Strategic Management Analysis of Jaguar: Report on Performance

This report provides a comprehensive strategic management analysis of Jaguar, a luxury vehicle brand. It begins with an introduction to Jaguar, discussing its history, performance in sales, profits, and market share, particularly after its acquisition by Tata Motors. The report then outlines Jaguar's organizational objectives, core values, aims, size, scope, and strategic objectives. A detailed SWOT analysis is conducted, highlighting Jaguar's strengths, weaknesses, opportunities, and threats. Furthermore, the report examines Porter's generic strategies, including product differentiation, cost leadership, and focus, as applied to Jaguar. An evaluation of Jaguar's strategic direction using the Ansoff matrix is included. The report concludes with strategic analysis, recommendations, and a conclusion, offering insights into Jaguar's strategic positioning and future prospects. This report aims to provide a thorough understanding of Jaguar's strategic approach within the competitive automotive industry.

Strategic Management
Jaguar

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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1.0 Introduction......................................................................................................................1
2.0 Organisational objectives.................................................................................................5
3.0 Swot Analysis...................................................................................................................6
4.0) Model of Porter's generic strategy..................................................................................8
5.0) Evaluation - ....................................................................................................................9
6.0) Strategic Analysis- .......................................................................................................11
7.0) Recommendation-.........................................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14
APPENDICES-..............................................................................................................................16

INTRODUCTION
Strategic management refers to the formulation of a plan and implementation of the
formulated plan and to imply the initiatives taken by the top level management in order to
achieve organisational goals and objectives. It involves assessment of the internal and external
environment. The project report will analysis the strategic management plan of Jaguar. The
project report will outline the Jaguar performance by analysing Sales, Profits and market share
statistics. Then the report will highlight the organisational objectives of Jaguar. Further the report
will do Swot Analysis of Jaguar. The report will be going to showcase the Ansoff matrix of
Jaguar than an evaluation is been done based on strategic direction, Vision and market strategy
of Jaguar. Then the report will go to perform the strategic analysis including suitability,
accessibility and feasibility study of the Jaguar. Lastly the report will go to provide the necessary
recommendations and the conclusion.
MAIN BODY
1.0 Introduction
Jaguar
Jaguar is a luxurious vehicle brand of Jaguar Land rover. Jaguar is a British multinational Car
manufacturer Company. Its headquarters is situated in Whitley, Coventry and England. On 1
January 2013 the Jaguar is merged with Land Rover and form as Jaguar Land Rover. Before the
merger with Land rover the company's operations and production function were in hands of
Jaguar Cars. On march 26 the Tata Motors completely acquired the Jaguar business from Ford
Motor Company for a net cash consideration of US $2.3 billion. This purchase consideration is
done on debt-free basis. Its famous brands are Jaguar XJ, Jaguar XF and Jaguar XK.
Performance of Jaguar
Through looking at historical data and figures it can be said that Jaguar has been performing
extremely well over the past couple of years in terms of sales, profits and market share.
However, there have coupled of years where company was facing intense competition from their
rival firms like BMW, Audi, Mercedes Benz, Ferrari, Porsche and Aston Martin (Ginter,
Duncan and Swayne, 2018). The Jaguar is performing excellent after the acquisition is being
done by Tata Motors.
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1.1 Sales- In United kingdom number of cars sold by Jaguar is increased from
approximately 77.6 thousand in year 2013 and is steadily increased to approximately
116 thousand till the year 2018.
1.2 Profits- The annual pre-tax profit of Jaguar from financial year 2011 to financial
year 2018 in a million British pounds. The jaguar's pre tax profit growth was
continuous between 2012 and 2013 there is increase in profit by 200 million British
pounds which is followed by increased in profit of over 800 millions pound next year
(Lasserre, 2017). In the year 2014 and 2015 the growth was in steady form but there
is slightly downfall from 2016 to 2018.
1.3 Market share – According to statistics data of United Kingdom the market share
of Jaguar in the year 2017 was recorded 1.32% in December. The market share of
Jaguar was at peak during the October 2018 and was recorded as 2.16% but in the
December 2018 it again downfall to 1.6 %. The market share of Land rover was
slightly below the 3.5 % while the Jaguar's market share was recorded as 1.32 % till
the January 2019.
2.0 Organisational objectives
Mission- The Jaguar mission is simply to be the best in every area of their business. The
company is going to accomplish this through providing the most exceptional customer
experience.
The Core values are the pillars that support Jaguar Mission statement. The core values are as
follows:-
 Integrity-The Jaguar is remained stick towards is commitment which is that the truth is
unwavering both in actions and in words.
 Servants attitude- The Jaguar company only exist to serve the internal and external
customers.
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 Accountability- The Jaguar believes to raise above the circumstances and demonstrating
the ownership in the best possible manner for achieving the key results.
 Continuous improvement- The Jaguar showcase itself as a dynamic organisation which
constantly seeks areas of growth, innovations and clears path for improvement.
 Teamwork- The Jaguar brought together its Employees and Human resource for their
common purpose.
 Fun- The Jaguar take fun as key to enjoyment at the workplace. The fun is helpful for
energetic contribution at the workplace.
Aim- The aim of Jaguar is to gain customer retention. Through introducing lighter, more popular
electric cars. The project of Jaguar aims to help electric vehicle by achieving their full potential
through introducing light weighting structure and by encouraging the wider adoption.
Size and Scope- The size of the Jaguar business is widely expanded all over the globe. The
Jaguar is the largest car manufacturer in United kingdom with 38000 employees. The Jaguar has
3 vehicle manufacturing plants in united Kingdom (Wheelen, Hunger and Bamford, 2017). The
two is situated in the West Midlands at Castle Bromwich and Solihull and one in the Liverpool
in Halewood. The Jaguar has two advanced design and engineering centres at Whitley and
Gaydon in the Midlands of United Kingdom. The scope of Jaguar is to expand their business in
emerging countries like Asia, Russia and China.
Organisational Objectives-
 The objective of Jaguar is to manage finance and to formulate growth strategies.
 To produce and innovate the Jaguar models and designs on daily basis.
 The Jaguar objective is to bringing together the creative and passionate people in order to
achieve organisational goals.
 The objective is to do global expansion of Jaguar in India, China and Russia.
 The objective is to identifying and analysis the potential markets in order to increase the
growth and performance of the Company.
 The objective is to increase the sale of Jaguar cars by 10 % within 8 months.
 The objective is to insure the quality and to ensure zero defect products while doing
production and manufacturing function of cars.
 The objective is to do inventory management of Jaguar on timely basis.
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3.0 Swot Analysis
Strengths
 The Jaguar has strong global brand value. Jaguar is known for high Quality and rich
culture identity.
 The Jaguar has popular brand image as well as known for powerful luxurious brand in the
global market.
 The Jaguar has powerful and strong marketing strategies. They promote their products
through crisp quality advertisement and effective promotional programs.
 The Jaguar has upgraded distribution channels especially in the emerging economics
countries.
 The Jaguar pays attention towards their budgetary expenditure and spend highly on
research and development department (What Is a SWOT Analysis, 2018). They believe in
continuous improvement in their products so to bring up innovative designs and
technology into their products they are more focused on research and development sector.
 The Jaguar add up with is competitive advantage after it is acquired by Tata motors.
According to United kingdom statistics there is improvement in global sales after the
acquisition.
 The Jaguar has manufacture different models of cars in order to fulfil the customers
required demand in competitive market.
Weaknesses
 The Jaguar has limited product range as compared to their competitors like BMW and
Audi.
 After the Acquisition by Tata the cost cutting leads towards the Labour issues in the
organisation.
 Though the Jaguar brand is quite popular in United kingdom but has facing problems in
other continents such as Europe, Asia and North America from their rival competitors
such as BMW 3 and 7 series.
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Opportunities
 There is opportunity for Jaguar in emerging economics like India, China and Russia. The
Jaguar can increase its market share and expand its business in growing economics too
(Morden, 2016).
 The Jaguar has an opportunity to introduced hybrid models of Luxurious cars in an
untapped market.
 The Jaguar can further develop or explore more options in the Sport utility vehicle (SUV)
segment.
 The Jaguar has targeted the Canada as new market where they have launch their new
models such as 2010 Jaguar XF supercharged and the XF series.
Threats
 The jaguar has strong competition from the other international luxurious auto-mobile
brands like Bentley continental GT, Lincoln Navigator, Audi A8 L, Ford F-150 limited
and Rolls-Royce Cullinan.
 The Jaguar has dependency on government polices and threat of rising fuel and oil prices.
 There is threat of financial instability to Jaguar. It causes steep downfall in premium car
segment.
 The most of the jaguar cars are exported overseas. The Jaguar market is highly dependent
on the daily fluctuations of currency of different countries. This leads as a disadvantage
with their the global competitors (David, 2016).
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4.0) Model of Porter's generic strategy.
Porter has suggested different generic strategies that an organization can use to take competitive
advantage.
Product Differentiation – It is a strategy of innovating new products and differentiating the
features of the products as compared to the products of competitors. So that, company will get
competitive advantage over its competitors. Jaguar follows differentiation strategy to develop
and provide unique products for targeted segment of the customers. Company is facing a tough
competition from other market players like, Porsche, BMW etc. Company is differentiating its
products from competitors by innovating new designs of cars and improving the quality of the
products. The future strategy of Jaguar will focus on providing ever lasting experience to its
customers by differentiating its existing products through development of new products like
Jaguar XF etc. Company will also focus on new design, new features of different models.
Cost leadership- Cost leadership is a strategy that is used by various companies to reduce the
cost of operations. It is affected by the size, scope and scale of operations of the company. Jaguar
is continuously focussing on reducing the cost of operations. Company has developed various
programmes to reduce the cost of manufacturing. So that, profitability of the company will
improve. Jaguar is focussing on developing a new strategy for achieving reduction of £2.5 billion
in cost in future. It will complete this programme of reducing the cost by reducing 4500
employees from its global workforce. Company is planning to develop Range Rover Velar
locally so that, it will result in reduction in the prices of cars. And company will easily face the
competition from other companies (Hitt, 2016).
Focus- It is one of the generic strategy. It says that, company should focus on serving a
particular market segment to satisfy the needs of customers. Company should focus on bringing
more differentiation in the size and quality of the products and it should also make efforts to
achieve reduction in the cost. So that, customers can afford to buy the cars. Company is making
investments for implementing new designs in the existing products. So that, it can expand its
operations in the global market also. Company has planned for developing a new strategy to
increase the production capacity of the company through implementation of new facilities so
that, it will provide the benefits of reduction in the cost Jaguar. Company has also started a new
transformation plan to improve the performance of the company in different activities. This
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strategy will help the company to improve its performance as well as it will also improve the
profitability of Jaguar.
5.0) Evaluation -
Strategic direction-
To compete with other competitors in the market company should make more and more efforts.
So that, it can achieve long term growth in the auto mobiles industry.
 Model of Ans-off matrix- It is a tool to evaluate different strategies that can be used by
the company. So that, it will help the company to grow and improve its performance.
Market Penetration- It refers to selling the existing products of the company in existing
markets. Jaguar can use market penetration strategy to increase its profits and growth. Jaguar
has made strategy to enter luxury car market with its existing products under the Jaguar Brand
through setting a new plant in United Kingdom. Jaguar has also launched cheaper and efficient
version of luxury car 'marquee'. Company is selling its existing products with slight change in
the size and price in existing market.
Market Development- It refers to selling the existing products of the company in new market
segments. Jaguar has set up a new plant in Western Slovakia to increase its manufacturing
capacity to produce more than 300,000 vehicles. Company is focussing to develop future
strategy for delivering lightweight vehicles to its customers so that, it can sell the vehicles in new
international markets. It helps the company to increase its capacity and long term growth.
Product Development- It refers to selling new products in existing markets. Jaguar has
introduced new products in some top markets like China to achieve sustainable and profitable
growth. Company will launch new products like Plug-in hybrids, E-Pace etc. to compete with its
competitors.
Diversification- It refers to launching a new product in new market. Jaguar has planned to re
innovate its products. Company has planned to launch luxurious auto mobiles like Discovery
SVX and Range Rover SVAautobiography etc. Jaguar is also planning to develop a new strategy
for launching electrification in the vehicles. This strategy of the company will help to compete
with other competitors.
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Company should use market penetration strategy because it is the least risky strategy. It will help
the company in focussing on improving the quality, modification in design, features of its
existing products.
Company should also consider diversification strategy for launching new products in new global
markets. This will help the company to improve the efficiency and profits of the company.
Vision- The vision of Jaguar is to develop an environment that will motivate the employees and
to develop innovative products for achieving high growth. And to offer premium auto mobiles to
customers.
Marketing Strategy- Jaguar launches different models to attract customer’s from different market
segments. It has launched Jaguar S-Type to attract young population. It ha also launched XZL
SUPER SPORT to attract business men and women (Engert, 2016).
Bowman Strategy Clock Model- The model explains various options in which a business can
position its product in the market on the basis of perceived value and price.
 Low price -
Jaguar can use low price strategy for targeting the large segment of customers. The company
can use new pricing strategy for improving its brand image in respect of competitors brand.
Company should use low pricing strategy for increasing the demand of new models such as
beautiful designs, features. Jaguar should charge price of vehicles on the basis of perceived value
of the customers.
 Differentiation-
Company can adopt the strategy of differentiating its products from the products of competitors.
Differentiation will help Jaguar to provide the highest level of value that is perceived by the
customers. Differentiation strategy will help the company to compete with other strong
competitors such as Porsche, BMW etc.
 Hybrid-
Jaguar can also adopt hybrid strategy that means delivering the new product with low price and
product differentiation as new features, new designs, new colour etc. that will be different from
other competitors. It is a very efficient strategy of positioning the vehicles of Jaguar. This will
helps in improving brand loyalty of existing as well as potential customers.
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Focussed differentiation-
Jaguar can adopt focussed differentiation strategy to position its product in the market. So that,
customers will buy the vehicles of Jaguar on the basis of high perceived value of the product. If
Jaguar uses this strategy carefully then, it will result in increase in the profits of the company.
Jaguar should focus on providing solutions to customers through attractive designs and new
models of the vehicles.
6.0) Strategic Analysis-
Suitability- S.A.F. Model of suitability, adaptability and feasibility will help Jaguar to evaluate
its diversification strategy. It helps to ensure that, entering in new geographical segments with
100% electrified vehicles will the company to achieve its objectives or not. It also helps the
company to know that diversification strategy will help Jaguar to achieve its vision of providing
premium products to existing and potential customers. Suitability of the strategy will help the
company to know about the potential of strategy to exploit the strengths of the company. Such
as, luxury brand image of the company, strong distribution channel etc. Strategy must be suitable
to remove all the threats of external environment so that, company can give tough competition to
other top competitors of auto mobile industry like, BMW etc. Company should also consider the
impact of external environment on operations of Jaguar before developing the strategy to provide
new products in new market. Company has to invest huge amount on advanced technology so
that, company can develop new electrified vehicles. It has to provide training to its employees.
It has to spent huge amount of funds on manufacturing facilities, on research and development
for developing new designs of the vehicles (Baumgartner, 2017).
Adaptability- Diversification Strategy of Jaguar should be adaptable to internal and external
stakeholders of the company. Through introduction of focused differentiation, company can
develop new products for new markets and this will result in increase in the sales of vehicles so
that, it can provide reasonable return to shareholders of the company. Strategy of the company
should be able to increase the profitability of Jaguar so that, company can provide dividend to
shareholders on regular basis. Effectiveness of the strategy can be determined on the basis of
return on capital employed, growth of the company. Diversification strategy of the company
should be able to increase the sales of vehicles, increase operating profits, reduce the cost of
capital etc. Company has to identify the needs of internal stakeholders like employees,
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management etc. to meet out their needs. Jaguar should also consider the demand of customers
before developing new electrified vehicles. Company should also consider the rules and
regulations of government regarding employment, production etc.
Feasibility- Diversification strategy of Jaguar must be feasible. There must be optimum
utilization of all the resources for executing the strategy. So that, firm can achieve its objectives
effectively and efficiently. Jaguar is one of the top auto mobiles company. It is a large company
so, it requires huge amount of funds to implement any strategy. Resources like, capital should
be allocated properly in different departments so that, company can generate reasonable return
for shareholders. Jaguar can also prepare a budget to determine the amount of funds required for
developing and executing the strategy. Company should conduct break even analysis to
determine the minimum and maximum amount of stock it will require developing new vehicles
for new market segments (McKiernan, 2017).
7.0) Recommendation-
Although Jaguar is already having strategies like differentiation, cost leadership and focus etc.
Company should also focus on other strategies. Company can invest funds to innovate new
products. Jaguar can use environmental innovation for transforming its operations.
Company should invest the funds in training and overall development of staff. So that, skills of
employees will improve and they will be motivated to develop innovate products. Company
should adopt different strategies like Global social responsibility and environmental
responsibility as a part of sustainable development.
Company should consider responsibilities related with the environment to develop sustainable
and innovative product. For developing sustainable products, company must provide training to
employees to improve leadership in supply chain. It will help Jaguar in responding towards
global trends in effective manner. Company should invest funds for developing advanced
technology so that, it can reduce the emission of CO 2 in the environment.
Company should focus on corporate social responsibility that includes transforming the lives of
peoples, changing the perspective of stakeholders towards the company. Jaguar should design
strategy for saving fuel by using electric technology so that, it will not impact the environment.
Company can invest in new projects in countries like Ghana etc (Chen, 2015).
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CONCLUSION
Through the Project report of strategic management of Jaguar the conclusion is been drawn that
the Jaguar is the leading manufacturing company of cars in United Kingdom. This is concluded
through its performance evaluation that there is increase in market share after it is acquired by
the Tata motors. To achieve the organisational objective like customer retention the Jaguar is
highly focused on research and development of their products to bringing out innovative
products for their customer’s. It is been concluded in Swot analysis that the Jaguar has an
opportunity of expansion and growth in the emerging countries like China, India and Russia.
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REFERENCES
Books and Journals
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
David, F.R. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Pearson.
Wheelen, T.L., Hunger, J.D., and Bamford, C.E., 2017. Strategic management and business
policy (p. 55). Boston: pearson.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Morden, T., 2016. Principles of strategic management. Routledge.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1).pp.42-63.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and cases:
Competitiveness and globalization. Cengage Learning.
Engert, S., Rauter, R. and Baumgartner, R.J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production, 112.pp.2833-2850.
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner
Production, 140.pp.81-92.
McKiernan, P., 2017. Historical Evolution of Strategic Management, Volumes I and II.
Routledge.
Chen, C.M., Delmas, M.A. and Lieberman, M.B., 2015. Production frontier methodologies and
efficiency as a performance measure in strategic management research.Strategic
Management Journal, 36(1).pp.19-36.
Online
SWOT Analysis. 2015. [Online] Available through: <https://nexightgroup.com/using-swot-
analysis-to-plan-an-uncertain-future-and-increase-organizational-effectiveness/>
The Ans-off Matrix. 2018. [Online] Available Through :
<https://www.tractionwise.com/en/growth-strategy-ansoff/>
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Bowman's Strategy Clock. 2017. [Online] Available through: <http://www.free-management-
ebooks.com/news/bowmans-strategy-clock/>
Porter's generic strategies.2018.[Online] Available through:
<https://courses.lumenlearning.com/cerritos-smallbusmgmt-1/chapter/5-1-developing-
your-strategy-2/>
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APPENDICES-
Illustration 1: Jaguar Profits in million GBP
Source: UK Statistics, 2018
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Illustration 2: Illustration 2: Profits of Jaguar
Source: UK Statistics, 2018
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Illustration 3: Market Share of Jaguar
Source: UK Statistics, 2018
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Figure 1 : SWOT analysis
Source : (SWOT Analysis, 2015)

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Figure 2 : Porter's generic strategies
Source : (Porter's generic strategies, 2018)
Figure 3 : Ans-off matrix
Source : (The Ans-off Matrix, 2018)

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Figure 4 : Bowman Strategy Clock
Source : (Bowman's Strategy Clock, 2017)

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