Entrepreneurship and Strategic Decision Making

This proposal overviews the two major business issues facing Jaguar Range Rover Ltd, globally. The first issue is the drop of sales in China. The second issue is the imposition of stringent regulation for cleaner production in Europe, because of which the demand for the diesel led cars is drastically dropping in the European market. The BCH matric have also been applied in the report in order to analyse the business issues in context of the current market situation of the company. A micro foundational approach has also been by the researcher to analyse the business issues in this proposal. Lastly, problem solving tools have also been suggested that can help the company to revamp sales.

Running Head: ENTREPRENEURSHIP AND STRATEGIC DECISION MAKING
Entrepreneurship and strategic Decision
Student’s Name
University Name
Author’s Note

2ENTREPRENEURSHIP AND STRATEGIC DECISION MAKING
Table of Contents
1. Introduction.......................................................................................................................................3
2. Company Overview...........................................................................................................................3
3. Strategic problem identification and definition..................................................................................3
4. Outline analysis of the Problem Situation..........................................................................................4
5. Theoretical Models............................................................................................................................4
5.1 BCG Matrix of Jaguar.................................................................................................................4
6. Outlining of Problem Solving Tools..................................................................................................5
7. Conclusion.........................................................................................................................................6
Reference List........................................................................................................................................7

3ENTREPRENEURSHIP AND STRATEGIC DECISION MAKING
1. Introduction
This proposal overviews the two major business issues facing Jaguar Range Rover
Ltd, globally. The first issue is the drop of sales in China. The second issue is the imposition
of stringent regulation for cleaner production in Europe, because of which the demand for the
diesel led cars is drastically dropping in the European market. These issues and their
impending and current outcomes have been discussed in detail in the report. The BCH matric
have also been applied in the report in order to analyse the business issues in context of the
current market situation of the company. A micro foundational approach has also been by the
researcher to analyse the business issues in this proposal. Lastly, problem solving tools have
also been suggested that can help the company to revamp sales.
2. Company Overview
The multinational automobile company Jaguar Land Rover Limited is headquartered in
Coventry, UK. The organisation is owned by Tata Motors Ltd. of India. The organisation
began its journey as a Sidecar manufacturing and selling organisation, founded in the year
1922 (Jaguarlandrover.com, 2019). The organisation launched their first open topped sports
car in the year 1948 and this began the high profile journey for the organisation (Piercy
2018). Jaguar started to significantly contribute to the international racing sport which gave
the company the desired boost in the international market. The risk profile analysis shows
that the retail volumes of Jaguar Land Rover slowed down by about 2% in the Financial Year
2018. The risk profile of the company also identifies that there is a decline in sales volume by
4.1% in the financial year 2019. It is apprehended that weaker volumes as well as high
competitive intensity will restrict the operating margin of Jaguar below 12% in 2019. Again,
large Capex value requirement, which is significantly more than GBP 4 billion every year, is
likely to account for negative cash flow over the medium term. The brand reputation of

4ENTREPRENEURSHIP AND STRATEGIC DECISION MAKING
Jaguar is chiefly vested in model innovations and investing for developing new models of
cars as well as new manufacturing technologies. The I-PACE technology of Jaguar LR is a all
electric car with zero tailpipe emission rate. This range of Land Rovers will create new
markets for the company in international domains (Jaguarlandrover.com, 2019). Current the
company enjoys significant global reputation.
3. Strategic problem identification and definition
The imposition of the stringent regulations and growing demand for the development
of cleaner model and manufacturing technology for cars accounted for a major financial loss
of the organisation. There have been two other potential business threats that the company
have been facing in recent times. Firstly, the challenging market and the biggest sales
collapse in China accounted for a financial loss of £3.4bn quarterly, for the organisation. The
global sales of Jaguar have dropped by about 1 million in the financial year 2018-19 and the
drop of sales in China is mainly responsible for this outcome (Ahmad et al. 2018).
Secondly, the stringent regulations and growing demand for the cleaner vehicles in UK,
accounted for a significant drop of the sales of diesel powered cars in UK and almost whole
of Europe. On the contrary, Lukman et al. (2016), notifies that majority of the cars of the
company’s model range have been diesel powered. This is serious threat for the company. In
case if they are not able to come up with alternative product line, the sales of cars of Jaguar in
Europe is going to be seriously hampered in future.
4. Outline analysis of the Problem Situation
The combined sales of Jaguar in UK and North America could balance the loss that
the company was facing because of the fall of sales demand in China, in the first place.
However, after the drop of demand of the diesel cars in Europe, Jaguar is destined to face
major financial loss in the upcoming 5 financial years. The sharp deterioration of sales profits

5ENTREPRENEURSHIP AND STRATEGIC DECISION MAKING
in China is the major reason for the financial losses that the company will be witnessing. The
sales of JLR in China slumped by 44%, only in the second quarter of 2018. The falling
customer confidence on the brand and large hike in the import tariff rates is the main reason
for the economic downturn. As highlighted by Ibáñez-Forés et al. (2016), excluding the
write-down, which affects its balance sheet but has no effect on cash, the company posted a
loss of £273m already from its sales venture in the financial year 2017-18 and 2018-19.
Along with economic impact, the company had to face a loss of brand reputation also.
This is because, in the developing countries like China, the organisation is losing out in their
price parity with the other major foreign car brands like BMW, Mercedes, and Renault and so
on. This is because, in order to make up for the major loss of revenue, the organisation has
been compelled to cut thousands of jobs globally. There is a significant lack of concrete
programming specialists who are design the interior auto-brake or the navigation system of
the cars. Lack of technical specialists as well as qualified manufacturing workers is delaying
the R&D and the assembly process in China.
5. Theoretical Models
5.1 BCG Matrix of Jaguar
Cash Cows
The international marketers of Jaguar have to capitulate on the high market share of
SUV cars, along with HCV and LCV. The target market of Jaguar mainly consists of young
customers. The Micro Foundations behaviour of this segment shows that they are enticed
over specific features in their cars, because of which they are ready to pay 5 to 10% higher
prices also. That is why; the marketers need to promote the elements like high performance
capacity of these models of Jaguar and the elegant and sporty look of the models of Jaguar.

6ENTREPRENEURSHIP AND STRATEGIC DECISION MAKING
The organisation needs to align their research and development for innovation behind these
product lines.
Stars
As highlighted in the annual reports of Jaguar, in spite of the significant revenue drop
of the car in China, the company have been able to retain its sales parity for the
aforementioned models of cars. As identifies by White(2015), X series and Pace cars are the
stars of Jaguar. In spite of mixed response regarding sakes of these cars, the company
apprehends that the sales of these cars are supposed to increase in the emerging markets. This
is because; the micro-foundational approach of these two models of Jaguar shows that there is
adequate customer bases whose like-abilities are matching the service standards of Jaguar’s
models.
Question marks
Along with the diesel fuelled cars, the marketing line of the company are the question
marks for the company. The theory of Entrepreneurial Cognition can be applied here. This
theory focuses on the strategies by which the human capital shapes the business of the
company. In this context, (), identifies that the individual market promoters of Jaguar are not
able to conduct in depth survey to understand the affinity of UK customers towards diesel
powered cars. This is why; the company was delayed in bringing about the alternative prduct
line of electric vehicles in the country. In case if the company is not able to hike their sales in
the European market or develop an alternative product line for the market, these two aspects
of the company would drop down in to the dogs’ category.
Dogs
The Chinese market of the company can be considered as the Dog under the BCG
matrix. This is because this market is consuming more funds, generating marginal revenue. In

7ENTREPRENEURSHIP AND STRATEGIC DECISION MAKING
fact, the combined sales of Jaguar in Europe and North America is not able to make up for
the financial loss of then organisation.
6. Outlining of Problem Solving Tools
As a major strategy for combating the dynamically changing regulations in support of
clean production, the company can develop an alternative battery-electric crossover vehicle
range. These vehicles will gain confirmation tags from the European governments easily. The
start-up engineers as well as the JLR engineers should have collaborative brainstorming
spaces like digital walls where they can share their innovative product development ideas.
Again, the cars will come at a skinnier price. The incentivised price of the cars is supposed to
be $48000 USD on an aggregate which is about $10000 USD lesser compared to the Tesla
SUV range that have the highest sales parity in China (Fuchss et al. 2016).
7. Conclusion
The organisation have been impacted bitterly because of the drop of sales in the
Chinese and the European market. As identified in this research study, the premium pricing
of the cars is the reason for the drop of sales in China. On the contrary, the higher pollution
level of the diesel led cars in Europe is the factor behind dissipation of sales in Europe.
However, at present, the company needs to implement closing sales model and consultative
sales model for hiking the sales of product lines of SUV, HCV and LCV models of cars. The
marketers need to promote the elements like high performance of the cars and their elegant
looks for fostering sales. Jaguar have to develop an alternative product line as a part of long
term sustainable strategy.

8ENTREPRENEURSHIP AND STRATEGIC DECISION MAKING
Reference List
Ahmad, B.I., Hare, C., Singh, H., Shabani, A., Lindsay, B., Skrypchuk, L., Langdon, P. and
Godsill, S., (2018). Engineering Department, University of Cambridge, Cambridge, UK
Email:{bia23, pml24, sjg30}@ cam. ac. uk Jaguar Land Rover, Whitley, Coventry, UK
Email:{chare2, hsingh2, ashabani, blindsay, lskrypch}@ jaguarlandrover. com. interactions,
24(2), p.32.
Fuchss, S., Michaelides, A., Stocks, O. and Devenport, R., (2019). The Propulsion System of
the New Jaguar I-Pace. MTZ worldwide, 80(1), pp.18-25.
Ibáñez-Forés, V., Pacheco-Blanco, B., Capuz-Rizo, S.F. and Bovea, M.D., (2016).
Environmental Product Declarations: Exploring their evolution and the factors affecting their
demand in Europe. Journal of cleaner production, 116, pp.157-169.
Jaguarlandrover.com, (2019). About the Company. Available at
https://www.jaguarlandrover.com/ [Accessed on: 3rd March 2019]
Lukman, R.K., Glavič, P., Carpenter, A. and Virtič, P., (2016). Sustainable consumption and
production–Research, experience, and development–The Europe we want. Journal of cleaner
production, 138, pp.139-147.
Piercy, N., (2018). Technology and Information. In Management Information Systems: The
Technology Challenge (pp. 1-8). Routledge.
White, M., (2015). Aluminium used in Jaguar Land Rover vehicles helps meet sustainability
targets. Aluminium International Today, 27(1), p.24.