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Strategic activities are those that help a firm accomplish the goals and objectives it has set for itself. To compete in today’s competitive business world, managers need to be able to operate their firms successfully. In order to accomplish one’s goals in the business world, one must develop and adhere to a long-term strategy (Nath and Dwivedi, 2021).
A strategy that is going to be effective for Jaguar Land Rover Limited will be one that takes into consideration both the internal and external contexts of the organization. The effects of the larger environment, or macroenvironment, on the expansion and development of organizations are the focus of this study (Zhang, 2020). Because of the company’s primary market advantages and disadvantages, the internal environment of the company should be open to a diverse set of ideas and theories that can be applied to the business. Presented in depth for the purpose of assisting readers in gaining an understanding of the organization’s strategic approach are several concepts and practices.
“JLR’s trainee Strategic Planning Manager is responsible for conducting an environmental review and drafting a future strategic management plan based on recognised internal and external analytical methodologies, all while considering JLR’s development and expansion objectives (Davis, n.d). In addition, it is my job to make certain that everything is done on time.”
LO1
“Macro Environmental Impact and Influence on Organisation”
Researchers should take into account a number of aspects that might help them achieve their targeted outcomes. For a corporation to establish a strategic strategy, it has to first identify what it stands for. Jaguar Land Rover (JLR) looks to be the largest vehicle company in the United Kingdom and one of the most successful throughout the global market (Hull, 2021). An English subsidiary of Tata Motors serves as Tata's main office, which is located in Coventry (England). High-quality equipment and cutting-edge technologies are used in the manufacture of Jaguar's custom car bodywork.
“During World War II, Jaguar and British Leyland started making luxury saloons and sports automobiles, which later included Rover. Jaguar Land Rover (JLR) is now a wholly owned subsidiary of Tata Motors, which bought the British automaker in 2008.”
Jaguar Land Rover’s Mission:
It is “Jaguar Land Rover’s goal to make other people happy by anticipating and exceeding their needs and ambitions with a strong emphasis on innovation and design” (Nath and Dwivedi, 2021). They believe that delivering exceptional customer service goes hand in hand with providing high-quality products.
JLR’s Vision:
For Jaguar Land Rover, the Future-Type concept car is a premium small on-demand vehicle designed to meet the mobility demands of future generations in the year 2040. In an effort to make driving and parking in cities more efficient, a narrow-body, completely automated but drivable car with semi-tandem 2+1 seats have been introduced (Vistisen, and Jensen, 2018). Driving with a passenger is now more secure thanks to advancements in technology.
JLR’s Objective:
Environmental innovation is indeed a top priority for Jaguar Land Rover as part of their long-term strategy. Organizations must be in sync with their surroundings in order to achieve their aims.
Analysis of JLR’s Macro Environment
A company’s capacity to succeed is influenced by both internal and external factors, which include both opportunities and dangers. Decisions, consequences, and strategy are directly affected by these elements.
JLR’s external environment is analysed using the PESTLE methodology.
Political:
Political stability is necessary for a healthy global economy. There are several Jaguar Land Rover locations all throughout the globe. “Because of this, each country's political and governance systems, as well as the demands of Finance and Accounting, must be taken into account while creating guidelines. New regulations and management changes offer a significant challenge when it comes to JLR's most important market”. The local government may provide tax advantages to businesses that are innovative and ecologically friendly (Sandhya, 2020). A change in strategy owing to political turmoil or other industry events is always on the thoughts of Jaguar Land Rover employees.
Economic factors:
Economics have a role in the production of commodities and the growth of technologies. Government expenditure cuts or borrowing restrictions have an immediate impact on the daily growth of JLR (Taylor, n.d). JLR now has accessibility to more efficient transportation and communication systems as a result of the new infrastructure. A rise in inflation will need an increase in profit margins and pricing.
Sociological factors:
A company’s day-to-day operations are affected by a wide variety of social issues, including the changing tastes and preferences of the general public and the community at large. For Jaguar Land Rover to succeed in the local market, it is critical that its workforce be well-versed in the customs and culture of the region. Ethical and social standards have a direct effect on a company’s production and distribution network.
Technological Factors:
For its efforts to reduce technology and customer happiness, Jaguar Land Rover is a household name in both local and international markets. “Keeping up with the latest technology breakthroughs and reducing production costs is essential to meeting and exceeding customer expectations while also being one step ahead of the competition” (Yopy and Sitinjak, 2018). When it comes to developing low-weight, high-efficiency transportation systems, it serves as a model for the world.
Legal factors:
Laws and regulations pertaining to foreign trade, labour, health and safety, and consumer rights must be adhered to by both local and international enterprises. Businesses will find themselves constrained by these rules and laws, even if they are meant to provide fairness and predictability. The firm will suffer if Jaguar Land Rover's business is not sufficiently protected or if it does not follow the appropriate laws.
Environmental Factors:
It is essential to take into account environmental challenges including climate change as well as carbon footprint reduction as well as a growth in environmental sensitivity. Environmental protection is becoming more popular, and this movement is only likely to increase. When it comes to making cars, Jaguar Land Rover takes environmental regulations extremely seriously and does all it can to provide environmentally responsible products (Zhao, Tan and Liu, 2020). Diesel engines are utilized to raise and power the vehicle.
The following SWOT analysis shows that the company faces both internal and external threats and opportunities.
Strength
Weaknesses
Jaguar Land Rover is a well-known name in the luxury car industry. This organization’s lasting legacy is its use of cutting-edge technology and highly-trained staff (Kumar and Hallur, 2020).
It’s important for JLR to invest in its products and services for the purpose of its merger with Tata Motors, India’s largest automaker.
JLR is struggling in the market due to a lack of demand for diesel cars in the UK and other nations. Companies must work hard to maintain their market share in new markets, as there is a lot of competition (Bolland, 2020).
Opportunities
Threats
When it comes to new markets, JLR has a lot of options. People from South Asia.
Hybrid and electric vehicles are a priority for the company.
BMW, Mercedes-Benz, Porsche, and Audi (Audi) are some of JLR’s competitors (Demir and Kocaoglu, 2019).
A rise in raw material costs, regulatory changes, and financial instability may all impact the company's revenue and profit margins.
Analysis of the macro environment to determine and inform strategic decisions
The PESTLE framework is used to study JLR's external environment. As a result of its international connections, Jaguar Land Rover may be seen favourably. As a consequence, any political reforms are sure to be promptly adopted by the corporation. Governments all throughout the world cooperate with Jaguar Land Rover for its financial strength. The company’s international expansion is facilitated by simple access to financial markets including stock market liquidity (Rupilu, 2020). In order to distinguish out from the competition, a company must be able to tailor its products and services. JLR may entail a level of public service investment to satisfy local demand (Braun, Latham, and Cannatelli, 2019). Jaguar’s international reach demands the adoption of numerous diverse methodologies and processes. Businesses’ future growth rests on their ability to properly navigate the legal framework in any given place.
Consequently, it supports economic prosperity by preventing both consumers and companies from being abused. Securing environmental standards and ecologically friendly goods and services by firms may be costly (Turker, 2018). Simply mentioned, Jaguar Land Rover is among the most recognised brands in premium autos today. Cutting-edge technology and very well people are the foundation stones for the firm’s future success. For Jaguar Land Rover, the merger with Tata Motors has brought a variety of new options. Jaguar Land Rover is suffering in the market because of a lack of demand for diesel vehicles. To succeed, the company must focus on hybrid and electric vehicles.
LO 2
“Internal Environment and Capabilities of an Organisation”
There are numerous channels through which an organization may exercise control over the atmosphere that exists within its own walls.
The 7s Framework is the name given to this chassis for Jaguar automobiles.
Strategy:
The Jaguar strategy is flexible and receptive to new ideas and recommendations. This is absolutely critical for the growth of Jaguar’s long-term strategy and management structure (Rehman and Anwar, 2019). The ability of a company to adapt its strategic direction in response to shifts in the market is a critical factor in determining the extent to which it can compete.
Structure:
Jaguar Cars has a relatively flat organizational structure, and it is supplemented with organizations that are smart enough to learn and adapting to new circumstances. When there are fewer levels of management between employees and their superiors, employees have more access to information and report feeling more confidence in their abilities (Marfia, 2018). Because Jaguar Cars has a more streamlined structure, the company’s decision-making process is significantly accelerated as a result.
Systems:
Jaguar Cars has implemented a number of policies with very specific instructions in order to reduce the likelihood of confusion or conflict in the workplace (Islami, Mustafa and Topuzovska Latkovikj, 2020). Jaguar Cars is constantly evaluating its systems with the help of the controls that are provided. Monitoring the situation effectively requires undivided focus and attention at all times.
Shared values:
Jaguar has defined and expressed a set of values in order to motivate its staff to work as hard as they possibly can while also cultivating a sense of dedication to the business". In doing so, Jaguar hopes to achieve the following goals:
Style:
“Jaguar Cars is able to engage and involve its workforce in the decision-making process and operational decisions because of the company’s use of a leadership style known as participative leadership” (Ali and Anwar, 2021). Executives are better able to recognize and handle potential issues, as well as gather feedback on strategic objectives and operational processes, when they maintain a frequent dialogue with employees as well as other integration plan participants.
Staff:
Jaguar Cars is responsible for the employment of a significant number of individuals all around the globe. Employees are employed from both inside the company and from the outside to fill a variety of job tasks and positions, depending on the amount of urgency and required competence (Lauer, 2019). It is reasonable to assume that the workers at Jaguar are well-versed in the complexities of the different jobs and responsibilities they are responsible for.
Skills:
Jaguar employs some of the most skilled workers in the industry. It is essential to keep in mind that the process of hiring candidates takes into consideration the skills and qualities of each individual who applies for a position. Jaguar Cars does not take any shortcuts when it comes to recruiting and retaining the most talented personnel in the industry.
VRIO Framework
For long-term benefit, the VRIO architecture takes into account both internal and external resources. According to Matrix and Ansoff, (n.d), a framework for identifying long-term competitive advantage goes by the acronym VRIO. Identifying a company’s resources, whether they are actual or intangible, is essential before using VRIO. It is vital to categorise your resources into one of the following groups.
Human Resources
Material Resources
Non-material Resources
Financial Resources
Skilled Labours
Mechanics
Marketing Personnel
Raw Materials
Facilities
Inventory
Equipment
Intellectual Properties
Brand Logo
Trademarks
Monitory Funds
Loans
Bonds
Shares
VRIO Analysis
Resources
Value
Rare
Limitations
Organisations
Competitive Advantages
JLR’s business plan calls for a number of different activities.
Yes
No
Every business has its own unique approach to strategy development (Echchakoui, 2018).
The company can make the most of it to its best potential.
Diverse numbers of activities streamline the performance efficiency of the firm.
Strategies associated with pricing
Yes
No
The pricing strategy of a different industry is often emulated.
JLR as its own software application for tracing and directing pricing (Demir and Kocaoglu, 2019).
A well formalised strategic direction for organisational growth.
Tracking and implementing progress of the project.
Yes
No
There will be no way for competitors to duplicate your strategy, the business is taking.
The explicit tracking and measurements would give sufficient aid in evaluation of the strategy and make amends for problem-solving if needed (Turker, 2018).
This would ensure repetitive trial and error of formulated strategies giving more extensive and progressive developmental prospects for the business.
(Source: As Created by Author)
Critical evaluation of the organisation’s skill set, structure and capabilities
Capital Resources: Money, equipment, structures, and machinery are all examples of capital resources. A corporation must have enough money to carry out its strategy. The more money and resources a company has, the more readily it can carry out its strategies and grow (Marfia, 2018). Therefore, in order to keep up with the Jaguar Land Rover reputation, the corporation ensures that it invests money in cutting-edge technologies and products and provides investment opportunities for others.
Human Resource: Both advantages and disadvantages may be found in a company's human capital (or “human resources”). Productivity and economic growth may be linked (people with knowledge, skills, and abilities) by Jaguar Land Rover (Islami, Mustafa and Topuzovska Latkovikj, 2020). A well-oiled recruitment strategy ensures that JLR gets the appropriate individuals into their workforce at the right time for new hires. They build an internal team in order to realise their full potential and be recognised for their great work.”
It has a favourable influence on the organization’s internal growth and development when a company has well-trained employees. Employees with poor work ethics and a lack of required skills and competencies will be a huge burden on the organisation.
Organisational Structure: The CEO (Dr. Ralf Speth) sits at the top of the Levels of Management pyramid, with his immediate subordinates at the bottom. In all, there are 15 people on this team, which includes the CEO, VPs, CFO, and VP of Commercial (CCO). With one Executive Director for the China Division, they have a vertical functional organisation with responsibilities based mostly on function (Ali and Anwar, 2021).
Figure: JLR Organisational Structure
LO 3:
“Porter’s Five Forces Model and Competitive Forces Analysis”
Porter's five-force model is used to examine Jaguar Land Rover's competitive advantages and position in the United Kingdom.
The Buying Power of the Customer:
Because luxury automobile brands and styles are readily accessible, customers have access to a diverse selection of alternatives and substantial leverage in negotiations. There is indeed a significant amount of variation in the quality, accomplishment, style, cost, and features of vehicles (Bolland, 2020). Customers are not limited in any manner in any way in any way in any way in any way in any way in any way in any way in any way in any way in any way in any way in any way in in order for Jaguar Land Rover to be a successful firm, it is necessary to not only meet but also surpass the expectations of its customers while also being competitive.
Bargaining Power of Suppliers:
The bargaining strength of suppliers is constrained by the power of the companies who buy their products. It is up to the buyer to make arrangements with the supplier in order to receive the raw materials. Because of their magnitude, suppliers to the automotive sector have a significant influence on the surrounding competitive environment. (Bosco-Santos et al., n.d). Only a select few suppliers are capable of meeting the stringent requirements that Jaguar Land Rover has established for raw materials such as leather, wood items, and technology. It is possible for suppliers to either decrease or enhance the quality of their goods in order to exert pressure on JLR.
Rivalry
“BMW, Mercedes-Benz, and Jaguar Land Rover (JLR)” are the three most competitive luxury automotive manufacturers in the United Kingdom. They are all located in the United Kingdom (Demir and Kocaoglu, 2019). There is a lot of rivalry between brands of luxury automobiles, and each of these companies wants its consumers to think of them as being superior to the others.
Threat of Substitutes
The S90 is a successor for the Jaguar XF that is manufactured by Volvo and marketed under the Volvo name. When there are many different ways to solve a problem with a product, it makes it more difficult for firms to turn a profit (Yopy and Sitinjak, 2018). Consumer brand loyalty, comparable pricing, switching costs, fashion trends, and fads all impact the threat presented by alternatives. Jaguar Land Rover's capacity to set pricing for its goods may be impacted if alternative competitive choices become available.
Threat of New Entrants
Jaguar Land Rover is the recipient of the award for patron renown as one of the most well-known brands in the luxury transportation business. JLR, like many other well-known companies, benefits from both a strong brand name and the absence of direct competition. In an attempt to compete with well-known brands like Jaguar and Land Rover, a number of new companies are producing luxury automobiles and vehicles of similar quality and feature set (Islami, Mustafa and Topuzovska Latkovikj, 2020). Included in these firms' strategies are: As a result, well-known brands are now confronted with new difficulties and dangers (Ali and Anwar, 2021). In order to maintain their importance as brand representations, well-known firms spend more money on improving the quality and features of vehicles.
LO 4:
“Models in interpreting and devising Strategic Planning for JLR”
Strategic Management Planning
JLR must adhere to the following structure in order to produce a strategic plan:
Porter’s Generic Strategies
JLR can take consideration over three potential strategic directions, featured by Porter’s Generic Strategies, as tabulated in the following:
Cost Leadership Strategy
JLR may be able to get an edge over the competition by using Cost Leadership Strategy. It’s one way to save costs is to price the products in accordance with industry norms.
Differentiation Strategy
Differentiating one’s offerings from those of competitors is a critical component of success. They may have a substantial advantage over their opponents due of their aluminium body and strong engines (Nath and Dwivedi, 2021).
Focus Strategy
This kind of structure delivers unique goods and services that fit the requirements and desires of clients by concentrating on a certain niche market Almost all of their offerings are geared at affluent folks over the age of 40 (Davis, n.d). In order to get an edge over the competition, JLR may turn to Focused Strategy. The goal of this pricing approach is to keep costs as low as possible by following industry standards.
Bowman’s Strategy Clock
For a product’s strategic positioning in order to get a competitive edge in the market, it was developed by Cliff Bowman and David Faulkner (Kumar and Hallur, 2020). Two elements of the Bowman’s Strategy Clock may be used to enhance a company’s market placement. While price and perceived value are separate, the two notions are intertwined in this case.
Considering this strategic prospect, it can be implied that even if a significant amount of money is spent on R&D, the corporation spends much less than its competitors do. It follows that the price cuts they have achieved have been quite modest (Demir and Kocaoglu, 2019). As a result of their reduced market share in developing markets, they have an outstanding chance to attract high-priced goods. Land Rover, on the other hand, is a far more well-known brand than Jaguar. The Freelander and Discovery are popular among the middle class.
Conclusion
In order to determine whether JLR can cope with a range of challenges and give a clear path toward reaching desired goals and objectives, the analyses presented above should be used. The long-term survival and growth potential of a firm is dependent on a broad range of factors, all of which JLR must take into account in order to be successful on the market. Brand image and client loyalty are the building blocks of long-term success for every firm.
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