Michael Porter Five Forces of Strategy are . Perform standard concepts prior to the first day at business. 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." Socializing of the company, or on boarding, is a treatment through which new workers transfer from being business outsiders, and end up being business insiders. Tesla: The SolarCity Acquisition is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. This paper presents the solved Tesla The SolarCity Acquisition case analysis and case solution. Please place the order on the website to get your own originally done case solution. Button waist with zip fly provides a classic look and feel . Given that, workers are slowly fluctuating tasks to deal with brand-new business, socialization is very important just as much for the workers as it is for the companies. Stars are those strategic business units with high market share and high market growth rate. Tesla The Solarcity Acquisition - Case Study Solution The acquisition is a key improvement on the Solarcity deal. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. Solarcity Tesla needs to restructure its IT policies to accommodate these changes. One is also required to provide how these recommendations would be implemented. Dissertation 2). Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. Mason, OH: South-Western, Cengage Learning. Blue ocean strategy. So, recommendations and suggestions need to address the strategy of the marketing department in this case. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. Actionable and practical solutions can then be developed by keeping these factors into perspective. After completing a year in the business, it was the stage where she had to examine and reflect her journey and experiences, while operating in the business. In the EU countries, firms are required to make special provision for privacy issues and other laws. She strove to clear all the evaluation that the business draws from the fresh graduates. 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. 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. While, unsuccessful socialization can cause impulsive with drawl of personnel from their new jobs or to their incompetence on the task, which often resumes the work and choice phase for the business, causing increased cost of time and resources. Tesla: The SolarCity Acquisition - Harvard Business Publishing Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. Understanding Business Processes, 50-66. The Tesla The SolarCity Acquisition case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This will help in answering the related costs and various sources of competitive advantages of Solarcity Tesla in the markets it operates in. The pv magazine editorial team includes specialists in equipment supply, manufacturing, policy, markets, balance of systems, and EPC. Reasons At the second stage provide the reasons for the conclusions. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. Solarcity Tesla needs to adjust its marketing strategy accordingly. Competition Regulations Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Both companies had similar products and could be a strong strategic fit. The company can challenge competitors from various companies. 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. To summarize, the following expectations were mismatched with the business: Chat with us 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. Our immersive learning methodology from case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Finance & Accounting field, and broaden their skill set. Direct and prospective action plan Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. Amanda is strategy expert at Texas Business School . This is known as market penetration strategy. 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. When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. Because according to my understanding about the city of World, the competitors is very high in IT corporations, and likewise it is really tough to get utilized in these sectors, so if someone gets used in such a famous company, she should stay with it whether it is field related to work or not. Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. 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. 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. 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.. Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. 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. For solving any Tesla The SolarCity Acquisition case, Financial Analysis is of extreme importance. The company should set up lunch and discovering sessions. Investors were skeptical of the deal from. Accessed July 12, 2021. A Division of NBCUniversal. The 4 elements of the marketing mix are Product, Price, Place and Promotions. We want to hear from you. 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. Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. Management, 3rd edition. The conferences were chockfull with discussions from diverse divisions of the company, and comprised organizational details, standards, worths, and the life of the employees in the company, with interactive games. 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. pv magazine offers daily updates of the latest photovoltaics news. VRIO stands for Value of the resource that Solarcity Tesla possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Solarcity Tesla. The next step is of understanding the company; its people, their priorities and the overall culture. and cannot be used for research or reference purposes. This is doing the Tesla The SolarCity Acquisition Case Solution. Feel free to connect with us if you need business research. Rithik Khanna- Telsa Final.docx - Finance in a Global Perspective CASE Identify the market growth of each strategic business unit. Environment & PEST analysis: an approach to the external business environment. Tesla The Solarcity Acquisition Case Study Solution | Tesla The Subscribe to our newsletter to receive news on update. This could be mentioned at the start of the reading, the middle or the end. Tesla The SolarCity Acquisition should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. 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. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. It includes the bargaining power of suppliers in an industry. Tesla officially acquires SolarCity TechCrunch Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. 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 . Gupta, A. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. The case study does not end at just providing recommendations to the issues at hand. Subscribe now to get your discount coupon *Only Rauch, P. (2007). Managers at Tesla: The SolarCity Acquisition case study have to assess whether their business can benefit from such government assistance and subsidies. Bringing SWOT into Focus. - 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. - 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. 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. 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. The internal resources of Tesla The SolarCity Acquisition are listed down. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. The organization can develop new products for the existing market. It involves coming up with new and unique products or ideas through innovation. 8 Tips to Help You Prepare for the Case Method. Analyse the companys products and devise strategies to improve the product offering of the company. Porter, M.E. The article written below is not related to the actual case in discussion, It is for formatting purposes only. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. Porter, M. E. (1985). You can go about it in a similar way as is done for a finance and accounting case study. 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 2011, the company launched their expansion to the East Coast with the acquisition of the solar division . 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. Each resource is assessed in terms of how rare it is. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. 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. Tesla: The SolarCity Acquisition Case Solution and Analysis, Case Study Solution. Competitive advantage: creating and sustaining superior performance (Vol. ", 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%. Try to make very first day at company unexpected. Business Strategy Review, 14(2), 8-10. How They Teach the Case Method At Harvard Business School. To satisfy the customer's requirements and market goals according to the needed time, the task are needed to be completed in a restricted time. You can hire Texas Business School professinoals to revolutionize your strategy & business. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. 2 min read. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. This is known as the problem identification stage. Warning! Analyse the companys price points and devise strategies that could be based on competition, value or cost. Or how the marketing budget can be better spent using social media rather than traditional media. 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. The trial has been postponed indefinitely and a new date has not yet been set. 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. (2013a). 'Tesla The Solarcity Acquisition' was one of World's topmost IT services corporations, with workplaces in many locations around the world. Your email address will not be published. (1979, March). Dogs are those strategic business units with low market share and low growth rate. Despite these challenges, Tesla's value has massively increased following the Acquisition.". Providing personnel with as much right truths as possible, before hand they start functioning for the company. Each resource is assessed whether it could be imitated by competition easily or not. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. 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. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. If both are on the same page then it makes sense to enter, otherwise it doesnt. But not everyone is negative. To do comprehensive PESTEL analysis of case study Tesla: The SolarCity Acquisition , we have researched numerous components under the six factors of PESTEL analysis. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. please submit your details here. Ansoff Matrix is an important strategic tool to come up with future strategies for Tesla The SolarCity Acquisition in the case solution. 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. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. Strategies will be devised which makes use of a few or all of these elements. Recommendations Tesla: The SolarCity Acquisition case study, STEP 7. (SolarCity) and with Tesla's financial advisor for the deal without the knowledge of the Tesla Board.

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