Land Rover Business Position Report: PESTLE, Porter's, VRIO

This business position report provides a comprehensive analysis of Land Rover, examining its market environment and internal resources. It begins with an introduction to the report's purpose and scope, followed by an in-depth PESTLE analysis of the macro factors influencing Land Rover's decisions, including political, economic, social, technological, legal, and environmental factors. The report then applies Porter's Five Forces to assess the competitive landscape of the UK automobile industry, considering threats of new entrants, supplier power, buyer power, substitute products, and competitive rivalry. The VRIO model is used to evaluate Land Rover's internal resources, focusing on value, rarity, imitability, and organization. Finally, the report explores stakeholder perspectives, discussing how Land Rover considers various stakeholders in its decision-making processes. The conclusion summarizes the key findings and emphasizes the importance of continuous market analysis and strategic adaptation for the company's success.

BUSINESS POSITION REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Pestle Analysis ...........................................................................................................................1
Porter's Five Force.......................................................................................................................2
VRIO Model................................................................................................................................4
Stakeholder perceptive ...............................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES..............................................................................................................................10

INTRODUCTION
Business position report is used within organization to communicate to internal
stakeholder about type of target customer, list of its consumer need, and advantage of existing
and future product, frame of Reference and reason to believe. Report work as guideline for
marketing department to make all the marketing tactics and strategies. Present report cover all
the macro factor affecting Land Rover decisions. Industry positioning render data of particular
industry in economy and its glimpse about its opportunity, threat and weakness and strength.
oreply also describe different stakeholder perceptive along with Land Rover's. Land Rover
provides luxury, sport and value vehicle to its customer. Company is now acquired by TATA
group of India. Company's USP is to facilitate adventurous, Rugged and authentic cars to people.
MAIN BODY
Pestle Analysis
Macro factor are external business environmental which affect a business indirectly.
These elements are enviable in nature. An organisation can not avoid these, but only minimise
impact of these by taking precautionary actions. PESTLE analysis is the most widely used tool
by manager to know about superficial factor affecting business decision. Following is the
PESTLE of Land Rover is given below
Political factor:
As all auto mobile company, Land Rover get affected by change In taxes, import and
export duty, employment polices, environmental safety efforts etc. now company has to make
low carbon emission vehicles(Wedeniwski 2016). Political stability create favourable business
environment. When governments maintain harmonious relation with other countries, it would
render market growth and expansion opportunity.
Technological Factor:
Auto mobile industry is highly sensitive to this factor. Technical changes are brought to
augment driving experience, better road safety and refine vehicles performance. Now customer
want fuel efficient, better mileage along with digital technology in car. Land Rover continuously
make its serious effort to remove driving errors. Land Rover has advanced driver-assistance
systems, Artificial intelligence and IOT in all its latest cars and SUVs.
Economical factor:
1

Adverse economic conditions lower the disposable income, which eventually slow done
sale and potability. Also, high interest rate impact growth and expansion plan of Land Rover.
Government investment in public infrastructure render seamless distribution and procurement
facilities (Schuetz, Mair and Schrefl, 2018). In inflation phase, company try to cut down its non
essential expenses like marketing so that reasonable pricing can be offer to buyer.
Social factor:
This element impact care manufacturing as well as working culture in Land Rover office
premises. Company makes required modification as per trend and preference prvelling in society.
Land Rover design it models according to target's people need. As far as culture
concern ,Company gives break in working hour to Muslim personnel for prayer.
Legal factor:
Auto mobile industry also have set of legal compliance, which they have to follow. Like
law regarding safety, pollution, employment, product quality standards' law etc. Land Rover now
look upon carbon emission rate for its car, if it is ignored car will fail in passing the emission
test, Which eventually can not be sale in market. Company render smart breaking system,
RADAR sensors, Traction control in order to follow government rule for safety.
Environmental factor:
Nowadays it becomes crucial factor for car company's because of earth's poor health and
increases pressure form international environment safety bodies like IUCN and UNEP. Land
Rover adopts best recycling and waste management policy. Its car now having engine which is
more environment friendly (Diouf and Boiral, 2017). Company also try to use recyclable
material in car components. Reduce. Reuse. Recycle polity, Recycled aluminium, low carbon
fuel are some initiative taken by Land Rover.
Porter's Five Force
Currently, UK automobile sector make more sports and premium vehicle for people than
ordinary one, Although value cars also produced. UK automobile industry faces tough
competition with France, japan and Germany. Many big car companies acquired by overseas
companies like Tata (India) owned Jaguar and Land Rover, BMW(Germany) purchased Rolls-
Royce. Industry render £20.2 billion direct to UK Treasury. 2,45,000 number of people get direct
employment form car retail, where addition 347,000 employee are working in serving and
repairing of cars. Out of total UK exports, industry gives 12.8% share. Annual contribution in
2

GDP is approximately £12.5 billion. As of December 2018 three car manufacturing firm are able
to maintain their leading position, they are Volkswagen, Ford and Vauxhall, though BMW slitely
move forward. British automobile sector hugely impacted by BREXIT( Ghifary and et.al., 2017).
Now company facing issue in getting skilled employee. Also, tariffs imposed by EU on car
would lead to extra cost in import and export. According to SMMT( The Society of Motor
Manufacturers & Traders) tarrif would increase £2.7 billion to import and £1.8 to export. This
additional cost also push up the pricing of UK cars.
UK car industry is now shifting form traditional car to self- driving vehicle. Earlier
people did not believe in safety feature of these cars, but now they stats trust and accept the
autonomous technology(Ghifary and et.al., 2017). 73% of people still support diesel and gasoline
engine because they think power train technologies added operational cost (Bhatia, J., 2016).
Business's growth and success possibility is very high as people makes fast decision in buying
new vehicles. They spend even less than half month to think about it, which also create problem
for big manufactures in influence their buying decision. Porter five force give the best idea of
industry position, which is given below:
Porter five force-
Threat of new entrance: automotive industry demand huge investment for factory set
up, distribution network, skill employee hiring. Apart from it industry has high level of
competition and presence of old and reputed brands. New player can face problem in getting
economic of scale, so new entrance threat is low.
Bargain power of supplier:
There are so many component and raw material suppliers are present in industry, which
makes supplier bargain power low (Rothaermel, 2016).Supplier has to render supply demand by
Land Rover as per its produce standard, otherwise company can switch to another supplier
easily.
Buyer's bargaining power:
Buyer can shift form Land Rover to its competitor's' product because there is no huge
switch cost associate and buyer are highly sensitive to price. They make changing in purchasing
decision quickly. It shows buyer's strong bargain power.
Threat of substitute:
3

Land Rover render car, SUV and luxury sedan to its customer. no other transportation
alternative is present of car ,like train, airplane, bus and taxi. Customer own car for personal use,
this objective can not be achieve by suing these options. So it has low risk of substitute product.
Threat of competition's
Automotive industry has lots of small and big player working their best to attract
customer. Competition also render different technology, price to customer, Which enhance the
competition threat. Land rover revive competition form BMW, Mercedes-Benz, Audi and jeep.
VRIO Model
Interior resources and strength of auto mobile company
Internal resources of business comprises component which an organization have within it.
These factors directly influence productivity and performance of organization (Wedeniwski,
2016). A business has tangible and intelligible sources which contributes in its success, if it used
efficiently. Following are inner sources mandatory for care production entity: VIRO is the best
model to analyse the internal resources which is given below:
Question of Value
These resources render some value( negatively and positively) which help organization to
get competition advantage. Like Land Rover's financial position enables it to make continuous
improvement in its car because of its unmatched research and development efforts, innovation
and effective human capital. An organization can not perform a single activity with poor
monetary condition(Li, H and et.al., 2016). R&D program has huge cost associates with it.
Financial capability also include business ability to meet its short term payments obligations and
potentiality to raise fund from market. Company's Psychical resources Factory set ups, number
of plant, accessibility of raw material and showroom location, machines, inventory, material,
facilities and building are come in physical assets of business. Land Rover has factory location
near to component supplier, which saves raw material transportation cost. Factory are equipped
with needed testing facilities. Its showroom generally located in mid city markets and near to its
competitor's location. Accessibility of customer to product also decides the success of Firm.
4

5
Illustration 1: VIRO model
(Sources: VRIO Analysis,2018)

Question of Rarity:
These resources are the especially of rarity of business, which is not available to its
competitors. This rarity contribute In success to like Land Rover's Human efficient resources as
All the organizational activities are carried out by its people. Efficient employee influences
victory as ineffective staff lead to human errors, wastage, missus of resources. They render
innovative ideas, share their individual learning which help in getting competitive advantage and
enlarged market share.
Question of Organization
It is Organization's structure which facilitate smooth function or create hurdle in day to day
activity. Business structures can be defined bunch of activities used in attainment of vision
(Montshiwa,2018). Lnd Rover has Good working culture, value, practices, leadership, defined
role and reputability, flow of information is played significant role in business performance.
Land Rover uses mix of formal and informal workplace culture, delegation of authority and
grapevine communication. These enable Land Rover to perform its work speedily.
Question of Imitability
These resources are not easily adaptable by competitor. Like Land Rover's unique
Technology. Is also have Trade secrets, patents, unique technology, innovations, copyrights,
business USPs are the common example of this resource. Land Rover owned patent of first duct
inlet and outlet. Land Rover recently make some innovation as ingenium engines and
lightweight suspension. It also has the latest unique Evoke technology” in its car.
Stakeholder perceptive
An organization's stakeholder comprises both individual and group of people who
directly and indirectly get affected by its business decisions. Company also make decision after
taking them into consideration because Firm acquire resources and deliver it final product to
these people (Diouf and Boiral,2017). Stakeholder perceptive gives the idea about the way
manager treat its stakeholder while taking major decision. This perceptive broadly divided into
three classes like The separation, The ethical and the integrated perspective.
In separation approach manager tries his best to accomplish the owner's interest. Though
stakeholder benefit also taken care of but owners should be get benefit too. In ethical perspective
6

business decisions and activities are modified to treat collaborator fairly. Manager has to shift its
profit oriented vision form ethics focused decisions.
According to integrated perspective, business can not work in isolation. In this policy, it
is expected form manager that actions will not differentiate owner and non owner's interest.
Decision which are taken in isolation would lead to organization threats as well as its
stakeholder's failure (Barney,2018). Employee, young people, industry associations, environment
shareholder, local council members, environment are stakeholder of Land Rover. It can be seen
that stakeholder perspective is a philosophy, which help manager to design its corporate
objective as well as value, process, actions and CSR (corporate social responsibility) program. If
business fail to meet its stakeholder's expectation and favor it can not sustain for long time as it
can losses its trust and image in front of them. Stakeholder analysis matrix help any business to
identify collaboration form particular project, their contribution, expectation. Manager formulate
stakeholder engagement as per the dimension and concern given on in this matrix.
CONCLUSION
Form the above study is has been summarized that firm's success depend on its skill to
analysis market environment around it. Macro factor for Land Rover play same role as they
impact other business in same industry but company achieve immense success because of its
effective internal sources. Internal sources helped organization to minimize the impact of risky
events. Industry positioning render growth and opportunity insight, so manager can align their
action accordingly. Company maintain try to obligate its collaborator as it has performed its
business among them. It is required for business to review its business positioning report
periodically, so that higher authority can get the latest data and make expected policy.
Land Rover's adopted the integrated perspective in which company tries to meet its stakeholder's
expectation along with its organizational objectives. Land Rover pay expected divined to its
shareholder. In order to raise high dividend manager put more focuses on meet the sale targets
timely. Employee are getting best and fair treatment by HRM practices. Land Rover render
customer satisfaction among its buyers by rendering them competence technology in cars, best
before and after sale services, better customer experience practices etc. supplier of Land receive
reasonable and required payments on time. Stakeholder management play a crucial role in
7

success of Land Rover. Company follow all the stakeholder principle like it communicate its
major project with them, also ask to give suggestion. SRM( supply relationship management) is
also used by organization. Firm submit its tax on time and help government in employment
generation. Volvo, Audi, BMW, and jeep gives company tough competitor but they are also the
part of company community holders because competitor action, impact Firm too. Manager
protect their interest by practicing and encouraging healthily competition. Land Rover manager
uses ethical marketing practices, maintaining industry reputation with revelry. Participate and
conduct association, fair merger and acquisition etc.
8
Illustration 2: Business stakeholder
(Sources: Stakeholders, 2018)

REFERENCES
Books and Journals
Barney, J. B., 2018. Why resource‐based theory's model of profit appropriation must incorporate
a stakeholder perspective. Strategic Management Journal.39(13). pp.3305-3325.
Bhatia, J., 2016. Porter's Five Forces Industry Analysis of Indian Passenger Car Industry. Pacific
Business Review International. 8(7).
Diouf, D. and Boiral, O., 2017. The quality of sustainability reports and impression management:
A stakeholder perspective. Accounting, Auditing & Accountability Journal. 30(3). pp.643-
667.
Ghifary, M and et.al., 2017. Scatter component analysis: A unified framework for domain
adaptation and domain generalization. IEEE Transactions on Pattern Analysis & Machine
Intelligence. (1). pp.1-1.
Li, H and et.al., 2016. Destination Branding Incongruity from Stakeholder Perspective:
Theoretical Framework and Empirical Evidence.
Montshiwa, A. L., 2018. Regional automobile parts makers' competitive advantages analysis.
International Journal of Applied Management Science. 10(2). pp.87-104.
Rothaermel, F. T., 2016. Competitive advantage in technology intensive industries. In
Technological innovation: Generating economic results (pp. 233-256). Emerald Group
Publishing Limited.
Schuetz, C. G., Mair, E. and Schrefl, M., 2018, October. PESTEL Modeler: Strategy Analysis
Using MetaEdit+, iStar 2.0, and Semantic Technologies. In 2018 IEEE 22nd International
Enterprise Distributed Object Computing Workshop (EDOCW) (pp. 216-219). IEEE.
Wedeniwski, S., 2016. The Mobility Revolution in the Automotive Industry. Springer Berlin.
Online
Stakeholders. 2018. [Online]. Available through<
https://www.tutor2u.net/business/reference/stakeholders-introduction>
VRIO Analysis. 2018. [Online]. Available through < http://www.free-management-
ebooks.com/news/vrio-analysis/ >
9

10