Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. The steps to be followed in this analysis is as follows: The strategies identified from the Tesla The SolarCity Acquisition BCG matrix and included in the case pdf. A greatly chaotic life goes into a very organized one. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Join our newsletter. Boston: Irwin McGrawHill. There was less possibility to be used in US. This shows how through a step-by-step procedure as to how the central issue can be resolved. Pearson education. 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. Strategic Management Theory: An Integrated Approach, Ninth Ed. The firms primary and support activities are listed down. Had he lost, Musk could have had to pay upwards of $2 billion. This is shown through a proper implementation framework. 'Tesla The Solarcity Acquisition' was one of World's topmost IT services corporations, with workplaces in many locations around the world. Both Tesla and SolarCity operated in young, high-growth industries; however, despite their high growth rates, both companies were also losing money every year. This is doing the Tesla The SolarCity Acquisition Case Solution. The case was a shareholder derivative action, a suit filed by investors on behalf of a corporation, rather than individuals or funds. This is doing the Tesla The SolarCity Acquisition Case Solution. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. Government attitude towards trade unions Different political systems and government have different attitude towards trade unions and collective bargaining. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. As mentioned above PESTEL Analysis has six elements political, economic, social, technological, environmental, and legal. Kim, W. C., & Mauborgne, R. (2004). The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. 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 . They also alleged that due diligence by outside firms including Evercore was rushed to hide SolarCity's troubles. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. This article is only an example Introduction- The Merger The merging of Tesla and SolarCity was a pivotal moment in the histories of both businesses. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. This is known as product development strategy. No reply from the mangers in the brand-new office. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. - According to Zhichuan Frank Li, Tomiwa Ademidun . Academy of Management Journal, 25(3), 510-531. 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. Now she felt disinterested to operate in the business. Management, 3rd edition. Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. 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. Our model papers and solutions are purely meant for Solved Refer to the Tesla SolarCity acquisition case | Chegg.com 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. It has been estimated that its shares are worth as much as $1.2 billion and its shares in the Solarcity Group are valued at $100 million. 2). The next step is of understanding the company; its people, their priorities and the overall culture. Dogs are those strategic business units with low market share and low growth rate. Tesla officially acquires SolarCity TechCrunch 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. His work, which has been featured in outlets like The Wall Street Journal and The Washington Post, provides consumers with a personal finance measuring stick and can help them make informed finance decisions. Tesla's Plan to Buy SolarCity Has Major Flaws. 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. - 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. Corporate taxation can be divided into two categories taxes on profits and taxes on operations. It also lays down the changes needed to be made as well as the assumptions in the process. The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. Both companies had similar products and could be a strong strategic fit. Management Decision, 50(8), 1396-1411. Data is a real-time snapshot *Data is delayed at least 15 minutes. You can go about it in a similar way as is done for a finance and accounting case study. What is the Tesla-SolarCity court case about? | The Economist 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. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. From pv magazine USA In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. (2013a). Tesla The Solarcity Acquisition Case Solution is simply one of the simplest approaches to make money writing. Proposal, Question Check your email According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. "Three things need to happen to change investor sentiment: SolarCity solving its liquidity crisis, an LOI with Panasonic to address solar cell production risk, and a joint product demo," Musk wrote. How to calculate Weighted Average Market Share using BCG Growth Share Matrix SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. 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. In some HBR case studies, one may be required to analyse an issue at a department. Orientation was the part of the training where the freshly designated staff members were acquainted with the company's life in basic and business in specific. 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. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. The Tesla The SolarCity Acquisition case should be in a professional format, presenting points clearly that are well understood by the reader. Gupta, A. In the Court of Chancery of The State of Delaware Tesla Energy - Wikipedia All personnel or all hands conferences. 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 . Tesla Becomes 'Tesla Energy' After Approving SolarCity Merger | Digital Further information on data privacy can be found in our Data Protection Policy. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. June 21, 2016 3:09 p.m. PT. 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. Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. For example, strengths will be used as an advantage in solving the issue. Each of these resources are assessed in terms of the value it brings to the organization. (2013). 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. It involves coming up with new and unique products or ideas through innovation. Help, Academic The internal resources of Tesla The SolarCity Acquisition are listed down. Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. 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. Obviously, some approaches would work well than others, in the business. - Property rights are also an area of concern for Solarcity Tesla as it needs to make significant Financial analysis, Manufacturing, Mergers & acquisitions infrastructure investment just to enter new market. Socializing is among the important treatments that explain the techniques to increase the interactions among the employees in the business. Neither Tesla nor the directors gave comment on the partial settlement but court filings had Tesla officials defending the SolarCity acquisition by saying both the process and the price of this acquisition were inherently fair to Teslas shareholders.. A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Analyse the companys promotion mix. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. 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. 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. 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. Despite these challenges, Tesla's value has massively increased following the Acquisition.". One more location, where she found that her expectation was mismatched with the business was team effort. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. Tesla: The SolarCity Acquisition Case Study Solution & Analysis / MBA Experience and actions of Tesla The Solarcity Acquisition Case Study Help. 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. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. SolarCity was widely considered one of the best solar companies in the years leading up to . The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. 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. Question Marks are those strategic business units with high market share and low market growth rate. A greatly chaotic life goes into a very organized one. 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. A few of them were fulfilled, however some were mismatched with the company. Save my name, email, and website in this browser for the next time I comment. - 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 Division of NBCUniversal. Strategic attributes and performance in the BCG matrixA PIMS-based analysis of industrial product businesses. 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 To summarize, the following expectations were mismatched with the business: Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. 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. Blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. Freedom of Press is critical for fair trade and transparency. Each resource is assessed in terms of how rare it is. Another five of Teslas directors were direct or indirect owners of SolarCity stock. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. Moreover, I would have advised the following action plan: Accessed July 12, 2021. 1. We try to cover all the bases in the field of Finance & Accounting, Financial analysis, Manufacturing, Mergers & acquisitions and other related areas. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. Environment & PEST analysis: an approach to the external business environment. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. 2023 CNBC LLC. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. New staff members frequently do errors and might find it amazing to know and understand the favorable or unfavorable responses they obtain from colleagues. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. 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. The following goals can be fulfilled: The entryway into the company was just the start of the journey, and the newly picked employees needed to reveal themselves valuable for business, by clearing all the assessments at the end of their training. 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. 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. 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. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. If you have BIG dreams to score BIG, think out 2 min read. 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. WILMINGTON, Del. 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.
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