Land Rover's Business Strategy: An Analysis of External Environment

This essay provides a comprehensive analysis of Land Rover's business environment, focusing on factors that influence its operations. It begins with an overview of the company's nature, size, ownership, turnover, profit, and growth, followed by a detailed PESTLE analysis covering political, economic, social, technological, legal, and environmental factors. The analysis highlights the opportunities and threats posed by these external factors, such as the impact of UK-EU relations, technological advancements, and social changes. The essay also discusses Land Rover's responses to these challenges, including its growth in online bookings and strategies for managing competition and economic recession. The report concludes that while the retailer sector faced challenges during the COVID-19 crisis, Land Rover has adapted its strategies to navigate the evolving business landscape. Desklib provides access to this and other solved assignments for students.

Essay on Land Rover

INTRODUCTION
The operations of business deals with various factors of the management that will have an effect
on the business's activities and functions. The company consider in this report is land rover.
It is top leading British company. The company was founded in 1978 deals in manufacturing
car and wheels( Singh and et. al.,2021). The report will cover the nature of the business,
size, ownership, turnover, profit and development, external environment, the link between
the changes in the external environment and the opportunities and threats that are faced by
the business. At last there is an opportunities and threats to a company activities are get
followed.
MAIN BODY
Nature of the business, size, ownership and where available, its turnover, profit and growth.
Format Number Total
area (m2)
Total
area (sq ft)
Mean
area
(m2)
Mean
area (sq
ft)
Percentage
of space
+/- Shops
2016
Land rove Extra 252 1,648,842 17,748,000 6,543 70,429 44.53%
Land rover
Superstore 479 1,307,610 14,075,000 2,730 29,384 35.32% 1
Land rover
Express 1,740 376,629 4,054,000 216 2,330 10.17% 8
Land rover
Metro 176 185,156 1,993,000 1,052 11,324 5.00% 1
One Stop 780 117,894 1,269,000 151 1,627 3.18% 1
Land rover Dot-
com only 6 66,519 716,000 11,086 119,333 1.80%
Dobbies 0 0 0 0 0 0.00% 36
Total 3,433 3,702,649 39,855,000 1,079 11,609 100.00% 27
External environment
Pestle analysis is a concept in marketing principles. This concept is used by the
management as a tool to check how external factors influence the working of the
organisation(Tavanandi and et. al.,2018).
. Further we will discuss the PESTLE model using an example of land rover that are as follows –
Political factor
It is related to political scenario surrounding company's decision that are taken by the
government which might affect working of the business in terms of Tax, tariffs,
environmental regulations, government intervention, political stability.
Positive impact Negative impact
The company gains more profit across many
countries as it is treated as luxrous brand,
and there is political stability in the other
countries, this creates a favourable business
climate for. The rules and regulations in
After the end the company has to pay the
taxes according the tarrifs and land rover
now have to pay more for the tariff
according to the rules of WTO (Chung and
Kang, 2017).
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other countries are different for the
businesses to run.
Economic factors
Any changes in the economic growth, economic stability, Inflation or deflation in the
economy would affect the working of an organisation
Positive impact Negative impact
Internationalization has helped land rover in
working smoothly and earn profits even if any
one country faces economic stagnancy.
Even the market for land rover is growing
internationally, it majorly effect the market
share of land rover.
Social Factor
 It consider cultural norms and expectations, health safety and population growth
rates. Any changes in society needs from the company will affect its working(Verma,
Kumar and Katoch, 2018).
Positive impact Negative impact
Due to variety of social changes and trends,
the demand for new technology cars and
advance viechles has increased which has
been tapped by land rover and now offers
many variety of products.
Covid-19 has created fear in the minds of
public and now they demand how safe the
product is such as meat and their buying of
cars has reduced immensely.
Technological factor
 It involves automation, innovations and development in the field which might
help businesses grow. Businesses should always look for opportunity to get efficient
using technology and innovations(Somvanshi and et. al.,, 2020).
Positive impact Negative impact
Online services with facility of home delivery
and net banking facility points has created
ease for customers and this technological
advances has helped land rover boost up their
profits. More advanced changes in technology
will create ease for the business.
Technology keeps changing if land rover does
not upgrade its usage of technology then the
customers might go to the rival firms who are
providing better services with advancement.
Legal Factors
 Changes in legislation governing businesses, imports and exports and legal factors
affects the smooth functioning of the company(Ismael, 2020).
Positive impact Negative impact
Laws surrounding land rover have made the
working for the company easy.
Land rover being an MNC has to follow all
the rules and regulations of the countries and
also balance the same with its home country.
This can create a condition for smooth
functioning of the organisation
Environmental factor
This factor is included with the environment and its protection, like waste disposal laws,
CSR.
Positive impact Negative impact
Working in a way which will less effective Not complying with the CSR regulations can
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to the environment will be beneficial for land
rover as it will comply with CSR regulations.
make the business for land rover hard or even
make them shut.
Clear linkage between the changes in the external environment over the last three years and the
opportunities and threats faced by the company.
Factor Threat Opportunities
Political UK-EU relations create a
major threat to the company as
it will require to trade
according to WTO rules which
means High Tariff rates due to
political term of the factors
It is a formulation of political
change that is highly attracted
by political terms. It manages
the manner of the success or
failure of social divisions that
will have an impact on
primarily by political
opportunities.
Economical CEO forecasts though time in
the holiday season due to
recession in the market after
market shutdowns due to
COVID-19 it will get affected
economical factor.
AI and machine learning can
be used for better supply
management, providing
products faster and with low
economical costs.
Technological Technological threat is termed
as one of the major sort of
situation or crisis setting that
are caused by the human
utilization of science and
technology.
There are many opportunities
for the company to rise its
online retail markets due to
COVID - 19 safety protocols
that will motivate
technological factor for it.
Social Labour threats in terms of
increasing wages which put
further financial pressure on
the company.
Expanding internationally
with employing local public in
that country would be
beneficial to gain trust of
potential customers it will
direct indicate to the social
factor.
Relate information about opportunities and threats to company activities. How has it responded
to opportunities and threats?
Opportunities for land rover
 Growth of Online bookings – It analyse the course of manner to restrict the spread of the
COVID-19 that also manages to prevent individuals from going out as much as they
utilised to. The restrictions that are best in selling in terms of the booking cars
online(Chavez and Sharma, 2018).
 High Unemployment Rates – It covers the manner to present an effective decrease in
employment for individual age between 18-30 years. Marketing or organisation being one
of the few places where individual could still found jobs, the high unemployment rates
might help land rover in holding number of individuals in their development.
Threats for land rover
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 Competition – At the present time, the ownership of the management of land
rover changed hand from their competitor brand, to the billionaires BMW onwer.
The present owner seeks to bring huge compitition to their competitors as across
to the 12 nations. As the revival of luxrous car market tends to be an effective
threat for the market share of the land rover.
Economic Recession - , the company, faced hard time while the holiday season. The economical
recession and the big drop in purchasing power that are the common reason for
considering the facts(Minakshi and et. al., 2018). On the other side, high
unemployment ratio manages other sections of financial uncertainty for the business
management of land rover.
CONCLUSION
From the above mentioned report it has been concluded that, the market or the retailer sector
business is termed as one of the few manufactures that possess its own during the terms of
the COVID – 19 crisis. It is once in a century crisis that marks a long lasting shift in the
manner of individual who perform in the company.
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