ASSIGNMENT 2:

Responsibilities to Stakeholders
BAM 101 NEE – Introduction to Business Administration

By: GURJOT SINGH

Student ID: 144798204

For: Professor Peter Forint

Due Date: August 2, 2021

RESPONSIBILTIES TO STAKEHOLDERS

Table of Contents
Situation Description and Initial Judgement............................................................................3
"Musk vs. Buffett, a Solar War in the Desert Heats" video summary..................................................3
My Initial Judgment...........................................................................................................................3
Elon Musk's Profile..................................................................................................................4
Warren Buffett's Profile...........................................................................................................5
Stakeholders Impact: Justice and Individual Rights..................................................................6
Investors............................................................................................................................................6
Customers..........................................................................................................................................6
Communities......................................................................................................................................6
Environment......................................................................................................................................6
Employees..........................................................................................................................................6
NPUC Decision...................................................................................................................................7
Nevada Now.......................................................................................................................................7
Conclusion.........................................................................................................................................7
Reflection................................................................................................................................8
Works Cited.............................................................................................................................9

2
GURJOT SINGH
RESPONSIBILTIES TO STAKEHOLDERS

Situation Description and Initial Judgement

"Musk vs. Buffett, a Solar War in the Desert Heats" video summary

As stated in the video “Musk vs. Buffett, a Solar War in the Desert Heats Up” by Bloomberg
(Withers), Nevada was a state with very high electricity bills and people living in Nevada were
quite unhappy with that. They were all looking for solutions. As told, Nevada has 335 days of
clear sunshine in a year, which proved to be as a blessing to the general public of the region.
They started shifting towards solar energy and started investing in solar panel installations
heavily which in return reduced their electricity bills significantly. Solar panels were quite
expensive and required a big upfront investment. SolarCity, a company owned by Elon Musk,
came with a great business tactic, they started installing and leasing solar panels to the public
with options including zero down payment. People took this opportunity whole heartedly and
started investing in this scheme and started saving great amounts from their electricity bills.

On the other hand, Nevada’s Public Utilities Commission didn’t seem to be any happy with that
decision. They were not in the favour of Nevadans saving some money by installing new solar
panel systems and even suggested Nevada Energy, a Warren Buffet’s company to raise the
charges for their electricity bills. As a result, SolarCity has decided to exit the Nevada market.
Residents who had solar systems installed in their homes are displeased. As a response of the
protests, Nevada Energy decided to preserve the existing contracts. They were right to be
disappointed since they assumed investing in solar panels would save them money in the
future, but what they got in exchange was even more higher rates and bigger electricity bills.

My Initial Judgment

After watching the video and gathering all the important information about the case, if I were
the Nevada Public Utilities Commission, I would support SolarCity because it has the potential
to be the most profitable investment for Nevadans. Nevada's rooftop solar panel systems could
inspire countries all across the world, not just Nevada. SolarCity is not only a lucrative
corporation, but it is also a priceless business idea that has the potential to benefit the entire
planet because solar energy is abundant in most parts of the globe. Nevada Energy's actions
were not at all equitable. It demonstrates the unethical activities of a corporation that is just
interested in establishing its monopoly and does not care about the population. SolarCity was
none other than a blessing to the Nevadans.

3
GURJOT SINGH
RESPONSIBILTIES TO STAKEHOLDERS

Elon Musk's Profile

Elon Musk was born on June 28, 1971 in Pretoria, South Africa. His childhood was difficult at
home (he rarely talks about his early years, but still estranged from his father Errol Musk) and
school. The place where he was bullied. Spending time in the school library, he flipped through
the encyclopedia. Musk is fascinated by the new world of computers. His first machine was
Commodore Vic 20, and when he was 12 years old, he had already written a video game. Musk
went to his mother's hometown of Canada in 1989 and studied at the Queen's School of
Business in Kingston, Ontario. A friend there, Dominic Thompson (Dominic Thompson)
reminded the San Jose Mercury News that Musk rarely "combined business knowledge with
physical and scientific knowledge, as well as primitive wisdom and concentration.” (Craddock,
2016)

In 1995, Musk began his doctoral studies. He received his PhD in Energy Physics/Material
Sciences from Stanford University in California. But eager to pursue the opportunities of the
internet boom, he dropped out after just two days and started his first company, Zip2Corporation.
(AOP Inc., 2020)

Elon Musk is CEO and CTO of Space Exploration Technologies Corporation (SpaceX), which he
established in 2002. SpaceX creates rockets and space apparatus for missions to Earth circle and
past. Last year, SpaceX won the NASA contest to configuration, construct, and exhibit activity of
a business substitution for the space transport, which resigns in 2010. In 2008, SpaceX Falcon 1
was the main secretly created fluid fuel rocket to arrive at circle. (Canan,2009)

Tesla, Inc. (Tesla or 'the organization') is a US-based car organization that plans, fabricates and
advertises electric vehicles, parts, and energy stockpiling and age frameworks. The organization's
electric vehicle portfolio incorporates the Model S car, the Model 3 car, and the Model X game
utility vehicle (SUV). Tesla likewise gives energy frameworks including sun powered boards and
battery-powered lithium-particle batteries. The organization gives items and administrations
through global deals associations, displays, vehicle administration focuses, stores and charger
stations. It serves to people, mechanical and business clients and utilities. (Tesla inc.,2018)

In 2000 Musk wedded Canadian writer Justine Wilson, whom he had met while both were
understudies in Kingston. Wilson disclosed to Swaine that "regardless of the number of features I
got, Elon pushed me to be blonder. 'Go platinum,' he continued saying, and I continued
declining." After one question, Musk told his significant other (as indicated by Swaine), "In case
you were my worker, I would terminate you." The couple had six kids, the first of whom,
Nevada, died at ten years old weeks, an occasion that hit the regularly vivacious Musk hard. The
marriage finished in separate in 2008, and Musk wedded British entertainer Talulah Riley in
2010. They isolated however at that point rejoined. (Craddock,2016)

4
GURJOT SINGH
RESPONSIBILTIES TO STAKEHOLDERS

Warren Buffett's Profile

Warren Edward Buffett was conceived August 30, 1930, in Omaha, Nebraska. He went to grade
school there yet went to middle school and secondary school in the Washington, D.C., region,
where his dad, Howard Homan Buffett, served four terms in the U.S. Place of Representatives. In
school, Warren deserted the Wharton School at the University of Pennsylvania since he didn't
think he was getting the hang of anything. He enlisted at the University of Nebraska (Lincoln
grounds), where he procured a four year certification in scientific studies certification in 1950.
(Lowe, 2007)

Warren Buffet is a worldbeater in the best feeling of the word, in case there is one. He is in
genuine peril of giving this, the Golden Age of Philanthropy, his own great name. So far as is
known, he has no indecencies, Napoleonic hallucinations, underhanded tendencies, mysteries or
foes. Since 2000 he has fund-raised for the Glide Foundation through online closeouts, where
bidders have given up to $620,100 for the opportunity to have one supper with the Oracle of
Omaha. (New Internationalist, 2007)

Buffett at first went to the Wharton School at the University of Pennsylvania, then, at that point
moved to the University of Nebraska. There his premium in contributing was animated by
Benjamin Graham's The Intelligent Investor. He set up Buffett Associates, his first speculation
organization, in 1956. It was financed by $100 from Buffett and $105,000 from seven restricted
accomplices comprising of his loved ones. In 1962 he started buying partakes in Berkshire
Hathaway, an enormous assembling organization in the declining material industry that was
selling up at a cost beneath its functioning capital. Buffett would ultimately disintegrate every
one of his associations to zero in on running Berkshire Hathaway. It became one of the biggest
holding organizations on the planet. (New Internationalist, 2007)

Berkshire Hathaway, American holding organization situated in Omaha, Nebraska, that fills in as
a venture vehicle for Warren Buffett. In the mid 21st century it was perhaps the biggest company,
estimated by incomes, in the United States. The organization was likewise prominent at the
significant expense of its stock (some $350,000 for one Class An offer in 2020) and the little size
of its central command staff (around 25 individuals). Berkshire Hathaway follows its set of
experiences back to two Massachusetts material firms. (EB Inc., 2020)

The manner in which Buffett runs his organization, Berkshire Hathaway, which claims in excess
of eighty different organizations by and large, is comparably at odds with the occasions. In the
current generalization of corporate acquirers, firms like Bain Capital burden organizations with
obligation, scale back their labor forces, and strip them of resources. Buffett doesn't do
threatening acquisitions or major restructurings, and he never sells the organizations he
purchases. He concedes that this isn't absolutely sane, in spite of the fact that Berkshire is
entirely productive. In any case, it takes advantage of his natural abilities (he enjoys purchasing
organizations and building them) and mitigates his shortcomings (as he advised me, he detests a
conflict). "You must make the designs steady with what your demeanor should be," he said.
Whatever the individual purposes behind his methodology, it's one that appears to be consoling.
(Surowiecki, 2012)

5
GURJOT SINGH
RESPONSIBILTIES TO STAKEHOLDERS

6
GURJOT SINGH
RESPONSIBILTIES TO STAKEHOLDERS

Stakeholders Impact: Justice and Individual Rights

Investors
Both the companies were publicly listed companies. In the terms of SolarCity, its investors
(interested parties) suffered huge losses when they shut down in Nevada. Nevada Energy was
the actual culprit who closed SolarCity in Nevada. SolarCity's response on the day Nevada
Energy did can be considered an irresponsible act of investors, but at the expense of competitor
Nevada Energy's unfair and aggressive business strategy. Nevada Energy hasn't played such an
unfair game SolarCity hasn't disappointed investors and has lived up to its expectations.

Customers
In terms of customer responsibility, SolarCity won easily because its business had a foundation
to support all customers' electricity bill savings. The company started leasing solar panels with
no upfront costs. It can be said that Solar City values its customers. Meanwhile, Nevada Energy
may have saved some of its consumers, but it was solely working on the purpose of maximizing
profits. Nevada Energy may conclude that it has failed its customer's disposal with its solar
rooftop system.

Communities
SolarCity has demonstrated gainful to all networks in Nevada since it gives new positions to
inhabitants. As a savvy business belief system, the residency is, obviously, a huge benefit, and
the worker should appreciate rewards. Nonetheless, Nevada Energy isn't adding to any general
public in Nevada. It was an unadulterated lucrative organization. Since NV Energy has been so
centered around contending with SolarCity, it has totally overlooked the local area it needs to
serve its clients and administrations.

Environment
SolarCity really focused on the climate and the entire business thought depended on natural
insurance. As sun is shining for almost whole of the year, it utilized daylight to deliver power and
that didn't hurt climate by any stretch of the imagination. Their reality alone had supported
consciousness of a worldwide temperature alteration and the force of sunlight based energy
since they had a mission dependent on the improvement of humankind. Property holders could
likewise store and trade additional power with each other, bringing down everybody's power
cost. Nevada Energy, then again, utilized customary power creating methods that hurt the
climate. Thus, SolarCity also does well in environment protection.

Employees
SolarCity opened up many open positions in Nevada. In its underlying days, when it was working
great in the US express, its number of representatives developed by 69%. Toward the end,
SolarCity arranged its cutbacks and cut the pay rates of its two fellow benefactors. This infers
SolarCity was not entirely capable towards its workers in its last days. Conversely, Nevada
Energy kept on paying its workers and they partake in the typical representative advantages.

7
GURJOT SINGH
RESPONSIBILTIES TO STAKEHOLDERS

NPUC Decision
In August 2017, the Nevada Public Utilities Commission held three days of hearings "counting
several hours of interrogations and progressively specialized inquiries on the application keep
going week" on the issue of net metering. The commission drafted and decided on a request
that would execute guidelines and rates for net metering clients, something that has been
"hotly anticipated" by partners (the vote was commanded by a bill passed by the state
governing body during the 2017 administrative meeting). The motivation behind that bill was to
re-establish "ideal repayment rates for net metering clients," individuals who use roof solar
based boards. Net metering clients get a credit from the service organization when they create
more energy than they are utilizing, and that energy gets sent once more into the electric
network. The late spring of 2017, and the year paving the way to it, was a time of " contentious
back and forth between NV Energy, solar organizations and state authorities." The previous
version of net metering in Nevada was shut down by the state legislature and carried out by the
Public Utilities Commission in December 2015. Under the new system, new rooftop solar
customers will receive a reimbursement equal to a percentage of the retail price of electricity
whenever they send their own energy back to the electric grid. That percentage rates are
known as "tiers" and will start at 95% of the retail price for the first 80 MW of installed capacity.
In July 2017, NV Energy submitted a 376-page application that proposed to modify the rate
structure for all of their customers. The application was criticized by rooftop solar companies
including Tesla, Vivint Solar and a pro-solar political group called Vote Solar. The solar
companies said that the rate structure would "undercut their business model. (Snyder, 2017)

Nevada Now
The entry of AB 405 imprints the first run through in U.S. history that customers have been
legally ensured the right to self-produce power, said Wellinghoff, who aided specialty parts of
the bill in his new job as an autonomous arrangement advisor. Under Section 24 of the bill,
shoppers are allowed the option to produce their own power and offset their own inside use
one-for-one at the full retail rate, similarly they can introduce energy proficient lights or
machines and save energy at the retail rate. Whatever energy you presently don't take from the
matrix, you don't need to pay for. The right to self-produce is especially invaluable when sun
oriented is joined with energy stockpiling, where the entirety of the created power can be
presently burned through on location at a home or business and credited at the shopper's full
retail rate, Wellinghoff said. (Pyper, 2017)

Conclusion
After seeing all the evidence and research, in the end, it can be said that SolarCity is the clear
winner as it was an eco-friendly way of saving energy as well as electricity bills. SolarCity also
provided attractive schemes for the Nevadans, it also provided jobs to them, whereas Nevada
Energy just wanted to exploit them and charge them high for the electricity. But in the end, it
was a happy ending with Nevadans got their justice and now they could live happily and save
money on their bills.

8
GURJOT SINGH
RESPONSIBILTIES TO STAKEHOLDERS

Reflection
Although this assignment was long and tiring task to do, but after completing this assignment, I
believe that I have learnt a lot of new things.

Firstly, this assignment has made me rethink my visions on different business models and
tactics. It has told me how the ethics in a business are important and how you win people’s
heart with your tactics in the business and it is always important to give first priority to the
consumers, not to your profits as a good public image of a company can have a big impact on
people’s mindset and it can make your business easy. Ethics made a big impact to the business
in Nevada too as it helped the SolarCity won the Nevadan’s heart.

Secondly, it has made huge improvements in my skills in using applications such as MS word and
it has also taught me how to use Seneca libraries properly to get the desired articles to you
within seconds. Through adding references from the MS word itself, it had made my work easier
and faster and I also learned a new thing.

Lastly, I would like to thank Professor Peter Forint, all fellow professors and Seneca faculty for
giving me this great opportunity of doing this assignment which taught me so may new things
and improved me in many ways.

9
GURJOT SINGH
RESPONSIBILTIES TO STAKEHOLDERS

Works Cited

 “Musk, Elon.” Encyclopedia of World Biography: Supplement, 2016, pp. 284–85.

https://go-gale-com.libaccess.senecacollege.ca/ps/i.do?
p=AONE&u=king56371&id=GALE|CX3635300139&v=2.1&it=r Accessed on July
31,2021.
 “Tesla CEO Elon Musk: ‘You Don’t Need College to Learn Stuff.’” The New American
(Belmont, Mass.), vol. 36, no. 7, American Opinion Publishing, Inc, 2020, pp. 7–7.
https://go-gale-com.libaccess.senecacollege.ca/ps/i.do?
p=AONE&u=king56371&id=GALE|A627109751&v=2.1&it=r Accessed on July 31, 2021.
 James Canan. “Elon Musk.” Aerospace America, vol. 47, no. 4, American Institute of
Aeronautics and Astronautics, 2009, p. 14–. https://advance-lexis-
com.libaccess.senecacollege.ca/document/?pdmfid=1516831&crid=8052a021-cbe1-44f7-
9ed0-0543d63a9e5b&pddocfullpath=%2Fshared%2Fdocument%2Fnews%2Furn
%3AcontentItem%3A7VG3-9MR0-Y9M4-P3BD-00000-
00&pdcontentcomponentid=7908&pdteaserkey=sr0&pditab=allpods&ecomp=ybvnk&earg=s
r0&prid=f772a187-7735-4be9-a416-3dfeefdc3657 Accessed August 1, 2021.
 Tesla, Inc. MarketLine Company Profile. MarketLine, a Progressive Digital Media
business.https://web-a-ebscohost-com.libaccess.senecacollege.ca/ehost/detail/detail?
vid=2&sid=5ed7f86a-e8a0-4b6f-943a-
2c18f6ddf840%40sessionmgr4007&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl
- anchor=AN0151256255-5&AN=151256255&db=buh. Accessed on August 1,2021.
 “Musk, Elon.” Encyclopedia of World Biography: Supplement, 2016, pp. 284–
85.https://go-gale-com.libaccess.senecacollege.ca/ps/i.do?
p=AONE&u=king56371&id=GALE|CX3635300139&v=2.1&it=r. Accessed on August
1,2021.
 Lowe, Janet. Warren Buffett Speaks: Wit and Wisdom from the World’s Greatest
Investor. 2. Aufl., Wiley, 2007.
https://senecac.skillport.com/skillportfe/assetSummaryPage.action?
assetid=RW$20019:_ss_book:26039 - summary/BOOKS/RW$20019:_ss_book:26039.
Accessed August 2, 2021.
 “World beaters: Warren Buffet.” New Internationalist, no. 397, 2007, p. 31–.https://go-
gale-com.libaccess.senecacollege.ca/ps/retrieve.do?
tabID=T003&resultListType=RESULT_LIST&searchResultsType=SingleTab&hitCount=1&s
earchType=AdvancedSearchForm&currentPosition=1&docId=GALE|
A158960934&docType=Biography&sort=RELEVANCE&contentSegment=ZEAI-
MOD1&prodId=EAIM&pageNum=1&contentSet=GALE|
A158960934&searchId=R2&userGroupName=king56371&inPS=true. Accessed on
August 2, 2021.
 "Warren Buffet." New Internationalist, no. 397, Jan.-Feb. 2007, p. 31. https://go-gale-
com.libaccess.senecacollege.ca/ps/i.do?p=AONE&u=king56371&id=GALE|
A158960934&v=2.1&it=r Accessed 2 Aug. 2021.

10
GURJOT SINGH
RESPONSIBILTIES TO STAKEHOLDERS

 “Berkshire Hathaway.” Encyclopedia Britannica Online, Encyclopedia Britannica Inc,

2020.https://academic-eb-
com.libaccess.senecacollege.ca/levels/collegiate/article/Berkshire-Hathaway/627879.
Accessed on August 2, 2021.
 Surowiecki, James. “Warren’s Way. (Warren Buffet).” The New Yorker, vol. 88, no. 39,
Conde Nast Publications, Inc, 2012, pp. 33–33. https://go-gale-
com.libaccess.senecacollege.ca/ps/i.do?p=AONE&u=king56371&id=GALE|
A311498370&v=2.1&it=r. Accessed on August 2, 2021.
 Snyder, Riley. "Major Decision On Net Metering Looms For Nevada Electric Regulators,
With NV Energy And Rooftop Solar Companies Again On Opposite Sides - The Nevada
Independent". The Nevada Independent, 2017,
https://thenevadaindependent.com/article/major-decision-on-net-metering-looms-for-
nevada-electric-regulators-with-nv-energy-and-rooftop-solar-companies-again-on-
opposite-sides. Accessed August 2, 2021.
 Pyper, Julia. "Nevada’s New Solar Law Is About Much More Than Net
Metering". Greentechmedia.Com, 2021,
https://www.greentechmedia.com/articles/read/nevadas-new-solar-law-is-about-
much-more-than-net-metering. Accessed August 2, 2021.

11
GURJOT SINGH