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. Cash Cows are those strategic business units with high market share and low market growth rate. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. Solved VRIO / VRIN : Tesla: The SolarCity Acquisition Analysis Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. 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They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. Got a confidential news tip? After this, the relevant tools and models are used, which help in the case study analysis and case study solution. In other words, the synergistic integration that Tesla hoped for is still a work in progress. K, & Martin, D. (1998). pv magazine offers daily updates of the latest photovoltaics news. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tesla: The SolarCity Acquisition. Try to make very first day at company unexpected. Question Marks are those strategic business units with high market share and low market growth rate. The business needs to supply a reasonable job preview to its workers, and corporation culture is alternative administrative approach to allow new employee socialization. in. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. The company should satisfy some goals for socialization practices. Strategic attributes and performance in the BCG matrixA PIMS-based analysis of industrial product businesses. Consumer protection Different countries have different consumer protection laws. Tesla Investor Day 2023: Musk's 'Master Plan' Sees Sustainable Energy Going into 2016, SolarCity stock was already plunging and the company was going through layoffs. It involves looking at the current market share of the company and its competitors. Tesla adds solar to its portfolio through SolarCity acquisition Less Net Cash Out Flowt0 / (1+r)t0. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. 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. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. please submit your details here. Both companies had similar products and could be a strong strategic fit. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. At the end of the very first year, she felt that the business had actually appointed her a job that was beyond her command, and the task was offered in the restricted time, in which it was difficult to finish the task. This is known as market development strategy. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. 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. (2013a). Tesla CEO Elon Musk is expected in court on Monday to defend his role in Tesla's $2.6 billion acquisition of SolarCity in 2016. 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. Exploring SWOT analysis where are we now? In 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . This is doing the Tesla The SolarCity Acquisition Case Solution. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. Perform standard concepts prior to the first day at business. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. Nixon, J., & Helms, M. M. (2010). Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. Almost all of the case studies contain well defined situations. This can be done by using company history. Kotler, P., & Armstrong, G. (2010). Export restrictions on products Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. 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 these cases, recommendations need to be made for these people. Get this delivered to your inbox, and more info about our products and services. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. 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. Socialization and Beginner on boarding practices in other industries Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. They likewise arrange different training session that provide awareness on how to handle different bothersome situation. to get Coupon Code. 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. In the EU countries, firms are required to make special provision for privacy issues and other laws. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. - 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. What are external factors that are impacting the business environment (PESTEL Analysis) The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. Rauch, P. (2007). The process can also be done to competitors to understand their competitive advantages and competitive strategies. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. Back in 2016, Tesla acquired solar panel manufacturer SolarCity, billing the $2.6 billion deal as an opportunity to create "the world's only vertically integrated sustainable energy company." 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. Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. Help, Academic In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Going into 2016, SolarCity stock was already plunging and the company was going through . and cannot be used for research or reference purposes. Hurley Dry-Fit Chino Short. 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. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. Getting the responsibility for the effort and arrangement of implementation. The second step of the solution is to come up with a business level strategy. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. . Accessed July 12, 2021. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. Tesla The Solarcity Acquisition Case Study Solution + Analysis (1979, March). 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. At the starting of the job, each staff member has some expectations with the business, which relate to the values, culture and the lifestyle of the business. CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. Identify the market growth of each strategic business unit. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. 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. The article written below is not related to the actual case in discussion, It is for formatting purposes only. Info gained from administrators and coworkers is a primary part of finding out about the business's brand-new environment. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. - Environmental regulations can impact the cost structure of Solarcity Tesla. Place these strategic business units in one of four categories. Another five of Teslas directors were direct or indirect owners of SolarCity stock. SolarCity - Wikipedia Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. The acquisition is a key improvement on the Solarcity deal. Identify the relative market share of each strategic business unit. These are usually in the form of strategies that the organisation can adopt. Men's chino short. The objective of the case should be focused on. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis. 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. New personnel ask enquiries about diverse functions of their tasks, corporation events, and concerns, and take an energetic part in producing the sense of their atmosphere. Re-allocating of the task to the new office. - 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. A proper implementation framework shows that one has clearly understood the case study and the main issue within it. Moreover, I would have advised the following action plan: 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. NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. 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. Kim, W. C., & Mauborgne, R. (2004). Place the order on the website to get your customized case solution done. European Journal of Forest Research, 126(3), 413-420. It includes the bargaining power of buyers in the industry. Strengths and Weaknesses are result of Solarcity Tesla internal factors, while opportunities and threats arise from developments in external environment in which Solarcity Tesla operates. Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. Department and business department conferences. 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. It shows that the details provided in the case have been properly analysed. This issue may be analysed for a manager or employee as well. Case study solutions are career defining. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. What are the resources needed to increase profitability (VRIO Analysis) The challenge in front of the protagonist, of Tesla: The SolarCity Acquisition, is to not only build a competitive position of the organization but also to sustain it over a period of time. If both are on the same page then it makes sense to enter, otherwise it doesnt. It can include recommendations on how the organisation can work towards achieving these strategic objectives. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. This is doing the Tesla The SolarCity Acquisition Case Solution. Tesla: The Solarcity Acquisition - The Case Centre The timeline also helps in understanding the continuous challenges that are being faced by the organisation. It shows that one has been clarified with the HBR fundamentals on the topic. Design and perform official orientation programs. 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. SolarCity was founded in 2006 by brothers Peter and Lyndon Rive, based on a suggestion for a solar company concept by their cousin, Elon Musk, who was the chairman and helped start the company. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. In mid-2016, the chief executive officer of Tesla, a U.S. manufacturer of electric cars, was interested in acquiring SolarCity, a U.S. solar power manufacturer and distributor. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. All Rights Reserved. Amanda is strategy expert at Texas Business School . WILMINGTON, Del. 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. Elon Musk wraps testimony in SolarCity trial - CNBC 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. Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. At EMBA PRO, we provide corporate level professional case study solution. Why you choose one course of action over the other. 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. 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. This article is only an example After the $2.6 billion deal went through for Tesla to buy SolarCity, Tesla shareholders filed a lawsuit against Tesla/SolarCity/Musk and sought $2.6 billion in damages or the cost of the SolarCity acquisition. Elon Musk, chief executive officer of Tesla Inc., arrives at court during the SolarCity trial in Wilmington, Delaware, U.S., on Tuesday, July 13, 2021. It also lays down the changes needed to be made as well as the assumptions in the process. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. 2). Most recent surveys suggest that around 76 % students try professional The division was founded on April 30, 2015, when Tesla CEO Elon Musk announced that the company . As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. Tesla's Plan to Buy SolarCity Has Major Flaws. SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. ANSOFF matrix, environment, and growth-an interactive triangle. 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. How They Teach the Case Method At Harvard Business School. 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. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - Chat with us The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Solarcity Tesla is facing right now. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. With that said, the Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way.". - Intellectual property rights are one area where Solarcity Tesla can face legal threats in some of the markets it is operating in. And conflicts among other Tesla Board members were not completely neutralized. 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. Government policies have significant impact on the business environment of any country. Elon Musk defends Tesla's $2.6B acquisition of SolarCity in Delaware Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Tesla The Solarcity Acquisition Case Study Solution | Tesla The These can usually be developed using the company history is provided in the case. . Gupta, A. Usage creativity, and promote the process. If you read nothing else on strategy, read thesebest-selling articles., 71. For Tesla The SolarCity Acquisition, based on 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, the recommendations and action plan are as follows: Baron, E. (2015). Home >> Ivey >> Tesla The Solarcity Acquisition. Dissertation The third step is not compulsory but depends from case to case. Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). This is known as product development strategy. Identifying the importance of these activities in the cost of the product and the differentiation they produce. View our privacy policy. If a country doesnt have independent judiciary then there is no point entry into such a country for business. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Tesla and SolarCity | Tesla Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. Stay informed. 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. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas According to the plaintiffs, as Tesla's controlling stockholder, Elon caused Tesla's servile Board to approve the Acquisition of an insolvent SolarCity at a patently unfair price, following a highly flawed process, in order to bail out his - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. 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. Managers need to assess these factors even before entering the market. How to calculate Weighted Average Market Share using BCG Growth Share Matrix submission, reproduction, or any other misuse in any manner. The shareholders also alleged that Musk controlled the board of Tesla, even though he appeared to recuse himself from some deal negotiations concerning SolarCity. Subscribe to our newsletter to receive news on update. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Solarcity Tesla. Porter, M. E. (2001). It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. The shareholders argued Musk breached his fiduciary duties, squandered Teslas assets and unjustly enriched himself by pushing to buy the money-losing solar company in which he was the biggest investor, according to Reuters. To do comprehensive PESTEL analysis of case study Tesla: The SolarCity Acquisition , we have researched numerous components under the six factors of PESTEL analysis. This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. Freedom of Press is critical for fair trade and transparency. 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: The SolarCity Acquisition will also provide insight into areas such as wordlist , strategy, leadership, sales and marketing, and negotiations.
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