Business Strategy: PESTLE Analysis, SWOT Analysis, Porter Five Forces

This document provides an overview of business strategic planning and its importance in achieving organizational goals. It includes a PESTLE analysis of Jaguar automotive company, highlighting the political, economic, social, technological, environmental, and legal factors that can impact its performance. The document also features a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. Additionally, it discusses Porter's Five Forces, analyzing the competitive landscape and potential market entry barriers.

Business Strategy

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.................................................................................................................................................1
M1................................................................................................................................................3
TASK 2............................................................................................................................................4
P2.................................................................................................................................................4
M2................................................................................................................................................6
TASK 3............................................................................................................................................7
P4.................................................................................................................................................7
M3................................................................................................................................................8
TASK 4............................................................................................................................................8
P4.................................................................................................................................................8
M4................................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
A Business Strategic Planning is a process of communicating the prespective of
organizational overall organization goals by setting the priorities, integrate the motivation,
allocate the resource as well as optimum utilization of resources with making asure about that
employees are working together for common goal, which can generate the optimum
outcomes(Kerzner 2019) . The importance of Business Strategic Planning for organization is
provides the well-defined structure about the further goal’s strategies for organization in which
the role of employees and their superiors can coordinate with each other to accomplish the goals.
It also give a clarity about the company vision, mission and core values and also it facilities
about Corporate Social Responsibility which improvise the business ethics which enhanced the
business cultural environment. In terms of organization strategic Planning, an environmental
scanning involves all those factors which can influence the direction and goals of an organization
by which it include the both present and future factor which effect the organization cultural or
future aspects such as the competitors are having their perspective about the market situation as
well consumer’s preferences where the principles of becoming competitive is to leverage one
strength’s will respect to competitors and in some what it diminishes the weakness(Wright and
et. al., 2019).
TASK 1
P1
PESTLE MODEL:
The PESTLE Model is comprising the influencing power of the macro environment and
it is utilised as tool for monitoring and analysing the factors which can profound affect to the
organisation’s performance. This tool is basically used when the upcoming company or new
business firm is entering into international market. The PESTLE Analyse for Jaguar automotive
company is describes the factors which are affecting and influencing the company issues
(ChaibLababid and et. al. 2020).
Political: This factor is basically introducing the degree of government intervention in
the economy which makes the certainty to the industry as well. The influences of the government
showing concerned and make the classification of the business, by which includes the
government norms, policies, political stability or instability, corruption, tax policies, foreign
1

policies etc. The government enhanced the impact of nation in education nation, organisational
structure and safety health regulations. All these factors are determined for the potential stability
in the market, where the Jaguar having the opportunities from political factor can be stability the
majority of the market, by introducing of the fuel consumption tax or other environmental tax
can makes the vehicles more efficient which directly impact on the sales of Jaguar company
(Chambers and Taylor 2019).
Economical: The factor of economical is determine about the condition of the economy’s
performance. Factors which are include as economic growth, inflation, recession, interest rates,
unemployment rates. These factors have direct and indirect affect on a company, by the
increasing and decreasing the purchasing power of consumers and could fluctuates the demands
and supply structure in the economy. In context of Jaguar on the basis of the economic factors
where they have to invest the high economical growth countries which develop the company’s
manufacturing as well as the brand value of the product of Jaguar.
Social: The factors of social is determining the demographics features like norms,
customs and core values of the population which organisation operates, it includes the trending
of population in terms of growth, rate, distribution, age, gender, career, attitude and behaviour
etc. All these factors are determining for the marketers while the time of targeting the consumers
on the basis of above segments. For Jaguar company the social trends can effect directly or
indirectly from this they have to aware of the religions and values norms which can affect the
consumers as in certain region. In fact they have to follow the certain criteria of social trends by
which they can target the consumers for facilities their vehicles.
Technological: The technology factor can influence the company by the new resources
available in the market where the competitors are utilising the resource trend and creating the
benchmark, it refers the technology the innovations, incentives and automation of research and
development activity according to that the company decides to enter in the market or
not(Salloum,and et. al., 2020). For examples; Artificial Intelligence creating the awareness about
the changing the technology level and which increase the consumer perspective towards the
technology. Technology factor for Jaguar company can bring the innovation to their consumers
towards the brand in which company will face the competitions with the competitors. Jaguar can
still improvising the perspective of technologies for eliminating the driving errors and safe road
journeys.
2

Environment: The factors of environment can determines the increasing scarcity of raw
material, pollution targets and carbon targets set by governments. These factors can include the
ecological and environment aspects such as weather, climate, environment offsets and changing
of climates which may especially affect the industries such as for tourism, agriculture and
insurances. The growing awareness of the positive impact of the climatic changes can affect the
companies which they operate and the product they offer. Jaguar company have to create the
awareness for their brand value on which they analyse the environment structure, allocating and
proper utilisation resources which are eco-friendly towards the environment will provides the
internal and external growth of the company.
Legal: The legal factor are basically includes the discrimination of laws, employment
laws, health and safety laws. It is clear to know that companies have to knowledge about what is
and what is not in legal in terms of pursuing the business successfully and ethically. As per the
automotive company have to follow the compliances regarding to trading which enhanced the
flexibility such as for Jaguar company, they have to follow the trade laws and the employee
stated by the government which operates the successful business operation. Furthermore, they
have to registered the copyright and patent to avoide the conflicts from the fake and duplicate
products (Wijaya and Prasetyo 2020) .
M1
From the above PESTEL Analysis for Jaguar Company the best alternative factor for
them is Economical Factor, because it enhanced the guidance of the company growth through the
consideration of economic growth, inflation and other elements which can provide the positive
and negative impact towards the company, it also provides the direction towards the high
investment through the market research by which it will provide the huge returns in terms of
profits and increasing of brand value. The negative factor for the Jaguar Company can be the
Social Factor which can heavy impact on the business performance in the market in terms of not
determine the demographic factors as in consumer preferences it can be declination of
purchasing power of buyers.
3

TASK 2
P2
SWOT ANALYSIS
The Swot analysis is providing the framework of identifying the scope of the Strengths,
Weakness, Opportunity and Threats. It helps to build up the business in terms of performance
and improvise the lacking of the certain segments
(Hauser, Eggers, and Güldenberg, 2019).
The Swot analysation of Jaguar company is to mapping the strength and weakness of the
automotive markets as well as the opportunities and threats in terms of competitors availability in
the market and the profit margins. By having USP of Jaguar’ is to introduce the premium luxury
car with sports features and high performance.
Strengths :It derives the strongest resources which are having in companies through that
they does perform in the market as well the internal strength of organization is the effective
management teams, products and services. For Jaguar they provides the high quality product in
terms of rich cultural identity and strong global brand value as they have already their strong and
powerful luxury brand as well as they investing the capital for the research and development for
manufacturing new models in the market beyond the consumer expectations.
Weakness: It consists the lacking segments in which the organisation not accomplish or
not perform better in terms of resources, internal mislead of the coordination. For Jaguar
company they have crossed certain limitation in terms of product range as comparison with other
competitors automotive and there is several models of Jaguar where they quality lacks in terms
limited range of targeted consumers such as internal structure of model as in performance basis
(Hauser,Eggers, andGüldenberg, 2019).
Opportunities: It determines the scope of having a chances of gaining the benefits from
the situations, it emphasis the opportunities in terms of external factor of the organization in
context of improvisation of quality in product, retain the customers etc. The opportunities for the
Jaguar company by emerging with other countries like India, China, Russia apart from USA and
Europe in context of expansion of the brand value, Jaguar have more options in the SUVs
segments where it enhanced the models in the market.
Threats: It involves the uncertainty which influence as negative to the organization in
terms of high competition in the market, Regulatory policies by government which unfavourable
4

outcomes towards organisation, Low Investments etc. There is threats for Jaguar’s with other
strong an defective competitions with other luxuries brand of automotive brands, by depending
on government policies by which they rises the fuel prices as well as in models also specially in
premium models of Jaguar.
VIRO MODEL:
Resources Valuable Rarity Inimitable Organized What is the
result?
Distribution
channel
Yes No No No Competitive
Disadvantage
Presence in
international
market
Yes Yes No No Partially
competitive
Technological
resource
Yes Yes Yes Yes Temporary
competitive
advantage
Employees Yes Yes Yes Yes High
Competitive
advantage
Valuable: These factors are which increases the value an competence of an organization and
able to grab an opportunity to handle the threat. The valuable resources of Jaguar are:
Presence in international market: Jaguar is a brand multinational automobile venture with
having effective brand value but they have lack of presence in Russia, China and Europe where
there is a high economy but there is brand is not having the sense of satisfactory.
Distribution Channel: Distribution channel of Jaguar are most efficient but there is lacking of
time delays of delivering the consignment of models.
Technology resources: Jaguar is famous for its technology advancement in manufacturing of
luxuries premium cars which are valuable assets of resources.
5

Employees: Thee Jaguar’s having the high productivity and well coordinate employees with the
competencies to handling any projects (Galli, 2020).
Rarity: These factors includes those resources which are innovative and can be acceptance by
few member s of organisations. There are following rarity resources regarding with Jaguar
competitive strength as follows:
Presence in international market: International market presence of Jaguar is satisfactory and it
would be difficult to gain such customers and position in the market.
Technology Resources: Use of the most creative and latest technology is made of Jaguar which
make it difficult for other companies to achieve it the level of technology.
Employees: Jaguar is providing the dynamic and healthy work environment for its employee
which enhanced their performances (Galli, 2020).
Imitable: These are the expensive factors which can be copied by any other company without
making high level of expenditure, where it provides the more competitive advantages to an
organisation (Nash, 2019).
. There are following Imitable resources of Jaguar as follows:
Technology resources: The technology resources of Jaguar are very effective and they have
created benchmarked by providing the premium luxury cars and give a hard competition to other
brand like porches, Mercedes Benz, Audi etc.
Employees: The workforce of Jaguar is very effective and productivity in terms of work and
design the leading automotive organisation of world.
Organised: This factor provides the most organised resources which properly coordinated and
play a crucial role in success of an organisation and also provides the high level of competitive
advantage. The organised assets of Jaguar are:
Employees: They are the biggest assets of Jaguar because the workforce of Jaguar’s brings the
productivity benchmark that accomplish the targets and which it fain more competitive
advantage and furnish the skills and creativity of its employees and providing them effective
training by Jaguar.
M2
By above consideration of Swot analysis of the Jaguar company having a effective
strength of brand value in which they have retain the customers in terms of providing luxury
6

facilities as a vehicle. The weakness they have as in limitation of product range comparison with
other competitors in terms of quality and performances, the opportunities they having that they
can create the SUV segment t enhanced the model for the next generation as well as they can
expand their venture in other countries as they have effective brand value by which consumer
can easily attract towards them and threats having the high competitions in the market with the
other international automobiles brands such as Mercedes Benz, Audi, BMW etc.
TASK 3
P4
PORTER FIVE FORCES:
The Porter Five forces is a structure to analyse the organisation’s competitors, substitutes,
potential new market entrant, suppliers, customers which can influence the company’s
profitability. It helps to provide the needful information to the external environment of the
market which enhanced the level of competitions of the company’s as per the long-term
profitability. (Ansoff and et. al., 2019).
Threat of New Entrant:There is high level of threat for new entry where it requires the
big capital which requires huge investment for sustain in the new market by proper R&D. It
includes the legal cost, marketing expenses, Media and distribution cost etc. So, the for Jaguar
there is a high level of new entrant threat where it requires the consumer retention, improvise the
brand value.
Threat Of Substitute: This comprises when there is high level or low level of substitute
in the market of particular brand product. There is high level of substitute of Jaguar from the
other international brand such as Bentley, Aston Martin, Audi etc. In terms of quality, price and
performance these luxuries band can overtake the Jaguar’s market.
Bargaining Power Buyers: The bargaining power of buyers is high because the
consumers having the strong belief in Jaguar’s brand by which they having the low switching
allows to customers to seek other luxuries automotive services. Having a potential brand value in
the market brings the customer retention.
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Bargaining power of supplies: The bargaining power of suppliers are high in the market
because to enhanced the increasing of Jaguar’s brand value towards the customers as there is
hard competition in the market.
Intensity of rivalry: There is intense level of competitors of Jaguar’s brand as in
international market in terms of luxuries where the other brand having the same segments models
like as Jaguar have but they have price negotiation in terms of quality and effective performances
in the market. High intensity in the market the providing of new innovations regarding with the
same products (Garcia, and et. al.,2019).
M3
As per the above Porter Five forces analysis of Jaguar’s company there is a High level of
threat of new entry, substitute, bargaining power of buyers as well as suppliers and Intensity of
rivalry where it influence as negative as well as positive impact while negative as in high
competitors in the international market with high level of substitutes and positive in the sense of
effective brand value and collaboration with Land Rover and they have high retention of
consumer. By these factors it determine high impact level of entrant, substitute, suppliers and
buyers in the market.
TASK 4
P4
ANSOFF MATRIX:
Ansoff matrix is framework of the product grid in which it helps to identify and analyse
the market structure or market environment in terms of development in market, product and
configuration of both of them. (Ansoff and et. al., 2019).
Market Penetration: It focuses on the increasing sales of existing products to an
existing market. It can be beneficial towards the company growth as in terms of retaining the
existing customers for trading in the market successfully. For Jaguar company is being selling
and increasing the buyer power by manufacturing the models which are more by buying and
more prefer by consumers in the existing market (Baporikar, 2020).
Product Development: It determining of introducing of new product to an existing
market, where it will easy for introducing new models of Jaguar’s in the existing market because
8

they have already retain their consumers as well as they have effective goodwill in the
international automobile market (Andersen and Torp, 2019). So, the market will be flexible in
terms of profits, but might be they have improvised their product by getting feedback from
cosnumers.
Market Development : This strategy is focuses on entering a new market using existing
product, for the perspective change of consumer of new market with previous product it can
decrease the value and productivity of the brand until if it has effective performance in the
market, such as Jaguar has given many models but the most effective model is “Jaguar XF” by
introducing this model to new market can be perform better(Sawhney, Sharma and Gupta, 2020).
Diversification: It determines the entering of new product or introducing of new product
in the new market, it depends upon the brand value if its effective in terms of quality and
performance wise then consumer can prefer that until unless if they find any mislead into it.
Introducing into new market with new product can need huge investment for procuring the raw
materials as well retention of consumers.
M4
There is a Business Strategic Planning of Jaguar company is to ahead their venture into
different countries with a huge expansion of their increasing brand value which would enhanced
the consumer as well the positioning of market.
Aim:They want to raise their brand value of business operation within the international market
as it already raised but the want to create benchmark of vehicle quality in terms of luxuries brand
cars.
Vision: The Jaguar company wants to became the leading automobile company within the global
automobile industry.
Mission: Wants to providing to their consumer of high quality of luxuries models as per their
expectation with the belief to retain high level of satisfaction from their consumers.
Objectives: The short term goal of Jaguar company is to provide the better quality model of
vehicles to consumers and for long term they want to retain more and more people for emerging
the market and they can provide next generation models to them.
EVALUATION:
The all analysation of Jaguar automobile company the profits and the sales of their
models are effectively high as they have excellence brand value in the market as well they have
9

better procurement of raw material utilisation with high expansion of supplier and buyers. As
they have hard competition in international market with other automobiles brands but they
significantly sustain in the market position.
CONCLUSION
From the above given information, it can be summarised that formulate a strategy related
with implementation of business operations and to sustain in business environment is very
essential for every business organisation. Every organisation operates in a flexible and dynamic
environment so PESTLE is a model that could be use by enterprises to determine the impact of
external forces on commercial activities of company. Further various models are there that
companies can use to determine its internal capabilities. Various strategic directions are available
to company through which company can operate in market and can sustain for long time period.
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