Strategic Management Report: Jaguar's External Environment Analysis

This report provides a strategic management analysis of Jaguar Land Rover, focusing on the external environment and its implications. It begins with an introduction to strategic management principles and then delves into an analysis of the automotive industry, particularly in the context of post-Brexit effects. The report includes a PESTEL analysis of Jaguar, examining political, economic, social, technological, environmental, and legal factors influencing the company's performance. It also assesses the implications of these external environmental factors, including the impact of Brexit on production schedules and market dynamics. Furthermore, the report utilizes Porter's Five Forces model to evaluate the competitive landscape, analyzing threats from new entrants, the bargaining power of suppliers and buyers, and the impact of substitute products. The report concludes with a summary of key findings and strategic recommendations, emphasizing the importance of adapting to the changing external environment and leveraging strategic capabilities for sustainable development. References to relevant literature are also included to support the analysis.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Covered in ppt.............................................................................................................................3
PART 2............................................................................................................................................3
External environmental analysis of Jaguar industry in terms of the post Brexit effects.............3
PESTEl analysis of the company................................................................................................4
Implications of the external environmental factors.....................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management is defined as the continues planning, monitoring and analyzing of
the assessment for an organization which helps in meeting the ultimate objectives of the firm.
Strategies are one of the great concern for the manager as this helps in planning of various
actions which derives the business towards the growth and sustainable development. This study
will be based on the strategic management of Jaguar company. It is the British multinational car
manufacturer who manufactures the luxury vehicles. This study will provide the management
strategies which helps in assessing key elements and issues within external competitive
environment. The report will also help in SWOT analysis of Jaguar along with the strengths and
weaknesses in the competitive world. The document will also assist readers in identifying the
external factors that effects the business environment. Also, PESTLE analysis of the firm will be
performed in order to evaluate the factors that effects the growth of business.
Due to the huge competition in the market, Jaguar shares bigger market share then Land
Rover in UK.
PART 1
Covered in ppt
PART 2
External environmental analysis of Jaguar industry in terms of the post Brexit effects
Jaguar Land Rover Automotive Plc is a wholly owned subsidiary of the Indian company
that is TATA Motors Ltd. The announced bond issue is US$500 million (David and David,
2013). The proceeds of the issues were to be used to refinance costlier outstanding bonds. Jaguar
industries is able to raise new debt at sustainability lower interest rates then its outstanding debts.
As a result of sustainable good performance, it leads to strong company fundamentals and
improved credit ratings.
The Jaguar Rover operates in a dynamic environment where it is influenced by increasing
environmental activism among consumers, spending behavior of the customers, increasing
regulatory framework for environmental factors etc. worries about the impact of Britain's exit
from European Union. This has impacted on the Tata Motors- owned Jaguar land Rover
Automotive Ltd industry as UK's biggest automobile market responds to the sales down caused
by Brexit (Hill, Jones and Schilling, 2014). Different impacts on the car industry of the Uk as a
post Brexit effects which impacting the British car industry are as follows:

 Jaguar cuts in its production schedule.
 It continued towards the over proportional investment in new products and technologies.
 Due to the change in the taxes during the import and export of the goods and services
leads to high economical prices of the product after Britain exits from European union.
PESTEl analysis of the company
Jaguar reflects the best in terms of cost and design of automobile. However, there are
various external environmental factors that may impact on the profitability of the firm (Wheelen
And et.al., 2017). These factors include Political, economical, social, technological,
environmental and legal aspects of the firm.
Political:Local government plays an important role in setting the policies and regulations for all
the industries. Lower taxation policies enhance the profitability of the firm. on the other hand, it
may negatively impacts on the profits of Jaguar.
Economical: These factors includes the inflation rate, taxation rate, exchange rate and labour
market conditions. Such elements may affect the cost of production and thus increased prices
leads to the change in the customer buying decisions.
Social: It includes the preferences and tastes of the society according to the changing trend of the
market. This factor helps Jaguar Rover to understand the customer preferences in which it
operates. Social factor also includes culture, norms, leisure interest and lifestyle of the people.
Also, attitude towards the health and safety with increasing liberalization affects the needs of the
jaguar rover to stay away from this attitude as cost of failure is too high in this situation.
Technological: This is concerned with the changing technology as it effects the work procedure
which requires proper knowledge based on such operations (Hill, 2017). The Latest technology
based innovation implemented by competitors of Jaguar Rover provides the good insights of
peruse the effective technological tools for the growth and sustainable development of the firm.
Environmental: These factors are becoming critical for business as it includes limiting the
carbon footprints and safe disposable of hazardous materials and safe water treatment of the
company. Greater awareness among the customers have also put environmental factors at the
center of the Jaguar Rover Strategy. Environmental norms are even altering the priorities of the
product innovation.
Legal: It includes the laws and procedure of the government which impacts on the prices of the
products (Pathak, 2016). Jaguar Rover need to implement such governmental regulations in order

to meet the legal aspects of the country. Employment law plays the important part in meeting the
marketing strategies as this aids the cost to the labor resources of the enterprise.
Porter's five force analysis of Jaguar Industries
Porter's five forces is a strategic management tool that allows the industry to understand
the profitability layers of the firm. Jaguar Land Rover uses porter's five forces to understand the
five competitive forces that influences the profitability are as follows:
Threats to new Entrants
Barriers to entry measures assists the difficulties for the new entrants to enter to the
industry. Such strategies are:
 Cost advantage
 Access to production inputs
 Government policies and taxation
 Capital requirement Access to distribution channel of the company
Bargaining power of suppliers
This force helps the Jaguar company in positioning the strong image in purchasing the
raw material. Such affects are:
 The information generally shared by all the buyers
 competitive prices of the product
 Availability of the substitute Also, finding the substitute suppliers which cannot affect the prices of the product.
Threats from substitute products
If the threat to substitute is high then customer Jaguar has to either continuously invest
into R&D and also taking the risks to launch innovative products (Sugiyama, Fash and France,
2018). Various threats from the substitute are as follows:
 It costs more for Jaguar Land Rover in switching the competitive products.
 Analysing the price performance trade-off of substitutes. Switching the products may leads to change in the targeted audience.
Rivalry among the existing products

This factor helps the Jaguar company in analysing the level of competition between
existing players of the industry (Cadle, Paul and Turner, 2014). Various affects of this force are
as follows:
 It allows managers of the Jaguar company to compete in the high competition by
implementing the strong strategies of the firm.
 All the competitive companies are selling same product so Jaguar Land Rover need to
distinguish the brand image and productivity from all the other competitors.
Implications of the external environmental factors
It is very important for the Jaguar industries to use porter's model for understanding of
the competitive advantage and weaknesses of the firm which allows the company in operating
effectively. This auto manufacturing industry is highly capital and labor intensive. So the major
cost in producing and selling the automobile includes: labor, advertisement, original equipment
manufacturers and replacement parts which includes production and distribution (Jaguar Land
Rover to cut output at UK car plant, 2017).
A significant portion of an automaker's revenue generally comes from the services it
offers with the new vehicle. So porter's five force is an important tool that helps in understanding
the forces that shape the competition within industry. This is very important to analyses the
strengths and weaknesses along with the potential profits of the company.
Strategical capabilities of the firm
 Continues expansion to emerging economies as it is imperative that JLR treats the growth
BRIC economies as an opportunity.
 Increased focus on Eco friendly research and development.
 Avoid reaction to exchange rate.
CONCLUSION
From the above study, it can be concluded that strategic management leads to the
sustainable development of the Jaguar Land Rover. It has been also discussed that proper
implementation of the effective strategies within the firm promotes the opportunities and higher
profits. Also, this study has provided the impact of External factors on the performance of the
Jaguar car manufacturing industries. The report will provide various factors that are responsible
for the companies' growth. However, SWOT analysis of the company has been used to analyses

the competitive advantages and considering various weaknesses of the firm along with more
future opportunities.

REFERENCES
Books and Journals
David, F.R. and David, F.R., 2013. Strategic management: Concepts and cases: A competitive
advantage approach. Pearson.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: Theory & cases: An
integrated approach. Cengage Learning.
Wheelen, T.L. And et.al., 2017. Strategic management and business policy (p. 55). Boston:
pearson.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Pathak, A.A., 2016. Tata Motors’ successful cross-border acquisition of Jaguar Land Rover: key
take-aways. Strategic Direction. 32(9). pp.15-18.
Sugiyama, N., Fash, W.L. and France, C.A., 2018. Jaguar and puma captivity and trade among
the Maya: Stable isotope data from Copan, Honduras. PloS one. 13(9). p.e0202958.
Cadle, J., Paul, D. and Turner, P., 2014. Business analysis techniques. Chartered Institute for IT.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European
academic research. 2(5). pp.6478-6492.
Anca, M. and Andreea, N.N., 2018. How Can Companies Adapt to the Growing
Competition?. Ovidius University Annals, Economic Sciences Series. 18(1). pp.320-325.
Vamsi, V.S.P. and Vamsi, V.S.P., 2019. Creativity, Innovation & Trends in Global Automobile
Manufacturing. International Journal. 5. pp.10-18.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management.
Sage.
Online
Jaguar Land Rover to cut output at UK car plant. 2017. [online]. Available
through:<https://uk.reuters.com/article/uk-britain-eu-jaguarlandrover/jaguar-land-rover-
to-cut-output-at-uk-car-plant-after-warnings-on-brexit-diesel>
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