Business Environment Analysis Report for Jaguar Land Rover

This report provides a detailed analysis of the business environment, focusing on Jaguar Land Rover. It begins with an introduction to the business environment and its impact on organizations. The report then delves into different types of organizations (private, public, and voluntary) examining their purposes, legal structures, sizes, and scopes. It explores various organizational functions and links them to business objectives. A significant portion of the report is dedicated to analyzing the positive and negative impacts of the macro-environment on business operations, including a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. The interrelation of strengths and weaknesses with external factors is also examined. The report concludes with a summary of findings and a list of references.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different kinds of Organisation with purpose and legal structure.........................................1
P2 Size and scope of different types of organisation..................................................................4
TASK3.............................................................................................................................................7
P3 Various organisational function. ...........................................................................................7
TASK 4............................................................................................................................................8
P4 & M3 Analyse the positive and negative impacts of macro-environment upon business
operations....................................................................................................................................8
P5 SWOT analysis....................................................................................................................11
TASK 4 .........................................................................................................................................12
P6 Interrelation of strength and weakness with external factors...............................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business Environment define as number of factors that influence core competencies of
organisations that in turn establish and sustain better customer relationships. In general, it is total
of various physical as well as social forces which are undertaken by firm's management in
decision-making process of organisation. There are three type of environment exists namely
internal, micro and macro(external). Analysis of business environment is useful with purpose of
understanding social and cultural changes (Business Environment, 2020). Jaguar Land Rover is
one of biggest Automotive multinational organisation and has holding enterprise of Jaguar Land
Rover limited. Organisation has its headquarters in Coventry, UK and it is a subsidiary of Tata
Motors. Company deals in manufacturing, designing, developing of luxury and deluxe vehicles
under brand name of JAGUAR and Land Rover. It has product portfolio of Luxury auto-mobiles
along with Sport Utility vehicles. This research assignment explores various areas of business
environment which affect decisions and working of following organisation. Moreover, it
contains information regarding different kind of organisations their purpose and structure.
Comparison between organisational functions and their link with business objectives. Futher,
negative and positive impact of micro and macro environment.
TASK 1
P1 Different kinds of Organisation with purpose and legal structure.
There are various number of sectors in which business enterprises are operating their
working operations and functions. Each sector has its own purpose, policies, objectives criteria,
culture as well as legal structure. Many organisations come under these sectors and that can be
understand by thorough study of different kind of organisation (Quinlan and et. al., 2019).
1. Private Organisation: this kind of sector refers to any type of partnership, corporations,
agencies which is not regulated by either public or profit body. This sector involve all
kind of business entities that has sole purpose of earning profits. Private organisations are
self sustained and build up on federal property by owners who are not a part of federal
government body. Private sectors are govern and regulated by persons or entities that are
run for profit maximisation. For instance, former type of Jaguar is private held company
which deals in manufacturing of lavish and high profiled cars and serves the same
worldwide.
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Purpose: sole motive of private sector is to optimize higher profits from markets. Individual who
operates in such sector are price taker through which firm can decide and charge their own prices
for goods. Main objective of Jaguar is to provide lavish experienced to its customers to gain
higher profits.
Legal structure of Private sectors.
 Sole proprietors are those individuals who owns or run single person business commonly
known as sole traders. In such business, few amount of funds are required to start-up.
These kind of traders has to bear unlimited liability for debts also there is no legal
separation in between of business and owners. Furthermore, sole traders has full control
over its business decisions and has entire right on earned profits and revenue. (Gaganis,
Pasiouras and Voulgari, 2019).
 Partnerships categorised as an association of different partners or individuals who
together run and regulate functions of business. To participate in a partnership deed there
must be minimum two or maximum twenty partners required. In such structure, each
partner is accountable for debts and bear risk equally. All rights are equally divided in
partners so they are eligible to participate in decision making process. As well as profits
and revenue are equally enjoyed by each partner.
 Corporations are refers as limited liability organisations as these has common
organisational structure that secure common assets and identify liability in order to
establish an enterprise as separate entity without connection with persons. In simple
words, it means overall responsibilities and risks is bear by companies. These
corporations are known as joint stock company which as separate legal identity from its
owners.
Jaguar Automotive Plc come under corporation legal structure as it has separate legal entity with
sole purpose of earning higher profits.
2. Public sectors: these sector of economy is comprised of all different categories of
government enterprises excluding private owned companies (Wickramasekera,
MacKenzie and Gordan, 2019). These sector provides a wide range of governmental
services which involve infrastructure, transportation facilities, public education, health
care, military etc. these are known as state sectors which deals in public services as well
as companies. This particular sector is owned and run under ownership of government. In
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UK, Crown Commercial Service is a government owned organisation which is
accountable for managing purchasing of common goods and services in order to raise
savings for taxpaying through centralizing procuring requirements.
Purpose: sole motive of public sector is to provide quality services and goods to public and
handle out all public related issues. Crown Commercial Services is established under
Government Trading Funds Act 1973, with motive of professional procurement services in order
to enhance value for money in commercial activities.
Legal structure of Public sector.
 Local government categorised as type of public administration that exists at lower stage
of management within following state of country. It has a power to assess as well as
apply corrective measure for restricted area within entire state. It is refer as subdivision of
political unit which regulate specific local area.
 State government refers as government of country which is sub category of federal or
central government which regulate and take decisions for entire state. It makes laws and
implement same within specific state. State government are accountable for governing
trade within state boarders as well as identify problems related to particular region (Bill,
Feurer and Klarmann, 2020).
 Central government define as political authority which run as well as regulate entire
nation. It refers to overall federal system of country that enjoys separate powers at
different levels delegated by its state members. It has authority to control state and local
government of country. Crown Commercial Services come under this section as it serves
its services within entire nation.
3. Voluntary sectors refers to those organisations which encompasses products and services
in order to provide benefits and enhance society without earning profits. These sectors
has no or little interference of government. It also known as civil sector which perform a
duty of social tasks carried out by non profit organisations. Cancer Research in UK is an
charitable organisation which perform different research campaigns and generate funds
for cancer patients (Zhang, Daim and Zhang,2019).
Purpose of voluntary sector is to provide welfare services in order to enrich society as whole.
Sole purpose of Cancer Research UK is to reduce number of deaths from cancers.
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Legal structure of Voluntary Sectors.
 Trusts are categorised as that structure in which different individuals known as trustee
undertaken various business tasks. These are organisation owned by persons who
administers financial assets and resources on behalf of other persons. Cancer Research
UK is come under Charitable type of organisation (Mawejjeand Sebudde, 2019).
 Unincorporated Associations are those business enterprises that are established through
agreement held between committee of individual who come under one roof with purpose
of social welfare without earning personal profit or benefits.
Basis Private Sector Public Sector Voluntary Sector
Purpose Sole purpose of this sector
is to earn high profits.
Aim of public sector is to
offer quality services in
public welfare.
Motive of this sector is
to perform social
activities in order to
provide benefits and
enrich entire nations.
Legal Structure It include sole
proprietors,private limited
corporations and
Partnership firms.
Public sector is legally
divided in three structure
local, state and central
government.
This involve charitable
trusts, unincorporated
associations.
Government
interference
It has zero or limited
intervention of
government.
This sector is fully
controlled and regulated
by government of nation.
There is moderate
level of inference.
Members It required minimum two
members and maximum
limit is 200.
It required minimal 2
individual and maximum
no limit.
It required minimum
10 individual and
maximum unlimited.
P2 Size and scope of different types of organisation.
Private organisations are those who operates for attaining maximum sales and profits.
These are purely profit earning business organisation. These are run and regulate through
individuals as well as groups in order to seek high return of profits. These organisations are free
from government control (Nam, Lee and Lee,2019). Jaguar Automotive Plc is huge
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multinational corporation which deals in processing and selling of luxury auto-mobiles to its
target market. Company designs and develop high featured cars for its high class standard
customers. It is build upon two iconic British Brands Land Rover which world's leading
manufacture of premium vehicles and other one is Jaguar which produce luxury sports saloon
and cars (Crudu, 2019).
 Background: jaguar automotive is a subsidiary of Indian automotive organisation TATA
Motors. Company was founded twelve years ago in year of 2008. In 2013, operations of
Jaguar Cars limited were combined with Jaguar Land Rover Ltd. They together known as
Jaguar Land Rover Automotive PLC. Products of organisation are common under two
categories JAGUAR and LAND ROVER. Jaguar products are XE(compact executive
car), XF(executive car & estate), XJ(full size luxury car), F-type(Sports car)etc. Under
Land rover range there are Discovery sports car, Defender, Range Rover Evoque.
 Mission of Jaguar is “to be best in automotive industry in order to provide high class
customer experience through high great quality cars”.
 Vision of Jaguar is “to create sustainable and smart mobility world in which everyone
can live safer and better lives together”.
 Size: Jaguar is large organisation and serves its products worldwide. It has around
43000+ number of employees with four subsidiaries. Company production output is
approx 430000+ of land rover and 170000+ units of jaguar (Brenstein, Electronic Credit
Systems Corp, 2019).
 Objectives of Jaguar is “to earn higher profits and sustain its competitive advantage by
offering premium all-wheel-drive luxury and sports vehicles to increase customer
excellence”.
 Structure: Jaguar Land Rover Plc make use of Functional organisational structure.
Public Organisations are those which are run as well as owned by local, state and
central government. Sole purpose of this organisation is to provide products and services in
welfare of public. These are similar to voluntary organisation as these do not work for attaining
profits or revenue (Zhou and Wen, 2020)(Al Fallah, 2019). Crown Commercial Services (CCS)
consider as executive and fund trading organisation which is governed by Cabinet office of UK
Government. CCS is work for administering procurement of normal goods and services and
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centralizing buying requirements in order to increase savings of taxpayer. Moreover, it lead
procurement policies on account of government.
 Background: Crown Commercial Services was established under name of Buying
Agency in 1991. In 2000, it became a part of Office of Government Commerce (OGC).
It operates its function under Government Trading Funds Act 1973. In 2010,
organisation join hands with Efficiency and Reform Group within Cabinet Office along
with OGC. Company provides wide range of common products and services under
various categories such as Buildings, Corporate Solutions, People, Technology.
 Mission of CCS is “to accomplish maximum benefits for both central government as
well as public sector”.
 Vision of CCS is “to offer premium commercial solutions in order to procurement of
common products and services to entire UK public”.
 Size: CCS provide wide range of services and work with different sectors which include
local government, health&care sectors, Universities and colleges, schools and
academics, charities, housing association, police and emergency services (Cravo and
Piza, 2019).
 Objectives of CCS “to help out UK public in saving money while purchasing common
goods and services”.
 Structure: All policies and rules are regulated and formulated by central government of
UK.
Voluntary organisation refers to group or union of people who work for a common
interest in order to accomplish a specific purpose. This is third sector of economy which work
for social welfare rather than profit maximisation (Hamilton and Webster, 2018). Cancer
Research UK is one of flourish charitable organisation which work for cancer research and
spreading awareness regarding same. Sole motive of this organisation is to eliminate ratio of
cancer patients deaths. It organises different events, research in order to raise funds for victims.
 Background: organisation was renamed as Cancer Research Fund in February, 2002.
earlier it was known as Imperial Cancer Research Fund. In twenty years, organisation
become one of leading cancer research charities. Organisation is mainly emphasize on
cancer research and health policies.
 Mission of Cancer Research UK is “to prevent, monitor and cure through research”.
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 Vision of Cancer Research UK is “to be pioneer at research work into prevention,
diagnosis and treatment of cancer”.
 Size: organisation has approx 3000+ number of employees and around 40000+
volunteers.
 Objectives of firm is “to help more and more cancer victims and spread awareness”.
 Structures: Cancer Research UK make use of functional organisational structure.
Basis Micro size
enterprise
Small size
enterprise
Medium size
enterprise
Meaning It refers to that
business enterprise
which sells goods
and services to the
customers on the
local level and opens
their outlet in the
local area.
It is almost similar to
the micro enterprise
which sells products
and services to their
customers having a
little more capital as
compare to micro
enterprise.
It refers to enterprise
that maintains assets,
capital and
employees on some
extent.
Size The size of the micro
enterprise is
containing less than
10 employees.
The size of the small
enterprise is that it
has minimum 50
employees not more
than this.
The size of the
business is mot more
250 employees who
are working in the
organisation.
Scope The scope of this
type of enterprise is
not big as they are
geographically
restricted.
The scope of this
type of business is
sustaining in the
marketplace for
profit earning.
The scope is wide as
compare to other two
types that shows their
presence in various
states and nearby
countries.
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TASK3
P3 Various organisational function.
Organisational functions define as process of different set of activities which are
undertaken by company for purpose of attaining mission goals. These functions are categorised
under six sub functions which involve Finance, Marketing, Human resource, Production, R&D
and Administration. Every function has its own pros and cons also these are interconnected with
each other that can be understood by following interrelations (Wood, and Logsdon, 2017).
 Production and Finance: these two pair are interlinked with one another as production
function perform all those activities which are related to designing and developing new
product or modifying existing one. While finance department focuses on preparing and
sanctioning budget for other activities also it keeps a record of inflow and cash-flow of
funds. These are interlinked with each other as for manufacturing any product it requires
high-tech machines, equipment, tools, raw material for which financial budget is needed.
These budgets and funds are approved by finance department. In context with Jaguar, it
is a multinational enterprise which manufacture luxurious vehicles for it require budget
for procuring raw materials, machines. Production team must determine amount of funds
it required so that it can communicate about same to finance department (Gebauer,
Haldimann and Saul, 2017).
 Marketing and R&D: the pair of these two are highly interrelated with each other cause
both are involve in research projects and campaigns. Marketing department perform
various activities related to promoting and communicating related to its product and
services to attract target audience and increase its sales volume. Whereas, R&D
department perform different course of actions which provide answers to various
questions like which marketing tool is more effective, what are current trends and
changes are prevailing in market, what type of packaging is going to be used? Etc. both
are connected because marketer requires to communicate with research department in
order to understand taste and preferences of customers, competitors strategies, prevailing
technology in order to formulate effective marketing mix strategy. Jaguar is world
known organisation so with help of powerful combination of research and marketing
strategy company can sustain its competitive edge and be pioneer in automotive industry.
Advantage of interrelationships between the departments
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The major advantage of the interrelationship is that it’s helps in encouraging the
creativity and improves the productivity within the organisation. It also helps in maintaining the
employee relations and helps in reducing the employee turnover. Because of interrelationship
between the departments work can be done ion an effective way and done quicker also. this
interrelationship also helps in achieving the competitive advantage in the marketplace and also
helps in longer sustain ability of the firm.
Disadvantage of interrelationship between the departments
By interrelationship between the various departments it will create the conflicts
sometimes and shows the dominancy factor by the one. In this marketing manager is depends on
the finance manger in a way that when the budget is not passed by the finance manager
production manager cannot work properly and start production and if research and development
department cannot research the market and not give the information to the marketing manager
than they cannot achieve the target of attracting and satisfying the customers. it amy crete delay
in work and because of this conflict may arise.
Organisation structure refers to an alignment of various activities and actions that are
perform by individuals who are positioned at each level of structure. This is a system which
justify how flow of information will be take place within an organisation. There are number of
structure undertaken by enterprises (Gaganis, Pasiouras and Voulgari, 2019).
Functional organisational structure refers to division of organisation in separate
departments on basis of functions and roles. Each department is regulated by functional manager
and its team is formulated as per their role. Functional managers have full knowledge and
experience of their subject role. Organisational chart of this structure exhibits role hierarchy
which includes CEO, CFO, finance department, sales department, HR department so on. In case
of Jaguar Land Rover, organisation is presently using functional structure cause it is large in size
and work with huge workforce. This structure enables firm to achieve its business objectives as it
follows systematic procedures and policies.
Divisional organisation defines arrangement in human resource are segmented into
various sections or areas. Each area contains its own functions, product/service as well as
market. In such structure, each member has some kind of authority to complete respective
operations (Eling and Schaper, 2017). This organisation structure helps in achieving the
objectives of the firms in this work can be assigned in small groups so that it can be done very
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