Value Chain Model and Internal Environment of Jaguar Land Rover

This essay discusses the value chain model and internal environment of Jaguar Land Rover, a leading automotive company in the UK. It explores the primary and supporting activities of the company's value chain and their impact on its competitive advantage. The essay also highlights the importance of value chain analysis in understanding the internal business environment.

Project

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Value Chain Model......................................................................................................................1
Jaguar Land Rover.......................................................................................................................2
Internal environment....................................................................................................................3
Reflection.....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Organisational growth and development depends on its adaptability for the environment
in which the operations are executed for reach towards objectives. Business environment is
mentioned to totality of factors that resides around internal and external surroundings that works
in coordination for affecting a business (Acharyulu, Subbaiah and Narayana, 2015). The present
essay is based on Jaguar Land Rover that is one of big company in UK. The company basically
works to design, create, manufacture, promote and sale variants of vehicles. In addition, the
essay includes description of value chain model, examining internal environment through
considering dimensions of value chain. At last, it also reflects usefulness of the model for
understanding environment of internal business.
MAIN BODY
Value Chain Model
Value Chain Model was projected by Michael Porter in one of the book, “Competitive
Advantage” in the year 1985. According to Michael Porter, Value Chain Model is mentioned to
collection of activities that a business performs for creating valuables for the potential addition to
targetted customers. The model acts as strategical tool which assist in analysing internal
activities of an enterprise. The ideation of the model is related to organisational process views,
ideas for seeing manufacturing companies as a instrumentality, made of subsystems along with
inputs, transformational procedures together with outputs. The model basically emphasis towards
systems addition to activities with clients as central principle despite of departments addition to
accounting expense categories. Concept of Value Chain Model involves decision support tools
that helps in framing competitive strategies (Camerinelli, 2016). Through this model, an
organisation links activities together with systems so to demonstrate the effect it has on profits
along with costs. In addition, value chain model provides clear aspects about sources of values
along with loss amounts are found within entity. Most of the businesses engages in diverse
number of activities while converting inputs into the outputs to delivering them to end
customers.
The concept of Value Chain Model is quite popular in all business types as it assist in
creating wide values for organisational customers. The entities that seeks competitive benefits
generally curve their activities towards model of value chain as it helps in delivering most of the
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valuables for lowest possible cost in total. By considering the aspects of the model, an
organisation identifies their primary together with support activities that basically enhances final
commodity values and goes ahead towards proper evaluation of these activities for minimising
costs along with enhancing differentiations. The commodities which passes by chain of activities
in order manner that gains some values at each activity.
Porter's Value Chain Model comprises number of activities that are named as primary
activities addition to secondary activities. In context to primary activities, it includes inbound
logistics, production, outbound logistics, marketing and sales, services. These activities are
directly related with product formation and all these have immediate effect on manufacturing and
production, maintenance, support of products as well as services which are to be supplied. On
other hand, support activities form basis of a business and also assist primary activities. Support
activities involves firm infrastructure, development of technology, procurement and human
resource development. These activities basically improves efficiency and have objective of
obtaining economical benefits against competitors.
Jaguar Land Rover
Jaguar Land Rover is a well popular business that works in automotive industry. The
headquarters of the business are located at Whitley, UK. It is a multinational automotive
organisation whose principal workings is based on designing, processing, manufacturing,
marketing and merchandising vehicles in the market (Jaguar Land Rover, 2019). The entity
employs approximate to 44000 people. The products in which it is specialise involves sports
utility vehicles together with luxury vehicles. The company operates its workings in the country
of UK and its surroundings nations. It has faced some tough timings but still continuous to be
among the largest car maker in UK through giving importance to each type to activity that are
performed in systematic manner. Despite of huge criticism against quality of cars of Jaguar Land
Rover, the entity is popular for changing the face of automotive in UK along with various
nations. It has expanded its global presence quite fast and has seen rapid development along with
popularity of brand because of matchless dealings that are provided by it. The credit of growth
along with financial success of the automotive maker goes towards successfully management of
value chain. Through the help of value chain model, the administrators analysed the ways
activities are systematically managed within its value chain so that extraordinary values are
derived efficiently. By properly optimising value chain helped in generating diverse sources in
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context to competitive advantages for the company (Chaffey, Hemphill and Edmundson-Bird,
2019). The team of Jaguar Land Rover does not consider value chain as rigid framework as with
this model as it stand-alone for assigning equal importance for all each activity type. At its
premises, the framework of value chain helps in realising the aspect that all activities do not need
similar scrutiny level and have significant role within product manufacturing to delivery
procedures.
Internal environment
Internal environment is component of business environment that is made of distinct
elements or factors that resides within company (Johnson, 2016). It involves culture, events,
dimensions and members of a company which have ability for influencing business decisions
and human resource behaviours. In context to Jaguar Land Rover, the value chain model with
some of the activities are as follows:
Illustration 1: Porter's Value Chain Model. 2019
(Source: Porter's Value Chain Model. 2019)
Primary activity: The activities that are part of such element generally adds values to
production or manufacturing procedures (D'heur, 2015). In relevance to Jaguar Land Rover, the
primary activities are involved in manufacturing along with selling automotive components and
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finished cars to targetted customers. Some of the primary activities of the company are the
followings:
Inbound logistics: For an entity, it is essential to develop and maintain strong relations
with multiple suppliers as the support of such suppliers are crucial for receiving, storing addition
to distributing goods. When inbound logistics are not analysed properly, managers of Jaguar land
Rover may face issues and hurdles in their designing and manufacturing phases. Few examples
that are part of inbound logistics of the company are retrieving raw materials, internally
distributing materials to different departmental units to initiate production and storing inputs.
Inbound logistics analysis helps in concentrating to each aspect of transformation ranging from
raw materials till final product.
Operations: Jaguar Land Rover operates in automotive sector and it has analysed huge
growth in last years. Analysing operational activities helps the organisational members to raise
the manufacturing process related to converting raw material into end vehicle as well as
launching it in the targetted market. At Jaguar Land Rover, machining, equipment repairing,
packing, assembling, maintenance along with testing are some operational activities.
Determining operational activities assist in improving productivity along with ensures success.
Outbound logistics: It involves activities through which product is delivered to potential
client by transient through various intermediaries. Jaguar Land Rover managers analyses and
optimises activities of outbound logistics in order to explore sources that provides competitive
advantages and attaining objectives concerned with growth. Material handling, scheduling,
transporting and delivering to specific location are part of outbound logistics activities (Emmett
and Crocker, 2016).
Marketing and sales: Herein, marketers of Jaguar Land Rover highlights benefits along
with differentiation points that are related to offered commodities for persuading customers.
Manufacturing high quality vehicles at affordable costs addition to distinctive designs cannot
create values till organisations invests towards activities of marketing and sales. Few activities of
the business in context to marketing and sales comprises of advertising, channel selection,
quoting, promotions and making relations with huge members of different channels.
Services: Jaguar Land Rover offers two kinds of services that are pre-sale along with
post-sale that plays significant role for developing customer commitment and loyalty. In context
to modern customers, they prefers post sale services that is more important in marketing together
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with promotional activities. In addition, the business also analyses its services do to avoid any
damage to the reputation of the brand.
Supporting activity: With supporting activities, management team of Jaguar Land Rover
properly coordinate as well as facilitating primary activities of value chain. Following are the
supporting activities of the business:
Firm Infrastructure: The infrastructure of Jaguar Land Rover involves legal, financing,
management along with accounting which aids in staying afloat. Effective infrastructure
management helps the entity in optimising entire values of value chain (Gelhard and Von Delft,
2016). By controlling these activities, the business strengthens its position in competing scenario.
Human resource management: Businesses generally analyses management of human
resource through evaluating various HR aspects that are recruitment, selection, compensation,
training, performance management and many more. In relevance to Jaguar Land Rover, activities
for effective HR management helps in reducing competitive pressures that are concerned with
motivation, commitment of manpower.
Procurement: Procurement denotes procedures which are part of purchasing inputs such
as equipment, raw materials, tools, machinery and necessary items to produce finished good. As
per the linkage with diverse value chain activities, Jaguar Land Rover carefully views
procurement activities so to optimise other activities of entire value chain.
Technology: Jaguar land Rover heavily invests for technological aspects. In modern
scenario, all activities are dependent on the technological support. At the selected business,
technology is integrated in activities concerned with manufacturing, distribution, promotions,
marketing and managing human resources which help the managers to realise technological
development importance. Technological supported services, automation software and many more
are part of the activity (Savino, Manzini and Mazza, 2015).
Reflection
Value Chain Model is one of business tool that illustrates about internal activities that are
required for manufacturing product. The objective behind using it is to recognise effective
activities that leads to differentiate the advantages within fierce competition. Value Chain Model
helped me in assessing internal business environment that includes wide kinds of activities
through which inputs are transformed into outputs. In addition, the model assist me in identifying
the relevant primary addition to supporting activities of Jaguar Land Rover that adds values in
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the final vehicles of the entity and also helps in analysing the ways costs are reduced and
differentiations are increased. The business which competes by differentiation benefits always
works to perform activities in better ways than its rivals firms. Furthermore, it is also analysed by
me that that value chain analysis is used in diverse ways. One of them is to create valuables
which exceed costs related to providing commodities and generating wide profit margin. All the
activities of internal business contributes in relative cost position and hence helps in creating
differentiation basis. Through the model, I analysed that the primary activities plays huge role in
receiving, storing, turning materials into final commodities, advertising, pricing and many more.
At same time, the support activities assist primary activities to create connections with all the
factors and coordinate all workings for achieving growth goals. The value chain of Jaguar land
Rover is quite complex but at same time it ensures proper coordinating among all the internal
factors so that all the tasks are performed in coordination so that influences on decision making
are reduced to great level. With the concept, proper understanding about all factors of internal
business are properly analysed for evaluating detailed factors and procedures that are involved in
all stages of business and increasing production efficiency that lead the business to deliver
extreme values at preferred least possible costs.
CONCLUSION
The above essay concludes that environment of business is said to the surroundings or
atmosphere wherein organisational activities are systematically regulated and performed to get
possible outcomes. Value Chain Model was devised by Michael Porter and it is one of strategic
tool that describes range of activities which creates values. Climate, management practices,
equipments, structure and culture are some elements that are part of internal business. At a
business, primary and supporting activities exist within internal environment. These activities
highlights that areas which creates values as well as adds values to the organisational products to
great extent. Proper analysis of these activities is very important for attaining efficiency, growth
objectives and setting differentiations within competing market.
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REFERENCES
Books and Journal:
Acharyulu, S. G., Subbaiah, K. V. and Narayana, K., 2015. Value Chain Model For Steel
Manufacturing Sector: A Case Study. International Journal of Managing Value and
Supply Chains (IJMVSC) Vol. 6. pp.45-53.
Camerinelli, E., 2016. Measuring the value of the supply chain: linking financial performance
and supply chain decisions. Routledge.
Chaffey, D., Hemphill, T. and Edmundson-Bird, D., 2019. Digital business and e-commerce
management. Pearson UK.
D'heur, M., 2015. Sustainable Value Chain Management (p. P21). Springer International
Publishing: Imprint: Springer.
Emmett, S. and Crocker, B., 2016. The relationship-driven supply chain: creating a culture of
collaboration throughout the chain. Routledge.
Gelhard, C. and Von Delft, S., 2016. The role of organizational capabilities in achieving superior
sustainability performance. Journal of business research. 69(10). pp.4632-4642.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Savino, M. M., Manzini, R. and Mazza, A., 2015. Environmental and economic assessment of
fresh fruit supply chain through value chain analysis. A case study in chestnuts industry.
Production Planning & Control. 26(1). pp.1-18.
Verbeke, A. and Yuan, W., 2016. The impact of “distance” on multinational enterprise
subsidiary capabilities: A value chain perspective. Multinational Business Review.
24(2). pp.168-190.
Zhihui, D., Wei, L. and Ziwei, H., 2015. Value Chain Model of Knowledge Innovation Based on
User Virtual Community. Science & Technology Progress and Policy. 32(12). pp.129-
133.
Online:
Jaguar Land Rover. 2019. [Online]. Available through: <https://www.jaguarlandrover.com/>
Porter's Value Chain Model. 2019. [Online]. Available through:
<https://strategicmanagementinsight.com/tools/value-chain-analysis.html>
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