tesla the solarcity acquisition case solution

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. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. Is this merger a good idea? 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. The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. The next step is of understanding the company; its people, their priorities and the overall culture. This is an analysis carried out to know about the internal strengths and capabilities of Tesla The SolarCity Acquisition. Don has been a part of three successful exits in the solar + storage industry. We write Tesla: The SolarCity Acquisition case study solution using Harvard Business Review case writing framework & HBR Finance & Accounting learning notes. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Stars are those strategic business units with high market share and high market growth rate. The article written below is not related to the actual case in discussion, It is for formatting purposes only. The dismissal was based on the argument that Musk wasnt the controlling stockholder, since he didnt own a majority of the stock in either company. 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. We provide 300 words per page unlike competitors' 250 or 275, Free Title Page, Citation Page, References, Exhibits, Revision, Charts. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. All personnel or all hands conferences. The firm needs to assess its comfort dealing with the unions and regulations regarding unions in a given market or industry. It involves coming up with new and unique products or ideas through innovation. The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. The company should keep it in mind, while carrying out such steps. Usage creativity, and promote the process. The case study does not end at just providing recommendations to the issues at hand. 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. 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. Evidences should be both compelling and consistent. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) Get this delivered to your inbox, and more info about our products and services. Your email address will not be published. In these cases, recommendations need to be made for these people. Bartol. Hill, C., & Jones, G. (2010). 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. The alternate solution for Tesla The SolarCity Acquisition is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations. Consumer protection Different countries have different consumer protection laws. Arranging events in a timeline allows one to predict the next few events that are likely to take place. With profits in the surplus of $6 billion in year, and a worldwide headcount of about 100,000, it was the business that many Worlds desired to end up being an employee of. Strategies can be devised to improve the availability of the companys products. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. Tesla The Solarcity Acquisition Case Study Analysis expected the bit fun with the knowing, which was beyond the business's values and culture. and cannot be used for research or reference purposes. 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 HBR case studies may present issues faced by a part of the organisation. 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. This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. The third step is not compulsory but depends from case to case. Question Marks are those strategic business units with high market share and low market growth rate. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. Management and Administrative Sciences Review, 2(2), 196-206. CaseAnalysisTeam(at)gmail(dot)com Please replace (at) by @ and (dot) by. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. When Tesla The Solarcity Acquisition Case Study Solution joined the company, in the starting she felt the business was a little bit of an alienation. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. The organization can enter new markets with its existing products. The business must arrange the corporate occasions, so the workers can connect with each other. 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. Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). 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. It was backed by Musk, who served as chairman of the board at bothTeslaand SolarCity. 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. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. Analyse the companys distribution and reach. How to calculate Weighted Average Market Share using BCG Growth Share Matrix Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. Musk initially . But, as the coronavirus pandemic has impacted everything from the finances of Americans to the future of college, the court proceedings for the Tesla-Musk-SolarCity battle were postponed on March 13. SolarCity was widely considered one of the best solar companies in the years leading up to . Going into 2016, SolarCity stock was already plunging and the company was going through . Solarcity Tesla should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets. 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. Cash Cows are those strategic business units with high market share and low market growth rate. If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit. Published by HBR Publications. Free Management E-Books. Directors of Tesla Inc settled a shareholder lawsuit over the company's 2016 acquisition of SolarCity Corp, leaving Chief Executive Officer Elon Musk as the lone defendant facing claims that Tesla . 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. 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 . Got a confidential news tip? What's swot in strategic analysis? This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. Accordingly, we never encourage or endorse its direct 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. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. 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 . - 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. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. It also lays down the changes needed to be made as well as the assumptions in the process. Less Net Cash Out Flowt0 / (1+r)t0. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. You need to make efforts to block them out, and must focus on your work. Task beyond the command on the field. The business should recruit the employees that have the skills that match with the objectives of the business. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. submission, reproduction, or any other misuse in any manner. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. 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. In other words, the synergistic integration that Tesla hoped for is still a work in progress. All Rights Reserved. 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 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. Principles of marketing. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. Vice Chancellor Joseph R. Slights, who decided the case shortly before retiring, sided with Musk, writing: "Elon was more involved in the process than a conflicted fiduciary should be. The trial has been postponed indefinitely and a new date has not yet been set. Rastogi, N., & Trivedi, M. K. (2016). A proper implementation framework shows that one has clearly understood the case study and the main issue within it. When it comes to the business, socialization is a treatment that meaningfully forms corporations in the way that provides important practices for the company to increase the interaction in between the managers and the workers. Order your custom solution now. 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 . It includes the bargaining power of suppliers in an industry. Perform standard concepts prior to the first day at business. Tesla The Solarcity Acquisition Case Study Analysis was waiting for the outcome of the interview with 'Tesla The Solarcity Acquisition'. 2). Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. 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. 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. To tackle the menace of corruption a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.