MGT300 Case Study: Analyzing Jaguar's Logistics & Supply Chain

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This case study examines Jaguar Land Rover's logistics and supply chain management strategies, highlighting the factors contributing to its success, including sustainable development, investment in research and development, and customer-centric approaches. It analyzes how the company maintains its competitive advantage through innovation, collaboration, and understanding customer needs. The study also explores the suitability of Jaguar Land Rover's strategies for other companies and emphasizes the importance of adapting to market trends and utilizing effective mapping tools. The report further discusses the sustainability concept and its integration into the company's operations, focusing on environmental responsibility and community engagement. This comprehensive analysis provides insights into the critical elements of Jaguar Land Rover's supply chain and logistics practices, offering valuable lessons for other organizations aiming to achieve similar success. Desklib provides a platform for students to access this and many other solved assignments.
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 1
LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 2
Introduction
Jaguar is believed to have started in the year 1922. Immediately after the Second World
War, the companies' reputation grew abruptly. In the year 1989, the company was purchased by
Ford. In 2000, Land Rover which had been bought by BMW earlier in the year 1994, merged
with Jaguar which was under Ford to form a more robust Jaguar Land Rover company.
Fundamental reasons for the success of the Jaguar Land Rovers Company
Sustainable development is the way to operate at the Jaguar Land Rover Company. This
is the core value that drives the long-term success of the company (Speth, 2016). The company
believes that it is critical to preserving its trust from its customers. This helps it to remain to be
the most recognized expensive brand thus enabling it to secure its certificate of operation. The
company operates under one principle which allows it to act ethically and responsibly towards its
customers, suppliers, shareholders, dealers and most importantly, giving the environment its due
respect since it is the mother of all the success a company may enjoy. This happens in every
business that the company undertakes in the whole world.
The Jaguar Land Rover has been successfully investing in its customers, research, and
development. This has helped the company to actively manage its social environment (Trefis,
2015). The company has its people at the heart of its success. The skills, passion, and
commitment provided by its employees have always been the idea behind the creation of the
existing cars (Jaguar, 2016). These people also use those skills to benefit the community in
which they live. The company goes ahead to build a healthy relationship with its community
through encouraging its employees to play their part well in the city. For example, working with
disabled students or becoming school governors. The company also aims at involving a small
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 3
percentage of its workers in voluntary activities such as education generation, charity work, and
the environment. Its graduates spend at least two years while supporting community projects.
This is part of the Jaguar Land Rovers Company. The company also continually looks at its
operations and how they affect the people who live near its sites (Jaguar, 2016). This helps them
to make the correct and informed choices to aid in maintaining a good relationship with its
members.
Members of the local council together with representatives of the resident groups also
join the Jaguar Land Rover Company to review the company’s plans and tell the company about
what they think could be done to help the company function better. This helps the company to
enjoy a more significant success when compared to other companies. Its policy is to struggle and
meet or exceed the legal and regulatory requirements in every activity the company undertakes.
It also periodically reports on its performance to the stakeholders more transparently and openly.
This helps the company to realize the threats and weaknesses that it has been going through. This
immensely helps it to plan even better on how to attain a more sustainable competition in the
market.
Without any doubt, this is one of the reasons why the company enjoys is more continued
and robust success in the market industry. The company has also set some commitments, to
begin with, it positively engages with the local and global communities in ensuring that its
presence adds value and brings up benefits to the society. This is its central commitment to
ensuring it is committed to the well being and development of its employees as well as providing
support to the social and humanitarian projects. Secondly, in concern to the environment, it is
committed to continuously improve the environmental performance of its business and products
through the reduction of the emissions, natural resources conservation and optimization of the
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 4
use of sustainable energy and materials. Its investment in research highly promotes this. The
company also makes sure that it delivers exceptional products and services which meet their
customers' needs. It also encourages and helps to ensure a shift towards a low carbon society.
Jaguar Land Rover has also managed to emerge as the most significant success as a car
assembly plant due to the high records it delivered regarding the high demand for luxury cars in
China and North America. The growth was seen to be most influential in China with almost 32
percent. The growth was driven by the increased demand for newer models (Monaghan, 2017).
The company continues to invest significantly in new models and innovation. For example, news
has been circulating that Jaguar Land Rover company may be unveiling its first electric vehicle
later this year (Rossolillo, 2018). In respect to its I- Pace, the company is set to unveil a couple of
new electric cars for the 2019 production year. It is clear that the luxurious company has been
holding up a considerably small percentage in the United States market share. But, due to its
recent moves of innovations, the company may propel its significance in the United States
market share to a top rank. Its step to developing electric cars is very critical to our environment.
This is because it helps to reduce greenhouse gases emission. In the United States, vehicles are
responsible for almost half of the greenhouse gases produced every year globally. This is
because the country makes up to nearly thirty percent of the cars in use globally. This was
according to a report which was issued in the year 2006 by the environment defense.
Transportation in the country has therefore been contributing to roughly thirty percent of
the greenhouse gases emissions in the United States. Some efforts to curb this menace such
increasing the greenhouse gases and advising people to consider using public means of transport
have fallen on deaf ears (GinaMarie, 2011). Therefore, the introduction of the electric cars by the
Jaguar Land Rover will see a reduced use of fossil fuels a thing which will highly contribute to
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 5
the reduction of the greenhouse production. This will profoundly market the company
considerably since citizens will have to spend less money on transport compared to the fossil fuel
transport since electric power is relatively cheap compared to fossil fuels, and also the
environment will also be profoundly saved.
How Jaguar Land Rovers Company maintains its competitive advantage
Competitive advantage is what makes a company than the competition in its company’s
minds (Kimberly, 2017). Competitive advantage relies on three determinants. They include; a
benefit which is how good the product from the company is to the users. Jaguar Land Rover must
be evident in the interests of the product it provides. The company has to make sure that what it
produces is something that the customers genuinely need. The product must offer real value to
the customers. The company must know the features of its product and how it is significant to the
customers. Secondly, we have the target market (Kimberly, 2017). Jaguar Land Rover Company
must know who exactly its target buyers are, who buys from it and how it can make their lives
better. For example, Jaguar Land Rovers Company targets the VIP buyers who need luxury cars.
Then thirdly is the competition. This does not only include companies of the same type as the
original company but also everything that the companies could do to subsidize the need of the
products from the particular company (Queensland, 2017). For a company to maintain its
competitive advantage, it must practice the following attributes.
In business, the winners who are clear no matter the size of their business are the ones
who can find a new definition around the world of innovation (MacInnis, 2018). They also use
new ways of communicating the value of change to their key customers. This can be achieved
through the practice of collaboration. Customers are always in the box seat. They are the one
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 6
who chooses to visit a company's website. They decide to either view the advertisements on the
site or not. When a company sends an email to its customers, they are the ones to choose if to
open it or not. Therefore, the organization is entitled to collaborating with its customers. It can
achieve this collaboration through the use of social media tools such as Facebook, Twitter, blogs
or even forums (Lewis, 2018). Jaguar Land Rover organization gets the real value of innovations
they come from its customers because they always tell the companies better ways of doing
things. For the company to continue enjoying the competitive advantage, it must invite its
customers to be part of the organizations planning. It can also be of significant benefit when an
organization creates a collaborative culture in its operational activities with its customers.
The Jaguar Land Rover Company also needs to offer an understanding and useful insight
into it to continue enjoying its competitive advantage. Communication with the customers can be
as simple as making a phone call or submitting an online survey for a company (Conlon, 2013).
If this is done with a significant sensitivity, it can provide an insight for the company to change
something that was making it lose business or help it to create something that will make it
continue enjoying the competitive edge. It is also very ideal for a company to share its story for it
to keep enjoying the competitive advantage. It is good for the company to stand for what it
knows. So many companies have not realized this. Many people prefer buying from a business
they know and trust. They get to know what a company has brought to the market through what
it has updated on its website. Potential customers give asking themselves questions every day
whether to contact a particular business or not. The organization can answer these questions
through giving its whole story for the customers to make a decision based on what the
organization is. The company is just required to be real and honest with what it offers. This will
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 7
help it build a long-lasting relationship with its customers while in turn making it continue
enjoying the competitive advantage.
The Jaguar Land Rover organization needs to be customer-centric (Hill, 2013). It needs
to step into the customer's shoes every day through consciously thinking about its customer's
touch points such as its websites, business cards, and staff. This awareness helps a company to
change how it does things.
Suitability of Jaguar Land Rovers Company's ways of maintaining a competitive
advantage to other companies
Jaguar Land Rover company is a company which is on the brink of revolutionary change.
It enjoys the competitive market advantage through innovation, research, and development (PLC,
2015- 2016). Other companies as well emulate this company to advance their stability in the
competitive market. This is because the success of any company is always based on its
continuous process of anticipating new market trends (Vizard, 2014). If a company formulates an
excellent strategic plan and employs a right mapping tools that will help it to identify the fastest
growing opportunities in it, then automatically it will maintain its competitive advantage in its
market of operation.
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 8
Sustainability concept
An organization has the vital needs that it needs for it to address its challenges in a way
that will end transforming the way it operates and competes with the other organization (Rosano,
2008). This is referred to as sustainability. Sustainability concept is an aspect that brings
(Autostadt GmbH, 2009)environment, society, and the economy together as the three aspects of
sustainability. It also brings the interaction between these three components. This is concept is
relevant to the Jaguar Land Rover Company. Through its strategic plan, the company has
dramatically reduced the impact of their cars on the environment (Embedding sustainability
through enterprise governance, 2009). This has been achieved through several methods such as
thee- terrain, more sustainable manufacturing and reduction of the emission of the greenhouse
gases. Jaguar Land Rover's sustainability governance structure is part of the reason why
sustainability is so embedded strategically in the way they do business (Corporate, 2014). It is
this framework and architecture which enables active cross-functional engagement and optimizes
the value-add from the finance team
Recommendations
Jaguar Land Rover (JLR), is the most significant automotive manufacturer in the United
Kingdom, future-proofing of its business and embedding environmental innovation in everything
it does will be substantial for the creation of stable foundations for responsible, profitable
growth. To support its vision, the Jaguar Land Rover Sustainability Committee needs to develop
a common and a modern understanding of sustainability issues, in the context of global system
pressures, for its members and close associates.
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 9
Conclusion
Jaguar Land Rover group believes in wealth creation and not the economic parameter of
profitability. Whatever they earn, whole-heartedly they gift it to the society in the various forms.
The current leadership of the group is with Dr. Ralf Speth; he was appointed in 2010. They have
booked many directions and been pioneered in various employee oriented efforts. As a result
Jaguar Land Rover group is the most respected business conglomerate in the world. The
individual profitability or the loss-making incidences are not affecting the strong rootholds of the
group. Collectively the group has many companies operating on different continents on the earth.
The collective financial performance will battle the economic threats prominently to their group
companies.
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 10
References
Autostadt GmbH, W., 2009. LEVEL GREEN - The Concept of Sustainability. [Online]
Available at: https://www.yatzer.com/LEVEL-GREEN---The-Concept-of-Sustainability
[Accessed 17 April 2018].
Conlon, G., 2013. 3 Ways to Gain and Maintain a Competitive Advantage in the Digital Age.
[Online]
Available at: http://www.dmnews.com/marketing-strategy/3-ways-to-gain-and-maintain-a-
competitive-advantage-in-the-digital-age/article/305871/
[Accessed 17 April 2018].
Corporate, C., 2014. Strategies for impact. Engaging Biffa Employees on Sustainability, pp. 1-29.
Embedding sustainability through enterprise governance (2009) Jaguar Land Rover.
GinaMarie, C., 2011. The Importance of Electric Vehicles. [Online]
Available at: https://www.care2.com/causes/the-importance-of-electric-vehicles.html
[Accessed 17 April 2018].
Hill, B., 2013. Why Are Some Firms Able to Sustain Competitive Advantage Over Their Rivals?.
[Online]
Available at: http://smallbusiness.chron.com/firms-able-sustain-competitive-advantage-over-
rivals-81199.html
[Accessed 17 April 2018].
Jaguar, L. R. l., 2016. JAGUAR LAND ROVER IN THE COMMUNITY. [Online]
Available at: https://www.jaguar.co.uk/about-jaguar/jaguar-business/community.html
[Accessed 17 April 2018].
Kimberly, A., 2017. What Is Competitive Advantage? Three Strategies That Work. [Online]
Available at: https://www.thebalance.com/what-is-competitive-advantage-3-strategies-that-work-
3305828
[Accessed 17 April 2018].
Lewis, J., 2018. Four Methods of Competitive Advantages. [Online]
Available at: http://smallbusiness.chron.com/four-methods-competitive-advantages-32344.html
[Accessed 17 April 2018].
MacInnis, D., 2018. 7 Ways to Gain or Maintain Your Competitive Advantage. [Online]
Available at: https://www.womensnetwork.com.au/Maintainadvantage
[Accessed 17 April 2018].
Monaghan, A., 2017. Jaguar Land Rover posts record sales thanks to demand in China and US.
[Online]
Available at: https://www.theguardian.com/business/2017/may/23/jaguar-land-rover-posts-
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LOGISTICS AND SUPPLY CHAIN MANAGEMENT- JAGUAR CASE STUDY 11
record-year-in-sales
[Accessed 24 April 2018].
PLC, J. L. R. A., 2016. Strategic Report- Jaguar Land Rover annual Report, s.l.: s.n.
Queensland, B., 2017. Your competitive advantage. [Online]
Available at: https://www.business.qld.gov.au/starting-business/planning/market-customer-
research/competitive-advantage
[Accessed 17 April 2018].
Rosano, L., 2008. What Is Sustainability?. [Online]
Available at: https://sloanreview.mit.edu/article/what-is-sustainability/
[Accessed 17 April 2018].
Rossolillo, N., 2018. [Online]
Available at: https://www.fool.com/investing/2018/02/12/why-jaguar-land-rover-could-become-
the-leader-in-e.aspx
[Accessed 17 April 2018].
Speth, R., 2016. SUSTAINABLE DEVELOPMENT POLICY. [Online]
Available at:
https://www.jaguar.com/about-jaguar/sustainability/sustainable_development_policy.html
[Accessed 17 April 2018].
Trefis, T., 2015. Tata Motors Earnings Review: Profits Decline For Both Jaguar Land Rover
And The Standalone Business. [Online]
Available at: https://www.forbes.com/sites/greatspeculations/2015/02/09/tata-motors-earnings-
review-profits-decline-for-both-jaguar-land-rover-and-the-standalone-business/#7080cc0166ab
[Accessed 17 April 2018].
Vizard, S., 2014. Jaguar Land Rover looks to cement brand positioning after record sales.
[Online]
Available at: https://www.marketingweek.com/2014/01/13/jaguar-land-rover-looks-to-cement-
brand-positioning-after-record-sales/
[Accessed 17 April 2018].
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