Strategic Management: Analysis of Jaguar Land Rover

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Appropriate model for analysing external environment..............................................................1
Industry scenario facing the company within its existing market...............................................3
TASK 2............................................................................................................................................4
Mission and vision statement of the company.............................................................................4
Strategic competencies and capabilities......................................................................................5
Rationale of how the company creates, delivers and captures value within industry.................7
TASK 3............................................................................................................................................8
Possible strategies that company could follow to defend core business and to sustain
competitive position.....................................................................................................................8
CONCLUSION..............................................................................................................................10

INTRODUCTION
Strategic management refers a management of capabilities and all strategies of an
organization which includes setting objectives, analyzing business environment, evaluation of
strategies and making sure that management roils out strategies (Ansoff and et.al., 2018). This
present study is based on Jaguar Land Rover which is a British multinational automotive
company. This company was founded in the year of 2008. Headquarter of this company is in
UK. This present study is going to show importance of analysing business environmental factors
which includes both internal and external factors. By analysing all factors, company can take
advantage of external factors like attracting customers, making strong position in the market,
improving image etc. Further, it will show some strategies which help this company in creating
and delivering value within its industry such as differentiation, distribution and sustainability.
Lastly, this study discusses some strategies for taking competitive advantages such as Porter’s 5
forces analysis model ad others.
TASK 1
Appropriate model for analysing external environment
An organization operates in an environment which is known as business environment. Business
environment is made up of 2 internal and external environments. Both these environments have
some factors which can affect company’s performance and productivity in a critic manner. For
taking external opportunities and advantages of all those opportunities, it is important for Jaguar
to analyse all those factors in order to know that which factors are in its favour and which factors
can affect its performance in a negative manner. By analysing both types of factors it can
accomplish all its pre-determined goals and make a strong position in automobile industry
(Perera, 2017). Some external environmental factors include:
Political: Impacts of political factors can be considered by the stability and instability of
political force of the country in which company operates. In the context of Jaguar it is stated that
this company is now a subsidiary of Tata motors and with cooperation and under this brand it has
developed several plans for expansion. As per this expansion it has decided to double up its
production from approximate 500,000 to 1,000,000. It will also lead or generate about 10,000
jobs. So, it can be said that it will give employment opportunities to about 10,000 people which
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will improve economy of the country. For this, it has asked support of the government and it is
also stated that Government is supporting automobile industry to the great extent. So, it can be
said that this factor is in its favour and affecting its performance in a positive manner.
Economic: It is stated that there are some economic factors which are affecting its performance
in both positive and in a negative manner. It is analysed that high rate of growth in developing
countries due to improved economy is beneficial for Jaguar land rover company. It also increases
income of middle class people which is increasing demand for vehicles. But on the other hand, it
is also analysed that labour cost is high in some countries which can increase overall cost of the
company. It can also lower profit margin as it has developed some plans of expansion. As per the
plan it will employ around 10,000 people and increased labour cost can affect it in a negative
manner (Achinas and et.al., 2019). BREXIT has also impacted on its profit margin as it
decreased the value of pound so; it is other main negative factor for this company.
Social: Social factor is all about needs, demands and human behaviours of customers
towards the company. In this context, it is analysed that Jaguar Land Rover had an effective
financial as well as reputation turbulence and it makes it a trusted brand in the eyes of people. It
has also been able to capitalize on the social status. Whereas, it is also analyzed that consumers’
continuous changing needs in this industry like demand of economic and fuel efficient vehicles is
affecting its performance to some extent. It puts pressure on this company to make changes in
the way of performing and producing vehicles. These changes in production and other processes
can increase its operational cost. So, it can be said that social factors are affecting it in a critic
manner.
Technological: Technology is one of the important factor which is increasing competition
in automobile industry. There are several players in this industry such as Toyota and others who
invest in advanced technology in order to make its products innovative and creative. So, in this
context, it can be said that it is somehow affecting its performance in a negative manner. It can
decrease its sales and market share due to fierce competition in the industry. On the other hand, it
is analyzed that Jaguar company does not rely on its iconic brand for maintaining market share as
it relies on its ability to deliver automotive solutions which meet expectations of customers’. For
this, it has also invested around $3.1Bn in innovation and technology. So, it can be said that its
financial stability has made it able to take competitive advantage and make this factor in its
favour.
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