tesla the solarcity acquisition case solution

It includes the bargaining power of buyers in the industry. A long-running romance demands a great deal of dedication and lots of emotional financial investment . 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. Both companies had similar products and could be a strong strategic fit. It includes the bargaining power of suppliers in an industry. 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. Key Points. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. The following are the very best practices that the business executes in socializing and on boarding of newbies: All Rights Reserved. : A review of academic research from the last decade. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. 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. This is known as a diversification strategy. The three step case study solution approach comprises 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). 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. Save my name, email, and website in this browser for the next time I comment. Academy of Management Journal, 25(3), 510-531. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. European Journal of Forest Research, 126(3), 413-420. 8 Tips to Help You Prepare for the Case Method. 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. Evaluating Alternatives / SWOT Analysis of Tesla: The SolarCity Acquisition case study, STEP 5. Get this delivered to your inbox, and more info about our products and services. Tesla Motors announced its intention to acquire solar panel installer SolarCity today, in what Tesla CEO Elon Musk described as a "no-brainer" deal. The company should satisfy some goals for socialization practices. When Tesla bought SolarCity in November 2016, Elon Musk billed the deal as a match made in green energy heaven: Combine a hot electric car company with the nation's then-largest provider of. The Possible locations of Mismatched Expectation in between Tesla The Solarcity Acquisition Case Study Help and Company 'Tesla The Solarcity Acquisition' was one of World's topmost IT services corporations, with workplaces in many locations around the world. 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. Independence of judiciary It is critical for fair business practices. (2013). SolarCity shareholders will receive 0.11 share of Tesla, worth $20.75 based on Thursday's closing price, for each SolarCity share, making the deal worth about $2.1 billion. SWOT analysis will help us in not only getting a better insight into Solarcity Tesla present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage. 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 . The third step of solving the Tesla The SolarCity Acquisition Case Study is Tesla The SolarCity Acquisition Financial Analysis. Strategic Change, 7(2), 101-109. How to calculate Weighted Average Market Share using BCG Growth Share Matrix 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. - Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. The first step to solve HBR Tesla: The SolarCity Acquisition case study solution is to identify the problem present in the case. For example, strengths will be used as an advantage in solving the issue. PESTLE Techniquea Tool to Identify External Risks in Construction Projects. After training sessions, she was placed to different cities, where she had operated in groups to complete various tasks. Tesla The SolarCity Acquisition should enhance the value creating activities within its value chain. Blue ocean strategy. Dogs are those strategic business units with low market share and low growth rate. 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. Enhancement in socializing practices Less Net Cash Out Flowt0 / (1+r)t0. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. 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. 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. Tesla is officially in the solar roof business, says Elon Musk. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. The acquisition is a key improvement on the Solarcity deal. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. 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. 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. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. It's final: With no more barriers to the deal, Tesla is buying SolarCity. What will be the expected profitability of the new products or services (Porter Five Forces Analysis) International Journal of Modern Social Sciences, 2(1), 34-43. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/. It involves coming up with new and unique products or ideas through innovation. This issue may be analysed for a manager or employee as well. - Customers are moving toward mobile first environment which can hamper the growth as Solarcity Tesla still hasnt got a comprehensive mobile strategy. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. The firms primary and support activities are listed down. This can be done by using company history. Or how the marketing budget can be better spent using social media rather than traditional media. The solution consists of recommended strategies to overcome this central issue. Musk initially . This would be the better way to engage all the newbies in the business. And conflicts among other Tesla Board members were not completely neutralized. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. Those who will be unsuccessful to reach to the identified least level, would not end up being the part of the company. The mangers should organize conferences so that brand-new employees can share the issues they deal with in the company. Analyse the companys promotion mix. Order your custom solution now. The level of tariffs will determine the viability of the business model that the firm is contemplating. 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. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Solarcity Tesla can be market leader in the industry without being a dominant player or segment leader in any of the segment. 2019 Texas Business School. Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. to get Coupon Code. Solarcity Tesla in case study Tesla: The SolarCity Acquisition should look into these export restrictions policies. 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 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. Experience and actions of Tesla The Solarcity Acquisition Case Study Help. Hence, they should be taken into consideration when coming up with the Tesla The SolarCity Acquisition case solution. Try to make very first day at company unexpected. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market. Usage creativity, and promote the process. No reply from the mangers in the brand-new office. Service, Dissertation Check your email If the Merger does not occur, Tesla and SolarCity may incur these costs without realizing any of the benefits of the Merger being completed.In addition, if the Merger is not completed, Tesla and/or SolarCity may experience negative reactions from the financial markets and from their respective customers and employees.Tesla and/or SolarCity could also be subject to litigation related to any . It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. 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. Our model papers and solutions are purely meant for It helps in the strategic analysis of Tesla The SolarCity Acquisition. 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. 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. 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. . Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. Each resource is assessed in terms of how rare it is. Warning! It shows that the details provided in the case have been properly analysed. 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. Even though the problem statement is essentially casecategory challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Solarcity Tesla, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more. They may be unclear of their achievements and responsibilities, but you ought to be clear about your goals, responsibility and tasks.

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