Perform standard concepts prior to the first day at business. When the announcement about the acquisition was made, the stock price of Tesla dropped while the stock SolarCity raised by 13%. Tesla The SolarCity Acquisition should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. 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. - 5G has potential to transform the business environment especially in terms of marketing and promotion for Solarcity Tesla. The business should recruit the employees that have the skills that match with the objectives of the business. For example, strengths will be used as an advantage in solving the issue. Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). Both companies had similar products and could be a strong strategic fit. It shows that the details provided in the case have been properly analysed. 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. . While Elon Musk, the CEO of Tesla and chairman of SolarCity, calls the deal a "no-brainer," the $2.6 billion acquisition has drawn widespread scorn. 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. It also lays down the changes needed to be made as well as the assumptions in the process. Tesla: The SolarCity Acquisition has numerous instances where the competition regulations aspects can be scrutinized. If you want to cooperate with us and would like to reuse some of our content, please contact: 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. By using the above frameworks for Tesla: The SolarCity Acquisition case study solutions, you can clearly draw conclusions on the following areas Email us directly at caseanalysisteam(at)gmail(dot)com if you want to solve the case. 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. Made with sweat-wicking fabric. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Dissertation The company can challenge competitors from various companies. Investors wereskepticalof the deal when Tesla proposed it in June 2016, with the stock plunging more than 10% on the announcement. What are the strength and weaknesses of Solarcity Tesla (SWOT Analysis) Strategic Management Theory: An Integrated Approach, Ninth Ed. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. 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. No reply from the mangers in the brand-new office. - Strong Balance Sheet The financial statement of Solarcity Tesla looks strong and will help the company going forward. Shareholders have sued Musk alleging that the deal . 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. Subscribe to our newsletter to receive news on update. Data safety laws The countries in which Solarcity Tesla is operating, firms are required to store customer data within the premises of the country. That $60 million bill will be footed by insurers covering Teslas directors and executives as part of a derivative settlement agreement. Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. When it comes to the business, socialization is a treatment that meaningfully forms corporations in the way that provides important practices for the company to increase the interaction in between the managers and the workers. PESTLE Analysis. Each of these resources are assessed in terms of the value it brings to the organization. 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. The solar company was run by Elon Musk's cousins, and some Tesla shareholders argued the deal was a bailout. Court proceedings in the Delaware Court of Chancery related to Teslas purchase were all set to begin on March 16. She went through with the procedure of technical training, where she had to face lots of issues and hard situations. Two key considerations while using BCG Growth Share Matrix for Tesla: The SolarCity Acquisition case study solution - The strategies devised and included in the Tesla The SolarCity Acquisition case memo should have a blue ocean strategy. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. ", 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%. You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. The organization can penetrate into existing markets with its existing products. 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. Tesla The Solarcity Acquisition Case Study Solution wondered that, would she fit in the company's value culture and the way it works. Please place the order on the website to get your own originally done case solution. Feedback pursuing may likewise support brand-new staff members. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. If you need help with something similar, Join our newsletter. The level of tariffs will determine the viability of the business model that the firm is contemplating. If a resource is only valuable, then its a competitive parity. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Financial analysis, Manufacturing, Mergers & acquisitions. This procedure of understanding to establish a reliable member of the business is diverse from expert socialization, which stresses on finding out the standards of one's business. It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Tesla: The SolarCity Acquisition case study. 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 . Porter, M. E. (1985). Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis). This is known as product development strategy. 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. If the plaintiffs had won, proceeds would have gone to Tesla and not to the stakeholders who brought the suit. One is also required to provide how these recommendations would be implemented. Proposal, Question The company should keep it in mind, while carrying out such steps. Porter, M. E. (2001). 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. 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. Do not carry out that someone who helps the program in the start, will sustain to do so in future. 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. It's final: With no more barriers to the deal, Tesla is buying SolarCity. The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. 1. The company was headquartered in Fremont, California, before being purchased by Tesla Inc. in 2016 for $2.6 billion. 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. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. 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. 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. 2 min read. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case. 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. Therefore, the implementation framework ensures that the solution to the Tesla The SolarCity Acquisition Harvard case is complete and properly answered. Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. The Tesla: The SolarCity Acquisition (referred as "Solarcity Tesla" from here on) case study provides evaluation & decision scenario in field of Finance & Accounting. Tesla CEO Elon Musk finds himself in the news quite often, from groundbreaking SpaceX launches to contentious tweets. Elon Musk is testifying Monday morning in a lawsuit over Tesla's 2016 acquisition of SolarCity, a $2.6 billion transaction that a group of shareholders allege was a "bailout" of the failing . 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. In the EU countries, firms are required to make special provision for privacy issues and other laws. 7 Effective Steps to Solve Case Study. Despite these challenges, Tesla's value has massively increased following the Acquisition.". When it has to do with Tesla The Solarcity Acquisition Case Solution, it's really tough to resist the temptation to speed things up. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. 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. on WhatsApp for any queries. Create link between the companies and crucial stake holders Socialization and Beginner on boarding practices in other industries 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. If the . PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Solarcity Tesla operates in. 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. Export restrictions on products Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption. But if the tariffs are between 5-10% then Solarcity Tesla can compete against other competitors. Help, Academic The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. I believe that Solarcity Tesla can make a transition even by keeping these people on board. Tariffs Chekout how much tariffs the firm needs to pay in the Tesla: The SolarCity Acquisition case study. Concerns were raised over possible conflicts of interest, given that Musk owned over 20% of the stock, and sat on the board of directors of both companies. Retrieved July 7, 2016, from External Environment Analysis - PESTEL / PEST / STEP Analysis of Tesla: The SolarCity Acquisition case study, STEP 3. - Political and Legal Structure The political system seems stable and there is consistency in both economic policies and foreign policies. 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 . It helps in communicating the points directly and the direction one took. . Hold Ctrl or Cmd to select multiple editions. The trial started . These are usually in the form of strategies that the organisation can adopt. Moreover, in order to protect the position at the workplace; she also had to prove that she was worthy for the business. Subscribe now to get your discount coupon *Only A lawsuit between Tesla Shareholders and Elon Musk ended on Wednesday with a Delaware court ruling in favor of CEO Elon Musk. Academic writing has no room for errors and mistakes. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. SolarCity began in 2006 as a residential and commercial solar provider, manufacturing and installing its own solar panels and equipment. Retrieved from 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. Service, Dissertation Political System and Its Implications Different political systems have different approach to free market and entrepreneurship. - Lucrative Opportunities in International Markets Globalization has led to opportunities in the international market. Highlight the pros and cons of the deal. - According to Zhichuan Frank Li, Tomiwa Ademidun . 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. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. Yet one story that has flown under the radar by the brash businessmans standards has been going on for four years now. 2). 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. That settlement covered the following five current directors at Tesla: Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Stephen Jurveston, and Kimbal Musk. A variety of actions might occur that might transform their "champ" position to "resister" position. In 2016, Tesla acquired solar panel installer and financier SolarCity for $2.6 billion and the assumption of $3 billion in debt. According to Zhichuan Frank Li, Tomiwa Ademidun , Solarcity Tesla needs international talent to penetrate into developing markets. The Tesla acquisition of SolarCity closed in November 2016. Mason, OH: South-Western, Cengage Learning. Environment & PEST analysis: an approach to the external business environment. However, most Wall Street analysts were highly skeptical of the deal, voicing concerns that the merger would burden Tesla with excessive debt and that Musk was using the deal to advance his personal interests (at the expense of public shareholders) and bail out Tesla. - Home market marketing technique wont work in new markets such as India and China where scale is prized over profitability. This involves a detailed analysis of their actions and how these would affect the future strategies of Tesla The SolarCity Acquisition. How it can improve the profitability in a given industry (Porter Value Chain Analysis) Foreign Direct Investment Policies Government policies favors local companies over international policies, Solarcity Tesla in case study Tesla: The SolarCity Acquisition should understand in minute details regarding the Foreign Direct Investment policies of the prospective market. Retrieved from Proposal, Assignment Writing
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