Environment Analysis for Jaguar in UK

This presentation provides an analysis of the external and internal environment of Jaguar in the UK, including political, economic, social, technological, legal, and environmental factors. It also highlights the strengths, weaknesses, opportunities, and threats for Jaguar, along with key findings and their influence on decision making.

Environment
analysis for Jaguar,
UK
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Introduction
▪ Jaguar Land Rover is one of the major car
manufacturing company in the UK.
▪ Since its establishment in 1935, the company
has become a market leader in luxury cars.
▪ Tata Motors has acquired Jaguar Land Rover in
2012 (Jaguar.co.uk 2018).
▪ It earned revenue of around £25.8 billion in
2017-18, with operating income being £1.5
billion (Jaguarlandrover.com 2018)
▪ The company is a profitable choice for
potential investments.2

Environment
▪ Factors from the outside of an organisation that
are not under control of the management
create the external environment (Khan, Alam
and Alam 2015).
▪ This is analysed using PESTLE tool.
▪ Internal environment includes indigenous
factors from the organisation that are
controlled by the business (Khan, Alam and
Alam 2015).
▪ SWOT analysis is used to assess the internal3

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Political
▪ Instability in the political scenario due to
Brexit referendum and change of the
prime minister (Brown, Dhingra and
Oliver 2016)
▪ Government controls the automobile
industry to prevent monopoly.
▪ Size of the firms is also controlled by the
government
▪ The government provides support and
subsidy on low emission vehicles
(Serrenho et al. 2016).5

Economic
▪ UK economy has inflation 2.8%, highest in 6
years, and highest employment rate at 75.6%
(Wearden 2018)
▪ Wage growth slowed down by 2.8% (Wearden
2018)
▪ Brexit uncertainty has added in the instability
and inflation by depreciating the currency.
▪ Growth of automotive industry has slowed down
due to fall in disposable income of the
consumers (Ebell and Warren 2016)
▪ Increasing globalisation has increased business6

Social
▪ Population in the UK has increased
significantly due to migration.
▪ Tastes and preferences of the migrated
population has been changing the
market dynamics, which need to be
addressed by the car companies (i
Bassedas et al. 2016)
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Technological
▪ UK is a highly technologically advanced
country
▪ The automobile industry is significantly
developed since long.
▪ Innovation is a key to the success in
the UK luxury automobile industry
▪ At present, the low emission and fuel
efficient cars are mostly in demand in
the UK market (Brand 2016).
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Legal
▪ Legal framework for the automobile
industry is quite regulated in the UK
▪ The standard for safety and quality is
quite high and strictly maintained due
to strict penalties.
▪ Recently, Toyota had to recall its
vehicles for faulty airbags in the UK
market (Reynolds 2016).
▪ Pollution control laws have become
more stringent.9

Environmental
▪ Laws are created to protect the
environment and promote
sustainability.
▪ All the car manufacturers must abide
by the legal regulations for producing
eco-friendly cars (Calabrese 2016).
▪ The rules for emission testing has
become more strict.
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Strengths
▪ High product Quality, rich culture identity
and strong global brand value
▪ Popular brand image as a powerful luxury
brand
▪ High barriers to entry in the market
▪ Increase in Research and development
spending
▪ Improvement in global sales of Jaguar after
Tata Motors acquisition (Jaguar.co.uk 2018)
▪ Attractive advertising

Weaknesses
▪ Limited product range of Jaguar as
compared to a few other competitors
▪ After acquisition by Tata, cost cutting
led to labor union issues (Crawford
2016)
▪ Dependency on few models (Fleming
2015)
▪ Quality issues in the past (Csere 2011)
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Opportunities
▪ Hybrid models of luxury cars is an
untapped market in the UK
▪ Jaguar can explore more options in the
SUV segment
▪ It can focus on innovations for
launching eco-friendly cars.
▪ It can opt for acquisitions for capturing
a larger and new customer base to
increase its sales and profits.
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Threats
▪ Strong competition for Jaguar from
other international luxury automobile
brands
▪ Dependence on government policies
and rising fuel prices
▪ Financial instability causes a rapid
downfall in the premium car segment
▪ Increasing price of raw materials
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Key findings
▪ Stable political situation and higher
employment level in the country is favorable
for business growth.
▪ High brand value, acquisition by Tata Motors
and continuous R&D for technological
improvement enhance Jaguar’s credibility in
the market (Osv.ltd.uk 2016).
▪ It should increase its number of models and
introduce new attractive designs.
▪ Incorporation of new environment friendly
technologies are becoming mandatory for16

Influence on decision making
process
▪ Market expansion is possible if Jaguar
increases its product varieties and improves
the designs through R&D.
▪ New eco-friendly technologies are a new
thing that should be introduced by Jaguar
for promoting sustainability.
▪ It should utilize its brand value and
reputation during promotions to increase its
market size in the UK.
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References
▪ Bergman, N., Schwanen, T. and Sovacool, B.K., 2017. Imagined
people, behaviour and future mobility: Insights from visions of
electric vehicles and car clubs in the United Kingdom. Transport
Policy, 59, pp.165-173.
▪ Brand, C., 2016. Beyond ‘Dieselgate’: Implications of
unaccounted and future air pollutant emissions and energy use
for cars in the United Kingdom. Energy Policy, 97, pp.1-12.
▪ Brown, S.A., Dhingra, S. and Oliver, T., 2016. The Brexit
scenarios: Towards a new UK-EU relationship.
▪ Calabrese, G. ed., 2016. The greening of the automotive industry.
Springer.
▪ Crawford, M.J., 2016. An Analysis of Operating Environment &
Strategy: A Case Study of Tata Motor.
▪ Csere, C., 2011. The Trouble With J.D. Power's Initial Quality
Study. [online] Available at:18

References (Contd.)
▪ Dhingra, S., Ottaviano, G.I., Sampson, T. and Reenen, J.V., 2016. The
consequences of Brexit for UK trade and living standards.
▪ Ebell, M. and Warren, J., 2016. The long-term economic impact of leaving the
EU. National Institute Economic Review, 236(1), pp.121-138.
▪ Fleming, C., 2015. Jaguar confronts poor quality rap with new cars, long
warranties. [online] Latimes.com. Available at:
https://www.latimes.com/business/autos/la-fi-hy-jaguar-new-car-warranties-
20150901-story.html [Accessed 20 Dec. 2018].
▪ i Bassedas, P.M., Brown, S.A., Prelec, T., Dhingra, S. and Oliver, T., 2016. The
Brexit Scenarios: Towards a New UK-EU Relationship. Documents CIDOB
(Nueva época), (7), pp.1-17.
▪ Jaguar.co.uk, 2018. Luxury Sports Cars, Executive Saloons and SUVs | Jaguar
UK. [online] Jaguar.co.uk. Available at: https://www.jaguar.co.uk/index.html
[Accessed 20 Dec. 2018].
▪ Jaguarlandrover.com, 2018. Jaguar Land Rover - Annual Report 2016/17.19

References (Contd.)
▪ Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), pp.955-961.
▪ Martin, N.P., Bishop, J.D. and Boies, A.M., 2017. How Well Do We Know the Future of
CO2 Emissions? Projecting Fleet Emissions from Light Duty Vehicle Technology
Drivers. Environmental science & technology, 51(5), pp.3093-3101.
▪ Osv.ltd.uk, 2016. How Reliable Are Jaguar? A Balanced Look At The Luxury British
Manufacturer | OSV. [online] OSV. Available at: https://www.osv.ltd.uk/how-reliable-
are-jaguar/ [Accessed 20 Dec. 2018].
▪ Reynolds, C.D., 2016. The Role of Private Litigation in the Automotive Recall
Process. Loy. Consumer L. Rev., 29, p.121.
▪ Serrenho, A.C., Mourão, Z.S., Norman, J., Cullen, J.M. and Allwood, J.M., 2016. The
influence of UK emissions reduction targets on the emissions of the global steel
industry. Resources, Conservation and Recycling, 107, pp.174-184.
▪ Wearden, G., 2018. US inflation hits six-year high; UK wage growth slows - as it
happened. [online] The Guardian. Available at:
https://www.theguardian.com/business/live/2018/jun/12/markets-uk-unemployment-
pay-rises-us-inflation-sterling-business-live [Accessed 20 Dec. 2018].
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Thank You!
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