SWOT and PESTEL analysis for Jaguar Land Rover, Leadership style from Daniel Goleman's (2000) Leadership styles, Corporate Social Responsibilities(CSR)

This report covers SWOT and PESTEL analysis for Jaguar Land Rover, Leadership style from Daniel Goleman's (2000) Leadership styles, and Corporate Social Responsibilities(CSR). It includes opportunities, threats, strengths, weaknesses, political, economic, social, technological, environmental, and legal factors.

Context of Business

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................2
1.SWOT and PESTEL analysis for Jaguar Land Rover-............................................................2
Opportunities-.............................................................................................................................4
3.Leadership style from Daniel Goleman's(2000) Leadership styles-It divides the leadership
style into six styles which are as follows-...................................................................................5
Categories of CSR are as follows-..............................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
1

INTRODUCTION
Business means an enterprise engaged in trade,professional,commercial and industrial
activities. Business varies from sole proprietorships to international business from small and
large in size. The term business is used to define the activities and efforts to sell products and
services for profit. The organisation which is selected for this report is Jaguar Land Rover. It is
one of the largest car-makers and dealers in the world. It is a British multinational automative
company which manufactures sports vehicles and luxury vehicles with principal activity of
design,manufacture,development and sale of vehicles. It belongs to the exclusive beautiful and
fantastic piece of engineering cars segment. It has been a subsidiary of Tata Motors. This project
covers various topics such as changes in PESTLE factors influenced the overall business and a
suitable leadership style from Daniel Goleman's leadership style with Corporate Social
Responsibility(Rowley and Oh, I. eds., 2018).
MAIN BODY
1.SWOT and PESTEL analysis for Jaguar Land Rover
SWOT Analysis is a tool to ascertain the firm's strategic planning techniques used to help
a organisation to identify its strengths, weaknesses, opportunities and threats related to business
survival. Jaguar Land Rover is a successful global brand. It's cars are premium vehicle known for
its luxurious design from exterior to interior. It has been awarded because of its best engineering
products which made it as an international icon .It has been a subsidiary of Tata Motors , it has a
positive impact on the company .It is a largest car producing company and an old company. It
has established a good brand and image in Middle Eastern market in recent years.
 Strengths- Jaguar Land Rover is giving tough competition to all the competitors brands
of luxury segments. It is spending a lot on training and development of employees to
have motivated and well trained employees. This has created a high value for itself. They
also put a lot of efforts in research and development to provide every possible way to
face competition of the market. Jaguar has a good and crisp quality in terms of
advertisement which can be considered as a strength as it tends to attract the customers
towards the brand. Jaguar has an upgraded distribution channel which is quite helpful
emerging the economies for the organisation and hence it is considered as a strength. It
has been observed that Jaguar has huge funds and thus it has increased its investments in
2

research and development. Also the organisation has witnessed improvement in global
sales of Jaguar after the acquisition of Tata Motors (Oussii and Klibi, M, 2017).
 Weaknesses- Although it is popular in UK but it is not same globally like in Japanese
and German markets but still a lot needs to be done. Increasing competition in market
would lead to increase the risk of economical crisis. The weakness of Jaguar that can be
considered is that it has a very limited product range in comparison to the
competitors(Corallo, Lazoi and Lezzi, 2020). Also after the acquisition of Jaguar by Tata,
there has been reduction in the cost of the issues faced by the labour union.
 Opportunities- Technology is the new future. A lot of new features and focus can be
added into the auto manufacturer. Now a days ,People are spending more on luxuries
so,its a good time for Jaguar to increase its sale,earn more profits and lead the market.
Jaguar has an opportunity for expanding in the various markets of China, India as well as
Russia other than the markets of Europe and United states. This will help in market
contribution and expansion of Jaguar. The organisation has an opportunity of expanding
in the hybrid models of luxury cars which is untapped.
 Threats- As the prices are increasing the raw material is also getting costly that will
directly impact on the production of company. Bently, Aston, Martin, Porsche and Audi
are the strong competitors of Jaguar. Recession causes people to spend less so ,they cut
to spend on luxuries first. Jaguar prepare for changes by reducing the emission of CO2.
This is also a threat as emission regulations will cause Jaguar to spend additional
expenses to update and improve existing products and facilities. Brexit is a threat to the
firm as it creates political uncertainty and financial instability like recession is also a
threat. Most of the time ,people would spend less money on luxuries this will impact on a
firm like Jaguar (Doctor, 2017).
It is clear that company is enjoying a powerful place in market. By applying SWOT
analysis it is required to understand the impact in the market mix and provides a well tested
management methodology that helps to compare with other competitors to assess its business
performance.
PESTEL analysis for Jaguar Land Rover-
The PESTLE Analysis is applied and evaluated in context of Jaguar Land Rover below:
3

 Political Factors- The increase and decrease in tax rate by the government because
entering into high taxation level will directly affect the profitability of Jaguar Land
Rover(Coviello, Kano and Liesch, 2017).
 Economic Factors- Government has reduced its investment in the car industry that
directly affects the development of Jaguar. It includes cost of living,credit
availability,wage rates,credit availability,minimum wage,economic growth and decline.
 Social Factors- it keep on changing and can affect any business so, Jaguar has to be well
aware of the religious beliefs,ethical procedures, and values of the people living in certain
regions to ensure smooth relationship between customers and suppliers.
 Technological Factors- It is the fourth factor of analysing the rapid technological
improvement. Globally, it has improved the importance of understanding technological
factors during decision making process. Land Rover should invest in technology to
increase their profits and re-use the profits for future business innovations. Changes in
the climate and weather can affect the business environment like extreme weather
conditions can increase the operating cost of Land Rover .The cars have been introduced
with a intelligent system to properly use the efficiency .Jaguar is still improving and
developing its technologies. Land Rover should invest in technology to increase their
profits and re-use the profits for future innovations(Deva and Bilchitz 2017).
 Environment Factors- Jaguar is working hard to create a fuel efficient car designs by
adopting new advanced engines. Jaguar is making an effort to ensure the minimum
wastage of resources. It is also taking various environmental initiatives like promoting
the renewable energy resources. It has implemented various legislations to ensure the
minimum wastage and emission. Their is a growing trend of usage of eco-friendly
products, it requires company to prioritize and focus on marketing eco-friendly nature of
their products. Excessive resource depletion by Land Rover drew the negative impact
from media by customers,general public and environmental protection
groups(Yeshchenko and et.al., 2018) .
 Legal Factors- Jaguar has to get registered for its copyrights and patents to safeguard its
name. All the company laws must be considered before starting up a new setup or
product. The companies have to follow the laws properly to run the business operations.
To be more effective,Companies must use PESTLE on regular basis. Land Rover cannot
4

enter the market without having the knowledge regarding its legal environment. A close
evaluation is a must to avoid getting into troubles and undesired situations.
2. Changes in PESTLE factors has influenced the Opportunities and threats of business
PESTLE has affected the opportunities of business. The application of PESTEL
ANALYSIS has helped Jaguar Land Rover to determine their long-term effect on the business
and performance to review their strategies. It also provides the warning of threats and
opportunities to analyze the external trends .It can be a useful framework to use in Corporate
Strategy planning on how to tackle risk, resources and reduce threats. With the help of
PESTLE ,one have the ability to go through the changes and make a plan to manage profit or
loss.
Opportunities-
 The GDP Growth determine the Land Rover ability to pursue its long term growth
strategies .High GDP helps customer to spend more on the luxury items that will directly
help the company.
 High political stability provides a stable and friendly business environment with market
growth trends that leads to the growth of the company.
 It enables an organisation to anticipate threats and future risk because it encourages
strategic thinking and helps to evaluate how strategies fit into the wide environment.
 It helps business to decide whether to modify the product or launch the new product
because PESTLE analysis has market insights that helps to know about the response from
customers about products and services.
Threats-
Changes in PESTLE factors has influenced the threats of business as ,frequent changes in
the governmental policies harm the overall performance of Jaguar and this can be a threat for the
company. It is essential for Jaguar to study the new trends of political scenario.
 Corruption negatively influence the business environment because operating in countries
with high corruption level makes the business environment risky and unpredictable. If it
decides to enter in market with the corrupt system it will threaten the development of
company and its performance.
5

 If government brings new tax reforms that will change the whole revenue system of the
company. A rise in the economy would affect the purchasing power of a consumer and
company's products and services.
 Technological developments like new updates and machine learning -if a company fails
to match up the trend then it may lose its position in the market with its competitors .
 Changes in aging population ,migration, socio-economic trends. It has to go through the
culture and e-commerce behaviour among consumers to understand their customer's
behaviour, spending patterns and interest(Renkes and Sommer, 2019).
 Brexit is a threat to the firm as it creates political uncertainty and financial instability like
recession. It is also a threat that causes people to spend less. Most of the time ,people
would spend less money on luxuries this will impact on a firm like Jaguar(Miles, E.W.,
2017).
3.Leadership style from Daniel Goleman's (2000) Leadership styles
As per Daniel Goleman there are six styles of leadership that builds a positive company
culture and make a boring job more enjoyable
 Affiliative leadership style- It is the most appropriate style to develop and maintain
positive relationship in an organisation and it is all about the people. This style focuses on
coordinating with team and try to solve every conflict to create such a environment where
everyone feels wanted and valued. It's purpose is to create harmony among leaders and
individuals. This system motivates individuals by supporting them in stressful times(Lan
and Liu, 2017).
 Pacesetting leadership style- This style is essential as it sets example for others to
learn,follow and focus on meeting the stake-holder's expectations. It is used for getting
quick result from a highly motivate team. It is related to excellence. It works best in the
initial stage of the company's life cycle in technical fields. It can be a powerful tool for
achieving remarkable net results. It is utilised to attain short-term results, and motivation.
Main thing is that it should be used when it is required in specific situations only.
 Coaching leadership style-Generally ,leaders tend to forget that they work with humans
who have feelings ,not with robots. Many business truly need the coaching leadership
style to feel appreciated and respected(Wang and Warn, 2018).
6

Jaguar can use Affilative,Pacesetting and Coaching Leadership style as per the various scenario
in the organisation by setting higher standards to enhance their performance,productivity and
results. Employees will be highly self-motivated therefore,they will meet the high-performance
standards. These leadership styles boost employee satisfaction that will lead to improve
productivity through genuine enthusiasm
4.Corporate Social Responsibilities(CSR) –
 CSR is a thoughtful and practical way to give back to society .Consumers mostly like to
work or purchase goods from companies that are socially responsible. One can also raise
brand awareness by being featured on donor recognition walls.
 It is a model that helps a company to be socially accountable to its clients, public and its
stakeholders. It boosts up the morale in the workplace and it helps the society for its
sustainability and community welfare.
 It is a modern approach to run a business and a way of describing how companies
measure and control their impact over society. This includes both negative and positive
contribution of a company.
 It is beneficial to firms because it improves the brand image and when customers or client
see evidence of social responsibility they tend to respond positively.
 It adds value to firms by establishing and maintaining a good corporate and brand
reputation. It is related to the moral and ethical efforts made by company for the
betterment of society(Dhir, S., 2020).
 It impacts companies,employees and society. It is a strategy that companies put into
action as part of corporate governance that are designed to ensure the company's
operation are ethical and beneficial for society has become a mandatory practise to have
a positive influence on the world.
 Many company take CSR as an integral part of their brand image. CSR activities can be
an important component of corporate public relations. Customers of a firm that practices
CSR feel that they are helping the firm for good causes.
 It creates a impact in several domains like many companies have taken to improve
environmental sustainability of their operations(de D’Amico, R.L., 2019). CSR is an
opportunity for companies to demonstrate their good corporate citizenship and protect
7

company from risks by taking care of social and environmental sphere that surrounds the
company.
 Although CSR programs have generally been most common among large
corporation ,small businesses also take part in CSR through small scale programs like
sponsoring local events,charities and donating to local groups.
Jaguar Land Rover they all desire to deliver the class-leading vehicles. They are committed to
growing business responsibly and sustainably,so that add value to our customers ,company and
wider economy(Freeman, Parmar and Martin, 2020). It aims to create opportunities for 12
million people in our local and global communities. It operates through projects in different areas
like talent,education,well-being,health,and education. There are several forms of CSR like
community projects,donations that attracts better employees and improves company's reputation.
When it is correctly applied ,It genuinely helps the society to become more proactive. Different
forms of CSR are as follows-
1. To avoid use of harmful chemicals during production process. Reducing the
wastage,changing harmful working methods ,recycling and donations.
2. To make sure employees have a healthy work and life balance.
3. To make sure that no animal is tested in any supply chain.
CONCLUSION
This report concludes that SWOT and PESTLE Analysis are an essential concept in an
organisation. The report focuses upon the SWOT and PESTEL analysis for Jaguar Land Rover.
With this PESTLE analysis of Jaguar Land Rover, it is very clear that it is a global brand in the
market. The main threat is political instability between the governments. In term of uniqueness
and reputation , Jaguar is still number one and has a unique global automotive modern luxury
design. In short ,It is doing really well in the relevant industry by adopting new
technologies ,they can expand into different regions and can easily attract more new customers.
8

REFERENCES
Books and Journals
Corallo, A., Lazoi, M. and Lezzi, M., 2020. Cybersecurity in the context of industry 4.0: A
structured classification of critical assets and business impacts. Computers in
industry, 114, p.103165.
Coviello, N., Kano, L. and Liesch, P.W., 2017. Adapting the Uppsala model to a modern world:
Macro-context and microfoundations. Journal of International Business Studies, 48(9),
pp.1151-1164.
de D’Amico, R.L., 2019. Socio-political context in which the business of women’s sport takes
place in Latin America. In Routledge Handbook of the Business of Women’s Sport (pp.
280-291). Routledge.
Deva, S. and Bilchitz, D. eds., 2017. Building a treaty on business and human rights: context
and contours. Cambridge University Press.
Dhir, S., 2020. Developing a scale to measure institutional effectiveness in the context of Indian
business schools: Using exploratory factor analysis. Global Business Review,
p.0972150920957603.
Doctor, M., 2017. Brazilian business and Itamaraty in the PT era: foreign policy-making in the
context of ‘graduation dilemmas’. International Affairs, 93(3), pp.643-660.
Freeman, R.E., Parmar, B.L. and Martin, K., 2020. BUSINESS AND ETHICS (pp. 129-140).
Columbia University Press.
Lan, F. and Liu, X., 2017. Business model transformation in digital enablement context through
frugal innovation: learning from Chinese experience. International Journal of
Technology, Policy and Management, 17(4), pp.360-373.
Miles, E.W., 2017. Historical context and insights for criticisms of the 21st century business
school. Journal of Education for Business, 92(5), pp.245-254.
Oussii, A.A. and Klibi, M.F., 2017. Accounting students’ perceptions of important business
communication skills for career success: An exploratory study in the Tunisian
context. Journal of Financial Reporting and Accounting.
Renkes, F. and Sommer, C., 2019. Blockchain in the context of business applications and
enterprise databases. BTW 2019.
Rowley, C. and Oh, I. eds., 2018. Business Ethics in East Asia: Examples in Historical Context.
Routledge.
Wang, Y. and Warn, J., 2018. Chinese immigrant entrepreneurship: Embeddedness and the
interaction of resources with the wider social and economic context. International Small
Business Journal, 36(2), pp.131-148.
Yeshchenko, A., Durier, F., Revoredo, K., Mendling, J. and Santoro, F., 2018, October. Context-
aware predictive process monitoring: The impact of news sentiment. In OTM
Confederated International Conferences" On the Move to Meaningful Internet
Systems" (pp. 586-603). Springer, Cham.
9