Global Strategic Management Report: MG Cars and Jaguar Comparison

This report offers a detailed analysis of the global strategic management practices of MG Cars and Jaguar, two prominent British multinational car manufacturers. The report begins with an introduction to global strategy management and its importance, followed by an examination of the external business environment, including PESTEL analysis of political, economic, social, technological, environmental, and legal factors affecting both companies. A micro-environmental analysis using Porter's five forces is also included. The internal analysis incorporates SWOT and VRIO analyses to assess the companies' strengths, weaknesses, opportunities, and threats, as well as their resources and capabilities. The report then explores the responses of both companies to globalization and technological advancements, particularly focusing on the shift towards electric vehicles and innovation. A comparison of current CSR initiatives is presented, alongside an examination of key stakeholders and CSR strategies designed to enhance organizational success. The report concludes with a summary of findings and recommendations.

Global Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
External business environment and dynamic capabilities ..............................................................1
Macro Environment....................................................................................................................1
Micro environment......................................................................................................................3
Internal analysis ......................................................................................................................3
VRIO Analysis............................................................................................................................5
Responses to globalization and technology ...............................................................................6
Comparison of current CSR initiatives............................................................................................6
Key Stakeholders........................................................................................................................7
People/Employees.......................................................................................................................8
Planet/Civil Society.....................................................................................................................8
CSR strategies that enhance organisational success ....................................................................8
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................11

INTRODUCTION
If any organisation want to expand their business in global market, it is necessary for
them to make proper plan of actions for analysing challenges and prepare themselves for them.
Global strategy Management refers to the process of managing and making new strategies when
any organisation wants to expand their business in global market. In simple words it can be said
that global strategies refers to the plans made or undertaken by the company who is going to
enter in international market. It include the involvement of top level management as it is a long
term decision and it require a large amount of resources. It provides direction or path to the
companies so that they can perform their task in effective way. Below mentioned report is based
on MG Cars and Jaguar which are British multinational car manufacturer organisations. It
include the comparison and contrast of these two companies along with the opportunities for the
development of CSR capability as well as environmental changes that will help the organisation
in securing a good position in future.
External business environment and dynamic capabilities
Combination of all those factors which influence the business is known as business
environment (Tiwari and et. al., 2018). When any organisation is doing business in various
countries, they have to face various challenges like different political rules, difference in
technology etc. Detailed analysis of external business environment of Jaguar and MG cars are
given below:
Macro Environment
PESTEL is a tool which is used by various companies to prepared a detailed report of
analysed macro environment as it analyse political, economical, social, technological,
environmental and legal factors of organisations. PESTEL analysis of MG Cars and Jaguar is
given below:
 Political- These factor goes varies from country to country as the rules and
regulations made by the government of a country are the political factors. Now a
days there are lots of factors such as corruption level, taxation policies, essential
employee benefits, various legal framework for contract formation etc. This
factor work as a threat for both companies because of increase and decrease of
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taxes rates gives a direct response to the prices to the customers (Eschle, C.,
2018).
 Economic- Various factors which are depend on the economy of any country are
economic factors. These factors include inflation rate, income of customers,
saving rate, interest rate, economic cycle. As car is a luxury item so these factors
works as an opportunity for MG Cars and Jaguar because high income of
customer will lead in the high demand or sell of cars.
 Social- The culture of people and the manner of doing things effects the culture
of organisation. Those factors of society comes under Social factors of macro
environment of organisation which include class structure, standard, attitude,
culture etc. these factors work as threat as well as opportunity for both MG cars
and Jaguar (Xiang and et. al., 2017). For instance, if the status of people of a
specific market is high, these will result in the higher demand of car and loss in
status of people will decrease the demand of cars.
 Technological- It means change in the technology. Both MG cars and Jaguar
companies are well known for using various cutting edge innovation. Both
companies are doing various changes in their cars by introducing some new
technology like Artificial intelligence (Kerr, A., 2017). This is working as a
opportunity for them as it is a new concept which is going to attract the customer
towards them.
 Environmental- Now a days customers are shifting to the environmental
friendly products and the above mentioned companies are focusing on the
reduction of use of carbon emissions. They are also working on the
manufacturing a fuel efficient car (Testa and et. al., 2018). This is working as
Threat and opportunity both as these are new inventions and it is not an easy task
to perform. Along with this, it is also an opportunity as it is a new concept and
people will gonna love this.
 Legal- Some legal laws are maid by government of various countries like the
companies have to get the registered for their patents and copyright to remove
the duplication of products. This factor is working as a opportunity for
automobile companies like Jaguar and MG Cars because registration of
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company under law will create a good image in the mind of customers (Arnold,
M., 2017). Along with this, no one company can make products similar to their
products.
Micro environment
Another type of business environment is micro environment which influence the
organisation but it implies a less effect as compared to macro environment. Companies use
Porter's five model to analyse the environment of any industry. Five forces of Porter of
automobile industry are as given below:
 Threat of new entrants- Because of huge amount of investment in automobile
industry, it is too difficult to enter in the market with a new brand. Along with the factor
of investment, brand reputation and image is also a challenge for new firm. There is a
huge competition in the market and it is not an easy task for creating a brand image for
any new brand. Import taxation policy is an another challenge for new brands. Hence,
threat of new entrants is too weak.
 Bargaining power of buyers- Because of presence of many car manufacturing
companies in the market, customer can switch the company easily. Because of this,
customer have strong power to bargain for the low prices. Every brand is focusing on the
customer loyalty such as design, prices and quality. Only because of high competition,
customers trends are changing which result in the growth in the bargaining power of
customer (Bush and et. al., 2019).
 Bargaining power of Supplier- There are various small suppliers in this industry. These
suppliers have to play in the market according to the rules set by the car brands because
of high competition and huge investment. Also it can be said that bargaining power of
supplier is weak.
 Threat of Substitutes- it is analysed that there are various mode of transportation as a
substitute for automobile industry, but because of taxis, trains, buses and plans. But
owning a car is really beneficial for customers so the threat of substitute in this industry
is too weak (Suryaningtyas and et. al., 2019).
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Internal analysis
SWOT analysis is a tool used for determining the present threats, opportunities, weakness
and strengths of an organisation. It helps the organisation in gaining all opportunities, reducing
weakness, increasing strength etc. The SWOT analysis of MG Cars and Jaguar are given below:
SWOT of Jaguar
Strengths Opportunities
 It is found that the sales of products of
Jaguar has been increasing almost from
last 11 months.
 They had created a popular brand in the
automobile industry for manufacturing
luxury car.
 They are continuously putting efforts in
research and development so that they
can provide products with advance
technology.
 Jaguar have the opportunity to target
new market such as China and India,
they have the opportunity to set
production facilities there.
 Because of increase in the disposal
income of people, they have
opportunity of increasing sales.
 They also have the opportunity to
make use of hybrid technology which
leads to the generation of revenue.
 They can also focus on new
acquisitions for targeting new
customers.
Weakness Threats
 They are not performing so good in the
market of Japan and German.
 Designs of Jaguar are not so good and
popular because they are depend on a
few models for their product.
 As compared to their competitors, they
have introduced very less products,
which are not enough to make options
in front of their customers (Popkova
2018).
 High competition in the market is a
huge threat for Jaguar. Aston Martin,
Audi, Mercedes, Bently are some
competitors of this company.
 Increasing prices of raw material result
in the increase in the cost of production
and less profit.
 Because of fluctuations or instability of
currency of any country implies
directly on the reduction of sales.
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 In the past, they had faced various
problems from the customers which
include problem of rear seats, corrosion
protection.
 Government of various countries are
planning to change in environmental
policy, which work as threat for Jaguar.
SWOT of MG Cars
Strengths Opportunities
 MG cars are doing innovation on
regular basis. It is working as a huge
strength for them.
 It has gained a strong position in UK
market.
 They can earn high profit by
introducing new innovations on time.
 By introducing eco-friendly innovation
of car, as all people are demanding for
the same.
Weakness Threats
 This company is totally depend on
innovation, if they stop innovation for
sometime, they will face a huge loss in
near future.
 Because of it's high cost, they have
only loyal customers.
 High competition in market is a biggest
threat for the company.
 Due to COVID, government has made
various changes in export import
policies, this is an another threat for
MG cars.
VRIO Analysis
VRIO is tool or framework of four question which is used by companies to know about
the business competitive potential. Following are the VRIO analysis of Jaguar and MG Cars:
VRIO of MG Cars
 Valuable- They are using customer centric production method which is valuable for them
for continuous success (Phanayingphaisal 2020).
 Rare- Financial resources are rare of this company. It is the temporary competitive
advantage to them.
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 Imitate- They provide training to their employees in such a way so that they can easily
understand the need of customers.
 Organisation- They have organised their distribution idea or network in such a way so
that they can reach to maximum number of people.
VRIO of MG Cars
 Valuable- There employees are too valuable as they are doing innovation again and
again.
 Rare- Their innovation is the rare factor as they fixes their position in the market by
doing innovation.
 Imitate- Patent of MG Cars are are working as imitate in their organisation.
 Organisation- Their financial resources re the factor of organisation.
Responses to globalization and technology
Both companies are performing operations in global market with their strong brand
names. As per the growth of technology, car companies are shifting towards the manufacturing
of electronic cars.
MG cars are performing well in the global market because they are completely depend on
their their innovation strategies. As they are going to innovate most powerful batteries, solar
panels and power wall. Mainly Jaguar is facing the problem of innovation as they have limited
designs. They are planning to cover the remaining countries such as India and China. It is
possible only because of high capital and they have a lots of financial resources which will help
the organisation to secure a successive position in market.
Comparison of current CSR initiatives
Corporate Social Responsibility can be said as the faith that any business have a
responsibility towards the society far away from their commitments to their shareholders or
stakeholders including communities, employees, customers etc. It's main purpose is improving
public image, brand image & customer engagement in a cost effective manner which also
provide a benefit over competition (Geldes and et. al., 2017). It helps the organisation in
establishing a positive reputation in the society by doing some activities which case benefit to
them. Many of organisations focus on the saving environment so that people can feel safe. Below
mentioned table shows the CSR initiatives of Jaguar and MG cars.
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MG Cars Jaguar
 MG cars are going to invent a fuel
affection car or e-car which is going to
be a new product in the market which is
eco-friendly and give a huge benefit to
society. Because of this, they can create
brand reputation in the market which
will help the organisation in the
attraction of customers as well.
Because this act makes a huge
contribution in protecting the
environment of society or country.
 This company is mainly doing focus on
saving environment while doing
productions of cars as they are using
various production methods which are
not going to effect the environment
such as doing minimum wastage and
establishing waste management so that
they can reuse their products.
 They have been done various donations
with the purpose of helping the needy
person for providing food, shelter,
education etc. to them (Durach 2018).
In this way they are giving support to
their society so that they can develop
the society as well by providing
education, Food, shelter to the poor
people which leads to the development
of complete country because
development of any society or country
 Jaguar require a lots of employees as it
is a huge brand. For the purpose of
filling vacancies in their organisation,
they have to hire the employees. It
states that the Jaguar company is
continuously providing job
opportunities to the society, which help
the improvement of employment rate of
any specific country (Stuenkel, O.,
2020).
 Jaguar company provide various
trainings, educations to their employees
with the purpose of improving
performance of their employees. This
will result in the improvement of
personal skills of employees. Along
with this, they are using various
advance designs & technologies for
making their product differentiate from
others. This act provide the
advancement of complete society.
 They had started various advance
technologies in the process of
production which leads to the minimum
wastage of resources. They are properly
using their resources and removing
waste by doing recycling process of
resources through which they are
saving almost 70% of wastage and
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is totally depend on the development of
people of concerned country/society.
reusing the resources.
Key Stakeholders
Jaguar and MG cars, both have various number of key stakeholders i.e. government,
suppliers, shareholders, employees, customers, competitors, suppliers, civil society, etc. Civil
society can be said as the key stakeholder as they directly got effected by the damaging acts of
organisations such as protection of environment. However, they don't implies any effect to the
organisation.
People/Employees
MG cars is focusing on the reduction of personnel costs of people by providing electronic
car to the society which will also help them in protecting their environment whereas Jaguar is
continuously focus on creating job opportunities in the market in order to get skilled employees
for their organisation.
Planet/Civil Society
It is well known that automotive industry is on first level in doing environment
population. For the purpose of reduction of pollution, MG cars has reduced the use of Carbon
emissions in their vehicles which effect the environment in a positive way . Jaguar has done
various researches so that they can get to now about the expansion of electric fleet for the
purpose of production of battery. The effect of current Corporate Social Responsibility
campaigns mainly focus on the environment and there is no any effect is noticed on the practices.
CSR strategies that enhance organisational success
CSR is directly related to the growth and development of organisation. Activities related
to the development and welfare of society result in the development of organisation in economic
and financial terms. Sometimes activities or strategies related to the Corporate Social
Responsibilities gives result in the increase of expense with the improvement of society and
sometimes it implies affect on both better environment of society as well as the profit of
organisation. Strategies which implies result as increase in the expanses of organisation are short
term activities, it is not possible for any organisation to continuously bear the expanses (de
Sousa Jabbour and et. al., 2018). For the purpose of examining CSR activities for long term
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profitability and strategic partnering with society and governments in growth market, a
distinction is given below:
Corporate Sustainability Performance and Corporate Financial Performance as trade off
This case states that a little bit improvement towards the environment of society gives the
result in higher expenses. These type of activities are not making organisation capable for long
term because these actions pays attention only on society welfare and ignore all the factors of
profit maximisation. It may include in the change in technology such as MG cars are not using
Carbon emission and they started manufacturing of electronic car, this is beneficial for
environment as it is not spreading pollution and saving the environment as it is a huge expense
for the company as they have to change their production method, they have to provide training to
their employees etc.
On the other hand, the same CSR strategy can be taken as the long term sustainability and
leads to increase in financial improvement of organisation. Jaguar company is using advance
design and technology for manufacturing cars which is just a action of making profit. For
completing their responsibilities towards society, they can provide some extra additional work
like donations, recycling management etc. Whereas MG cars is manufacturing electronic car
which is not going to pollute the environment (Aquilani and et. al., 2017). Additionally, it attract
the people towards their organisation as the idea is totally different from all competitors which
result in the generation of revenue and higher sales.
From the above cases, it can be said that CSR activities implies the success or failure of
organisation or the generation of revenue. Also these activities decide all the strategies of the
company for the next many years. Many CSR activities are only related to the benefits to society
and many of them have a deep connection of profit of the organisation. As MG cars are planning
for the manufacturing of electronic car which may implies a good effect only on the society or it
may also lead to the increment of profit.
CONCLUSION
From the above report, it is concluded that the Corporate Social Responsibility strategies
are different for both companies and it is evident that the achievement companies are depend all
on even if CSR can be made a business exposition. A approach named as TBL defines that any
organisation can capable in doing work continuously for long term if it makes focus on not only
people or employees but also on planet and profit. In addition to this, for achieving the advantage
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of society, planet, it is necessary for organisations to remove the traditional trade-off thinking for
the purpose of making profit and capable for doing business for long term so that they can make
huge profit by wining the competition as well. Furthermore, it is analysed that the technology in
automotive sector is growing day by day, which is a good opportunity for all organisations
because by using latest technology they can improve work performance which may result in high
profit and positive reputation in the market. Additionally, this report states the impact of external
and internal environment of Jaguar and MG cars, which may help the organisation in making and
developing long term strategies. Also by analysing all the effecting factors of organisation, they
take the decisions of CSR initiatives. However, jaguar and MG cars both are multinational brand,
their reputation is too good in market, but with the purpose of beating the competition of market,
it is necessary to perform some activities which lead to the benefit of society.
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References:
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Arnold, M., 2017. Fostering sustainability by linking co-creation and relationship management
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Books and Journals
Bush and et. al., 2019. Principles of educational leadership & management. Sage.
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agenda and original roadmap for sustainable operations. Annals of Operations
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Francis.
Phanayingphaisal, W. and Worawattanaparinya, S., 2020. Effective management guidelines for
industrial estate authority to support sustainable growth of the country. Academy of
Strategic Management Journal, 19(1), pp.1-15.
Popkova, E.G. and Sergi, B.S., 2018. Will industry 4.0 and other innovations impact Russia’s
development?. In Exploring the future of Russia’s economy and markets. Emerald
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Stuenkel, O., 2020. The BRICS and the future of global order. Lexington Books.
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examining the mediating roles of resilient leadership and organizational
culture. Academy of Strategic Management Journal, 18(2), pp.1-7.
Testa and et. al., 2018. Internalization of environmental practices and institutional complexity:
Can stakeholders pressures encourage greenwashing?. Journal of Business
Ethics, 147(2), pp.287-307.
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