Business Strategy Report: Automotive PLC, Jaguar Land Rover Analysis

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This report provides a comprehensive analysis of the business strategy of Automotive PLC, focusing on its subsidiary, Jaguar Land Rover. It begins with an introduction to business strategy and its application within the automotive industry. Task 1 examines the macro environment using PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors impacting the company. Task 2 delves into the internal environment, assessing Jaguar Land Rover's strengths and weaknesses in areas such as human resources and marketing efforts. Task 3 applies Porter's Five Forces model to evaluate the competitive forces within the automotive market. Finally, Task 4 explores strategic planning, applying various theories, concepts, and models to devise strategic recommendations for the organization. The report concludes with a summary of findings and a list of references.
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Business Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Apply appropriate frameworks to analyse the macro environment for a given organisation.
................................................................................................................................................4
TASK 2............................................................................................................................................9
P2 Using appropriate frameworks analyse the internal environment and capabilities of a given
organisation............................................................................................................................9
TASK 3..........................................................................................................................................13
P3 Apply Porter’s five forces model and to evaluate the competitive forces of a given market
sector for an organization.....................................................................................................13
TASK 4..........................................................................................................................................16
P4 Apply a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation..............................................................................................................16
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22
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INTRODUCTION
Business strategy is an chain of activities or set of decisions that helps entrepreneurs in
achieving goals and objectives. It is a master plan that use by management to gain competitive
advantage in marketplace, by carrying out operations, satisfy consumers and achieving desirable
goals and objectives. Business strategy is an long term sketch of desired image, way or path to
achieve an definite goal. This report is based on Automotive PLC which is an holding company
of Jaguar land rover limited, that is an multinational automotive company. Its headquarter
situated in United company and its subsidiary of Indian automotive Tata motors. This report is
based on impact or influence of macro environment and their impact on organisational
development and enhancement. It also includes internal environment with its key strengths and
weaknesses with major competitors in market of an organisation that should be accessed by
various concepts or theories. Further it elaborates about theories and practices in understand the
strategic direction in context of organisation.
TASK 1
P1 Apply appropriate frameworks to analyse the macro environment for a given organisation.
To access viability of an business, they have to come across from different factors that
give important insights and knowledge to reach at desirable goals and objectives (Alsudiri, Al-
Karaghouli and Eldabi, 2013.). Jaguar land rover which is an British multinational automotive
company, to build an strategic plan organisation have to access their mission, vision and
objectives that plays major role in organisational growth and enhancement.
Mission:
Jaguar land rover is one of world's leading producers of premium auto mobiles. It focus
on innovation and design give delighted experience so that people can love for their life
anticipating and satisfy their needs and expectations (Bharadwaj and et.al ., 2013.). Quality and
excellence are their key attributes and taking care are their important aspect.
Vision:
“The passion and commitment to masses is key force of their success”. They are
dedicated towards their consumers by satisfying their needs and wants in proper way.
Objectives:
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There main objective is environmental innovation which is part of their vision also for
better future. To comply with vision organisation have to harmony with their natural and social
environment.
To analysis various aspects organisation have to analyse different factors in which internal and
external environment and in that aspect main purpose of external environment either
opportunities and threats for organisation (Blackburn, Hart and Wainwright, 2013.). In external
environment analysis consist of General and Task environment.
General environment:
In general environment consist of forces that are beyond influence of organisation and it
has no control over activities.
Task environment:
In task environment consist of forces that are exist within the organisation's operating
environment and can be control at some extent.
General environment:
In general environment consist of Factors such as political, social, economic,
sociological, technological and legal with environmental factors that are as follows:
Jaguar is the world class manufacturer of custom based car bodies which uses high quality
machines and devices.
Political factors:
Political stability is an important factor that give major strength while operating at
multinational level and attract a large consumer base (Chang, 2016.). In case jaguar want to
expand in other country at that time increase or decrease in tax level directly impacts on their
profit ratio that also impacts on their decision making power and stability. Changing policies
with new government and their regulations that impacts on their profitability level. The launch of
fuel consumption taxes or environmental taxes that helps in bring fuel efficient car company and
enhance manufacturing level and sales also.
Positive:
In case of jaguar land rover it is an multinational company that has contacts from other
countries and they can easily adopt any kind of political changes.
Negative:
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In another hand while deal in different countries they have to change in their working
patterns and styles that impacts on their business.
Economic factors:
Economic factors are an important factor that change according to government spending
that also alters methods of payment in production or in case of development (Grover and Kohli,
2013.). Day by day reduction in government investment in auto mobile industry or less
borrowing and its lending rules and regulations affect the development of jaguar. Enhancement
in infrastructure and their development helps transport links with higher production level and
distribution network that avail by Jaguar. In case rise in inflation rates, simultaneously they have
to increase profit and prices also.
Positive:
That organisation is an financial sound company and also contributes in another countries
economy so other nations also co operate them.
Negative:
While deal in different nations their economic instability and taxation rates impacts on
their business in adverse manner.
Social factors:
The societal factors consist of changing trends and interest of people that directly affect
business and their proceedings. In case of Jaguar they are well aware about values and beliefs fo
people while deal in different nations (Iacob, Quartel and Jonkers, 2012,). Such as in Jaguar
they coordinate in proper manner with Christian workers because they are not prefer to work on
Sunday and Muslim workers on other hand take relaxation at day time. So they properly evaluate
and take actions according to taste and preferences of their manpower. Company comply with
ethical and social values that directly impacts on demand side of their production and distribution
network.
Positive:
It expertise in build product and services according to consumer taste and preferences so
it helps in build an distinctive image in marketplace.
Negative:
Produce kinds of products and services by observing taste and preferences of consumer
simultaneously should be hazardous aspect.
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Technological factors:
Jaguar is well known in national and international market for their innovation and
delighted experience that give to their consumer base (Köseoglu and et.al ., 2013.). It produces
their product in aluminium technology that inspires other world in adaptation of light weight
with efficient cars. It introduce cars with e performance model in which they use intelligent
system for optimize efficiency level. It also uses technologies for removing errors at time of
driving and provide safe journey.
Positive:
Jaguar operates in different nations and it has to adopt various tools and techniques which
helps in enhance competitiveness in market.
Negative:
Adaptation of various kinds of techniques are very much difficult for them to cope up
with changes in that dynamic world.
Legal factors:
In legal factors consist of trade laws and employment rights to bring out successful
business projects. Jaguar and many other companies get registered to get protect itself with the
help of patents and copyright to avoid fake products with similar names (Li and Tan, 2013). It
sets costing and pricing that set by car manufacturer such as Jaguar that helps in giving fair
competition to world. It builds a panel in which distinctive laws and regulations should be
discussed and after that implement into marketplace.
Positive:
When kind of legal norms and conditions are followed by an organisation, it improves
their productivity level with motivation level of employees.
Negative:
On other hand while applying various laws and regulations organisation occurs huge cost
and investment to comply with them.
Environmental factors:
Environment is one of important factor and people get more aware about it day by day.
Jaguar give emphasis on environmental legislation and build products that are eco friendly in
nature and focus on minimize emission and wastage at time of manufacturing. It uses advanced
diesel engines that give power to uplift and bring power.
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Positive:
In environment analysis organisation focus on give environmental friendly products and
services that helps in enhance brand value of organisation.
Negative:
Provide eco friendly products and services takes huge cost for organisation and requires
through research and development.
Task environment:
In task environment consist of various factors such as competition, customers and
resource availability etc..
Competition:
The competition level in automotive industry are high comparatively from other
industries. For jaguar land rover their main competitors are Mercedes-Benz, Audi, Lexus and
BMW group, Volkswagen and Toyota with General motors are their fierce rivals (.Oestreicher-
Singer and Zalmanson, 2013).
Customers:
The market base of Jaguar land rover are younger customer base which frequently wants
innovation in products and services. It introduce XE sports sedan by targeting dual for both
youth and women. So there market base are people who are wants innovation at rapid pace with
always prefers style statements.
Resource availability:
Jaguar use most eco friendly resources and build an competitive product for consumers.
Its cars body build with aluminium body, environmental friendly paint and bio fabric seats and
futuristic plastic interiors that differ it from other major competitors.
To lead with changes and comply with these difficulties organisation go with the differentiation
strategy in which they provide their products and services differ from their competitors (Parnell,
and et.al ., 2012.).
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TASK 2
P2 Using appropriate frameworks analyse the internal environment and capabilities of a given
organisation.
Internal environment comprised with many elements within an organisation in which
includes current employees, management and corporate culture that elaborates about personnel
behaviour. Some factors affect to the whole organisation and sometimes it affect to the manager
only (Peng, 2017. ). In internal environment consist of strength, weaknesses which depends on
many factors such as Management capabilities, marketing efforts, information technology,
finance, research and development and at human resource.
Human resource:
At Jaguar land rover their primary asset is their people. It has more than 43,000
employees that helps in grow, by recruiting start with Nitra, Solvakia that are major source in
manufacturing products and services (Reich and Benbasat, 2013.). It invest a lot in employee
training and development by giving them lifelong learning which affiliated with Jaguar land
rover academy equip their employees by transferring skills and capabilities that helps in drive
forward for product plans by giving zero emissions and electrified vehicles. That academy plays
very major role to communities that helps in shaping education from jaguar primary school
challenge to Phd qualifications. They manage workforce diversity and exclusivity and majorly
focus on attracting large no. of women in engineering and manufacturing through “Young
women in the know” that are a good initiative for female students aged from 15 to 18. they are
also liable for recruiting people from Armed forces and ex service man and it is also co partnered
with inspirational invictus games that helps to remain always motivate to employees. They also
developing innovative ways to find out innovators of tomorrow so that potential opportunities
should be gain.
Positive:
As described above human resource is one of important aspect for them and they take
care all needs and want so that productivity should be enhanced.
Negative:
it deals at multinational level so they have appoint people from various regions so that
problem of cultural diversity should be occur in that scenario.
Marketing efforts:
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Jaguar land rover spends lot of efforts to reach at large no. of consumer base, it uses
major restructures for its marketing, sales and public relations functions to meet changing needs
and wants of consumers. It works under leadership of Felix Brautigam, that is board member of
Jaguar land rover that helps in build core functions in which customer experience, marketing of
products and services and planning (Scholes, 2015. ). It focus on product PR and defines about
that publicity is one of important source to reach at large no. of people. They communicate with
varied target audience so that their product can reach at end user. These kinds of communication
method helps to organisation in enhancing and promoting their brand value with safeguarding
and maintaining their valuable reputation.
Positive:
It focus on delivering and using various promotional tools and techniques simultaneously
that helps in reach at large no. of consumer base.
Negative:
On other hand using kinds of marketing tools and techniques increase their operating cost
and manage different sources are very difficult for them.
Information technology:
Technology is one of important attribute for that it continuously devising and building
new car and their technologies (Schrader, Freimann and Seuring, 2012). It launches new
features such as intelligent seat fold technology and terrain progress control device that helps to
land rover drivers to reap benefits out of them and comply with existing challenges. It recently
launches transparent bonnet which can be seen directly in front of vehicle that can be proved
easier and safer.
Positive:
Information technology is one of important aspect that helps in build an distinctive image
in front of marketers and give delighted experience to consumers.
Negative
Adopting too much innovation and changes create hurdles in front of employees because
they feel uncomfortable to adopt kinds of changes.
Research and development:
Jaguar mainly focus on research and development by investing huge money on key areas
such as finding out changing taste and preferences of consumers. It pulling into automation
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technology by opening a new centre of new research and developing in UK. The another major
centre in Ireland that majorly focus on driving research and development of their software
electric and self driving vehicles ( Smith, 2013.). By accessing needs and wants of consumers
organisation announce all models under jaguar and land rover brands offer electric versions that
offers and range of hybrid, after plug in power electronics in up coming years. So the research
and development are one of most important factor that helps in organisational growth and
enhancement.
Positive:
The one of most important factor that it helps in enhance consumer needs and wants to
enlarge business opportunities and build an distinctive brand image.
Negative
On other hand research and development takes too much cost and time with takes huge
investment that hinders self interest of organisation.
Hence, they are enough capable in enlarge business opportunities and growth for that they give
training and development to their employees so that they can give their best in organisational
development and enhancement.
Capital resources:
In capital resources consist of tools, equipments, buildings and machinery and many
more. In Jaguar land rover to build effective products and services invest their money at right
direction and adopt best techniques.
Positive:
By investing at right place money and resources organisation can beat their competitors
in effective way.
Negative:
While adopting advance tools and techniques organisation fail to give proper training and
development to them because it raise operating cost.
Organisational structure:
Organisational structure is a system that outlines various activities that directed towards
to attain organisational goals and objectives. In Jaguar land rover they follow horizontal
organisational structure.
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Positive:
By following a prescribed structure employees remain motivated to give their best.
Negative:
On other hand by obeying an structure arises conflicts and misunderstanding and takes
huge time.
Infrastructure:
Infrastructure refers to fundamental facilities to deliver right kind of products and
services to ultimate consumers. In Jaguar land rover they have a systematic structure and
become an established brand name in market.
Positive:
Infrastructure gives qualitative production of products and services that helps in enhance
brand loyalty.
Negative:
On other hand it enhance operating cost of an organisation with needs huge investment to
manage it.
SWOT analysis:
Strength
The most important strength of Jaguar land
rover that it is an popular brand name in
luxurious auto mobile sector and spends huge
money in research and development.
Opportunities
In that aspect major opportunity that they use
advance technology in which hybrid in future
and emphasise on manufacturing in an specific
areas.
Weaknesses
The weaknesses of it that it has huge range of
products but it is still less from their
competitors and design of that organisation
sometimes criticised.
Threats
Jaguar have lot of competitors such as Audi,
Porsche and Mercedes-Benz that hinders their
self interest and changing government policies
hinders their self interest.
VRIO Model:
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