Problems faced by Automobile Sector

This report covers the problems faced by the automobile sector, including increased competition and sustainability issues. It also discusses the positive and negative impacts of the business and provides a reflection on the project.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Problems faced by Automobile Sector........................................................................................3
TASK 2............................................................................................................................................4
PESTLE analysis of Jaguar.........................................................................................................4
TASK 3...........................................................................................................................................6
Positive impact of Business-......................................................................................................6
Negative impact of the Business.................................................................................................6
TASK 4............................................................................................................................................7
REFLECTION............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business Environment is sum or collection of all internal and external factors such as
employees, customers needs and expectations, supply and demand, management, clients,
suppliers, owners, activities by government, innovation in technology, social trends, market
trends, economic changes, etc. This report covers questions such as Problems faced by
Automobile Sector, PESTLE analysis of Jaguar, Positive impact of Business, Negative impact of
the Business, REFLECTION.
TASK 1
Problems faced by Automobile Sector
Increased Competition-
The automobile industry is currently facing a slowdown due to many factors such as recession,
technology etc. and this is all affecting the business of many companies. The business of Jaguar
is getting affected due to global recession. According to studies it has been observed that
countries such as Europe and Japan because of the factors such as their negative growth of
population. Apart from this it is getting difficult to maintain the competition and fight with other
companies. The market of this industry is rapidly changing due to technology that is coming into
the market and that too at affordable which decreases the share of market for the luxury brand in
which Jaguar deals in that is why company has to study the market analyze the competition and
work according to them. Another drawback that Jaguar is facing is that after Brexit their biggest
and home market got affected with most reduction in sales for the company which means
reduction in revenues. Jaguar has already invested money in a lot of operations which states that

their money is already blocked in various areas and due to the situation of reduction in revenues
of the company they are not in a position to fight with their competitors. (Kolk, 2016)
Sustainability-
Companies such as Jaguar who are dealing in this industry has to keep in mind the factors that
are affecting the environment. The reason behind that is the condition of environment is
degrading day by day and these companies have a huge role in them. At the time of production
and after the consumption it pollutes the air which harms the environment. That is why
government is putting more and more pressure on the companies to bring innovation into the
market. Many companies have introduced electric cars which is sustainable such as Tesla,
Hyundai etc Tesla being the leader in this segment as they were the first one to come up with this
product. Now Jaguar has joined hands with Land Rover to introduce a car by 2020 which will be
a fully electric SUV. Out of this area Jaguar is also doing many things for the welfare of people
and the environment. (Otache and Mahmood, 2015.) They are working on making the cars which
can be run on renewable energy and on the top of that they are donating money to the
government to make the environment more green. The company is hiring those engineers who
specializes in those aspects which can help them to improve their products, make them better and
preserve the environment. Plus they are working on the cars which are more efficient with their
elegance of luxury which will help in preserving the resources and retenting the customers. (Lee
and et.al., 2015)
TASK 2
PESTLE analysis of Jaguar
Political Factors-
These factors are concerned with the stability of the environment. If the government increases
the rate of tax in the country on this sector then it will affect the level of sales that the company
were expecting. It will affect Jaguar more crucially at the time when they are going to expand
their operations as at that time company needs the inflow in their operations. Not only this
factors such as tax on consuming fuel, tax on environment that company has to pay to the
government can change the outcome of sales. (Hosseini, Foroumand and Negahdari, 2015)
Economic Factors-

If there is any change which concerns to the spending power of the people in the country then it
will affect the basis of production or aspects related to development of Jaguar. At the time of
recession the company reduce the level of investment in many factors that affects the need for
change, development and improvement. Continuous investment is needed to maintain the
infrastructure of the company. On the other hand when it is the time of inflation company
increases the level of investment and prices of their cars. At that time company enjoys higher
revenues.
Social Factors-
Trends in the society can bring change and influence the profitability of the business. That is
why before making a move or taking a decision Jaguar first analyze the market and study the
behavior patterns of the people so that they can work according to that. Jaguar has set their
values and beliefs according to the religion of the country they are operating in. If they don't
meet up the procedures which ensures the business that the trade between the supplier and the
customer must not disrupt due to these conflicts.
Technological Factors-
Jaguar is known for their exclusive design and the innovation they bring into the market. They
are known for the innovations of light and durable cars which they make from the help of
aluminum. They have also introduced a technology which is a intelligence system which they
call the e performance system which helps in making the car more efficient. They have to
continue this kind of innovation so that they can fight with the competition and gain their
position back in the market. (Elkington, Burke and Hailes, 2017)
Legal Factors-
Jaguar has register their company under the rights of trademark, copyright and patents so that no
other company misuse it and steal the design or names of the product. They follow every law
before starting a manufacturing unit or a new dealership.
Environmental Factors-
Jaguar is working with Land rover to bring cars that runs on battery and saves the resources of
the environment. They have to do it as soon as possible because some of their competitors has
already made their way into this segment. Even the cars which are not sustainable the company
is ensuring that they will release minimum emission and wastage so that it does not affect the
environment. Apart from this they are also investing in new initiatives for the environment so

that they can promote the resources which are renewable and bring innovation according to that.
(Saleem, 2017.)
TASK 3
Positive impact of Business-
Jaguar is a multi national company who has established their market and brand in the eyes of
many people. But recently due to factors such as increasing of competition in the market and
new technology has affected the productivity and profitability of the company. This has a
positive side to a business and that is earlier Jaguar was used to be known for their design and
concepts linked with the luxury. Now due to increased competition it has forced the company to
take measures to build its name back and gain the position in the market where they used to
stand. They are bringing cars which are sustainable which runs on renewable energy and does
not harm the environment. By this they can reduce the interference from government and people
who are protesting the environment. This all affects the image of the business and shift the
consumers away from buying the brand but by taking these and implementing these measures it
will remove all of these issues for the company. To compete with others the company is bringing
its first electric SUV with Land Rover which is hopefully going to earn their position back into
the market. (Doh, Luthans, and Slocum, 2016)
Negative impact of the Business
There are some factors which are affecting the business of Jaguar. It is getting difficult for Jaguar
to run their operations. Factors responsible for this are global recession in the market, increased
competition and the issue related to sustainability. Their are many companies in the market who
has taken the spot of Jaguar and their share of sales because they have cope up with the
innovation that is needed in the market. In order to survive into the market company has to adopt
these measures as soon as possible so that they can at least run their operations easily. The cars
they are currently manufacturing are releasing high emissions and are not at all efficient as they
deal in high end luxury and sports cars. People don't prefer these cars nowadays as it is taking a
lot of money out of their pockets. Most of the people today are against these products as they are
affecting the environment in a negative manner and conditions today are rapidly changing the
environment which includes this aspect. That is why it is affecting the business of the company.

They are already suffering from low sales and revenues. They have to keep up otherwise they
won't be able to survive in the market against their competitors. (Chekh and Vinnyk, 2017)
TASK 4
REFLECTION
While I was collecting the data for these report and gathering the information which was
suitable for the project I faced a lot of problems in finding the data which was appropriate. That
demotivated me and I gave up and then my mentor called me up she made me understand and
gave me hope to pursue this project. She motivated me and gave me the instructions with proper
guidance at every level. She explained every question which was asked to me in the project so
that I can do it in that manner. Then I worked on it I read every aspect, every part of the report
where I was wrong so that I can see where rectification or change in the report is needed. This
report has trained me a lot. I have learned many things while I was completing this report such as
never give up hope or don't get upset if you don't get the answer for the first time. When I was
doing research for this project it made me realize that even I want to make my career in this
industry. Since child I was a car enthusiast and after completing this project I am sure that this
career is suitable for me. My plan is to start as a sales officer in any big multi national company
which is going to help me understand the dynamics of the environment and how to change the
way of working according to the demand of the consumers. It is obvious that launching my own
company is not just a piece of cake. Years of training and expertise is needed and not to forget
about the resources which is needed to start up the operations. When I think I am ready and have
the full confidence then I will start something small as it is risky to compete with giants that are
already existing in the market so my plan is to manufacture a product which is unique and new
most of the technology must be introduced by my company. That is the only way and chance I
can sell my cars into the market. My plan is to target those customers which comes under the
income level of middle class as I am not gonna manufacture luxury cars in the initial stage. My
target is to earn on sales and for that I will need to maximize sales of the company in order to
earn high revenues. I will wait until I have gained the right expertise and wait for the condition
of market to get better as there is no chance that I can achieve my goals at this time of global
recession. (Breckova, 2016)

CONCLUSION
From the above studies it has been concluded that market share of Jaguar is reducing from time
to time and they need to take some actions in order to improve that. Company needs to come up
with new aspects of technology and new innovative designs and ideas just like they used to do
earlier in the market so that they can meet up with the demand of the market and satisfy their
consumers.

REFERENCES
Books and Journal
Breckova, P., 2016. Family Business in the Czech Republic. European Research Studies. 19(4). p.3.
Chekh, N. and Vinnyk, I., 2017. Regulatory environment of business activities in Ukraine.
Innovative Technologies and Scientific Solutions for Industries. (1 (1)). pp.124-129.
Doh, J.P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015: Perspectives
on the 50th anniversary issue of the Journal of World Business: Introduction to the
special issue.
Elkington, J., Burke, T. and Hailes, J., 2017. Green pages: the business of saving the world.
Routledge.
Hosseini, S., Foroumand, L. and Negahdari, E., 2015. Legal approaches for improvement of
business environment in Iran. Journal of Exploratory Studies in Law and Management.
2(2). pp.127-135.
Kolk, A., 2016. The social responsibility of international business: From ethics and the environment
to CSR and sustainable development. Journal of World Business. 51(1). pp.23-34.
Lee, Y.K., and et.al., 2015. Market orientation and business performance: Evidence from
franchising industry. International Journal of Hospitality Management. 44. pp.28-37.
Otache, I. and Mahmood, R., 2015. Corporate entrepreneurship and business performance: the role
of external environment and organizational culture: A proposed framework.
Mediterranean Journal of Social Sciences. 6(4). p.524.
Saleem, M.A., 2017. The impact of socio-economic factors on small business success. Geografia-
Malaysian Journal of society and space. 8(1).