Jaguar: Internal and External Environmental Analysis of Auto Industry

This report provides an environmental analysis of the automobile industry, focusing on Jaguar. It includes an internal analysis using the SWOT model, identifying strengths like brand popularity and skilled employees, and weaknesses such as limited product range and high prices. The external ...Read More

Environmental
Analysis of
Automobile Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Internal Analysis of the Jaguar company by using SWOT model :-...........................................3
PESTLE analysis of Jaguar company:- ......................................................................................4
Value Chain analysis of Jaguar company :-................................................................................6
Porters Five Force model of Jaguar company:- ........................................................................7
Critical evaluation of challenges in internal analysis:-...............................................................8
Critical evaluation of challenges in external analysis:- ..............................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The term global business environment may be define as the environment of the different
countries which not only affect the economy of the country but also affect the various activities
and decision making of the company(Ahmed and Alam, 2021) . The different factors which
comprises in the global business environment affect the operations of the business in a very
immense manner. The following report is based on the Jaguar company. The respective company
deals in the manufacturing of the luxuries. This is a British multinational car manufacturing
company who's headquarter are situated in Whitley, Coventry, England. The company was
founded in September 1935. the following report is going to cover the challenges which are
faced by the company and along with this, this report also cover the evaluation of the external
and internal environment by using various frameworks like SWOT, PESTLE, Porter's Five
Forces model and value chain.
TASK
Internal Analysis of the Jaguar company by using SWOT model :-
Meaning :- SWOT analysis is basically a framework which help the company in planning and
making strategies for the business. With the help of this technique an organisation can easily
identify their strength, weakness and easily grab the opportunities available in the market. Along
with this, this model also help the company in effectively identify the challenges which are face
by the company. In context to the Jaguar the, SWOT analysis has been discussed below:-
Strength:-
 Popularity :- the brand image of the company in the automobile manufacturing industry
is very good. As they only deals in the luxurious cars which help the company to
maintain their brand image in the market(Amponsah and Ahmed, 2017).
 Employees :- the biggest strength of the company is their skilled workforce. As quality is
being considered as one of the most important factor for the company. The employees of
the company is known for their knowledge, skilful talent and expertise in the market.
Weakness :-
 Product range :- As compare to their competitor the respective company has limited
range of product. Due to this they are not able to offer different types of options to their

customers. It is very important for the Jaguar company to increase their product range in
the market.
 High prices :- The main reason of the customer to shift from their brand to the
competitor is high prices(Belyaeva, 2018). As company only deals in the luxuries cars
they set the prices very high as compare to the SUV and luxuries cars of their competitor.
Opportunity :-
 New market :- the company must have to target the untapped potential customers of
new market like India and China. In order to expand their business it is very important
for the respective company to increase the sales of their products in these regions and
along with this, they also have to setup their manufacturing plants over here.
 Demand:- as the disposable income of the consumer has been increases they more like
to spend on luxury and quality. So this is being considered best time for the company
increase their sales in the market which ultimately increase their profit.
Threat :-
 Competitive market :- As Jaguar company offer their services all over the globe, so
immense competition has been faced by the company in the international market(Bruijl,
2018). Main rivals of the company are Porsche, Bently, Aston Martin, Marcedes, Audi
etc. As all these brand has a good and well settled image in the market with same target
market and audience. So in this segment stiff competition has been their.
 Changing in government laws:- As the government of the different countries more
focus towards the environment and fuel efficient technology and due to this they are
planing to change the policies which is related to the environment. This is being
considered as the biggest threat for the company if they don't align with the ideas of
government.
PESTLE analysis of Jaguar company:-
Meaning:- From business point of view, PESTLE analysis is basically framework which are
used by the different types of organisation in order to scan the component of the external
environment which affect the functioning of the company. With the help of this technique
different macro environmental factor has been identified which taken into consideration to make
the strategies and policies of the companies. PESTLE analysis of the Jaguar company has been
discussed below:-

 Political factor :- The political factor is being considered as one of the most important
factor which affect the functioning of the company(Fraedrich, Althawadi and
Bagherzadeh, 2018). This factor comprises laws of the government, tax regulations,
political stability of the government. In context to the Jaguar company, as the political
stability of the UK government is very strong, due to this the management of the
company don't have to make changes in their policies and decision making.
 Economic factor :- This factor comprises inflation rate, GDP of the country and many
more which directly impact the functioning of the company. In context to the jaguar
company, the management of the company have to focus on the spending and investment
of the government in the automobile sector. If government reduces their spending then
Jaguar have to change their methods which affect the development of the company.
 Social factor:- the social factor included change in the preferences and buying
behaviour of the consumer, cultural trends, population of the country and many more. In
context to the Jaguar company, it is very important for the company to paid focus on the
trends of the society which always change and affect the functioning of the company.
For enjoying the smooth trade ethical procedure has to be followed by the company
between the supplier and the customer.
 Technological factor:- this factor plays a very important role for the company like help
them to grab the opportunities which are available in the market. The technological
factor comprises adoption of the technology and make changes in their product. In
relation to the Jaguar, the company is well known for their innovation in the cars and
using of aluminium technology to make the cars more efficient. The management of the
company have to focus on these innovations and eliminates the driving errors which
provides safe journey to their customers (Morrison, 2017).
 Legal factors:- this factor comprises the which is related to the welfare of the society as
well as welfare of the employees. In context to the Jaguar, the management of the
company have to focus on the registration of its patents and copyrights. Due to this they
are able to to stop the sale of fake product with same name in the market. Along with
this, the laws which are made by the council of the council of the country in relation to
the society and employees have to be followed by them.

 Environmental Factor:- This factor comprises the laws which are made by the
government in relation to protect the environment of the country. Laws like
environmental protection laws, pollution act and many more has to be followed by the
company. In relation to the Jaguar, the management of the company have to focus on
minimum emission and wastage has to be done by their products. Company also have to
focus on promoting the renewable energy resources.
Value Chain analysis of Jaguar company :-
Meaning :- Value chain analysis may be define as the process of evaluating the different
activities within the business which help the company to identify and understand where the
opportunities lies in a company(Passera, Kankaanranta and Louhiala-Salminen, 2017). This
model is divided into two categories which is primary activities and supportive activities. With
the of this model organisation is able to enjoy the competitive advantage over their rivals. In
context to the Jaguar company, these two activities has been discussed below :-
Primary activities :-
 Inbound activities :- This activities of the Jaguar company is storing and receiving of
the various inputs of the products. This comprises the warehouses in which physical
products, raw material and information related to customers has been store.
 Operations :- This activity of the Jaguar company is totally related to the transformation
of the raw material into the finish goods. Company ensures that they produce high quality
product by utilizing all the resources in a very effective manner.
 Outbound logistics :- Company engaged in the distribution of the finish goods to their
consumer in a very effective manner. This activities of Jaguar comprises processing,
scheduling and distribution of the final goods.
 Marketing and sales :- different types of promotional activities has been conduct by the
company in order to promote their product in the market. It comprises marketing, pricing,
management of sales force and pricing (Peracek, Noskova and Mucha, 2017).
Supportive activities :-
 Firm infrastructure :- This activity of Jaguar comprises of general management,
quality management, finance and accounting and many more. The entire value chain has
been support by these activities which help the company to conduct their operations in a
very effective manner.

 Human resource management :- Planning, hiring, recruiting, developing training
programme for their employees has been included in the HRM activities of the
respective company. Appropriate candidates should be hire so that all the objectives has
been achieved in a very effective manner.
 Technology development: In this era technological development support all the
activities of an organisation. Designing of the cars, effective process, selection of
technology and many more provide competitive advantages to the firm.
 Procurement activities: These activities are totally relates to the purchase of the input
which are use by the Jaguar in value chain. This activity comprises raw material, office
equipments, supplies, machinery, building and many more.
Porters Five Force model of Jaguar company:-
Meaning:- This model is being considered as a framework which are used by the company in
order to analyse the competition in the operating environment of company. With the help of this
model company can effectively compare its position in the market. In context to the Jaguar
company, this model has been discussed below:-
 Threat Of New Entrants:- this factor is related to the entry of new company in the
market. In context to the Jaguar, there is low threat of entering a new company in the
automobile sector because they are not able to provide high quality of product as compare
to the company. Huge amount of investment is required to enter into the market of
automobile.
 Threat Of Substitute:- this factor of model is related to the availability of the substitute
product in the market. In relation to the Jaguar, high threat of substitution has been faced
by company. As the rivals of the company has well known image in the market and
provide the same product within the same price range. Due to this customer can easily
switch to the rival product which ultimately means that rate of substitution is very high.
 Power Of Buyer:- In context to the Jaguar company, the bargaining power of the buyer
is low. Company has a well known image in the market and provide best quality product
to their customer. This increase in the rate of loyal customer buyers are not able to
bargain with the company(Virglerová and et. al., 2017).
 Power of Supplier:- in context to the respective company, high power of supplier has
been faced by the company. The raw material which are purchased by the company from

their supplier are very less in numbers. For maintaining the quality of the product they
have to no other option to purchase the raw materiel from other.
 Competitive Rivalry:- the automobile industry is very big and with full of immense
competition. In context to the Jaguar, High rate of competition has been faced by the
company. The main rivals of the company are Porsche, Bently, Aston Martin, Marcedes,
Audi etc. which have well settled image in the market.
Critical evaluation of challenges in internal analysis:-
 Employees well-being:- the management of the company must have to focus on
providing benefits to their employees which improves the productivity and honesty level
of employee.
 Utilisation of resources:- It is very important for the respective company to utilize all
the resources of the company in a very effective manner. This help them to attain all the
set objectives (Xie and Redding, 2018).
Critical evaluation of challenges in external analysis:-
 Competition:- due to the globalization immense competition has been faced by the
company in the global market. To overcome from this problem the respective company
have to make change in the product and generate some unique ideas to stand in the
market.
 Technology:- as technology changes everyday it is very important for the company to
adopt the technology to improves their productivity and sustainability in the market for a
long period of time.
CONCLUSION
From the above report it has been concluded that it is very important for an organisation
to analyses the internal and the external environment in vary effective manner. Without
analysing this they cannot stand in the market. This report concluded the various external and
internal challenges which are faced by Jaguar company. This report also concluded the various

frameworks to analyse the external and internal factor which affect the working of the chosen
company.

REFERENCES
Books and Journals
Ahmed, F. and Alam, M.A., 2021. Business Environment: Indian and Global Perspective. PHI
Learning Pvt. Ltd..
Amponsah, C.T. and Ahmed, G., 2017. New global dimensions of business
excellence. International Journal of Business Excellence, 13(1), pp.60-78.
Belyaeva, Z., 2018. Business environment challenges and trends for contemporary SMEs in
Europe. In The sustainable marketing concept in European SMEs. Emerald Publishing
Limited.
Bruijl, G.H.T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
Fraedrich, J., Althawadi, O. and Bagherzadeh, R., 2018. A comparative analysis of the UN
declaration, global business compact, and religious morals in determining global values
for business and their application to Islamic marketing. Journal of Islamic Marketing.
Morrison, J., 2017. The global business environment: Challenges and responsibilities.
Bloomsbury Publishing.
Passera, S., Kankaanranta, A. and Louhiala-Salminen, L., 2017. Diagrams in contracts: Fostering
understanding in global business communication. IEEE Transactions on Professional
Communication. 60(2). pp.118-146.
Peracek, T., Noskova, M. and Mucha, B., 2017. Selected issues of Slovak business
environment. Economic and Social Development: Book of Proceedings, pp.254-259.
Virglerová, Z and et. al., 2017. Key determinants of the quality of business environment of
SMEs in the Czech Republic. E a M Ekonomie a Management.
Xie, E. and Redding, K.S., 2018. State-owned enterprises in the contemporary global business
scenario: Introduction. International Journal of Public Sector Management.