Business and Business Environment Analysis Report - Jaguar Land Rover

This report provides a comprehensive analysis of the business environment, focusing on Jaguar Land Rover. It begins by defining business and its environment, then explores different organizational types including public, private, and voluntary sectors. The report delves into the background, size, scope, and legal structure of Jaguar Land Rover, highlighting its matrix structure. It examines the functions within the organization, such as human resources, marketing, finance, and research and development, detailing their interrelationships and impacts on the organizational structure. The report also investigates macro environmental factors and their effects on the business. A SWOT analysis is conducted, interrelating strengths, weaknesses, opportunities, and threats with external macro factors. Finally, the report offers critical reflections on the decision-making process within the context of the business environment, concluding with a summary of findings and recommendations.

Business and business environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Introduction and types of different types of organisation and growth of international business
environment............................................................................................................................3
Background details, size-scope and legal structure of organisation.......................................4
Functions of organisation and their advantages and disadvantages of interrelation and impact
on the organisational structure................................................................................................7
TASK 2............................................................................................................................................8
Macro environmental factors and their impact on business...................................................8
SWOT analysis of organisation, interrelationship of SWOT with external macro factors and
comparison of strengths and weakness of Jaguar with same industry company..................10
Critical reflection which influence decision-making process .............................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is an activity in which goods and services are exchanged in order to make
money. Business environment refers all the factors including internal and external which affect
business processes like decision-making process and sales. Jaguar Land Rover is a luxury car
brand which is specialises in four wheel drive vehicles. This company is owned by jaguar Land
Rover. This report shows about various types of organisation like public, private, voluntary
whose main purpose is to provide services and satisfy customers (Kenny and Dyson, 2016).
This study also shows about external business environmental factors which impact on
business in positive manner and in negative manner. Strengths and weaknesses of Jaguar is
interrelated with external factors which hinder and foster company in maximizing its profit and
decrease its sales. It is all depends on changes in macro factors.
TASK 1
Introduction and types of different types of organisation and growth of international business
environment
Business is a process of making money and for running business some form of
investment is needed in order to make products which can be sold to customers. There are
mainly three types of businesses such as public sector business, private and voluntary business
(Tankard, 2016).
Private sector business: Those types of businesses which is not controlled by the
government. The main aim of this type of businesses are to earn money and make profit out of its
sales. Businesses are managed by an individual and group of individual and they do not have
control of government. Example of private sector business is John Lewis Partnership type of
private business, which is an employee owned company situated in UK. For example Arcadia
group limited which is British multinational retailing company.
Public sector business: In opposite to private sector, those businesses who have control
of the government over business and its activities that are called public sector business. This type
of businesses main aim is to serve people and not to earn or make profit. Examples of public
sector businesses are: Schools, police officers and NHS. These sectors are run-ned by
government funds that comes from taxes and fee that all citizen pay, Jaguar is public limited
company. (Gurianova and Mechtcheriakova, 2015).

Voluntary sector business: This type of businesses also emphasises on helping people.
They also do not run businesses with the aim of earn money but want to provide better services
to people in order to improve their living standard. There are some examples of this type of
businesses such as: NSPCC and Maytree. They are made up of mainly two groups non-profit
organisation and charities. Social welfare organisation and welfare are comes in this sector.
Maytree is a respite centre which is located in London Borough, England.
Background details, size-scope and legal structure of organisation
Background details of NHS public company:
National health service is a public sector company who provides free medical services to
everyone. NHS is growing rapidly. The main aim of this type of public company is not to earn
profit but to help people. They increased 8000 more nurses and doctors in order to work with
NHS. People are more satisfied with the services of NHS.
Vision of company: Vision of this company is to improve quality of life and encourage
the academic achievements
Mission of company: To support and deliver to improvement of people's health.
Business objectives: The main objective and aim of this company is to solve all type of
problems of people. (Gomes and Romão, 2015).
Size-scope: This company is large company in size.
Background details of Jaguar private limited company:
Jaguar Land Rover is UK car manufacturer company that was founded by William Lyons
and William Walmsley in 1922. In 1966 It was merged with the British motor corporation and
became British Leyland in 1975. It was the company who first listed in the London stock
exchange.
Vision of company: Vision of this company is to inspire consumer confidence by
offering a premium auto mobile products.
Mission of company: To create sustainable value for stakeholders.
Business objectives: There are some objectives of company that include: To make
sustainable growth and make working ethical relationships with communities.
Size-scope: This company is large company in size.
Background details of Maytree voluntary company:

Maytree is a respite which is located in England. It is a charitable organisation which
opened in 2002. The main aim of this organisation is to support people in suicidal crisis. This
organisation provides Non-medical environment for suicidal for rest and talk confidentially.
Vision of company: Vision of this organisation is to develop and share knowledge.
Mission of company: To remove poverty and strengthen civic communities.
Business objectives: There are some objectives of company that include: To make
sustainable growth and make working ethical relationships with communities. (Gomes and
Romão, 2015).
Size-scope: This company is large company in size.
According to types there are mainly three types of organisation:
Sole proprietor: It is a type of business that is owned by single person. The owner of this
type of company is fully liable for all the losses and profits which it makes from sales. This
business is easy to run and establish because it does not require a large amount of investment.
Owner of this company have control and power over this business that include decision-making
process, loss, profits another business activity etc. The important thing about this type of
business are it is easy to start up and sole traders can easily employ others. Examples: local
grocery, cafe etc.
Partnership: It is also a type of business and organisation which is run ned by two or
more than two people. It has some advantages and disadvantages as all profits have to share
among all the partners as well as the losses is also shared among all the partners it all depends on
the share of their invested amount (MacAskill and Guthrie, 2017). The main benefit of this
business is all partners beings' new ideas and have different skills which lead business growth.
Example: John Lewis Partnership.
Corporation: It is a type of organisation which act as legally and have a group of people.
It is divided by the law of jurisdiction where they are divided into two types whether they are
formed to make profit and they can issue stock or not. Larger organisation which is owned by
various stake holders and other corporation which are often smaller businesses and owned by an
individual.
Legal structure of company:

Jaguar follows matrix structure that refers several patterns in their process. In this
structure, employees of the organisation have more than one boss(Battaglia, Landoni and
Rizzitelli, 2017). This structure is complex but supports manager in achieving team goals like to
reach higher productivity. It is important for this company because it uses various products and
services.
It helps its functional departments because different people from different departments
work together that help them in solving problems in effective manner. It also supports to overall
development of employees.
This structure enables manager and the company to work more productively because it
has 2 main bosses that lead staff members. It has various functional department that have
manager for the particular department. Functional manager and project manager control there
own areas. The main aim and benefit of this structure is to reduce conflicts at workplace.
In this type of structure, workers and staff members are assigned a project which are not
from their department for a relatively temporary period. Different types of people and employees
brings various skills and knowledge that help them to attain a specific goal. Disadvantages of this
type of structure is it becomes expensive to the company than the traditional one because it
employs more managers.
Illustration 1: Organisational structure
Sources: (Matrix structure, 2019)

Functions of organisation and their advantages and disadvantages of interrelation and impact on
the organisational structure
Jaguar produces many products so it has many functional departments that are:
Human resource functions: It is the main function of jaguar company that impact on its
business by hiring, recruiting the best candidates according to work. After hiring the best person,
it provides training and development programmes for improving their skills which help in
decision-making process of company (Adeoje, 2016).
Marketing function: It is another important function of company as it is the market
leaders in sales. Sales and profits are all depends upon marketing department and its functions.
Its main function is to attract customers towards company and tell them about their products in
order to increase sales of organisation. This function also impact on decision-making process as
they make it easy by identifying customers' demands and requirement which help production
department in producing goods.
Finance function: Finance department and its functions are mainly responsible for
managing funds of the organisation for various departments and functions. The main objective of
this department is to manage and control all human resources of company in order to meet
company' s goals (Leng and Chin, 2017).
Controlling: It is the last management function of jaguar company. This function include
and refer the measurement of the actual performance against the desired performance of the
company. The main aim of this function is to ensure that performance and operations of the
company are going in effectively manner and confirm to organisational standards.
Research and development function: The another main and important function of this
company is research and development. It wants to expand its businesses so it invests in this
function. It research about people's needs other competitive markets and company's strengths and
weaknesses. According to these information it makes strategy in order to develop its business
and make growth.
Interrelationship of functions:
Finance and HRM functions: As we know that the main function of finance is to
manage all Human resources and control over them Hence they are interrelated functions. Main

function of HR is to recruit and hire employees and provide better salary so it is important to HR
to discuss about salary and finance with finance department in order to maintain funds.
Marketing and sales functions: This both functions are also interrelated with each other
as marketing department provides all the necessary information related customers' needs and
demands to sales department. According to that information sales department does its function
and sales products in order to increase sales of company (Ahmad and Khalid, 2018).
Advantages and disadvantages
 It can increase sales of company via information.
 To help in satisfying customers' demands.
 Extra administration required.
 Due to changes in customers demand can impact on finance functions.
Impact on organisational structure
Jaguar's various functions impact and influence organisational structure of company.
Company become capable in handling all the problems because of interrelation of functions
because of them communication become effective and they communicate with each other so it
helps in building relationship with them.
The changes in one function may affect on other department's function so at that situation
company may have to changes in decision-making process and their strategy which direct
influence on its structure in negative manners. Marketing function give flexibility and
information which help structure in providing higher quality products to customers (Prasad,
Khanduja and Sharma, 2018).
TASK 2
Macro environmental factors and their impact on business
There are several environmental factors that impact and effect Toyota in positive manner
and in negative manner Such as:
Environmental factors: For fulfilling environmental needs company is working hard in
creating fuel efficient car designs for that it is using recyclable materials as aluminium. It can
increase their business sustainability by emphasises on products quality. Jaguar requires fulfilling
all the needs of customers in order to maintain CSR. Widening of wealth gap between poor and

rich is a threat for company. For this gap it can not increase their cost on products it should
reduce cost and keep it affordable for all.
Political factor: This factors also impact on Jaguar car manufacturing company. Political
disability is a threat and disadvantage for company. There are some policies and acts which
encourage the purchase of low emission vehicles. Changes in tax level on selling of cars by the
government impact on the decision-making of company (Adeoje, 2016).
Legal factor: There are many legal factors that are an opportunity for the company such
as: complex environmental laws, employee rights act by which company focus on higher quality
products and services to satisfy customers and environmental laws. Consumer law is also an
opportunity as it can provide safer products and demanded products. It impacts on business by
increasing profit and sales of the company. Jaguar has registered its copyrights and patents in
order to avoid sales of fake products under similar names.
Technological factor: Jaguar is popular and known for its cutting edge innovation in its
car manufacturing and designs. New and advancement of technologies are an opportunity for
company as it help to increase its operational efficiency. With the help of mobile App and
technology trends it can increase customers engagement and loyalty towards its products and
company. Company is developing prospective technologies in order to eliminate and reduce
driving errors and safe journeys.
Social factor: There are various social factors that include: increasing interest in electric
cars, population growth which create unemployment rate an increasing interest in hybrid cars. It
also operates in globally and people of some countries do not prefer foreign brands which can
decrease its sales and revenue which impact negatively on its business and decision-making
process. It needs to be well aware of religious values who lives in certain region. For example, It
should give relaxation to Muslim workers to pray during day and flexibility to Christian workers
that they do not need to come on Sunday they help in increasing their morale and staff retention.
Economic factors: There are some economic trends which impact Jaguar company.
Some economic factors are rapid growth of developing countries, methods for payment for
development and production. Rapidly increment of infrastructure give more transport links
which leads in higher productivity and effective distribution of the products by jaguar. (Monden,
2018).

SWOT analysis of organisation, interrelationship of SWOT with external macro factors and
comparison of strengths and weakness of Jaguar with same industry company
There are some strengths, weaknesses, opportunities and threat of this company which
can hinder and foster its business.
Strengths: Company's strengths shows that they have more capabilities in keeping its position in
top of the market in this field.
 It makes luxuries cars in emerging markets like Asia and Russia.
 It has strong brand portfolio.
 This is known as industry leader in sales and production.
 The another main advantage and strength is it emphasise on research and development
which support its business in improving quality of products.
 This company has several distribution channel and extensive production that help it in
providing its services and goods around the world and expand its business.
Weaknesses: Despite of strengths it has some weaknesses also that are:
 It has very weak presence in the emerging markets.
 It has poor management capabilities regarding projects.
 It has weak connection with political (Hamilton and Webster, 2018).
 From last few years company has taken various vehicles recalls that influence its
financial performance.
 It has secrecy in its organisational culture.
Opportunities: Its opportunities are mainly based on economic and technological trends that
are:
 Jaguar has an opportunity to expand and grow its business in developing countries by
providing good quality products.
 It makes fuel efficient auto mobiles whose demands are increasing rapidly that is also an
opportunity for company.
 It has positive attitude towards making green and ecofriendly vehicles.
Threats: Company's threat are generally based on the competitive landscape. Some threats of
companies are as follows:
 Natural disasters are a threat for company that disrupt just in time method.

 The another major threat in front of company is increasing competition that are also
making ultra premium luxury cars.
 Rising in raw material cost is also a threat for company.
 Fluctuating fuel prices impact on its decision-making process.
Interrelationship of SWOT external with macro factors
Changing society trends and demands of customers and social factors majorly affect
decision-making process. For example, company makes luxury cars for customers but sudden
changes in their demands and needs can change and impact on its business and create threat as it
can increase their cost by changing in those cars accordingly (Adeoje, 2016).
Jaguar's strengths is it has strong position in market and several countries but it faces
difficulties in expanding their business because of law economy and changes in policies. So we
can say that there is interrelationship between external factors and strengths and weaknesses of
company.
Another strength of Jaguar car manufacture company is it has various channels of
distribution and promotion by which it can be in competition and attract many more people and
customers towards its products and the company. There is an interrelationship between this
strength and technological factors as with the help of technology it can improve their products
quality which may help them in increasing their sales and profits.
The another main factors that impact on the company's activities and processes is
economic and environmental factors that can have positive and negative impact. Jaguar has
opportunity as it makes fuel efficient auto mobiles and with the use of this opportunity it can
satisfy economic and environmental needs and can maximize its profits. So it can say that there
is interrelationship of strengths and weaknesses with external macro factors.
Comparison of strengths and weaknesses of Jaguar with Toyota
Toyota Jaguar
Toyota has strength as it is the leader in
development of green and ecofriendly cars.
The strength of this company as it has strong
brand portfolio.
This company has recalls that causes quite
severe financial impact.
Jaguar do not strong financial stability.

It has an opportunity in demands for fuel
efficient vehicles (Hillary, 2017).
This company has opportunity as it uses
superior technology across stable synergy.
There is a threat of uncertainty in global
economic conditions.
It has to faces many problems which are threat
like exchange rate risks and global prices
which are rising day by day.
Critical reflection which influence decision-making process
As a deputy business analysis of Jaguar corporation I have analysed from this study is
there are many macro factors that impact upon company's business in negative manner and in
positive manner. Political and social factors have some trends like market trends policies and
changes in that policies create threat in front of company that also impact on decision-making
process negatively. For instance, company make its decision according to some acts and policies
and because of changes in that policies company have to suffer many problems as it has to
modify in its products accordingly (Ahmad and Khalid, 2018).
Company has strengths and weaknesses that also impact on decision-making process. I
have analysed that company has more strengths as it produces various products according to
demands of customers which help them in leading market and increase sales and profits which
make them differ and special in this field.
There are interrelationship Of company's strengths and weaknesses with external macro
factors that also impact on the company's strategy and processes. It has several strengths but also
have those factors which have negative impact like advancement of technologies which increase
the cost of the company and have directly impact on decision-making process by leaders and
managers of Jaguar car company. With the help of its strengths it can overcome these problems
and can be in competition and expand its business in emerged markets.
CONCLUSION
From the above study it has been concluded that different types of organisation play in
economic growth as their main aim is to provide the best services to people. There are several
macro factors that affect company and its functions in positive manner and in negative manner.
Strengths and weakness also help company to expand its business around the world. On the other