Strategic Opportunity and Decision Making at Chery Jaguar Land Rover

This report provides an in-depth analysis of Chery Jaguar Land Rover Automotive Co., Ltd.'s (CJLR) strategic opportunities and decision-making processes. It examines CJLR's inter-organizational approach, specifically its international joint venture model, to penetrate and thrive in the competitive Chinese market. The report explores how CJLR creates sustainable strategic direction and organizational performance through leveraging corporate strengths, including strong corporate capabilities, long-term commitment, and a solid foundation. It delves into the company's corporate sustainability strategy, focusing on innovative technologies like lightweight aluminum construction and green manufacturing processes. Furthermore, the report analyzes CJLR's planning and implementation of transformation strategies to resolve critical issues, including identifying areas for improvement, presenting business cases, resource allocation, and communication. The report also considers factors beyond traditional business models and concludes with a discussion of CJLR's successes and future ambitions within the automotive industry.

Running head: STRATEGIC OPPORTUNITY AND DECISION MAKING
Strategic Opportunity and Decision Making: Chery Jaguar Land Rover Automotive Co., Ltd.
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STRATEGIC OPPORTUNITY & DECISION MAKING – CJLR 2
Executive Summary
Inter-organizational is a concept that is getting into use in international business to penetrate and
stay in the competitive market owing to the capability of organization to pull resources,
strategies and skills for better product offering to the market. The Chery Jaguar Land Rover
Automotive Co., Ltd employs inter-organizational with the use of international joint venture
model so as to enter and capture the competitive Chinese market. In this joint venture, they are
creating sustainable strategic direction and organizational performance with the use of their
organization’s strengths. Additionally, they plan and implement strategically in order to
transform and resolve critical issues with the aim of expanding, capture the leading markets,
shape the industry, enhance client satisfaction, and create a sustainable business.

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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Creating Sustainable Strategic Direction and Organizational Performance....................................4
Strong Corporate Capabilities.....................................................................................................4
The Long-term Commitment and Solid Foundation....................................................................5
Share Value and Future Ambition...............................................................................................6
Corporate Sustainability Strategy................................................................................................6
Planning and Implementing Transformation Strategies to Resolve Critical Issues........................8
Planning For Changes.................................................................................................................8
1. Identification of Areas of Improvement................................................................................8
2. Presentation of Business Case to Stakeholders....................................................................8
3. Planning for the Change......................................................................................................8
4. Provision of Resources and Use Data for Evaluation.........................................................8
5. Communication....................................................................................................................9
6. Implementation.....................................................................................................................9
7. Monitor and Continuous Improvement................................................................................9
Transformation...........................................................................................................................10
Critical success factors..............................................................................................................11
Beyond the “Rationality” in Business Models to Actual Behavioral Business Situations............15
Conclusion.....................................................................................................................................18
References......................................................................................................................................20

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Introduction
The use of inter-organizational in international business is becoming a norm for success
in the competitive market and is being employed by a number of companies. It is with the
cognizant that no entity can conquer the competitive market without any support of another
entity. The concept is used to illustrate the relationships where two companies come together to
enter the market by using shared resources, however, they are not one unit but separate entities.
It permits automation of flow of information between organizations and better management of
buyer-supplier relationships (Liu & Almor, 2016). As per the Inter-organizational Relations
Theory (IOR), organizations are able to create changes for transformation, work together for the
common good, enhance collaboration to reach further markets and ensure community
mobilization (Chen, Lin & Yen, 2014). The involvement with inter-organizational is being
involved with the outer market which always comes with a cost. There is the investment of
resources for the creation of the relationship, loss of freedom, no clear returns and therefore
collaborating parties have a comprehension of the value brought out by the relationship Liu &
Almor, 2016).
In this report, the inter-organizational concept gets examined by looking at two
organization-Cherry Jaguar Land Rovers (CJLR). The acronym ‘CJLR’ will be used in most
cases to refer to the Cherry Jaguar Land Rovers. These are two organization Cherry automobile
and Jaguar Land Rover. The aim of them coming together is to venture into the international
market and provide the best quality range rover cars to its customers. Cherry automobile is a
Chinese firm and Jaguar Land Rover is a UK firm. They endeavor to use the best of their
available technology, resources, expertise, and supply chain for development of quality and best
product.

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The model employed for their collaboration is international joint venture strategy, a
system in which two organizations come together to joint and use the best available resources to
increase value by use of value creation, augmented revenue and sustained profitability.
Additionally, the aim is to expand, capture the leading markets, shape the industry, enhance
client satisfaction, and create a sustainable business.
The reports examine the creation of sustainable strategic direction and organizational
performance, planning and implementing transformation strategies to resolve critical issues, look
beyond the “rationality” in business models to actual behavioral business situations and give a
conclusion.
Creating Sustainable Strategic Direction and Organizational Performance
The company-Chery Jaguar Land Rover (CJLR) has been in a position to establish their
brand in China by introducing another phase of double brand activity. The created name-plates
are generally perceived and accepted by Chinese clients, thus adding to half of the sales in China
(Michelon, Boesso & Kumar, 2013).
Strong Corporate Capabilities
The new Jaguar XFL nameplate is accessible at extremely reasonable costs and is
carefully skimmed to fit the buyers’ needs, the nameplate turns into a unique brand in the market,
showing the organization's exact market understanding and opening another section in the double
brand task (Johnson, 2016). This led to the development of 2016MY and Discovery Sport
Special brands that were launched to follow one another, offering another convincing decision
augmented with British lineup of world-class quality and of value for the customer who will get
attracted to the brand (Grant, 2016).

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In every accomplishment of unique products, there is the organization that continues
acquiring strength. CJLR has the best as well as effective operation and administration, coupled
with settled systems in cutting-edge manufacturing, management that is of quality, R&D, supply
chain, IT and talented human resources. In order to give a clear brand of Jaguar easily, CJLR
incorporated and established an aluminum body shop in China, with furnished best in class
aluminum innovation. This makes the CJLR be the main and leading organization of aluminum
body innovation in China (Carter & Greer, 2013). Based on the awesome corporate quality,
CJLR is completely sure about the future. The organization will create no less than one new
nameplate consistently by 2020 and keep on providing its customers with products as well as
services that exceed their expectation in the automobile industry (Galpin, Whitttington & Bell,
2015).
The Long-term Commitment and Solid Foundation
The manufacturing takes a significant role in the sustainable improvement of CJLR. It
ensures quality, enhances generation effectiveness, and acknowledges adaptable development.
CJLR has been one of the primary brand in market that executed industrial network of things in
the progress of Phase I advancement, with coordinated IT use systems covering all parts of
development which is a featured resource in Phase II Project and will adequately serve the
requirements of management and operation, giving great help to attaining the strategic goals of
the organization (Cummings & Worley, 2014).
In the process of Phase II Project, CJLR brought in new materials that save on energy as
well as an efficient system that saves on fuel. This became the driving force of technology
development, enhanced intelligent manufacturing and contributed to upgrading the auto industry
in China (Goyal, Rahman & Kazmi, 2013).

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Share Value and Future Ambition
Since the creation of the joint venture, there has been constant engagement by the
company with the stakeholders. The company share value with its employees, partners and
business community. It has developed more than 4,000 technical as well as management talents
to the auto industry, especially in China. In addition, the company has created more than 2,000
jobs and this indicates that the organization does not only bother of its successes but also gather
for the people in the market (Amran et al, 2014).
The organization has created outstanding results in product development, the operation of
the brand, building of corporate systems, laid down a strong foundation for attaining long-term
ambitions, and the development of the market. It endeavor’s in the provision of best products to
the customers that are in the range of world-class quality following the British line of production
(Horn & Brem, 2013).
Corporate Sustainability Strategy
In the joint venture, CJLR introduces a leading, intelligent, green as well as the
aluminium technology into the market of China. The company presented the most driving
premium lightweight innovation in China, which is the most insightful and green aluminum
innovation. Aluminium combination has favorable circumstances of being light, solid and
recyclable contrasted to the conventional steel materials, which are vital to car design (Van der
Byl, & Slawinski, 2015). The new Jaguar XFL is 28% stronger than Jaguar XF. As far as driving
progression, the aluminum alloys can create space for auto creators to use the distribution of
weight and offer more space for complex innovation. In contrast with older technology, the use
of aluminum architecture has the benefit of the modular plan that brings in more adaptability into
the end product (Cambridge Institute for Sustainability Leadership, 2016).

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The CJLR innovatively uses aluminum materials of different arrangement and highlights
to aluminum engineering, getting almost 50:50 body dispersion of weight from the front-back.
The aluminum substance of Jaguar XFL achieves 75%, most elevated in China car industry. The
PT3 (Pretreatment third era) technology is employed by the CJLR and the material is recyclable,
is of quality, resists corrosion, connectivity as well as formability. In addition, the CJLR also
adopts AC300 T61 which is a high-quality aluminum alloy with the benefits of high strength and
high energy absorption (Stead & Stead, 2014).
In the construction of the aluminium body, the aerospace-inspired technologies get
adopted. The CJLR is the pioneer to present aviation classed joining and glue innovations.
Following the all-inclusive standard, CJLR presents a top-notch innovation and applied in the
aluminum body shop. The body shops hundred percent mechanized and is the first constructed
aluminum shop with 335 robots and 232 are self-penetrating riveting robots. Self-puncture
riveting environmental-friendly joint technology is applied in the business. The technology
requires air supply that is with zero contamination during the whole procedure of manufacture.
The rivets exhibit high resistance to fatigue, tightness and can withstand stronger and loner clash
in case of accidents. The quality assurance system gets adopted so as to monitor the
manufacturing quality in a real-time manner comprising continuous and process control for all
the various sections of the entire procedure (Amran et al, 2014).
The corporate sustainable strategy is the utilization of the most developed, smart, and
green and premium aluminum innovation. The test is to essentially lessen the carbon impression
of the vehicle while keeping up the attributes of performance, luxury, and clients’ satisfaction.
CJLR sustainable advancement technique is to address the business CO difficulty with vehicles₂

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that the clients want. The Jaguar XFL is the best confirmation of the duty regarding
environmental assurance (Cummings & Worley, 2014).
Planning and Implementing Transformation Strategies to Resolve Critical Issues
Planning For Changes
1. Identification of Areas of Improvement
The organization identified the section of improvement for product enhancement in line
with the objective of meeting customer’s needs. CJLR concentrated on the transformation of
product to another level and thus they utilize the industrial internet and the use of smart
manufacturing in the industry (Gomes et al., 2013).
2. Presentation of Business Case to Stakeholders
Prior to implementation, CJLR communicated their idea of making a joint venture. This
was done by both firms where each communicated to their board and the management because
these are people who have to support the product. The support from the stakeholders is financial
as well as strategies creation and approval (Ertug et al., 2013).
3. Planning for the Change
These changes that require implementation have to get laid down in a plan of activities
that get followed. The plan encompasses resources that will be used, the human skills needed, the
expenses required to make the venture. These have to be done by both parties where a committee
to steer the changes get appointed (Iossa & Martimort, 2015).
4. Provision of Resources and Use Data for Evaluation
The two parties have to agree on the resources to be contributed by each partner. Since
the joint venture is on a ratio of 50:50, the two each contribute an agreed amount in equal
measure. The clearness of giving an account of progress takes into account better

STRATEGIC OPPORTUNITY & DECISION MAKING – CJLR 10
correspondence, appropriate and opportune circulation of motivators, and success measurement
and estimation. The first manufacturing facility was worth $1.57 billion with a capacity of
producing 130,000 cars in one year (Ertug et al., 2013).
5. Communication
This is the identification, onboarding; planning as well as running a strategic change plan
is reliant on great communication. The psychological and sociological aspects that are intrinsic in
culture and the two cultures have to be put in consideration. The employees with built skills,
abilities, learning, and encounters get to be involved. Also, the territory and corporate custom
need addressing. Giving clear lines of communication that are clear for transformation have to be
in two way-from and to the concerned bodies (Beamish, 2013).
6. Implementation
This is the actual roll-out of the project. The CJLR was agreed to be established in China
with the aim of penetrating the market of China which is very competitive. The joint venture
began by establishing a center to create alluminium body parts in cooperation with the supplier-
Novelis (Meschi & Wassmer, 2013),
7. Monitor and Continuous Improvement
This is a mechanism that ensures that there is the quality of production and if any error
arises, it is easy to correct. The organization adopted an end-to-end automotive manufacturing.
The framework empowers the auto creator to check if a planned strategy is prepared for the
generation, to compute as well as approve the limit of a creation line prior to being set as well as
perceiving how an auto body will inevitably appear prior to moving for welding as well as to
painting section. These frameworks assist the expert to pumped more investment and to work
productively (Gomes et al., 2013).

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Transformation
In the examination of planning and the implementation of transformation strategies, the
approaches taken are through the lens of the joint venture. The utilization of joint endeavors and
co-agent shapes the working together locally and universally. It is not new in the international
business point of view. As per Meschi & Wassmer, (2013), they are among the most established
authoritative structures and were initially utilized as a business apparatus by the shippers to lead
in foreign country business interactions.
The organization has positioned itself to transform through the use of smart
manufacturing in order to allow the organization to make on its abilities so as to contend
favorably in the competitive Chinese market by enhancement the production efficiency
(Beamish, 2013).
They began utilizing the industrial internet from the inception of the venture at the
construction site in Changshu, Jiangsu, in November 2012 (Fusheng, 2017). They have
incorporated IT arrangements taking care of all creation forms, for example, quality control and
co-ordinations, which help to ensure items' quality, enhance generation productivity, and
acknowledge flexible creation Since beginning generation in October 2014, (Fusheng, 2017) the
expert has realized three every new name-plate that is a pace not beaten by rivals in the auto
business (Fusheng, 2017).
The driving force for the organization are three models designed for two brand which
causes the organization to pull in more clients, and in addition implies that they need to manage
more changed and complex client orders than the available different brands in the market
(Fusheng, 2017). In order to guarantee proficiency, the establishment has to coordinate their

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development to the order made by the clients, convey the autos to merchants successfully and
guarantee the autos are traceable if there are any issues (Fusheng, 2017).
The CJLR has established an answer in the build-to-order strategy, that anticipates
overload and accurately meets purchasers' customized necessities (Fusheng, 2017). Requests
move via an end-to-end development framework, that covers all procedures from generation as
well as quality control to co-ordinations as well as tracking frameworks (Beamish, 2013).
The organization adopted an end-to-end automotive manufacturing. The framework
empowers the auto creator to see whether a planned prototype is ready for generation, (Fusheng,
2017) to compute as well as approve the limit of a creation line even prior to being set and to
perceiving how an auto body will appear prior to moving to the welding as well as the painting
section. The frameworks assist the CJKR to pumped more investment and to work productively
(Fusheng, 2017).
The organization has a strong base. Expanding on its qualities, the CJLR is completely
positive about what is to come (Fusheng, 2017). They anticipate of dispatching a new product
brand each year to 2020 and will keep on providing Chinese purchasers with predominant items
as well as services past their desires. The company has declared an arrangement to expand the
plant capacity to better address the issues of Chinese purchasers as well as conveying the
commitment for a long term in relation to the market of China (Beamish, 2013).
Critical success factors
The choice of the strategies to be employed for international market relies on the
particular organization's circumstance, its money related circumstance, experience, and
capacities. Additionally, there are a few market modes of entry which have preferences and risks
as well as the drawbacks/dangers they involve (Park and Harris, 2014). The control over the