As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. Now she felt disinterested to operate in the business. Here's what every major analyst thought of Tesla's investor day, Top auto analyst Jonas stays bullish on Tesla, says investor day showed competition can't keep up, JPMorgan downgrades electric vehicle stock Nio, says expectations are too high. Constant implementation on boarding. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. The trial started . Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. Both companies had similar products and could be a strong strategic fit. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. 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. One is also required to provide how these recommendations would be implemented. In other words, the synergistic integration that Tesla hoped for is still a work in progress. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. Analyse the companys distribution and reach. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. submission, reproduction, or any other misuse in any manner. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. The matter could be appealed to the Delaware Supreme Court. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. 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Please be mindful of our community standards. SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. It is important to have more than one solution to the case study. 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. Mr. Musk, who is expected to take the stand in the nonjury trial as early as Monday, was chairman of both companies at the time. 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. Do not carry out that someone who helps the program in the start, will sustain to do so in future. New York: Free Press. Independence of judiciary It is critical for fair business practices. During his testimony, contradicting those emails, Musk repeatedly argued that Solar City would have been able to raise capital even if it hadn't been acquired by Tesla. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. Strategic rationale: The acquisition of SolarCity will create the world's only integrated sustainable energy company, from energy generation to storage to transportation. Most recent surveys suggest that around 76 % students try professional April 27 (Reuters) - Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk did not unjustly enrich himself when he guided the electric vehicle maker in 2016 to acquire SolarCity Corp, where. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. Shareholders have sued Musk alleging that the deal . 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 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. Another location, where Tesla The Solarcity Acquisition Case Study Help's expectation was mismatched with the business was enjoyable aspect. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. What are the resources needed to increase profitability (VRIO Analysis) correct email will be accepted, (Approximately Specifying the people "on board" and the people that are not. If the tariffs are high then it will be extremely difficult to compete with the local competitors. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. 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. Question Marks are those strategic business units with high market share and low market growth rate. Lastly, a timeline of the issues and events in the case needs to be made. 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. 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. 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 . Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) The Tesla acquisition of SolarCity closed in November 2016. - Little dangers of armed conflict Based on the research done by international foreign policy institutions, it is safe to conclude that there is very little probability of country entering into an armed conflict with another state. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. Analyse the companys promotion mix. A variety of actions might occur that might transform their "champ" position to "resister" position. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. One-to-one discussions. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. Even though the problem statement is essentially casecategory challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Solarcity Tesla, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. 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. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. It also helps one in developing the case study solutions. Less Net Cash Out Flowt0 / (1+r)t0. Providing personnel with as much right truths as possible, before hand they start functioning for the company. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations. 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. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. November 1, 2016. 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. The viability of the merger was also questioned given that neither Tesla nor SolarCity had ever been profitable. There was less possibility to be used in US. In every corporation, it is important to practice a variety of approaches to socialize BPI policies. 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. Relative Weighted Average Market Share Vs Largest Competitor. 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 . 8 Tips to Help You Prepare for the Case Method. Bringing SWOT into Focus. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. IIBMS. Amanda is strategy expert at Texas Business School . Competitive advantage: creating and sustaining superior performance (Vol. Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. Strategic Change, 7(2), 101-109. A few of them were fulfilled, however some were mismatched with the company. The organization can penetrate into existing markets with its existing products. Elon Musk Testifies To Defend Tesla's $2.6 Billion Acquisition of SolarCity in Shareholder Lawsuit. It can include recommendations on how the organisation can work towards achieving these strategic objectives. It shows that the details provided in the case have been properly analysed. Or how the marketing budget can be better spent using social media rather than traditional media. The following are the possible locations where the company's expectations were mismatched with Tesla The Solarcity Acquisition Case Study Solution's expectations: But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. The objective of the case should be focused on. Men's chino short. SolarCity filed for their IPO in 2012. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Tesla The SolarCity Acquisition Case Study Solution that the business unit should focus on costs. Department and business department conferences. How They Teach the Case Method At Harvard Business School. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. At some point she had totally free riders in the groups who never worked, however took the credit, sometime she learned a lot and had good experience with the team. Save my name, email, and website in this browser for the next time I comment. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. Tesla is officially in the solar roof business, says Elon Musk. Tesla acquired SolarCity in 2016. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. 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. Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. It also lays down the changes needed to be made as well as the assumptions in the process. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Perform standard concepts prior to the first day at business. 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. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. The company should set up lunch and discovering sessions. The Possible locations of Mismatched Expectation in between Tesla The Solarcity Acquisition Case Study Help and Company Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. How to calculate Weighted Average Market Share using BCG Growth Share Matrix Subscribe to our newsletter to receive news on update. 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. A Division of NBCUniversal. Feedback pursuing may likewise support brand-new staff members. Analyse the companys products and devise strategies to improve the product offering of the company. 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. This article is only an example Free Management E-Books. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. 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. The acquisition was a huge blow to the entire Solarcity Group, which is a leading player in B2B trading, and it will be another huge blow to B2B. Evidences Finally you should provide evidences to support your reasons. It includes the threat of substitute products. It shows that one has been clarified with the HBR fundamentals on the topic. Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. 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. Despite these challenges, Tesla's value has massively increased following the Acquisition.". (1979, March). Among the significant problem with the business is the lack of communication and support from the managers in the business. We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas.
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