Environment Analysis for Jaguar in UK

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

4

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