Comprehensive Analysis of Land Rover's Business and Environment

This report provides a comprehensive analysis of Land Rover's business and environment. It begins with an introduction to the business environment and then delves into a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors impacting the compa...Read More

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1 PESTLE OF THE COMPANY...........................................................................................3
2 SWOT analysis of the company..........................................................................................5
3 Recommendations after the analysis of SWOT and PESTLE of the company...................6
TASK 2............................................................................................................................................7
1 Types of organization..........................................................................................................7
2 Legal structure of the company...........................................................................................8
3 Size and scope of the company...........................................................................................9
4 Internal relationships.........................................................................................................11
Complexity of different type of business structure and their relevance...............................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and Journals...............................................................................................................13

INTRODUCTION
Business environment is an external and internal factor of a company which influences
the company from growing. The factors could include clients, suppliers, owners, technology, law
and government, economic trends, competitors, etc. It is very difficult for any company or
organization to work without analysis these factors of the company and even if they do they will
not be able to run for a long time. The business environment of the company should be good
only then the brand and the portfolio of the organization will be good and will have a good
market of their own.
Land rover is a British company which is owned by the Indian Tata motors since 2008
and has recently opened its branches in India, China, Brazil, Slovakia and United Kingdom. The
company is now known to be British icon and has also been awarded the best trade award which
is known as Queen’s award of Enterprise. The models of this company were made for off road
and that time the company was known as Rover Company.
The report will be covering the detail analysis of the external and internal factors of the
company, legal structure scope and size of the company and the internal relationships between
marketing and other departments.
TASK 1
1 PESTLE OF THE COMPANY
Political Factor
 Positive impact- Already is a well-established company therefore expansion for this
company is very easy irrespective of the political factors. There is a lot of free cash flow
in the company will not let any factor effect the company from expanding (Elena, 2016).
 Negative impact- The taxation level have increased in the past few years because of the
change of government which will affect the company from expanding itself completely at
this point of time.
Economic Factor

 Positive impact- There is a lot of transportation cost which can be cut down for this
company which will result in higher level of production for the cars and for the
distribution of the finished good.
 Negative impact- There is a lot of money which is being used on the production of the car
because of the taxation policies of the government. For earning profit the company has to
increase its profit if there is an increase in the inflation rate.
Social Factor
 Positive impact- The employees of the company are very much efficiently working for
the company and there is no internal factor of the business which is stopping the
company to grow.
 Negative impact- The religion of the place really make the company from not working
efficiently like the worker who are Christians will need an off on Sundays and the
Muslims will need a break during their pray timings (Yang and et.al., 2019).
Technological Factor
 Positive impact- The Company is very technology friendly and tries to innovate in this
field as much as possible because the company wants to grow. The company came out
with the lightest weight car.
 Negative impact- The Company is not being able to get more technologies in the
production level because it still required a lot of man power to produce the cars.
Legal Factor
 Positive impact- Rand Rover has copyrights and patents on its products they sell so that
no one can copy them or selling from their brand name which would spoil their name
also.

 Negative impact- The company has to follow the trade taxations and also paying their
employees the right wages that they must be getting according to the law of the
government of the countries in which this company is situated. In China people have to
be paid $15 per hour.
Environmental Factor
 Positive impact- The company is trying to get out electronic cars from the productions
they are doing so that they are environment friendly and that will be required in the future
of this world.
 Negative impact- The Company is still using resources which are affecting the
environment directly and indirectly. The company has to come out with products which
are environment friendly (Georgescu and Popescul, 2015).
2 SWOT analysis of the company
SWOT analysis is required by all the company’s so that they can work efficiently and can
run for longer time duration in the market. Land rover too has a SWOT of their own because all
the company need this so that they know their strengths, weaknesses, opportunities and threats in
the market. It’s only when the company knows there company this well will they be able to
change the company.
Strength
 The company has a strong brand name for itself because the company has three names
under it which are Jaguar and Land rover which is being owned by Tata motors. In 2017,
the company was awarded as top 100 brand most valuable brands in the world
(Lindström, 2016).
 There is a lot of young crowd working in the company which makes the company get
innovative and new creative ideas from.
Weaknesses

 There is an intensive competition in the market because of which the revenue is shrinking
and in the long run that might affect the company’s share because they will reduce. The
company’s 45% of the production is happening in the United Kingdom.
 Land Rover has a negative growth rate in the market and the company is not being able to
grow as much as it should be. There is 18% decrease in the Asian Pacific region of the
market of the company.
Opportunities
 The company can change the lifestyle of its customers and the company can make the
standards of the customers rise by the products they are selling to the customers.
 To get the demand in the markets the company must get themselves in the Asian & BRIC
nations because will give the company a great opportunity.
Threats
 There is an innovation in the technologies which is making a great threat for the company
because today one technology is liked by everyone but tomorrow some other will be liked
by the people.
 There is a lot of competition in this field of the industry and there are companies which
are eating other company’s shares and are not letting any other company come in the
market (Victor, 2017).
3 Recommendations after the analysis of SWOT and PESTLE of the company
The company will have to work upon its social factors because of the wages they have to
pay and the worker who are not being able to give their full for the company. The employees are
young and they will have to be trained for the kind of work they are doing and the company will
have to invest a lot on the training and development of the employees to achieve their aim and
objectives. Land Rover company will have to enter the Asian and BRIC so that they can make
huge profits because the wages they are paying to the employees is also increasing therefore they
will have to make more profit to achieve that mission (Saleem, 2015). Land Rover company has

to come out with new creative ideas of how to not pollute the environment directly and indirectly
because the near future will require such kind of cars in the market.
The competition in this field is way too many and the company’s which are already in
this market is not letting anyone else come in the market and the already existing companies are
eating up other company’s shares. The competitive companies are coming out with the latest
technologies in the cars therefore Land Rover is also putting in innovative and creative
technologies in the car but the technologies keep changing therefore Land Rover will also have
to be really flexible with it and keep changing the technologies in their car too. The customers
the company is targeting is all high standard class of people who want a standard matching car
which the company is serving to the customers but that target is limiting the customers in buying
the product. There is a lot of free cash flowing in the company because the owner of Land Rover
is also the owner of Tata motors and Jaguar, but he does not let the companies exchange the
company and makes the companies run separately therefore Land rover has to make enough
funds for themselves to make the company run and also earn profits.
TASK 2
1 Types of organization
Private Company
Private company do not allow any public to buy there shares, and they have a board
member of 200 people maximum (Papilaya, Soisa and Akib, 2015). The companies which come
under this section have a different entity of themselves and the company can legally sue the
members. The private company's can only be legal when they have memorandum of association,
memorandum of article and this has to be attested by the gazetted officers. Land Rover is a
private company which deals with production of cars with its customers.
Purpose
The company wants to increase its profit by increasing the sales of their own in the
market. The company also wants to make a standard of living or lifestyle of the customers and
the company wants to make the customers have a better lifestyle. Land Rover company wants to
get more young employees in the company because they have more innovative ideas and
creativity in them which will make the company make a lot of profit.
Public Company

The shares of this section is held by many customers and people who are holding the
shares in this type of company are very much legally allowed to take a profit from the company.
The company's which come under this section are valued by the shares they hold in the share
market (Aithal, 2016). NHS is a public company which was established in 1948 in London,
United Kingdom. The company gave its services for free to the customers because there focus
was on the people getting the services they could not afford, and they did not focus on the profit
the company wanted to make.
Purpose
The company wants to give the best of services to the customers because health and
safety comes before and the people in the country should be given these facilities which they can
not afford so that they are safe and healthy. NHS company's main aim is to provide the
customers with proper information about the health care and the company also wants to reach to
all the parts of the country with their services.
Voluntary Company
These companies main motive is to provide the people care and make a difference in the
society so that the society can have a welfare of themselves and this company's are non
government and non-profitable. The focus is on making the people get help which they deserve
and not be affected by there status in the society. Oxfam is one of the voluntary company's which
is trying to make a difference in the society and make the conditions of the people better in the
country (Kozubíková, Homolka and Kristalas, 2017).
Purpose
The company wants to remove poverty from the country and worldwide by creating
various activities they can achieve this motive. Oxfam does not work for making a profit but
works for making a change in the society and help those who are in need for help. The company
provides the people with the education about their right so that they are aware of how people are
treating them and are abusing them. They will continue to follow this path, and they are also a
supporter of peace in the world.
2 Legal structure of the company
Land rover is a very structured company and has divided its administrative structure into
five sub divisions which are Nomination council, Corporate responsibility council, Remuneration
council, Audit council and disclosure council. Nomination council

, this council is responsible for electing the right nominee for becoming the board member of the
company. Corporate responsibility council plays a very important role of the growth in the
company because they are responsible for the productions which are taking place in the company
have to follow the rules and regulations of the government of the country and this council makes
sure that it is being followed. Remuneration council, this council is responsible to check the
productivity of the company and then decide the wages for the employees accordingly. Audit
council, The financial and the monetary policies of the company is taken care by this council
because taking care of the financial status of the company is very important and there should a
different set of councils doing this field work. Disclosure council, This council makes sure that
all the information about the company is reaching the public like there objectives, policies and
vision of the company so that the public is aware of the company and this way the people will be
able to trust Land Rover (Evans and et.al., 2017).
Land rover is using the hierarchical structure and are paying attention to the management
structure because the company is not being able to sell the products in the country they are being
manufactured but are getting exports over 80% of the manufactured products. This is very
important for the company because it will help the company to grow faster and better if they put
in there best for the company. The employees who are working in the company are mostly
youngsters because that will make the company grow even faster because the younger generation
knows what are the trends which are coming up and the innovations which have to be done
according to the customers wants and needs.
3 Size and scope of the company
Land Rover NHS Oxfam

Scope  The company
wants to become
the best producer
and seller in the
car industry.
 Land Rover wants
to maximize its
profits and sales in
the market.
 The objective is to
maximize the
production of the
cars that this
company is
producing.
 The company
always thinks
about the welfare
of the people and
the support is
received by the
government of the
country.
 There is more
satisfaction which
can be seen in the
customers and the
customers can get
healed with better
service.
 The company
meets the needs of
people who are
financially broke
(Prajogo, 2016).
 The company finds
innovations to
improve the
conditions in the
country by helping
them financially
and making a better
lifestyle for them.
Objectives  The objective of
the company is to
have a profit in
selling its cars so
that the company
can make profits
(Yang and
Gabrielsson,
2017).
 The focus of the
company is to give
a comfortable
drive and standards
are well
maintained of the
people.
 There has to be
proper service to
the customers and
taking care of them
is the main motive
of the company.
 The company will
not treat people
because of there
caste, religion,
race, gender or any
other
discrimination will
be there and the
company will
provide all the
 Oxfam is more
focused on getting
justice for the
people who are
poor and can not
get themselves a
right to humanity.
 The company will
educate the poor so
that they are aware
of their own rights
so that they can
fight for them.

people with the
care they need.
Size Land Rover has recently
opened a lot of branches
of itself in China, India,
Brazil, etc and the
company is still extending
itself everywhere possible.
NHS has 320000 nurses
with 150000 doctors who
are working in the
hospitals and the company
is the largest company
who is providing health
care to the customers.
There are 20 different
organizations which have
come together for
removing poverty from the
world and by helping the
people in need.
4 Internal relationships
There is a need for all the departments of the company to work together so that the
company can work efficiently and can work better in the market. The company has to make a lot
of profits to expand itself and have a free cash flow in the market which is very important for a
company. The marketing plays a very important role and the relations with each department of
marketing should be good to achieve the goals and objectives of the company. Importance and
relations of each department with marketing are discussed below.
Marketing and Human Resource
The marketing and human resource department go hand in hand because human resource
acts as a bridge between the management and the employees so the marketing and the human
resource have to sit for the decision-making of the company because everyone has a say in the
decision-making of the company. The human resource makes sure that all the departments of the
company are working efficiently in that company. Land rover is one of this company which takes
the entire company as one, and they all have a say in the decision-making because that always
gets out innovation and creativity in the making of the products of the company (Deasy and
et.al., 2016).
Marketing and Finance
Marketing team is the one who needs financial support from the finance department to
make the company's products promote so that the customers are aware of the products which are
being changed or are getting innovated by the company so that the company can get a profit by
getting more customers. The marketing team also need a budget on which they can work upon.

Marketing and Productions
The production team has to make sure that the marketing team is with them when the
production is taking place because the changes which are being done in the company have to be
known by the marketing team so that the marketing team can promote the product accordingly.
Marketing and Research and development
The research department has to make sure that the marketing team of Land Rover is
aware of the researches and development they have got in the car or the product so that the
marketing team can make changes in the promotion methods so that the company can attract
more customers in the company (Quinlan and et.al., 2019).
Complexity of different type of business structure and their relevance
Complexity can lay in all type of business structure like for example in hierarchical structure
their might be possibility that junior might face difficulty in communicating with seniors. They
might lack confidence in interacting with one another. This can reduce the growth aspect of firm.
Also the organization structure may lack flexibility so it can be very difficult for enterprise to
establish their organization in changing environment.
CONCLUSION
Land Rover has to expand itself in the Asian and BRIC areas so that they can get more
customers in the company. The company has to invest in the training and development of the
employees because they are getting youngsters in the company who are not trained, so they will
ave to train them so that the company can work efficiently. The company is providing the
customers with comfort and standard cars so that the company can improve. Land Rover
company is also spending a lot in the research and development department because they want to
come out with a car which will be really useful in the near future and which are environment
friendly.

REFERENCES
Books and Journals
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Patent 9,247,042.
Elena, K., 2016. Marketing strategy of Jaguar Land Rover in the Russian market.
Evans, S and et.al., 2017. Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
Environment. 26(5). pp.597-608.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20. pp.277-
282.
Kozubíková, L., Homolka, L. and Kristalas, D., 2017. The effect of business environment and
entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of
Competitiveness.
Lindström, I., 2016. Market Research of the Luxury Car Market in China.
Papilaya, J., Soisa, T.R. and Akib, H., 2015. The influence of implementing the strategic policy
in creating business climate, business environment and providing support facilities
towards business empowerment on small medium craft enterprises in Ambon
Indonesia. International Review of Management and Marketing. 5(2). pp.85-93.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
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Quinlan, C and et.al., 2019. Business research methods. South Western Cengage.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Victor, M.D.S.P., 2017. Influence of Institutional actors on the strategy and performance of
Indian Space Companies(Doctoral dissertation, Toulouse Business School).
Yang, M. and Gabrielsson, P., 2017. Entrepreneurial marketing of international high-tech
business-to-business new ventures: A decision-making process perspective. Industrial
Marketing Management. 64. pp.147-160.
Yang, Y and et.al., 2019. Enhancing SWOT discharge assimilation through spatiotemporal
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