SWOT and PESTLE Analysis of Jaguar Land Rover

This report provides a SWOT and PESTLE analysis of Jaguar Land Rover, discussing its strengths, weaknesses, opportunities, and threats. It also covers changes in PESTLE that can create opportunities and threats, leadership styles, and corporate social responsibility. The report includes a discussion of how the company addresses its strengths over its weaknesses and threats.

Context of Business
and report on Jaguar
Land Rover

Table of Contents
INTRODUCTION .............................................................................................................................3
SWOT and PESTLE Analysis of the organisation........................................................................3
Changes in PESTLE that can create the opportunity and threat...................................................6
Leadership styles to meet the business objectives.........................................................................8
Corporate social responsibilities....................................................................................................9
CONCLUSION ...............................................................................................................................10
REFERENCES.................................................................................................................................11

INTRODUCTION
Context in business helps to provide the introduction of business environment and it's key
function. It encompasses the understanding of those factors that affect an organisation from
various perspective by including that how decision are made and what the organisation want to
accomplish. A business is run with the purpose of profit maximization. To implement a business
plan it need to consider about the goal. Business environment is a collection of those internal and
external factors that can impact a business. To operate a business it require the awareness about
government's rules and regulations. A business should analysis SWOT and PESTLE analysis to
run business efficiently. The organisation chosen in this report is Jaguar Land Rover which is a
British multinational company and produce the luxury and sport utility. It was established 2008
and situated in UK. This report will include the SWOT and PESTEL analysis, how PESTEL is
influencing the opportunities and threats, different types of leadership and corporate social
responsibility is discussed which are adopted and practised by the business enterprises
(Abbasghorbani, 2018).
TASK
SWOT and PESTLE Analysis of the organisation
It is an essential tool which is used by the Jaguar Land Rover to gain the knowledge about
their company's strong part and weak parts. They identifies their opportunities by eliminating their
threats. They also comprise threats and weakness that the company faces (Culot, Orzes, and
Sartor, 2019).
Strength
 Popularity- Jaguar Land Rover is a popular brand among the luxurious auto-mobiles. It
always try to stay away from any type of controversy.
 Workforce- It has skilled and well trained workforce which deliver very beautiful cars
with high performance to the customers.
 Increasing sales- Their increasing sales shows a kind of goodwill that they have earned in
market. They have a steady growth sales after the acquisition by Tata Motors

Weakness
 Product range- Jaguar Land Rover has a good range of luxurious cars. But, in comparison
to their competitors they have less range.
 Brand- It is very popular in the United Kingdom, but not a top selling brand in other
markets. It still a lot of needs to be done in other markets.
 Price- Jaguar Land Rover charge very high price for their cars in comparison to the SUV
and the other luxury cars, that is not affordable for mostly peoples.
Opportunities
Target new market- By targeting the new emerging markets like China and India, it can get the
untapped customer's potential.
 Technology- Many auto manufacture focusing on the Hybrid technology. Jaguar Land
Rover can expand their market in an effective way by by adopting this method.
 Demand- Due to a rise in disposable earning of peoples, they spends more on the
luxuries. It is very good time for Jaguar to boost their revenue.
Threats
 Competition- Jaguar faces a tough competition from Bently, Porsche, Mercedes and
Audi etc. These are very good player in market with same target demographic.
 Government policies- Due to the fuel friendly technologies, government decide to change
their policy for the environment, which can create major challenges for the Jaguar.
 Financial stability- The financial instability like inflation, recession or depression reduce
the consumption level of the individuals. It can impact the brand pretty hard on their sales.
PESTLE Analysis of the Jaguar lend rover
It is that framework which help to analysis the key factors that include a business This
analysis is very essential and used by the business organisation to determine macro economic
factors that affect heir business. In context of Jaguar lend rover, they have six factor which affect
on the macro level which are given below (Dilek, and et. al., 2018).
 Political- These are those factor which identifies that what extent a government can
influence an economy or industry. It include the government system in a country and their

politically stability. The government policies can impact an organisation situated in the
other country. In context of Jaguar land rover, it is affected by the corporation tax. It is
imposed by government as the alternate source of their revenue separate from the other
taxes. If the government will raise this tax, the the Jaguar would suffer by less profit
margin to fit the weakness that they have
 Economical- These factors determine the performance of an economy and directly impact
a business with the long-standing effects. It can be the stability and prosperity of a country.
In relation to the Jaguar, it can affect this company by the inflation rate. High level in the
inflation rate will result in cost borrowing large portion of the money is going to increase.
Due to this, Jaguar have to pay more when it take out loans. This affect Jaguar when they
trade internationally ( Fozer, and et. al., 2017).
 Social- In this, it determine those factors which influence social environment of a market
in which the business working. This factor is very helpful in making the better strategic
plan for the organisation by determining the demands and needs of their customers It
include elements such as demographic, population and the cultural trends etc. in case of
Jaguar land rover, the lifestyle of peoples affect this company. With the rising of people's
disposable income, they tends towards good and luxurious cars that the Jaguar sells. For
this, the company have to provide a wider range of cars with advancement.
 Technology- These components are related to the technological innovations that impact
the operational capability of an organisation. This is related to the technology advancement
and innovation impaction of the organisation performance which includes the factors of
artificial intelligence, automation etc. In context of Jaguar land rover, it is impacted by the
use of social media such as twitter, Facebook, LinkedIn etc. This factor introduce a great
opportunity for Jaguar to gain the potential customer's attention. They can advertise their
product very easily in a cost effective manner. They can spread their brand awareness and
connected peoples on the global scale with the use of online observation. It is helpful for
them to get the information about their customer's opinion (Fu, and et. al., 2018).
 Legal- These factors are related with certain legal laws which affect the business
organisation as they are ever-changing considering the factors of legislation, laws related
to the employees safely etc. These factors have both the external and internal sides that
affect an organisation. It include the changes to legislation, protect employees for the

discrimination and export/imports taxation etc. In case of Jaguar land rover, the
discrimination law of Equality act 2010 can impact their business. If the are engaging with
some kind of discrimination related to the age, gender disability, then they have to face the
legal actions. These legal factors impact the business operation of Jaguar in case of
avoiding any legal rules and regulations (Gallego-Álvarez, and Ortas, 2017).
 Environmental- This factor considers surroundings in environment which affects
ecological aspects of organisation such as the Environmental protection laws, sustainable
development, waste disposable laws etc. These factors determined or influenced the
organisation in the form of location, weather tourism and geographical. In context of
Jaguar land rover, the tourism affect it by creating s boom in their revenue. With the
increasing income of peoples they looks for a luxurious vehicles contain those feature,
which they may not find in their own country. This company's engine is very efficient
because of technological improvement offer the class-leading sustainability (Kurmanalina,
and et. al., 2020).
Changes in PESTLE that can create the opportunity and threat
There are the opportunities and threats of PESTLE analysis of Jaguar lend rover. In this, it
is described that how the macro factor is become an opportunity and threat for the organisation.
Which are given below:
Political- Corporation tax
 Opportunity- By paying this tax, they have the opportunity of gaining trust from the
customers and also run their business without any politics's adverse impact.
 Threats- Jaguar is situated at many locations, by paying this of every branch they have to
face the loss of margin that can impact their finance.
Economic- Inflation rate
 Opportunities- To reduce the inflation rate, they can bring such types of techniques or
ideas, that will decrease these rate and it will attract more customers.
 Threats- The inflation rate can impact the company by loosing their customers. Because
they will be not able to buy such expensive cars or they will be shift on another brand.

Social- Change in lifestyle
 Opportunities- Lifestyle of a person is change with their earning potential and they
demand a luxury car, Jaguar will keep up these demands and increasing their sales.
 Threats- If their customers are in debt, that means they are not able to afford this brand
new luxury car. Due to this, Jaguar are going to be getting the less revenue.
Technological- Social media
 Opportunities- Jaguar have the opportunity of to reach the audience at globally and also
spread their message at a wide area in less time. It will help then to increase their sales.
 Threats- social media, is a threat because there is chances of stolen data and security
breach. There are some other loopholes such as hacking data which has adverse affect on
the company's image.
Legal- Equality act 2006
 Opportunities- By this factor, they have the opportunity to attract customers because of
equality and fair remuneration. It will also create a bond between the employer and
employees.
 Threats- If Jaguar does not comply with theses laws then, they have to faces the legal
consequence, which are not beneficial for them and destroy their brand image.
Environmental- Tourism
 Opportunities- Tourist with high income may buy cars of Jaguar with the purpose of
getting some new features, that they can not find easily in other cars.
 Threats-The tourism could provide Jaguar with the increasing completion from their
competitors, as this is where tourist are spending more money.
How company address their strength over their weakness and threats
Jaguar land rover can minimize their weakness by adopting their strength and find out new
opportunity which help them to survive in the market at top position. Jaguar has a brand
popularity, by using it they can cover a wide area the another country's market and target the high
level customer base. They have the skilled workforce which help them to face competition in the
market by producing cars with some creativity and effectiveness. This company can reduce its
imperfection by taking the opportunity of expansion at the global level. It can offer their

customers discounts and offers to attract them . This also allows them to bring some innovations
into their goods that are not found in other company's products. There is a high demand of their
luxurious car, by meeting these demands they can become financial stable and there is not great
impact of inflation on them. The Jaguar land rover can invest in technology, which helps them to
enhance its ability to grow in competition by introducing the modern techniques into its business
operations. The use of new methods of manufacturing goods lowers production costs, which
ultimately helps to increase revenue. They have a good sales growth which they can use to
improve their profitability and maintain an affordable price for the customers, so that they can
purchase it. Thus, Jaguar land rover can overcome from their weakness and improve their
strength in and efficient way (Lytras, , Raghavan, and Damiani, 2017).
Leadership styles to meet the business objectives
Leadership is the ability of leading and influencing other. A leader in the organisation
inspire employees and encourager them to complete their task to accomplish their common goals.
Leadership style is an approach that provides orientation, the implementation of plans and the
motivation of employees. In context of Jaguar land rover, it uses Daniel Gold man's leadership
style. It conation six leadership style which are given below:
 Coercive leadership style- It is a commanding or directive leadership style. It is used at
the time of to fix an issue quickly and effectively. Commanding leaders tend to an exert
full control on everything. It has a negative correlation with the teams climate and it is
specially detrimental to the concept of flexibility and responsibility in the team.
 Authoritative leadership style- It is a visionary leadership style. In this, the leader give
directions to their follower to achieve a common gaol. And let them reach this goal in
which ever way they deem appropriate. It bring people together and work cooperatively
towards the same end goal (Nair, Chellasamy, .and Singh, 2019).
 Affiliative leadership- This style is all about the peoples. In this, they want a positive
work environment for the employees or followers. The team very rarely receives the
actionable advice or the corrections. This style create a right level of the family feeling
with in teams. it require the emotional intelligence and empathy.
 Democratic leadership style- In this, leadership style, the empowered teams has the right
to take part in company's decision making process. The employee's can bring foreword

their ideas and suggestion related to their decisions. It s an effective leadership style, but
often it is very slow when there is a need of quick decision (Phippen, . and Lacohée,
2017).
 Coaching leadership- This style focus on the personal development of team members
more than sales goals and work related quotas. They work to achieve the excellence that
works well for the employees who are open for their improvement. It is a time consuming
leadership and also require a lot of skill on part of a leader (Sane, 2019).
 Pacesetting leadership- In this, the leaders or mentors are obsessed with the perfection.
To boost their performance result, they set the high rand higher standards to achieve the
goals. It contributes to team members resonance by the meeting challenges and their goals
together which give a sense of accomplishment. This style can be extremely powerful
mean to achieve the remarkable net result.
Form this discussion, it is find out that the democratic leadership styles are very suitable for the
Jaguar land rover as it will allows them for more efficient problem solving by using potential
solutions. Teams members are supposed to comes up with new innovative idea and creative
solution. In this, there is employee's involvement in decision making that will lead a good
relationship between the employees and the workers. It strengthens the relationship of a team. It is
built on the assumption that the involvement of worker in decision making is a healthy way for
the organisation to operate. This leadership style, encourage honesty at the workplace. Due to this,
it is helpful in increasing the moral and job satisfaction among the employees ( Sasaki and et.
al.,2017).
Corporate social responsibilities
It is a management concept in which the organisation integrate the environmental and
social concern in their business operation and the interaction with their stakeholders. It is a self-
regulating business model which is very helpful for an organisation be socially accountable for the
public and their stakeholders. To enhance the environment and society,the companies are uses
CSR . The main purpose of CSR is to pursue the companies other social responsibilities with the
profit maximization. This model helps both the society and brand image of a company. The
corporate responsibility programs are such a great way to raise moral at the workplace. The CSR
is an internal organisational policy that time has passed as the various national and international

laws. In context of Jaguar land rover, it has has always taken its responsibility of their
customers, employees, partners, suppliers and local communities seriously. It has also record the
growth with maintaining their corporate social responsibility principles. They get the award for an
improvement in its environment performance and the investing in communities to develop their
future workforce and also ensure their growth at a reasonable business. due to this , it is going
vastly to improve their public image and their customer s are gain to perceive the company as a
high ethical one. The Jaguar also increased their investors to rise as they are going to have the
investors confidence in the future investment's stability. They feel very confident that their
investment is going to rise in the value that comes from a bull market. They have won the business
in the community in 2013 and the responsible business of the year award for the Jaguar land
rover. It also having a partnership with many schools. There are robots and models are shown to
younger peoples so that they can introduce them to an engineering profession and the work based
instructions ( Susomrith, and Suseno,, 2017).
CONCLUSION
From the above report is it concluded that, the PESTLE analysis determine the positive
and negative impacts on the business. An organisation also take some steps to reduce their impacts
on their performance. In this report, the Jaguar land rover has one SWOT analysis in their strong
and weak points are identifies. It also determines their opportunities and threats. They have some
positive and negative impact of PESTLR analysis. They uses their strength to overcome from their
weakness and also uses opportunities to eliminate their threats. The organization undertake
democratic leadership style, by allowing their employees to take part in the decision making
process. It is very useful for them and also help them to make environment friendly employees.
They bring some innovations which give them a support to increase their market and create a
brand image in other market. The company pays special attention to corporate social responsibility
by doing partnership with schools and encourage the young generation for innovations. They
efficiently fulfil their social responsibilities.

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