SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. Investors were skeptical of the deal from the beginning, and Tesla stock plummeted by more than 10% upon the June announcement. External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. It includes the threat of substitute products. A long-running romance demands a great deal of dedication and lots of emotional financial investment . 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. Sign up for free newsletters and get more CNBC delivered to your inbox. Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). They likewise arrange different training session that provide awareness on how to handle different bothersome situation. He also said the merger allowed Tesla to combine its battery business with Solar City's solar photovoltaics installations. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. CNBC. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. 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. 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. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks. please submit your details here. Please be mindful of our community standards. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf. She understood that every worker was passionate and worked proudly in the company so, she should also be happy to be a part of the business. 2023 CNBC LLC. (1979, March). One additional director, Brad Buss, is no longer part of Teslas board, but was at the time of the deal and was also part of the settlement. Our model papers and solutions are purely meant for Exploring SWOT analysis where are we now? Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. 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. Arranging events in a timeline allows one to predict the next few events that are likely to take place. One-to-one discussions. Usage creativity, and promote the process. 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. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. Another location, where Tesla The Solarcity Acquisition Case Study Help's expectation was mismatched with the business was enjoyable aspect. Tesla acquired SolarCity in 2016. Shareholders believed Tesla's acquisition of SolarCity in 2016 was a bailout of a company owned by two of Musk's cousins, which was unfair to them. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. The three step case study solution approach comprises That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. This is known as the problem identification stage. Investors were skeptical of the deal from. This brings us to the latest update in this multi-pronged legal battle. 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. View our privacy policy. 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. Business Strategy Review, 14(2), 8-10. 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. 2019 Texas Business School. 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. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. Understanding Business Processes, 50-66. 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 must arrange the corporate occasions, so the workers can connect with each other. How to calculate Weighted Average Market Share using BCG Growth Share Matrix Case study solutions are career defining. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Thank you for your email subscription. The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. The business should recruit the employees that have the skills that match with the objectives of the business. 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. We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. November 1, 2016. - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. 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. Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. Most recent surveys suggest that around 76 % students try professional Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment. All your payments are secure with Paypal security. Identify the relative market share of each strategic business unit. Now she felt disinterested to operate in the business. 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. It helps in the strategic analysis of Tesla The SolarCity Acquisition. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. You can use Porter Five Forces to analyze the industry in which Solarcity Tesla operates in and what are the levers of profitability in those segments differentiation, Financial analysis, Manufacturing, Mergers & acquisitions. It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. Tesla: The SolarCity Acquisition case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Almost all of the case studies contain well defined situations. The fresh graduates need face to face interaction with their managers. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. 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. Managers need to assess these factors even before entering the market. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. WILMINGTON, Del. In these cases, recommendations need to be made for these people. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. 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. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. Cash Cows are those strategic business units with high market share and low market growth rate. Posted by Peter Williams on Bringing SWOT into Focus. 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. Your email address will not be published. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. 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. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. (2015). New York: Free Press. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. I believe that Solarcity Tesla can make a transition even by keeping these people on board. Fitted waist with belt loops. Design and perform official orientation programs. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. These can usually be developed using the company history is provided in the case. Independence of judiciary It is critical for fair business practices. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. Feedback pursuing may likewise support brand-new staff members. Identifying the importance of these activities in the cost of the product and the differentiation they produce. Import restrictions on products Before entering the new market, Solarcity Tesla in case study Tesla: The SolarCity Acquisition" should look into the import restrictions that may be present in the prospective market. For example, strengths will be used as an advantage in solving the issue. Both companies had similar products and could be a strong strategic fit. 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. Shareholders have sued Musk alleging that the deal . Problem Identification in Tesla: The SolarCity Acquisition case study, STEP 2. 1. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy. Why you choose one course of action over the other. ~ 0.0 Page). It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. 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. Competitive advantage: creating and sustaining superior performance (Vol. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Order your custom solution now. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. 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. The HBR case studies may present issues faced by a part of the organisation. Men's chino short. 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. It includes the bargaining power of buyers in the industry. In the EU countries, firms are required to make special provision for privacy issues and other laws. 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). You can download Excel Template of Case Study Solution & Analysis of Tesla: The SolarCity Acquisition, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, SWOT Analysis of Tesla: The SolarCity Acquisition, PESTEL /PEST / STEP Analysis of Tesla: The SolarCity Acquisition Case Study, 5C Marketing Analysis of Tesla: The SolarCity Acquisition, 4P Marketing Analysis of Tesla: The SolarCity Acquisition, Porter Five Forces Analysis and Solution of Tesla: The SolarCity Acquisition, Porter Value Chain Analysis and Solution of Tesla: The SolarCity Acquisition, Case Memo & Recommendation Memo of Tesla: The SolarCity Acquisition, Blue Ocean Analysis and Solution of Tesla: The SolarCity Acquisition, Marketing Strategy and Analysis Tesla: The SolarCity Acquisition, VRIO /VRIN Analysis & Solution of Tesla: The SolarCity Acquisition, PESTEL / STEP / PEST Analysis of Tesla: The SolarCity Acquisition, Case Study Solution of Tesla: The SolarCity Acquisition, SWOT Analysis and Solution of Tesla: The SolarCity Acquisition, Joe Mandato, Pete McNerney and Empathetics Case Study Solution & Analysis, Managing Diversity and Inclusion at Yelp (B) Case Study Solution & Analysis, Ethics and Integrity in Business: Navigating Ethical Risks and Transgressions in the Workplace (A) Case Study Solution & Analysis, Branding BY-HEALTH: The Value of Transparency Case Study Solution & Analysis, Club Sportif MAA: Staying Ahead of the Game Case Study Solution & Analysis, CEO Succession at Cisco, Video Supplement Case Study Solution & Analysis, Hisense's Internationalization Dilemma: Co-Operation with Loewe Case Study Solution & Analysis, Kangaroo Tail Winery Limited (C) Case Study Solution & Analysis, An Inside Perspective on Carbon Disclosure Case Study Solution & Analysis, The One Fund Case Study Solution & Analysis, Position among Retailers and Wholesalers companyname retail strategy, Yes, firm has strong relationship with retailers and wholesalers, Difficult to imitate though not impossible, Yes, over the years company has used it successfully, Ability to Attract Talent in Various Local & Global Markets, Yes, Solarcity Tesla strategy is built on successful innovation and localization of products, Yes, as talent is critical to firm's growth, Vision of the Leadership for Next Set of Challenges, Not based on information provided in the case.
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