Now That Tesla Has Approval to Buy SolarCity, Here's What a Combined 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. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. 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. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. Save my name, email, and website in this browser for the next time I comment. Tesla: The SolarCity Acquisition Case Study Solution [7 Steps] - Property rights are also an area of concern for Solarcity Tesla as it needs to make significant Financial analysis, Manufacturing, Mergers & acquisitions infrastructure investment just to enter new market. 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. It can include recommendations on how the organisation can work towards achieving these strategic objectives. If you need help with something similar, We are expecting that more than 100 people may well gather in connection with this trial. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. 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. 7 Effective Steps to Solve Case Study. Be lively to the degree that who, when and what on boarding. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. SolarCity was insolvent when Tesla paid $2.6 billion to buy it, lawsuit For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. The trial started . 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. Socializing of the company, or on boarding, is a treatment through which new workers transfer from being business outsiders, and end up being business insiders. Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. And while I certainly would not characterize this trial, or any other trial, as non-essential, it is not expedited and no irreparable harm will flow from an adjournment.. - 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. Tesla CEO Musk goes to trial Monday on $2.6 billion SolarCity deal - CNBC Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. in. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. It also lays down the changes needed to be made as well as the assumptions in the process. Tesla-SolarCity Deal Promises Vast Synergies: But Can It Deliver? Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. submission, reproduction, or any other misuse in any manner. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. 2019 Texas Business School. It's final: With no more barriers to the deal, Tesla is buying SolarCity. (2015). Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. 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. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. 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. This part consists of solutions that address issues faced by the organisation on a strategic level. Evidences should be both compelling and consistent. The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. 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. The organization can penetrate into existing markets with its existing products. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. Identify the market growth of each strategic business unit. 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. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. Tesla's .6bn SolarCity acquisition lawsuit ruled in favor of Elon WILMINGTON, Del. 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 . 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. Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. 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. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them. Pearson education. International Journal of Modern Social Sciences, 2(1), 34-43. The HBR case studies may present issues faced by a part of the organisation. 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. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. 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. 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. For example why the change effort failed in the case and what can be done to rectify it. 2023 CNBC LLC. 100% money back guarantee if the quality doesn't match the promise, If the work we produce contain plagiarism then we payback 1000 USD. 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. Design and perform official orientation programs. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. Neither Tesla nor the directors gave comment on the partial settlement but court filings had Tesla officials defending the SolarCity acquisition by saying both the process and the price of this acquisition were inherently fair to Teslas shareholders.. Your email address will not be published. I believe that Solarcity Tesla can make a transition even by keeping these people on board. Another five of Teslas directors were direct or indirect owners of SolarCity stock. At this point, if any employee feels stressed due to his work and time limitation, he should immediately talk to the supervisor and share his issue. Identifying the importance of these activities in the cost of the product and the differentiation they produce. 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. IIBMS. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. 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 views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. A long-running romance demands a great deal of dedication and lots of emotional financial investment . The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. Or how the marketing budget can be better spent using social media rather than traditional media. Got a confidential news tip? Solarcity Tesla needs to adjust its marketing strategy accordingly. pv magazine offers daily updates of the latest photovoltaics news. Management and Administrative Sciences Review, 2(2), 196-206. : A review of academic research from the last decade. Now she felt disinterested to operate in the business. It needs to concentrate on reliability of the practices within the business. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. Tesla Becomes 'Tesla Energy' After Approving SolarCity Merger | Digital Stars are those strategic business units with high market share and high market growth rate. Some argued that Musk was able to get the Tesla board to approve the purchase of SolarCity by misrepresenting the financial health of the company, saying it would be cash-flow positive within six months of the purchase. Elon Musk knew SolarCity was going broke before merger with Tesla Pickton, D. W., & Wright, S. (1998). Strategies will be devised which makes use of a few or all of these elements. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. A rare resource is one that is not commonly used by competitors. If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit. These solutions will also be the Tesla The SolarCity Acquisition case answers. At EMBA PRO, we provide corporate level professional case study solution. Both companies had similar products and could be a strong strategic fit. Tesla acquired SolarCity in 2016. If a country doesnt have independent judiciary then there is no point entry into such a country for business. Exploring SWOT analysis where are we now? It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. 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. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. This procedure of understanding to establish a reliable member of the business is diverse from expert socialization, which stresses on finding out the standards of one's business. According to emails that were part of evidence in the trial, Musk wrote an e-mail to SolarCity CFO Brad Buss on Sept. 18, 2016, saying that to get Tesla investors on board with the deal, SolarCity needed to get a handle on its liquidity problem and sign a letter of intent for a contract with Panasonic. 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. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. These are the threats that the industry faces due to new entrants. 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. tsla-ex991_961.htm - SEC In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. What are external factors that are impacting the business environment (PESTEL Analysis) Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. The solution consists of recommended strategies to overcome this central issue. The organization can enter new markets with its existing products. Shareholders have sued Musk alleging that the deal . Going into 2016, SolarCity stock was already plunging and the company was going through layoffs. 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. Tesla Investor Day 2023: Musk's 'Master Plan' Sees Sustainable Energy Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. 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. It includes the bargaining power of suppliers in an industry. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. All Rights Reserved. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. 2). Highlight the pros and cons of the deal. K, & Martin, D. (1998). Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. Tesla's Risky SolarCity Acquisition Wins Shareholder Approval Aug-09-2018. Thank you for your email subscription. 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. 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. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7.