1. What management challenges is Elon Musk facing as he prepares SolarCity to make its own solar panels?
Elon Musk faces several management challenges in preparing SolarCity to make its own solar panels. First, rather than following suit behind companies that are focusing on the “platform-only model” and doing business solely as the middleman, Musk proposes that SolarCity make their own photovoltaic panels rather than purchase them from outside suppliers. This may prove to be a bit of a challenge because SolarCity will need to spend more time and money on the resources required to manufacture these photovoltaic panels instead of buying them from suppliers. Resources such as equipment, raw materials and …show more content…
In 2013, according to Seeking Alpha, SolarCity was one of the best performing solar stocks (Kumar, 2013, para. 1). With SolarCity’s innovative financing structure, its installations benefit from several government solar subsidies (para. 1). However, the true profitability of SolarCity is hard to determine due to this financing structure (para. 1). SolarCity profits from two areas: installment costs and returns on capital from the installations by owning these assets (para. 3). Also, according to Seeking Alpha, in 2015 SolarCity has continued its growth in installations, bookings and nominal contracted payments (Dalal, 2015, para. 1). Nominal contracted payments grew $1.6 billion to $7.7 billion in the second quarter (para. 1). It is predicted that there will be another $2.2 billion growth next quarter, over 28% growth of the total (para. 1). Furthermore, the percent of third party owned solar in the U.S. rose from 2011 to 2014 from 42% to 72% (para. 8). Therefore, not only is SolarCity’s performance increasing, but so is consumer demand.
The Wall Street Journal Case in the News
1. Under what conditions is it acceptable for a company to monitor its employees’ communications?
It is acceptable for companies to closely monitor its employees’ communications in all professional environments, especially in organizations with sensitive information such as the central banks in this article. The…