A Detailed Report on Environment Analysis of Jaguar UK Business

This report provides a comprehensive environment analysis of Jaguar Land Rover in the UK, focusing on both external and internal factors influencing the company's business development. The external environment is assessed using the PESTLE framework, examining political factors like Brexit and government regulations, economic factors such as inflation and wage growth, social factors including population changes, technological advancements, legal frameworks, and environmental regulations. The internal environment is evaluated through SWOT analysis, identifying Jaguar's strengths (high product quality, brand value), weaknesses (limited product range, labor issues), opportunities (hybrid models, SUV segment expansion), and threats (competition, rising fuel prices). The report highlights the importance of R&D, new technologies, and strategic marketing to enhance Jaguar's market position and promote sustainability in the UK automotive industry. Desklib provides students access to this and similar solved assignments.

Environment
analysis for Jaguar,
UK
Name of the Student:
Name of the University:

Introduction
▪ Jaguar Land Rover is one of the major car
manufacturing company in the UK.
▪ Since its establishment in 1935, the company
has become a market leader in luxury cars.
▪ Tata Motors has acquired Jaguar Land Rover in
2012 (Jaguar.co.uk 2018).
▪ It earned revenue of around £25.8 billion in
2017-18, with operating income being £1.5
billion (Jaguarlandrover.com 2018)
▪ The company is a profitable choice for
potential investments.2

Environment
▪ Factors from the outside of an organisation that
are not under control of the management
create the external environment (Khan, Alam
and Alam 2015).
▪ This is analysed using PESTLE tool.
▪ Internal environment includes indigenous
factors from the organisation that are
controlled by the business (Khan, Alam and
Alam 2015).
▪ SWOT analysis is used to assess the internal3

4

Political
▪ Instability in the political scenario due to
Brexit referendum and change of the
prime minister (Brown, Dhingra and
Oliver 2016)
▪ Government controls the automobile
industry to prevent monopoly.
▪ Size of the firms is also controlled by the
government
▪ The government provides support and
subsidy on low emission vehicles
(Serrenho et al. 2016).5

Economic
▪ UK economy has inflation 2.8%, highest in 6
years, and highest employment rate at 75.6%
(Wearden 2018)
▪ Wage growth slowed down by 2.8% (Wearden
2018)
▪ Brexit uncertainty has added in the instability
and inflation by depreciating the currency.
▪ Growth of automotive industry has slowed down
due to fall in disposable income of the
consumers (Ebell and Warren 2016)
▪ Increasing globalisation has increased business6

Social
▪ Population in the UK has increased
significantly due to migration.
▪ Tastes and preferences of the migrated
population has been changing the
market dynamics, which need to be
addressed by the car companies (i
Bassedas et al. 2016)
7

Technological
▪ UK is a highly technologically advanced
country
▪ The automobile industry is significantly
developed since long.
▪ Innovation is a key to the success in
the UK luxury automobile industry
▪ At present, the low emission and fuel
efficient cars are mostly in demand in
the UK market (Brand 2016).
8

Legal
▪ Legal framework for the automobile
industry is quite regulated in the UK
▪ The standard for safety and quality is
quite high and strictly maintained due
to strict penalties.
▪ Recently, Toyota had to recall its
vehicles for faulty airbags in the UK
market (Reynolds 2016).
▪ Pollution control laws have become
more stringent.9

Environmental
▪ Laws are created to protect the
environment and promote
sustainability.
▪ All the car manufacturers must abide
by the legal regulations for producing
eco-friendly cars (Calabrese 2016).
▪ The rules for emission testing has
become more strict.
10

11

Strengths
▪ High product Quality, rich culture identity
and strong global brand value
▪ Popular brand image as a powerful luxury
brand
▪ High barriers to entry in the market
▪ Increase in Research and development
spending
▪ Improvement in global sales of Jaguar after
Tata Motors acquisition (Jaguar.co.uk 2018)
▪ Attractive advertising