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. 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. Had he lost, Musk could have had to pay upwards of $2 billion. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. ~ 0.0 Page). Environment & PEST analysis: an approach to the external business environment. Now she felt disinterested to operate in the business. Tesla The Solarcity Acquisition Case Study Solution + Analysis Almost all of the case studies contain well defined situations. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Data is a real-time snapshot *Data is delayed at least 15 minutes. The glaring omission from the January settlement agreement was Musk, who has every intention of proceeding to trial and defending himself and his company against the claims made against him and the $2.6 billion SolarCity purchase. Don has been a part of three successful exits in the solar + storage industry. 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. 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. 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. Tesla CEO Elon Musk wrapped up his testimony before the Delaware Court of Chancery on Tuesday afternoon, after spending around 9 hours defending his company's 2016. Proposal, Assignment Writing Usage creativity, and promote the process. 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 business should recruit the employees that have the skills that match with the objectives of the business. Catching up on the Musk-Tesla-SolarCity acquisition case The company should satisfy some goals for socialization practices. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. This part consists of solutions that address issues faced by the organisation on a strategic level. Elon Musk Is Called to Defend Tesla's Purchase of SolarCity - The Wall 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. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. At other times, finding the issue is the job of the person analysing the case. Elon Musk's SolarCity Trial Nears Conclusion With $2 Billion at Stake What is the Tesla-SolarCity court case about? | The Economist The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. Both companies had similar products and could be a strong strategic fit. Further information on data privacy can be found in our Data Protection Policy. 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. What are the resources needed to increase profitability (VRIO Analysis) The trial has been postponed indefinitely and a new date has not yet been set. Both companies had similar products and could be a strong strategic fit. Elon Musk wraps testimony in SolarCity trial - CNBC That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. This is known as product development strategy. 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. Made with sweat-wicking fabric. If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. June 21, 2016 3:09 p.m. PT. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. November 1, 2016. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. A long-running romance demands a great deal of dedication and lots of emotional financial investment . Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. Elon Musk wins shareholder lawsuit over Tesla-SolarCity deal - CNBC But the share price dropped for both of companies when SolarCity accepted the 2.6 $ billion acquisition offer which counted as half of its value one year ago. Amanda is strategy expert at Texas Business School . However, most Wall Street analysts were highly skeptical of the deal, voicing concerns that the merger would burden Tesla with excessive debt and that Musk was using the deal to advance his personal interests (at the expense of public shareholders) and bail out Tesla. One is also required to provide how these recommendations would be implemented. Now That Tesla Has Approval to Buy SolarCity, Here's What a Combined Journal of Strategy and Management, 3(3), 215-251. Elon Musk was acting as a proper chief executive officer as Tesla Inc. weighed the purchase of power provider SolarCity in 2016, his longtime ally and fellow Tesla director . (2013a). This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. Posted by Peter Williams on Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). - Demographic shifts in the economy are also a good social indicator for Solarcity Tesla to predict not only overall trend in market but also demand for Solarcity Tesla product among its core customer segments. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. 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. Tesla The SolarCity Acquisition Case Analysis and Case Solution 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. Specifying the people "on board" and the people that are not. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. It includes the bargaining power of suppliers in an industry. Tesla's .6bn SolarCity acquisition lawsuit ruled in favor of Elon The chief executive officer needed to convince Tesla's shareholders that SolarCity would be a good acquisition target and then determine a fair price to offer. Despite these challenges, Tesla's value has massively increased following the Acquisition.". By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. It also lays down the changes needed to be made as well as the assumptions in the process. So, recommendations and suggestions need to address the strategy of the marketing department in this case. The value chain and competitive advantage. Got a confidential news tip? 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. Accessed July 12, 2021. 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. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Freedom of Press is critical for fair trade and transparency. Zhichuan Frank Li, Tomiwa Ademidun provides extensive information about PESTEL factors in Tesla: The SolarCity Acquisition case study. 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. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. Principles of marketing. Porter, M. E. (2001). Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. Going into 2016, SolarCity stock was already plunging and the company was going through layoffs. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. Develop and applied composed on boarding strategies. Solved VRIO / VRIN : Tesla: The SolarCity Acquisition Analysis Strategic Management Theory: An Integrated Approach, Ninth Ed. 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 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. ANSOFF matrix, environment, and growth-an interactive triangle. For example, strengths will be used as an advantage in solving the issue. Tesla: The SolarCity Acquisition Case Study Solution [7 Steps] Hill, C., & Jones, G. (2010). 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. Kim, W. C., & Mauborgne, R. (2004). Tesla: The SolarCity Acquisition is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Button waist with zip fly provides a classic look and feel . The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. The company's major goal must be to change as many 'resisters' as possible through various robust interaction networks and circulation of information, and for those you can not keep them involved in this program. Obviously, some approaches would work well than others, in the business. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. Tesla: Merging with SolarCity - Case - Harvard Business School Tesla shareholders alleged the company's . 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. Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. 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. If you find any employee lazy in your group, do not devote your day on focusing on the way that your lazy subordinate is constantly utilizing Facebook and other social networks at the office. inspiration, guidance, and understanding. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. If you read nothing else on strategy, read thesebest-selling articles., 71. 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. 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. If both are on the same page then it makes sense to enter, otherwise it doesnt. Tesla Becomes 'Tesla Energy' After Approving SolarCity Merger | Digital 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. We are expecting that more than 100 people may well gather in connection with this trial. Accessed July 12, 2021. All personnel or all hands conferences. You can go about it in a similar way as is done for a finance and accounting case study. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. 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.. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. Tesla's Risky SolarCity Acquisition Wins Shareholder Approval - 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. In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case Tesla: The SolarCity Acquisition. This can be done by using company history. (2013). In a nutshell, if I was in the location of Tesla The Solarcity Acquisition Case Study Solution, I would have sustained to stay in the business with possible action plan in her scenarios. 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. 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. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. Rastogi, N., & Trivedi, M. K. (2016). Service, Dissertation Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. The task subordinate did not ask to do any work. Highlight the pros and cons of the deal. The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - 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 . Tesla Energy - Wikipedia The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. 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. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. This is shown through a proper implementation framework. New York: Free Press. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. 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. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). The company can challenge competitors from various companies. - 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. It can further impact the cost of doing business in certain markets. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. - According to Zhichuan Frank Li, Tomiwa Ademidun . Texas Business School approach of case study analysis Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. 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. Task beyond the command on the field. It is important to have more than one solution to the case study. This is known as market development strategy. 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. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. Catching up on the Elon Musk-Tesla-SolarCity acquisition case 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. 2023 CNBC LLC. Be lively to the degree that who, when and what on boarding. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. Solarcity Tesla needs to adjust its marketing strategy accordingly. 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. Direct and prospective action plan The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . Building & Sustaining Competitive Advantages, Joe Mandato, Pete McNerney and Empathetics Case Study Solution, Managing Diversity and Inclusion at Yelp (B) Case Study Solution, Ethics and Integrity in Business: Navigating Ethical Risks and Transgressions in the Workplace (A) Case Study Solution, Branding BY-HEALTH: The Value of Transparency Case Study Solution, Club Sportif MAA: Staying Ahead of the Game Case Study Solution, CEO Succession at Cisco, Video Supplement Case Study Solution, Hisense's Internationalization Dilemma: Co-Operation with Loewe Case Study Solution, Kangaroo Tail Winery Limited (C) Case Study Solution, An Inside Perspective on Carbon Disclosure Case Study Solution, Case Study Solution | Assignment Help | Case Help, Case Description Tesla: The SolarCity Acquisition, Strategic Managment Tools Used in Case Study Analysis of Tesla: The SolarCity Acquisition, STEP 1. A rare resource is one that is not commonly used by competitors. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) As pv magazine reported back in March 2018, a Delaware judge rejected a request from Musk and Tesla to dismiss the lawsuit. 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. Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. All Rights Reserved. Cash Cows are those strategic business units with high market share and low market growth rate. This tool is used in the case study analysis as follows: Recognizing value creating activities and enhancing the value that they create allow Tesla The SolarCity Acquisition to increase its competitive advantage.