A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. (SolarCity) and with Tesla's financial advisor for the deal without the knowledge of the Tesla Board. pv magazine offers daily updates of the latest photovoltaics news. Got a confidential news tip? PDF The Acquisition of SolarCity by Tesla A Good Step or Not? - Atlantis Press 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. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. Analyse the companys products and devise strategies to improve the product offering of the company. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. Integrity, Essay Writing 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 . International Journal of Modern Social Sciences, 2(1), 34-43. Each resource is assessed whether it could be imitated by competition easily or not. - 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. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. 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. Another five of Teslas directors were direct or indirect owners of SolarCity stock. An important tool that helps in addressing the central issue of the case and coming up with Tesla The SolarCity Acquisition HBR case solution is the SWOT analysis. Chat with us The timeline also helps in understanding the continuous challenges that are being faced by the organisation. A long-running romance demands a great deal of dedication and lots of emotional financial investment . The company should keep it in mind, while carrying out such steps. (2013). Tesla adds solar to its portfolio through SolarCity acquisition But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Enphase acquired Sofdesk in 2021 . MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. If its none, then it can be regarded as a competitive disadvantage. Principles of marketing. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. 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. Kulkarni, N. (2018). 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. Or how the marketing budget can be better spent using social media rather than traditional media. 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. 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. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. The abilities they gain from their training session must be implemented in their work, and for that, the manager is responsible to aware them about their mindset and lacking at field work. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. 2023 CNBC LLC. And conflicts among other Tesla Board members were not completely neutralized. Published by HBR Publications. Rastogi, N., & Trivedi, M. K. (2016). One-to-one discussions. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. Tesla The SolarCity Acquisition Case Analysis and Case Solution Now That Tesla Has Approval to Buy SolarCity, Here's What a Combined Company Might Look Like 70 On November 17, Tesla shareholders approved the acquisition of SolarCity in an all-stock. This is known as a diversification strategy. - Inflation rate is one of the key criteria to consider for Solarcity Tesla before entering into a new market. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas Almost all of the case studies contain well defined situations. External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. Solarcity Tesla is in prime position to tap on those opportunities and grow the market share. One of the biggest issues with the deal was that Elon Musk was the largest shareholder of both Tesla and SolarCity at the time of the acquisition. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. It also should look at the potential opportunities and threats that these competitors pose on the company. Enhancement in socializing practices Now she felt disinterested to operate in the business. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. 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. These factors are also responsible for the future growth and challenges within the industry. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: 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. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. (2013a). The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. Tesla's Risky SolarCity Acquisition Wins Shareholder Approval Shareholders also argued, in the suit, that Musk unveiled a product that didn't yet function glass solar roof tiles to convince investors that there was real intellectual property and a product close to commercial viability in SolarCity. The third step is not compulsory but depends from case to case. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. At the end of the first year, she felt that the association with the business was getting bit worse because she felt that she was designated the project that was beyond her command, with extremely restricted time and there was no one to help her out in the task. At other times, finding the issue is the job of the person analysing the case. 2). If the . It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. The trial has been postponed indefinitely and a new date has not yet been set. Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. All Rights Reserved. One is also required to provide how these recommendations would be implemented. WILMINGTON, Del. This would be the better way to engage all the newbies in the business. 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. 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. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. This is known as market development strategy. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. 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. BCG analysis should comprise not only growth share of industry & Solarcity Tesla business unit but also Solarcity Tesla - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. You can go about it in a similar way as is done for a finance and accounting case study. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. Case study solutions are career defining. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. Catching up on the Musk-Tesla-SolarCity acquisition case As in training, she shared her expectations of discovering with bit enjoyable, and everybody began laughing screamingly, which was the habits she didn't expect in the business. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. Analyse the companys price points and devise strategies that could be based on competition, value or cost. Tesla: The SolarCity Acquisition is a Harvard Business (HBR) Case Study on casecategory , Texas Business School provides HBR case study assignment help for just $9. Stars are those strategic business units with high market share and high market growth rate. The trial started . Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . Solution, Assignment Writing Teslas co-founder and CEO, Elon Musk, believed that the merger would generate significant cost and revenue synergies, based on his vision of the future of transportation, energy storage, and a green economy. The next step is of understanding the company; its people, their priorities and the overall culture. It also helps one in developing the case study solutions. PESTLE Analysis. Strategic Change, 7(2), 101-109. Stay informed. Re-allocating of the task to the new office. 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.. 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. 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. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. Getting the responsibility for the effort and arrangement of implementation. If you need help with something similar, Tesla-SolarCity Deal Promises Vast Synergies: But Can It Deliver? The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. In case study method there is no right answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios. Now That Tesla Has Approval to Buy SolarCity, Here's What a Combined But not everyone is negative. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. Further information on data privacy can be found in our Data Protection Policy. 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 . 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. "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. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. If both are on the same page then it makes sense to enter, otherwise it doesnt. The organization can enter into new markets with new products. 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. Integrity, Marketing strategy of Tesla The SolarCity Acquisition, Marketing Mix Of Tesla The SolarCity Acquisition, Tesla The SolarCity Acquisition Case Study Solution, 3-Joe-Smith-s-Closing-Analysis-A-Spanish-Version, 23558-The-Multichannel-Challenge-at-Natura-in-Beauty-and-Personal-Care, 23559-Masdar-City-Initiative-One-Step-in-the-United-Arab-Emirates-Journey-to-a-New-Energy-Economy, 23560-Neuromarketing-Inside-the-Mind-of-the-Consumer, 23561-Strategies-for-Higher-Education-in-the-Digital-Age, 23564-Diversity-s-New-Frontier-Diversity-of-Thought, 23565-Leadership-Forum-The-Role-of-the-LGBTQ-Ally, 23566-Updating-the-Image-of-the-Ideal-Worker, 23567-Whitening-and-Self-Presentation-in-the-Labour-Market. please submit your details here. Your email address will not be published. Warning! Many believe that the massive deal was not properly scrutinized and SolarCitys financial peril was hidden by a rushed analysis of the companys finances by an outside firm. This issue may be analysed for a manager or employee as well. 100% money back guarantee if the quality doesn't match the promise, If the work we produce contain plagiarism then we payback 1000 USD. Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. The process can also be done to competitors to understand their competitive advantages and competitive strategies. The task subordinate did not ask to do any work. Tesla The Solarcity Acquisition Case Study Help. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. Analyse the companys promotion mix. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Tesla The SolarCity Acquisition operates in. Tesla: Merging with SolarCity - Case - Harvard Business School - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. Tesla's Plan to Buy SolarCity Has Major Flaws. 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. The firms primary and support activities are listed down. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. Tesla The Solarcity Acquisition Case Study Solution + Analysis
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