This is known as market development strategy. Management, 3rd edition. She strove to clear all the evaluation that the business draws from the fresh graduates. Button waist with zip fly provides a classic look and feel . Corporate Taxes The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. At other times, finding the issue is the job of the person analysing the case. Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. Email us directly at: casesolutionsavailable (at)gmail (dot)com Please replace (at) by @ and (dot) by . SolarCity filed for their IPO in 2012. 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. - Little experience of international market Even though it is a major player in local market, Solarcity Tesla has little experience in international market. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. The organization can penetrate into existing markets with its existing products. According to Michael Porter Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. (1979, March). Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. To summarize, the following expectations were mismatched with the business: 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. A Division of NBCUniversal. 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. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled. Tesla The Solarcity Acquisition Case Study Solution likewise had numerous expectation with the company. All Rights Reserved. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. Actionable and practical solutions can then be developed by keeping these factors into perspective. 7 Effective Steps to Solve Case Study. Principles of marketing. Kim, W. C., & Mauborgne, R. (2004). And conflicts among other Tesla Board members were not completely neutralized. - 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. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. Accessed July 12, 2021. - 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. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. Help, Academic - Consumer buying behavior and consumer buying process Solarcity Tesla should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Solarcity Tesla wants to enter. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. Tesla The SolarCity Acquisition needs to bring out certain responses from the market that it targets. 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. 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. 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. Try to make very first day at company unexpected. Each resource is assessed whether it could be imitated by competition easily or not. 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. New York: Free Press. 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 . ", 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%. November 1, 2016. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). Lack of practical capabilities in the business, and the possible jobs to be untaken for a significant variety of time need to be avoided in the business. 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 third step is not compulsory but depends from case to case. These factors are also responsible for the future growth and challenges within the industry. Going into 2016, SolarCity stock was already plunging and the company was going through . Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so. It shows that one has been clarified with the HBR fundamentals on the topic. One more location, where she found that her expectation was mismatched with the business was team effort. Nixon, J., & Helms, M. M. (2010). The challenges involve evaluation of strategic options, key role of casecategory, leadership qualities of the protagonist, and dynamics of the external environment. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. You can download Excel Template of Case Study Solution & Analysis of Tesla: The SolarCity Acquisition, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, SWOT Analysis of Tesla: The SolarCity Acquisition, PESTEL /PEST / STEP Analysis of Tesla: The SolarCity Acquisition Case Study, 5C Marketing Analysis of Tesla: The SolarCity Acquisition, 4P Marketing Analysis of Tesla: The SolarCity Acquisition, Porter Five Forces Analysis and Solution of Tesla: The SolarCity Acquisition, Porter Value Chain Analysis and Solution of Tesla: The SolarCity Acquisition, Case Memo & Recommendation Memo of Tesla: The SolarCity Acquisition, Blue Ocean Analysis and Solution of Tesla: The SolarCity Acquisition, Marketing Strategy and Analysis Tesla: The SolarCity Acquisition, VRIO /VRIN Analysis & Solution of Tesla: The SolarCity Acquisition, PESTEL / STEP / PEST Analysis of Tesla: The SolarCity Acquisition, Case Study Solution of Tesla: The SolarCity Acquisition, SWOT Analysis and Solution of Tesla: The SolarCity Acquisition, Joe Mandato, Pete McNerney and Empathetics Case Study Solution & Analysis, Managing Diversity and Inclusion at Yelp (B) Case Study Solution & Analysis, Ethics and Integrity in Business: Navigating Ethical Risks and Transgressions in the Workplace (A) Case Study Solution & Analysis, Branding BY-HEALTH: The Value of Transparency Case Study Solution & Analysis, Club Sportif MAA: Staying Ahead of the Game Case Study Solution & Analysis, CEO Succession at Cisco, Video Supplement Case Study Solution & Analysis, Hisense's Internationalization Dilemma: Co-Operation with Loewe Case Study Solution & Analysis, Kangaroo Tail Winery Limited (C) Case Study Solution & Analysis, An Inside Perspective on Carbon Disclosure Case Study Solution & Analysis, The One Fund Case Study Solution & Analysis, Position among Retailers and Wholesalers companyname retail strategy, Yes, firm has strong relationship with retailers and wholesalers, Difficult to imitate though not impossible, Yes, over the years company has used it successfully, Ability to Attract Talent in Various Local & Global Markets, Yes, Solarcity Tesla strategy is built on successful innovation and localization of products, Yes, as talent is critical to firm's growth, Vision of the Leadership for Next Set of Challenges, Not based on information provided in the case. 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. Rastogi, N., & Trivedi, M. K. (2016). Feel free to connect with us if you need business research. Tesla's Plan to Buy SolarCity Has Major Flaws. Perhaps, it supplies you chances to advance in your career, and can demonstrate that you can manage the tight spots. Tesla: The SolarCity Acquisition is a Harvard Business (HBR) Case Study on casecategory , Texas Business School provides HBR case study assignment help for just $9. Cash Cows are those strategic business units with high market share and low market growth rate. Learning Objectives This case is suitable for undergraduate and MBA courses in finance and strategy. Management and Administrative Sciences Review, 2(2), 196-206. Tesla: The SolarCity Acquisition case study is a Harvard Business School (HBR) case study written by Zhichuan Frank Li, Tomiwa Ademidun. Moreover, I would have advised the following action plan: Our model papers and solutions are purely meant for It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. 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. In the problem identification stage, the problem faced by Tesla The SolarCity Acquisition is identified through reading of the case. 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 . One of the biggest issues with the deal was that Elon Musk was the largest shareholder of both Tesla and SolarCity at the time of the acquisition. Analyse the companys price points and devise strategies that could be based on competition, value or cost. Musk's aerospace company, SpaceX, had also purchased tens of millions of dollars worth of solar bonds from SolarCity. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. Sometime there are numerous task managers who take wrong decision and keep 'champs as champs', and keep resisters involved. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Since that point, a couple of things have happened in the Musk/Tesla/SolarCity struggle. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method. If the tariffs are high then it will be extremely difficult to compete with the local competitors. At the starting of the job, each staff member has some expectations with the business, which relate to the values, culture and the lifestyle of the business. Just as Tesla has demonstrated the superiority of electric vehicles, the solar roof and Powerwall 2 will transform energy generation and storage. Export restrictions on products Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. 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. Making matters worse, it was alleged that Musk knew of SolarCitys financial troubles at the time of the deal so it appeared to be more of a bailout than an acquisition. 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. Solarcity Tesla needs to adjust its marketing strategy accordingly. Research and Development Subsidies and Policies Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. They likewise arrange different training session that provide awareness on how to handle different bothersome situation. 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. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. 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 . It also touches upon business topics such as - Value proposition, Financial analysis, Manufacturing, Mergers & acquisitions. Pearson education. inspiration, guidance, and understanding. Question: Refer to the Tesla SolarCity acquisition case study. Those against Musk and this purchase of SolarCity also believed that the outspoken entrepreneur sought to convince Tesla shareholders that the deal was a good one by promoting the unveiling of a SolarCity product that didnt yet exist: glass solar roof tiles. Tesla: The SolarCity Acquisition case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. Industry Specific / Porter Five Forces Analysis of Tesla: The SolarCity Acquisition case study, STEP 4. r = discount rate or return that could be earned . Musk denied that he placed any pressure on the Tesla board to go through with the transaction. 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. 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. This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. of the box and hire Case48 with BIG enough reputation. Another five of Teslas directors were direct or indirect owners of SolarCity stock. Keep in mind the underlying motive for the deal, potential corporate governance issues, the plausibility of . What are the resources needed to increase profitability (VRIO Analysis) The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Texas Business School approach of case study analysis Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. The case solution first identifies the central issue to the Tesla The SolarCity Acquisition case study, and the relevant stakeholders affected by this issue. Tesla bought SolarCity in 2016. And while I certainly would not characterize this trial, or any other trial, as non-essential, it is not expedited and no irreparable harm will flow from an adjournment.. This is known as the problem identification stage. Feedback pursuing may likewise support brand-new staff members. We are here to help. 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. Your email address will not be published. Musk initially . VRIO and VRIN analysis can help the firm. With that said, the Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way.". Legal Notice Terms and Conditions Privacy Policy pv magazine 2023, This website uses cookies to anonymously count visitor numbers. Solution, Assignment Writing What's swot in strategic analysis? 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. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - Shareholders have sued Musk alleging that the deal . correct email will be accepted, (Approximately Required fields are marked *. 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. The Competitors analysis of Tesla The SolarCity Acquisition looks at the direct and indirect competitors within the industry that it operates in. The company was headquartered in Fremont, California, before being purchased by Tesla Inc. in 2016 for $2.6 billion. An effective company socializing procedure can effect in effective staff, with positive work outlook who keep on dealing with the business for a longer period. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. The three step case study solution approach comprises The trial has been postponed indefinitely and a new date has not yet been set. 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. "Should be able to do all those before the shareholder vote. If you have BIG dreams to score BIG, think out Made with sweat-wicking fabric. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. Analyse the companys products and devise strategies to improve the product offering of the company. These can usually be developed using the company history is provided in the case. Managers need to assess these factors even before entering the market. But not everyone is negative. 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. The third step of solving the Tesla The SolarCity Acquisition Case Study is Tesla The SolarCity Acquisition Financial Analysis. Therefore, the SWOT analysis is a helpful tool in coming up with the Tesla The SolarCity Acquisition Case Study answers. Kulkarni, N. (2018). - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla.
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