Identify the market growth of each strategic business unit. NPV = Net Cash In Flowt1 / (1+r)t1 + Net Cash In Flowt2 / (1+r)t2 + . This is doing the Tesla The SolarCity Acquisition Case Solution. Made with sweat-wicking fabric. Chat with us 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 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. Required fields are marked *. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. SolarCity filed for their IPO in 2012. 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. It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. Musk denied that he placed any pressure on the Tesla board to go through with the transaction. Business Strategy Review, 14(2), 8-10. Porter, M.E. Through energetically pursuing feedback, new employees can rapidly learn about activities that are required to be altered to know which actions fit in finest with corporation culture and potential customers. 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. - 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. Question Marks are those strategic business units with high market share and low market growth rate. Understanding Business Processes, 50-66. on WhatsApp for any queries. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). Tesla The Solarcity Acquisition Case Study Analysis was for this reason, thrilled when she was entitled to sign up with the corporation, and report to its office in US for her preparatory training. 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. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. Had he lost, Musk could have had to pay upwards of $2 billion. Why you choose one course of action over the other. The organization can enter new markets with its existing products. The internal resources of Tesla The SolarCity Acquisition are listed down. During his testimony, contradicting those emails, Musk repeatedly argued that Solar City would have been able to raise capital even if it hadn't been acquired by Tesla. Formula and Steps to Calculate Net Present Value (NPV) of Tesla: The SolarCity Acquisition. The business needs to supply a reasonable job preview to its workers, and corporation culture is alternative administrative approach to allow new employee socialization. Published by HBR Publications. academic writing services at least once in their lifetime! Evaluating Alternatives / SWOT Analysis of Tesla: The SolarCity Acquisition case study, STEP 5. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. submission, reproduction, or any other misuse in any manner. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. How it can improve the profitability in a given industry (Porter Value Chain Analysis) - Consumer activism is significantly impacting Solarcity Tesla branding, marketing and corporate social responsibility (CSR) initiatives. Basis of Recommendations for Tesla: The SolarCity Acquisition case study, Finance & Accounting / MBA EMBA Resources. Less interaction with new employee. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas The views and opinions expressed in this article are the authors own, and do not necessarily reflect those held by pv magazine. Rauch, P. (2007). Fitted waist with belt loops. 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 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. 2). The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. Solarcity Tesla needs to adjust its marketing strategy accordingly. Help, Academic Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Hill, C., & Jones, G. (2010). 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. By 2009, solar panels it had installed were capable of generating 440 megawatts (MW) of power. Order your custom solution now. This part consists of solutions that address issues faced by the organisation on a strategic level. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. Panagiotou, G. (2003). 'Tesla The Solarcity Acquisition' was one of World's topmost IT services corporations, with workplaces in many locations around the world. It shows that one has been clarified with the HBR fundamentals on the topic. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. WILMINGTON, Del. Tesla: The SolarCity Acquisition will also provide insight into areas such as wordlist , strategy, leadership, sales and marketing, and negotiations. Amanda is strategy expert at Texas Business School . Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. Cash Cows are those strategic business units with high market share and low market growth rate. This issue may be analysed for a manager or employee as well. The task subordinate did not ask to do any work. 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. IIBMS. Each resource is assessed whether it could be imitated by competition easily or not. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. The Possible locations of Mismatched Expectation in between Tesla The Solarcity Acquisition Case Study Help and Company That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. The first step of the solution is to come up with a corporate level strategy for the organisation. Try to make very first day at company unexpected. 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. Further information on data privacy can be found in our Data Protection Policy. The case study does not end at just providing recommendations to the issues at hand. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. If both are on the same page then it makes sense to enter, otherwise it doesnt. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. 2 min read. These are usually in the form of strategies that the organisation can adopt. Elon Musk Testifies To Defend Tesla's $2.6 Billion Acquisition of SolarCity in Shareholder Lawsuit. Mason, OH: South-Western, Cengage Learning. 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. The Tesla: The SolarCity Acquisition (referred as Solarcity Tesla from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. This is doing the Tesla The SolarCity Acquisition Case Solution. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases. Although, your objective is to alter the 'resisters to champions', which is not constantly possible. - According to Zhichuan Frank Li, Tomiwa Ademidun . To do comprehensive PESTEL analysis of case study Tesla: The SolarCity Acquisition , we have researched numerous components under the six factors of PESTEL analysis. Shareholders have sued Musk alleging that the deal . These are the threats that the industry faces due to new entrants. 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. The second step of the solution is to come up with a business level strategy. Market overview: Large-scale storage systems, Market overview: Microgrid control systems, The smarter E Europe 2019 special edition, Energy Storage North America Special 2018, Clean Power Research: Solar data solutions to maximize PV project performance. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. We are here to help. ", A little-known renewable energy stock could rally more than 20%, UBS says, Goldman Sachs upgrades Shell to buy, says oil giant can surge 40%. Re-allocating of the task to the new office. 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. 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. It involves looking at the current market share of the company and its competitors. Be lively to the degree that who, when and what on boarding. Should Solarcity Tesla enter new market or launch new product (Opportunities & Threats from SWOT Analysis) Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. The case solution first identifies the central issue to the TESLA THE SOLARCITY ACQUISITION - STUDENT SPREADSHEET case study, and the relevant stakeholders affected by this issue. You need to make efforts to block them out, and must focus on your work. Zhichuan Frank Li, Tomiwa Ademidun (2018), "Tesla: The SolarCity Acquisition Harvard Business Review Case Study. Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . Porter Value Chain Analysis / VRIO / VRIN Analysis Tesla: The SolarCity Acquisition case study, STEP 6. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Perform standard concepts prior to the first day at business. The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. 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. Musk was set to be the first witness during the trial to defend his decisions as Teslas CEO. Porter, M. E. (2001). SolarCity was founded in 2006 by Musk's cousins, Peter and Lyndon Rive. The Tesla acquisition of SolarCity closed in November 2016. If a resource is high on all of these 4, then it brings long-term competitive advantage. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices.
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