Environments Models and Strategic Decisions for Jaguar Land Rover

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Impact and influence of the macro environment..............................................................1
P2. Analysing the internal environment and capabilities.......................................................3
3.Analysis using Porter's Five Forces model .........................................................................6
4.Application of range of theories, concepts and models.......................................................7
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
A Business strategy involves the decisions and actions taken to accomplish business
objectives and gain a competitive advantage in the firm. It is considered to be the backbone of
the business which helps to achieve desired goals. With continuous increase in competition, the
importance of business strategy is increasing day by day. The organization chosen for this report
is Jaguar Land Rover. It is a British multinational automotive company founded in 2008
headquartered in Coventry, United Kingdom. The company mainly deals in sport utility vehicles
and luxury vehicles. In this report, it includes how the macro environment impacts and influence
an organization and its strategies. In addition to that, it includes organisational capabilities and
outcomes of analysis using Five forces model with models and theories in order to interpret
strategic decisions in organization.
MAIN BODY
P1. Impact and influence of the macro environment
In order to analyse the impact and influence of the macro environment, PESTEL analysis
need to be carried out. Jaguar is popularly known as the world class manufacturer and reflects the
best in terms of design and cost in auto mobile industry.
PESTEL Analysis (Jaguar Land Rover) -
PESTEL analysis stands for Political, Economic, Social, Technological, Environmental
and Legal factors that affects and influences the macro environment of an organization. In
context to Jaguar, the company is focusing on expanding its core capabilities and competencies.
The use of PESTEL analysis will help in achievement of long-term objectives and development
of effective strategies(Anderson, 2019).
 Political factors: Political factors creates a strong influence on profitability and
sustainability in long run. Its presence in international stage results in increasing the
company's sensitivity in order to deal with political environment. Instability and growing
tensions can affect the industry growth and results in limiting the opportunities for
growth. Jaguar operates its business worldwide and the political factors affects the
working and business operations of the company. The various political factors that affect
the Jaguar Land rover includes Democracy, Transition of government, changes in policy,
Political Governance system etc.
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 Economic factors: Economic factors involves factors such as profit price, demand and
supply factors. Slowdown in economic environment can affect the business operation
which can turn into the risk factors for the company (Brønn and Brønn, 2018).In context
to Jaguar, it’s important for the company to understand various economic factors
including inflation, savings rates, conditions, labour market and foreign exchange.
 Social factors: The social factors involve changes in society and culture which plays a
very important role in any organization. Due to various social changes and trends, the
business operations are affected. In order to handle these changes, the company need to
be well aware of religious beliefs and value of people living in various regions. In context
to Jaguar, the Muslim workers have been given relaxation to pray during day at Jaguar
and when it comes to Christian workers they are specially allowed to take an off on
Sundays.. In order to perform its operations smoothly, the company need to meet up with
ethical procedures and maintain a healthy relation between customers and
suppliers(Galpin, 2020).
 Technological factors: There is a major impact of technological factors on an
organization. Innovation and advancement of new technology helps to bring success and
development to the organization. In context to Jaguar, it is known for cutting-edge
innovation in its manufacturing and car design. With its expertise in aluminium
technology, the company has provided efficient cars with light weight features. The e-
performance models optimize the cars efficiency. In order to save both resources and
time, the company has also established an Automotive Virtual Reality testing workshop
 Legal factors: The operations of the company are directly influenced by government
legislatives and policies. In order to survive in a new consumer market, it’s important to
study the legal environment. In order to save it from various legal laws and factors, the
companies need to fulfil the employee rights and trade laws stated by government in
order to carry out business operations successfully. The companies need to register its
copyrights and patents to avoid selling of Commodities.
 Environmental factors: The company gives importance to address the issues related to
environmental factors. The environmental factors affect the business operations. In
context to Jaguar, the organization is working their best to create a fuel efficient car with
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