Investigative Essay on Jaguar Land Rover: Challenges and Responses

This investigative essay explores the challenges faced by Jaguar Land Rover in the last four years, including Brexit, decreasing demand for diesel vehicles, and U.S. tariffs. It also discusses the ways in which the company has responded to these challenges.

Investigative essay

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background..................................................................................................................................1
External environment...................................................................................................................3
Application of theory...................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Investigation is said to systematic attempt for ascertaining facts with careful examination
of pertaining situations (Brady, 2017). In other words, detailed examination of the situations with
the aim to come across through certain facts is termed to investigation. Conducting investigation
helps in determining what occurred, addressing as well as correcting workplace problems and
eliminating liabilities. For conducting investigative essay, Jaguar Land Rover which performs
operations at global scale. The essay includes business nature, global presence, structure,
financial data and some challenges faced by entity. It also includes the ways typical functions
contributes towards business operations. Further, it discusses about external environment and the
ways changes within the environment impacts business along with the ways entity react and
adapt changes in context to the challenges faced by them.
MAIN BODY
Background
Organisational overview: Jaguar Land Rover is among the largest automotive
manufacturer having headquarters at Coventry, United Kingdom. The entity designs,
manufactures as well as sells world's popular premium cars. The purpose of the organisation is
to plan, develop, manufacture addition to sale the vehicles. The company performs its key
operations within automotive sector that involves diverse firms involved in activities of
designing, manufacturing, promotion and selling motor vehicles. Jaguar Land Rover has global
presence as around 80% of vehicles are sold abroad addition to having presence in approximate
178 markets (Global presence of Jaguar land Rover. 2019). The premises of the entity are located
in the cities of Austria, Hungary, Ireland, Brazil, China and so forth. The organisational
managers follows functional organisational structure in which reporting relationships are
divided in groups according to functional areas such as product development, purchasing, quality
and IT, finance, marketing and so on which are overseen by designated divisional presidents
addition to vice presidents (Structure of Jaguar land Rover. 2019). The size of business is large
as it employs around 43,224 individuals and generates revenues £25.8 billion. From the annual
reports of 2017-18, the company has production output of 174,560 motor vehicles, operating
income of £1.5 billion, net income of £1.1 billion and had total assets of £26.8 billion.
1

Three typical functions within the businesses are marketing, finance and human
resource department that contributes huge towards business operations. In context to marketing,
it drives business sales as well as informs consumers through various promotional campaigns
and techniques (Cherry, 2019). Marketing function contributes in establishing relationship
among diverse customers and organisational offerings that provides confidence to launch new
product in market as well as shaping image of the brand which helps in smoothly functioning of
business operations as per the set objectives. For example, marketing function of Jaguar Land
Rover contributes in initiating various campaigns so to attract more customers that can help in
increasing market share which further facilitates performing of operations according to
determined objectives.
Other function is finance function which helps management in preparation of budgets as
well as acquiring financial resources as and when needed so that operations do not get hampered.
They prepares budgets and provide to all divisions so that expenses are made accordingly.
Finance function contributes its efforts in understanding business performance drivers,
identifying emerging pathways for profitability, makes investments towards modern technologies
and develop effective prising abilities that helps in smoothly running of other operations
(Guillén, 2015). Human resource management function handles labour relations together with
dispute resolution operations. Human resource managers of Jaguar Land Rover contributes their
timings and efforts in providing right coaching, mentoring as well as tutoring to employees so
that they can boost their skills, knowledge and ability for generating huge productivity. Human
resource function is responsible for employee data, compliance management, rewarding
personnel and recruiting competing personnel that works to meet objectives of business that
results in smoothly running operations of business.
Challenges faced by Jaguar land Rover within last 4 years are China crisis, excess
capacity, Brexit, decreasing demand of diesel- powered vehicles, technological changes, quality
perceptions, U.S. tariffs and decreasing sales (Analysis of challenges faced by Jaguar Land
Rover. 2019). The main challenge was of Brexit that created hurdles for Jaguar land Rover in
terms of huge tariffs that were dependent on negotiating deals. The company had faced various
poor deals that wipes revenues upto 1.12 billion euros and decrease in sales in the market. Other
than this, the company also faced challenge of U.S. Tariffs when political parties has repeatedly
threatened or increased tariff duties on motor vehicles from Europe. In addition Jaguar Land
2

Rover was also hit by decrease in demand for vehicles that were powered by diesel as well as
downturn in China. In August 2019, the organisation stood 72,464, lower by 32% in comparison
to August 2018. the wholesale of commercial vehicles of the company also reduced to 45% in
2019.
External environment
External environment is said to composition of outside elements or factors that influences
business operations. It is further broken as macro addition to micro environment. In context to
micro environment, it includes factors such as suppliers, financiers, customers, public perception
and marketing intermediaries. In contrary, macro environment includes political, technical,
economical and social considerations. External environment comprises uncontrollable factors
that results in influencing performance of organisation. For understanding the changes within
external environment, PEST Analysis framework is used. It includes the followings:
Political: It involves tax policy, trade restrictions, political stability and environmental
law. Political stability and trade restriction are important factors that impacts business (Laudon
and Traver, 2016). The emergence of Brexit has resulted in causing serious problems in dealing
with other countries which impacted business operations.
Economic: It is related to laws, unemployment, interest rates, tax rates and wages. When
government changes its spending level then companies have to alter payment methods for
development as well as production that impacts the business as whole. For example, changes in
economic cycle results in increase as well as decrease in tax levels or on cars by government
authorities results in driving managers decision making of Jaguar Land Rover along with
impacting operations of business at huge level. .
Social: It includes factors like customer service, lifestyle trends, customer perceptions,
values, beliefs and customs which characterise a society. For examples, changes in perceptions
of customers about cars or services of an entity hampers the business operations.
Technological: It covers factors like engine efficiency, automation, technological
updation and inventions. Technological environment impacts on the ways in which
organisational resources are converted towards final outputs (Leutert, 2016). For example, Jaguar
land Rover uses cutting edge innovation while designing and manufacturing cars. The company
is also developing prospective technologies that can result in impacts on operations in positive
manner.
3

Application of theory
External environmental factors results in numerous impacts on operations of Jaguar land
Rover. The company patiently analysed all the circumstances and adopted necessary decisions so
that they can face the challenges in calm manner. In context to economic factor, for responding
towards the U.S. Tariffs, the company lowered its sales from Europe and increased the sales
from other countries so that they can beat the sales and increase their profit margins without
paying more tariffs. The company also made decision to offer its cars for lower prices than actual
costs that helped in raising more revenues. In context to political factors, in order to overcome
from the Brexit phases, the managers of the organisation has made decision to to locate new
plant in the city of Slovakia by giving presence in Europe when UK left EU. Other than this, the
company has also made decision to close factory premises in United Kingdom so that they can
safeguard from supply chain disruption from no deal Brexit (Ways Jaguar Land Rover
responded towards challenge of Brexit. 2019). The owner of the company has said that their
business is stable in other countries that helped in improving their sales condition.
CONCLUSION
As per the investigative essay it is concluded that proper investigation plays important
role in discovering facts about something. Planning, manufacturing and selling commodities of
business are the main purpose for which they exists. Organisation size is described in terms of
their total assets, total equity and number of employees working with them. Marketing, finance
as well as human resource management are typical function which contributes more in business
operations. External environment is characterised as the outside environment that is beyond the
control of internal members. It is analysed through PEST Analysis framework. Challenges that
are faced by entity within last years are decrease in sales, U.S. Tariffs, huge competition, quality
perceptions and emergence of Brexit. Changes in the factors of such environment results in
creating hurdles for entity to perform its set plans and programmes in predetermined manner and
causes difficulties in achieving objectives that impacts on overall business. For responding
towards challenges of Brexit, decisions are made to close premises in UK market and open at
new location fopr improving sales and revenue margins.
4

REFERENCES
Books and Journals:
Brady, R., 2017. Business as a System of Power. Routledge.
Cherry, F., 2019. Stubborn Particulars of Social Psychology: Essays on the Research Process.
Routledge.
Guillén, C., 2015. Literature as system: essays toward the theory of literary history (Vol. 1449).
Princeton University Press.
Laudon, K. C. and Traver, C. G., 2016. E-commerce: business, technology, society.
Leutert, W., 2016. Challenges ahead in China’s reform of state-owned enterprises. Asia policy.
(21). pp.83-100.
Nochlin, L., 2018. The politics of vision: Essays on nineteenth-century art and society.
Routledge.
Watson, A., 2016. International theory: critical investigations. Springer.
Online:
Global presence of Jaguar land Rover. 2019. [Online]. Available through:
<https://www.jaguarlandrovercareers.com/content/Locations/?locale=en_GB >
Ways Jaguar Land Rover responded towards challenge of Brexit. 2019. [Online]. Avalibale
through: <https://economictimes.indiatimes.com/news/company/corporate-trends/tata-
chairman-awaiting-brexit-deal-says-tariffs-are-new-normal/articleshow/71607967.cms>
Structure of Jaguar land Rover. 2019. [Online]. Available through:
<https://www.cheryjaguarlandrover.com/pc_static/company/management_en.php>
Challenges faced by Jaguar Land Rover. 2019. [online]. Available through:
<https://europe.autonews.com/automakers/why-jaguar-land-rover-losing-money-and-
how-it-plans-return-profit>
Analysis of challenges faced by Jaguar Land Rover. 2019. [Online]. Available through:
<https://www.autocar.co.uk/car-news/industry/analysis-challenges-facing-jaguar-land-
rover>
5