Environmental Analysis of Land Rover Company in COVID Pandemic

This report analyses the impact of COVID-19 on Land Rover Company and the automobile industry. It provides an overview of the company, analyses the problems faced by the company, and assesses the impact of COVID-19 on the automobile industry. The report also assesses the survival and success factors for the industry with consideration to the mega trends.

Environmental
Analysis of an Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Overview of Land Rover Company............................................................................................3
Analysis of company's problem..................................................................................................3
Impact on auto-mobile industry in COVID pandemic................................................................4
Assess survival and success factors for the industry with consideration to the mega trends......5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Environmental analysis is a method which is used by organization for identifying the
applicable factors which have a direct or indirect effect on the organizational functions. The
motive of using this method by organization is to study the current market scenario. This report
is prepared on the basis of secondary data which includes newspapers, articles, magazines and so
on. This method also helped to increase the favourable situations towards the company which
leads to enhance their profit in long run. The company which is chosen for analysing the market
environment are Land Rover. It also highlight the operational activities of the Land Rover which
was carried by them at the time of COVID 19. In this report various problems are also described
which are faced by organization at the time of COVID 19. In COVID 19 the unemployment rate
are highly increased in company which leads to decrease the organizational growth. This report
is also based on the effects of CONID which was faced by the organization. In this report various
factors and challenges are also described which was considered by Land Rover for increasing the
growth and productivity of organization.
MAIN BODY
Overview of Land Rover Company
Land Rover is multinational luxurious vehicle company and it is also popular for the off
road capable and four wheel drive vehicles in market (Ali, Kaur and Jaramillo, 2018). The
company was established in 1948 by Jaguar Land Rover and is headquartered in United
Kingdom. Their manufacturing units are situated in various other locations also which includes
China, Brazil and India. It is one of the company who is highly focused on the quality in their
product for achieving success in the long run. It is one of the company which is highly focused
on the mid and upper class segments. According to various segments they facilitate various
specifications in their models to customers. Models include Freelander, Land rover defender,
Range rover and so on. But in COVID 19 the revenue of this organization decreased because in
COVID the purchasing power of the customers are decreased.
Analysis of company's problem
Automobile is one of the biggest industry who operate their functions globally and also
maintained good relations with customers. But in COVID 19 their sales and productivity of the
organizations are highly decreased. The other reasons for decreasing the work efficiency of

organisation are Firstly, increasing the prices of the vehicle equipments and their vehicle which
leads to decrease the demand of the product by the customers. The reason for increasing price in
their product are due to government restrictions company faced shortage of raw materials by
suppliers for producing best quality product. In COVID the prices of the fuel are also highly
increased and due to increasing price new and existing consumers did not avail their product and
services.
Secondly, in COVID 19 transport facility are highly decreased which leads to decrease
the portfolio of organization (Azam, Alam and Hafeez, 2018). Due government restrictions
transport facility are fully stopped and it creates negative impact on company and customer. Due
to this reason supply chain management are not effectively maintained by company. This leads
to increase the delivery time of product which is not liked by consumers. This leads to increase
the bad relation between company and customer.
Thirdly, increase of pressure by the top level management towards lower level
employees. It occurs because in COVID pandemic the organization started to loss the customers
due to their less productivity of employees in organization. Due this reason Land Rover initiated
flexibility in the work of employees which impact to increase the productivity of employees.
Impact on auto-mobile industry in COVID pandemic
Land Rover is one of the company which is highly focused on quality of product,
maintaining customer satisfaction level, increasing their profit and others. But in covid pandemic
company faced lots of problems for running the company properly which are described below -
 Closing of manufacturing unit – Manufacturing unit refers to the workplace where
products and equipments are produced for serving the best quality products to customers.
In context to Land Rover, management faced lots of difficulty for serving best quality
equipments to them (Susanty, Tjahjono and Sulistyani, 2020). Because due to lock-down
manufacturing units are closed in different locations which impacts to increase the work
load of the company. Due to workload company are not able to deliver the products to
customers in time. Shutting down of manufacturing units creates negative impact to
employees also. It means that large number of employees are terminated from
organization for managing their expense of their operational activities.
 Drop in the sales of vehicles – It means decreasing the sales volumes of vehicles which
leads to decrease the market share of the company. In context to Land Rover, company

has the large market share in China and UK. But due to lockdown and increasing case of
the covid impacts that demand of new vehicles are decreased by customer (Genç, 2018).
Customers also stopped to visit the showrooms of company which leads to decrease the
popularity of their product. The other reasons for declining the sales of vehicles are
distribution channels are not worked properly in COVID. Because distribution channel
played the major role for maintaining good relation with customers for a long time.
Without proper distribution system customers are able to avail the services effectively.
 Liquidity – Liquidity basically refers to the investment, profit or the market share which
was made by the company. And these liquidity is very essential for manage the overall
expense of employees and organization. In context to Land Rover, companies faced lots
of difficulties to receive the funds from stakeholders for managing the expense of
organization. It impacts that due to the limited liquidity company stopped the
manufacturing of base models of their vehicles which is not profitable for them. These
base models of the vehicles are not purchased by any customers. For maintaining
liquidity in organization management also reduced the wages of the employees which
leads to decrease the stability and productivity of the organization.
 Increasing unemployment rate – In COVID employees are terminated from the
organization in large number. In context to Land Rover, management implement this
strategy to terminate only those employees whose performance are not good. Because in
training and development activity large investment are made by company for manage the
employees properly. Due to this reason it is necessary for organization that they must
remove those employees who are not learning any thing from training and are not series
about their job. It impacts the organization that departmental functions are not worked
smoothly. It also damaged the effective communication between top, middle and lower
level management.
Assess survival and success factors for the industry with consideration to the mega trends
The factors which are used by organization for increasing their success and growth
during COVID pandemic are described below -
 Use of AI Technology – AI refers to artificial intelligence and technology is very
essential to run the production and operational activities smoothly in organization. In this
technology machines do all the work of the employees with the singe switch. In context

to Land Rover, management used this technology for making the work easy in workplace
for employees (Kelsey, 2018). According to current trends this technology is highly
efficient and productive and task are completed in less time. In covid pandemic, company
made high investment in technology for manufacture best quality product. In artificial
intelligence equipments are programmed by technicians according to the work.
Technology also helped to decrease the stress of employees because mostly difficult work
are done by machines.
 Effective organization structure – It is a very essential element to run the organization
systematically from top to lower level management. It also helped to maintain good
communication between the employee and employer for achieving the organizational
vision, mission and objectives. In context to Land Rover, management established
effective infrastructure in the workplace for employees. These infrastructure are initiated
according to safety standard guidelines which was implemented by government. It leads
to increase the work efficiency, interest and passion of employees towards their job in
organization. Effective structure also helped to reduce the wastage in workplace and also
increased the profit of organization.
 Training and Develop – It refers to facilitate proper guidance and instruction to
employees in the form of training for a particular time period. In context Land Rover,
management providing various training to workers for polishing their skills and talents
(Kostić, Ratković and Forlani, 2019). It leads to increase the potentiality of employees to
do the job in long hours. Skills and talents helped the employees to achieve the target and
handle the employees smartly. Training and development also helped employee's to
analyse the critical situations which was occurred in operational and production activities.
It means with the help of training problem solving ability of employees are highly
improved in organization. And these development helped workers to handle the
customers smoothly in any situation.
 Maintaining level of customer satisfaction – It is a very important element for company
to maintain good relation with them in long run. In context to Land Rover, management
used various policies which is highly beneficial for customers. It includes free
replacement of body parts, Two or three times of free service policy of vehicle and so on.
It leads to increase the customer satisfaction level. Because for consumer in any situation

best quality service is very important for their product (Lee, Hung and Li, 2019). In
today's time company also established feed back system and in this system management
asked directly received feedback from customer after servicing the vehicle. In this way
company understand that the customer are satisfied or not.
For reducing the covid situations organization used these strategies and it largely effect
the growth and performance of organization (Pantouvakis and Vlachos, 2020). These strategies
also helped company to attract the customers in large number which leads to increase the
purchasing power of consumers. All these strategies helped organization to maintain better
relationship with consumers for a long time. In covid company followed the rules and
regulations which was initiated by government which leads to achieve their objectives, vision
and mission successfully. For reducing the impact of covid company made lot of investment in
research and development department. In this departments various innovations are introduced in
the product. Because innovation is very essential for develop unique products from competitors.
When product are different in the aspect of design and specifications then definitely the desires
of consumers are easily increased to buy the product. Then that type of customers become loyal
towards company for long time and the positive word of mouth are also increased by customers
to others. And these positive word of mouth helped to increase the popularity of their company
globally and their market shares are easily increased. Market share are also important for
company for managing the overall expense.

CONCLUSION
From the above information it is understood that environmental analysis is very essential
for run the operational activities of the industry smoothly. Without proper environmental
analysis company are not able to understand the impact of the covid pandemic properly which
was faced by organization. This method also helped organization to use analyse those factors
which are responsible to overcome the effects of covid challenges in company. In this method
various strategies are also used for analysing the environment properly which includes PESTEL,
SWOT and others. With the help of these methods productivity of the employees and
organization are highly increased. It also helped to maintain good relations with stake holders for
long duration especially with suppliers. Because suppliers are very important for receiving the
raw materials in time for producing best quality product in workplace. Therefore company is
highly focused on serving quality produ8ct and service to consumers which necessary for
receiving positive feedback from consumers.

REFERENCES
Books and Journals
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in Indian automobile industry using interpretive structural modelling and its validation
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Azam, M., Alam, M. M. and Hafeez, M. H., 2018. Effect of tourism on environmental pollution:
Further evidence from Malaysia, Singapore and Thailand. Journal of cleaner
production, 190 pp.330-338.
Genç, R., 2018. Catastrophe of Environment: The impact of natural disasters on tourism
industry. Journal of Tourism & Adventure, 1(1) pp.86-94.
Kelsey, N., 2018. Industry type and environmental policy: Industry characteristics shape the
potential for policymaking success in energy and the environment. Business and
Politics, 20(4) pp.615-642.
Kostić, M., Ratković, M. and Forlani, F., 2019. Eco-hotels as an example of environmental
responsibility and innovation in savings in the hotel industry. Menadžment u
hotelijerstvu i turizmu, 7(2). pp.47-56.
Lee, J. M., Hung, S. W. and Li, C. M., 2019. Firms’ profitability from firm-specific factor,
environmental turbulence, and macroeconomic: Evidence from Taiwan’s food industry–
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Pantouvakis, A. and Vlachos, I., 2020. Talent and leadership effects on sustainable performance
in the maritime industry. Transportation Research Part D: Transport and
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Susanty, A., Tjahjono, B. and Sulistyani, R. E., 2020. An investigation into circular economy
practices in the traditional wooden furniture industry. Production Planning &
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