Environmental Analysis of Auto Mobile Industry and Jaguar Company

This report analyses the impact of pandemic on the auto mobile industry and Jaguar company. It also develops survival and success factors for the industry in consideration to mega trends. PESTLE analysis and Porter's five forces are used to identify the strength of the company in the current situation.

Environmental Analysis
of an industry

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Analyse the impact of pandemic on industry and also create success factors for the industry in
consideration to mega trends. The analysis should be critical and relevant as well .................4
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment refers to the sum of all external and internal factors such as needs
of customers, employees, demand and supply, clients, governmental activities, technological
innovation and changes at economic level etc. Business environment is important because to be
aware about the actions and strategies of their competitors. This kind of environment also
enables firms to analyse their competitors actions and strategies (Böckin and Tillman, 2019). In
the present report, auto mobile industry and Jaguar company is taken into consideration. Jaguar
is a British multinational car manufacturer and also a luxury vehicle brand of Jaguar Land
Rover. It is headquartered in Whitley, Coventry, England. Jaguar company is mainly responsible
for production of cars until their operations merge with those of Land rover in order to form
Jaguar Land rover. The present report will cover discussion about the impact of pandemic on the
industry and also develop survival and along with this success factors for the industry in
consideration to mega trends.
MAIN BODY
Analyse the impact of pandemic on industry and also create success factors for the industry in
consideration to mega trends. The analysis should be critical and relevant as well
There was a severe and swift impact on the globally automotive industry. There are some
symptoms which shows that impact is very negative which includes disruption in Chinese
exports parts and interruptions in manufacturing at large scale across Europe. In addition to this,
the closure of assembly plants in the country of United States. These kind of activities was have
more pressure on the industry and that are already copying downshift in the demand at global
level(Colvin and et.al., 2016). It likely leads towards increased number of merger and
acquisition activities as well. This kind of pandemic situation also leads towards widespread loss
of consumer confidence and it also impacts significantly auto maker profitability and revenues as
well. In this auto mobile industry, for continuing the operations they are forced to divert capital,
other discretionary projects and starving R & D funding for new technology initiatives
(D'Amico and et.al., 2016).

In this lock down situation, suppliers also facing issues related to liquidity and they also
succumb to rapidly deteriorate market conditions which causes widespread disruption as well
(Ghermandi and Sinclair, 2019). The impact of pandemic situation on auto mobile industry is
such that it affects several fields of this industry which include sales, finance companies,
suppliers and auto dealers as well. In this lock down period they are not able to transport their
vehicles and in the post lock down period they vehicles have been sold out thirty to forty percent
lower prices. Auto suppliers also have to face problems due to which they have major reliance on
immigrant labours and their absence also contribute in terms of delaying the working procedure
in the post lock down time period. Financial companies also have to face burden because new
loans are likely to fall and loan evasions are expected to increase. This will lead towards
complexities in deciding customers credit value.
The pandemic situation also impacts the sales of auto mobile industry and it has been
observed that in the country of China new sales of vehicles have been fallen by 92 %. It has also
been observed that in the European countries total vehicle sales were dropped by 7.4%. In
context to Jaguar Land Rover company, the sales have been dipped by 12 percent in the fourth
quarter of 2019-20 year. The sales of company were impacted in all across over regions which
includes North America, UK and China (Hernandez-Vargas and et.al., 2018). Due to pandemic
disruption during the year which includes Jaguar Land Rover forces to shut down their factories
on temporary basis in all the European car makers. The sales for the year remained relatively
robust at 440,000, a drop of only 14% has been observed.
For the survival and success factors which contribute towards further development of
auto mobile industry they have to adopt certain frameworks and analysis which act as helpful
parameters (Huang and et.al., 2016). It includes PESTLE analysis and porter's five forces,
porter's diamond which contribute in terms of international environmental analysis.
PESTLE analysis of Jaguar Land Rover:
Political Factors: Stability at political level is the most significant factor which impacts
the business of companies when they are thinking about expanding the car manufacturing
industry. The decrement and increment of tax level in terms of car sales by the government will
also contribute in terms of decision making of the company (Minamoto and et.al., 2016). When
fuel consumption tax has been introduced or tax of environmental perspective for making the

vehicles more fuel efficient and it further impacts the manufacturing of company and their sales
as well.
Economic Factors: When there are changes in government spending then it alters the
methods of payment of company for development and production as well (Lewis and
Tietenberg., 2019). The development of Jaguar company also affected by the less borrowing or
low investment of the government in the industry of car as well. The company's higher level of
production and distribution of products has been lead towards due to reason of increased
infrastructure development that can provide more transport links. It has been observed that for
purpose of earning profits company has to increase their prices when inflation rate increases.
Social Factors: Company is aware about beliefs and values of those people who are
living in that region. It can be understood through an example that workers from Christian
community need not to work on Sunday and for prayer purpose Muslims have relaxation day for
it. To ensure about smooth running between customers and suppliers, then company has to meet
up the ethical procedures. Due to increase in population, it is also another which affects the auto
mobiles demand that results into more production (Möller and et.al., 2020).
Technological Factors: The company is basically known for its cutting edge innovation
in the manufacturing and car design as well. The company has expertise in terms of technology
of aluminium that has change the world through providing light weight and cars of more efficient
level. The cars have basically intelligent system in order to have proper efficiency and it has
been introduced through e-performance models. In order to eliminate the errors and safe road
journeys, the company is working on developing the prospective technologies. In order to save
time and resources the company has introduced virtual reality testing workshop of automotive
level (Sousa and et.al., 2018).
Legal Factors: To carry out business operations into successful manner, an organisation
has to fulfil employees rights and trade laws that is initiated by the government. Jaguar has to
register themselves like many other companies for their copyrights and patents in order to avoid
similar kinds of names of sales of fake products. In order to facilitate a fair competition, the basic
prices and costing are set by the car manufacturers. In any new region, before initiating for car
manufacturing set up it is important that company laws must be followed.

Environmental Factors: Jaguar is a company which gives top most priority to address
the environmental issues as the manufacturer of motor industry. To ensure about minimum
wastage and minimum emission they have implemented various legislations (Tullo and et.al.,
2019).
The company is also working into this context in harder manner with support of
recyclable materials such as aluminium for creating a fuel efficient car design. In terms of power
and torque, the advanced technology has achieved a higher level of importance in terms of diesel
engines. The company is also taking various initiatives from perspective of environment like
investment in projects which is focused on promoting the resources of renewable energy. Due to
impact of pandemic situation, the PESTLE analysis help in terms of impacting decisions made
within the organisation. When external factors have been understood in deeper manner then it
becomes easier for organisation to plan in better manner.
Another framework which is about Porter's five forces that help in terms of identifying
the power that lies in the business situation. It is also helpful in terms of understanding
organisational strength in the current situation and strength of position as well.
Porter's five forces of Jaguar Land Rover: It is basically a method of analysing the operating
environment of the competition of a business. It draws from industrial organisation economics to
derive five forces which determines the competitive intensity and the attractiveness of an
industry in terms of its profitability.
Bargaining power of suppliers of customers of Jaguar: If suppliers have strong
bargaining power then they will extract higher price from the customers of Jaguar.
Threat of substitute products and services: If the threat of substitutes are higher then
customers of Jaguar has to either continuously invest into research and development or also risks
out to disruptors in the industry.
Threat of new entrants: If the threat of new entrants are high then the current players
have to be willing to earn less profits in order to reduce the threats as well.
Rivalry amongst existing players: It has been observed that if competition is of very
intense level then it becomes difficult for the existing players to earn sustainable level of profits.
Bargaining power of buyers of customers of Jaguar: It has been observed that if the
buyers have strong bargaining power then the prices tend to drive down which limits the
potential of customers of Jaguar company in order to earn sustainable profits.

So this framework is helpful in terms of recovering the company from pandemic situation
because it helps in identifying where the main strength has lied in which parameter.
It has been observed that due to pandemic situation the auto mobile industry can't
perform well at international level and Jaguar company has to also break some deals at
international level (Xing and et.al., 2016). There are certain reasons due to which Jaguar Land
Rover is involved into international trade. It basically includes it reduces the dependence on the
local market and increases the chances of success as well. It also increases the efficiency and
productivity as well. It also increase the economic advantage and leads towards innovation and
growth as well. But in this pandemic situation, the international trade can't be favourable for the
company because due to lock down situation many flights have been cancelled and many
business deals have been remained at stake position and can't proceed for further proceedings as
well. Due to this reason they have to face lots of challenges and problems in terms of sales of the
company as well.
Jaguar company has is going to recover itself in the second half of financial year of 2022
from the impact of COVID-19 situation. Their target market basically includes audiences from a
diverse, younger, feminine, urban and independent group as well. The new audience also favours
for a more progressive and sustainable lifestyle. It basically belongs from luxury auto mobile
industry and it is an oligopoly containing companies such as BMW, Mercedes Benz, Austin
Martin etc. Jaguar is a company which lies in such a market which is characterised by small
number of firms that realise in terms of interdependent in the output policies and their pricing.
The strategy adopted by the Jaguar company help in terms of overcoming from the impact of
pandemic situation.
CONCLUSION
The above stated report concludes that environmental analysis plays a very important role
at organisational level. It has been concluded that due to pandemic situation auto mobile industry
has to face struggle on larger pace manner and they have to face challenges in order to stand
competitively into the market. It has been determined that this industry has to adopt certain
frameworks which help them in taking decisions in a more smarter manner. It has been analysed
that these analysis act as support system in the context of taking better steps and initiatives in

terms of overcoming from the impact of pandemic situation. So environmental analysis within
the business is very important from the context of growth and development as well.

REFERENCES
Books and Journals
Böckin, D. and Tillman, A. M., 2019. Environmental assessment of additive manufacturing in
the automotive industry. Journal of Cleaner Production, 226, pp.977-987.
Colvin and et.al., 2016. Approaches to identifying stakeholders in environmental management:
Insights from practitioners to go beyond the ‘usual suspects’. Land use policy, 52,
pp.266-276.
D'Amico and et.al., 2016. Factors influencing corporate environmental disclosure. Business
Strategy and the Environment, 25(3). pp.178-192.
Ghermandi, A. and Sinclair, M., 2019. Passive crowdsourcing of social media in environmental
research: A systematic map. Global environmental change, 55, pp.36-47.
Hernandez-Vargas and et.al., 2018. Electrochemical biosensors: A solution to pollution detection
with reference to environmental contaminants. Biosensors, 8(2), p.29.
Huang and et.al., 2016. Energy and emissions saving potential of additive manufacturing: the
case of lightweight aircraft components. Journal of Cleaner Production, 135, pp.1559-
1570.
Lewis, L. and Tietenberg, T., 2019. Environmental economics and policy. Routledge.
Minamoto and et.al., 2016. Techniques for the practical collection of environmental DNA: filter
selection, preservation, and extraction. Limnology, 17(1), pp.23-32.
Möller and et.al., 2020. Finding microplastics in soils: a review of analytical methods.
Environmental science & technology, 54(4). pp.2078-2090.
Sousa and et.al., 2018. A review on environmental monitoring of water organic pollutants
identified by EU guidelines. Journal of hazardous materials, 344, pp.146-162.
Tullo and et.al., 2019. Environmental impact of livestock farming and Precision Livestock
Farming as a mitigation strategy. Science of the total environment, 650, pp.2751-2760.
Xing and et.al., 2016. The impact of PM2. 5 on the human respiratory system. Journal of
thoracic disease, 8(1). p.E69.