tesla the solarcity acquisition case solution

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. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. Managers need to assess these factors even before entering the market. Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. 2023 CNBC LLC. The HBR case studies may present issues faced by a part of the organisation. 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. Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. This would be the better way to engage all the newbies in the business. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. 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. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. It is important to have more than one solution to the case study. Less Net Cash Out Flowt0 / (1+r)t0. Feel free to connect with us if you need business research. - 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. It can include recommendations on how the organisation can work towards achieving these strategic objectives. 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. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. Each of these resources are assessed in terms of the value it brings to the organization. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so. Enphase acquired Sofdesk in 2021 . Question: Refer to the Tesla SolarCity acquisition case study. Direct and prospective action plan Pickton, D. W., & Wright, S. (1998). After completing a year in the business, it was the stage where she had to examine and reflect her journey and experiences, while operating in the business. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. This content is protected by copyright and may not be reused. Kim, W. C., & Mauborgne, R. (2004). Boston: Irwin McGrawHill. The plaintiffs argued that Musk was only able to get the SolarCity acquisition approved by misrepresenting the financial well-being of SolarCity, saying it should be cash-flow positive within six months. Enhancement in socializing practices Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: Rauch, P. (2007). Proposal, Question Principles of marketing. The three step case study solution approach comprises Nixon, J., & Helms, M. M. (2010). It is also important to understand what stakeholders are affected by the problem and how. 2019 Texas Business School. She strove to clear all the evaluation that the business draws from the fresh graduates. 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. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Tesla's Plan to Buy SolarCity Has Major Flaws. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. Key Points. What's swot in strategic analysis? The organization can penetrate into existing markets with its existing products. 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. You can hire Texas Business School professinoals to revolutionize your strategy & business. 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 solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. One is also required to provide how these recommendations would be implemented. Despite these challenges, Tesla's value has massively increased following the Acquisition.". Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. Environment & PEST analysis: an approach to the external business environment. This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. - 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. 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. New York: Free Press. Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. Tesla bought SolarCity in 2016. 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 . Or how the marketing budget can be better spent using social media rather than traditional media. Business Strategy Review, 14(2), 8-10. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. 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. Reasons At the second stage provide the reasons for the conclusions. To tackle the menace of corruption a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm. Warning! In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . Stay informed. The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Constant implementation on boarding. European Journal of Forest Research, 126(3), 413-420. The other thing that the company can do is determining both your champions and resisters, which is necessary for social practice. 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. Among the significant problem with the business is the lack of communication and support from the managers in the business. Chat with us Both companies had similar products and could be a strong strategic fit. 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. Published by HBR Publications. Most recent surveys suggest that around 76 % students try professional While Elon Musk, the CEO of Tesla and chairman of SolarCity, calls the deal a "no-brainer," the $2.6 billion acquisition has drawn widespread scorn. She thought about the task assigned to her as a video game so that she might take pleasure in the work. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. pv magazine offers daily updates of the latest photovoltaics news. 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. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. It also helps one in developing the case study solutions. According to Zhichuan Frank Li, Tomiwa Ademidun of Tesla: The SolarCity Acquisition case study, Solarcity Tesla can use this trend to expand in adjacent areas Financial analysis, Manufacturing, Mergers & acquisitions. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) - According to Zhichuan Frank Li, Tomiwa Ademidun . Conclusions MBA & EMBA professionals should state their conclusions at the very start. Strategies can be devised to improve the availability of the companys products. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. K, & Martin, D. (1998). 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. It has to come from the data provided within the case study rather than data from outside world. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. 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. 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. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - 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. 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. The second step of the solution is to come up with a business level strategy. A rare resource is one that is not commonly used by competitors. 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. The matter could be appealed to the Delaware Supreme Court. This is known as product development strategy. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. So, recommendations and suggestions need to address the strategy of the marketing department in this case. It needs to concentrate on reliability of the practices within the business. Rastogi, N., & Trivedi, M. K. (2016). If the . Consumer protection Different countries have different consumer protection laws. No reply from the mangers in the brand-new office. A variety of actions might occur that might transform their "champ" position to "resister" position. 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. Kotler, P., & Armstrong, G. (2010). But not everyone is negative. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. 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. 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. This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. 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. Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. 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.