Jaguar Business Analysis

catamount Business summaryThis depict result evaluate the strategic state of affairs of puma Cars Limited and how emerging technologies might clash on this range. To achieve this, the report get out wager at both the internal and external environment as well as other techniques such(prenominal)(prenominal) as SWOT analysis.The internal environment will be evaluated by with(predicate) the use of painters culture tissue and honor drawstring. The external environment will be evaluated through techniques such as the PESTL plot and the flipper forces diagram.A SWOT analysis of cougar will overly be rail authority carried out this will abridgment the unions strengths, weaknesses, opportunities and threats.Finally the report will look at emerging technologies in the motor industry and their impact on jaguar and its strategic position outlining whether they could potentially strengthen or weaken this position.2 primercatamount Cars Limited was founded by Sir William Lyons and William Walmsley in September 1922 in Blackpool and was originally known as return Sidecar Company. It began life as a manufacturer of motorcycle sidecars before moving onto cars. It was not until 1945 that the name mountain lion was first used, this was due to the companys desire to avoid connotations with the German SS. 1 cougar went on to design and manufacture a range of sports cars, such as the XK120, in the late 1940s to early 1950s. This opened the door into motorsport for painter where they went on to see a lot of victor passim the 1950s particularly in the Le Mans 24 Hour races where they won in 1951, 1953, 1955, 1956 and 1957. 2In 1968 Jaguar merged with the British Motor thr mavin which later became British Leyland, nevertheless so this was not to last as Jaguar became independent once much in 1984 before macrocosm acquired by Ford in 1989.Under Fords control, Jaguar and Land r everywhere were brought together to form a p atomic number 18nt company known as Jaguar Land Rover. It was during this era that Jaguar produced the XJ220 which, at the time, was the worlds fastest overlapion car ever built. 3From 2000-2004 Jaguar also had a hotfoot team which competed in Formula 1, however this did not prove to be successful and the team was change to Red Bull at the end of 2004 which later went on to be act Red Bull Racing. 4In 2008 Ford sold Jaguar Land Rover to Tata Motors.Today Jaguar and Land Rover argon still closely linked together and be both headquartered in the very(prenominal) plant in Whitley, Coventry. Jaguar Land Rover employs around 24,000 workers across half dozen different facilities, 10,000 of which are involved but in Jaguar.3 Environment3.1 InternalThe internal environment is focused solely around factors inner(a) the company. These factors can unite to elements such as company culture, employees and management style and directly affect how the company may work.3.1.1 Mission Statement VisionA burste r disputation is a brief, to the point education that accurately sums up what a company stands for and their reason for be in the first place.The mission statement of Jaguar is as followsTo create and build beautiful fast cars that bring the enjoyment and exhilaration of drive to life.This mission statement leaves no doubt in the readers mind what Jaguar stands for and what their overall aim as a company is.Jaguars imaging or aims stem from its history for making top of the range carsThe Jaguar Brand is founded on a long history of distinctive cars offering a unique move of style, performance, refinement, prestige and affordability. Our aim is to build on this tradition by reinterpreting the values that do the Jaguar legend. We will be a relevant premium competitor, desired by customers for stimulating performance and captivating style.This trance outlines Jaguars overall aims and where they see themselves in the car industry. They outline that they have a history for making pure tone cars and that they will continue to do this. They aim to be seen as relevant and desirable by customers by offering cars that are both stylish and enjoyable to drive.3.1.2 Culture WebThe culture web is a paradigm of six elements indoors a companys internal environment that helps to outline the culture within the company. These six elements are stories, symbols, power structures, organisational structures, control systems and rituals and routines.The six elements of the culture web as applied to Jaguar are outlined below in figure 3.1.StoriesCelebrating historic carsJaguar often celebrate historic cars anniversaries. chore CreationRecent newborns of thousands of new jobs universe do.Employee outingsEmployee team building or nights out.SymbolsJaguar logoInstantly recognisable to the general public.QualityJaguar cars are synonymous with good lineament.CarsInstantly recognisable car design.Power structuresDirectors5 directors are in charge of Jaguar.CustomersCustomer d emand influences Jaguar.GovernmentJaguar must adhere to relevant legislation.Organisational StructuresDirectorsThe five directors are at the top of the chain.HierarchicalJaguar operates chthonian a hierarchical system with 8 levels.Chain of CommandJaguar operates under a chain of command where engineers will report to a manager who will then report to their manager and so forthControl SystemsUnionsUnions are in place to protect employees.Quality controlJaguar has strict quality measures in place to ensure products r apiece customers high expectations.ResponsibilityEmployees are responsible for their own work.Rituals Routines solecism patternsEmployees work shifts eg, 9-5 every weekday.Annual reportsAnnual reports are produced and made available to all staff.Quality unforgiving quality control routines are in place. mannikin 3.1 Table of Jaguars Culture.The paradigm of the culture web is the of import common ground of the organisation and is at the heart of everything they do, it is often taken for granted. In Jaguars case this could be thought of as quality and professionalism as the company is highly regarded for the high quality of their cars and is a briny driving factor behind their success as well as the professionalism of the staff to deliver this continuously.3.1.3 protect ChainThe value chain is a concept that describes the chain of activities within a company and helps to send the competitive strength of the trade through these activities. The chain suggests that each section is connected and thus one section performing poorly could have a detrimental effect on other sections.The value chain can be thought of as two main sectionsPrimary Activities These activities directly relate to producing the product, in the case of Jaguar, a car. This would involve for archetype gathering materials, assembly distribution of the finished product. have a bun in the oven Activities These activities do not directly relate to the production but nonethe sli ght are get wind to success. For theoretical account human resources are responsible for staff and a failure to hire effective staff would caseful production to suffer.3.1.4 Core CompetenciesThe core competencies within a company can be seen as areas in which the company are exceptionally good at and thus inured them apart from the competition. One of Jaguars aboriginal strengths is the highly skilled and motivated workforce that they employ. This first-class workforce has a positive knock on effect for the rest of production, for example tasks such as assembly and maintenance are well do providing well built and reliable vehicles, which Jaguar is renowned for.This can be related back to Jaguars vision to produce desirable cars and it could be said that they are aiming to achieve this through the excellent staff throughout the company.3.2 ExternalThe external environment is based on influences outwith the company. These influences could be for example competitors, buyers or suppliers.3.2.1 PESTL AnalysisA PESTL analysis looks into five key external factors that could potentially influence a company. These are Political, Economic, Social, Technological and Legal. Figure 3.4 demonstrates PESTL applied to Jaguar.(P)oliticalContinuing interest in reducing ascorbic acid sparks both from vehicles and factories.Increased research into selection give the axe sources may be required.(E)conomicThe latest climate ca apply less spending. Retirement age changes. deal will be less inclined to pay for higher priced cars which would cause problems due to Jaguars lack of budget cars.(S)ocialSports cars becoming less relevant or desirable due to not being environmentally friendly. inquiry into making cars that are more efficient or green may be required.(T)echnologicalHybrid/ galvanizing cars becoming much more commonplace.Again, Jaguar will need to develop loan-blend or galvanic cars or risk being left behind by their competitors.(L)egalChanges in health and s afety laws and regulations.Jaguar would need to adapt the way the company works to accommodate new regulations or laws.Figure 3.4 PESTL Analysis of Jaguar.3.2.2 The Five ForcesThe five forces model represents the competition within the sector that Jaguar is in. The five forces include buyers, suppliers, existing competition, new competition and substitutes.Buyers The buyers are people who are willing to purchase the products and services of Jaguar. This could be through dealerships and distributors as well as other car manufacturers who may wish to use Jaguars engines in their cars.Suppliers The suppliers are people who provide Jaguar with parts or machinery to enable them to manufacture their cars. A strong establish relationship between Jaguar and their suppliers is key to the companys success as it ensures raw materials or machinery can be delivered as and when Jaguar need it.Existing competition This is quite simply other car companies who operate in the luxury/sports car i ndustry, for example Aston Martin, Mercedes Benz, Porsche, Bentley and BMW to name a few. These companies all produce cars that could be seen as an alternative to a Jaguar product and thus take away buyers from Jaguar. virgin competition New competition could be from existing car companies who might delve into the luxury car market, this competition could come from companies such as Ford, Volkswagen or Peugeot for example. It could also come from completely brand new companies however this is less likely due to the current climate and the need for grand amounts of capital to start a business in the luxury car industry. Companies from other markets could also move into the car industry, SAAB being an example of this as they were originally a manufacturer of fighter planes before cars. 5Substitutes These are alternatives to cars. dominance substitutes could be public transport, however due to the nature of luxury cars it could be said that this would pose a very minimal risk. Pote ntial customers who may be looking for a high performance vehicle could be swayed by motorcycles as an alternative.4 Strategic strengthThe strategic position of a company gives an indication of where it lies in its range market. This can highlight how it compares with its competitors or how its customers may view the company.4.1 SWOT AnalysisA SWOT analysis can be utilised to identify the strategic position of a company and highlights four key areas that are either helpful or harmful to the companys objectives. The four key areas are strengths, weaknesses, opportunities and threats.Strengths Jaguars strengths lie in the companys well renowned reputation for producing top of the range cars as well as its excellent staff. Jaguar also have strengths in research and development, allowing them to continually have a competitive abut over the competition.Weaknesses Jaguar are not seen as a particularly eco friendly company and this could have an increasingly negative impact on the c ompany. As Jaguar sell high end cars, they are interchange to a smaller niche market and thus missing out on tapping into the market for cheaper alternatives.Opportunities Jaguar must continue to improve upon their excellent reputation for quality if they are to maintain their competitive edge in the market. Continued research and development is a must as Jaguar have an excellent RD department and should utilise this to improve their eco-friendly image as this is becoming increasingly important in the car industry. Jaguar will look to exploit the growing Chinese market.Threats The global economic climate will continue to threaten Jaguars strategic position due to increasing fuel prices, less disposable income and ever-changing interest rates to name but a few. Governmental regulations will also threaten Jaguar, for example, stricter emission regulations will cause Jaguar to incur additional usance to upgrade and improve existing products and facilities.Strengths natureStaffRDWea knessesPoor eco imageNiche marketOpportunitiesImprove upon reputation for qualityDevelopment of eco-friendly cars ripening Chinese marketThreatsGlobal climateGovernmental RegulationsFigure 4.1 SWOT Analysis of Jaguar.4.2 Strategic Position of JaguarJaguars strategy, as highlighted in their 2010-2011 annual report is as followsThe company has a multifaceted strategy to position itself as a leading manufacturer of premium vehicles offering high-quality products tailored to specific markets. The companys success is tied to its investment in product development, and is reflected in the strategic focus on capital expenditure, RD and product design. 6The strategic position of Jaguar as can be seen through the previous analyses is strong within their target market. It can be seen that Jaguars aims to maintain this position through research and development are indeed, how they are maintaining this position in reality.If Jaguar wish to strengthen this position, however, they must improve their image as being eco-friendly. This could be achieved through their already well established research and development department.5 Emerging engineering science5.1 TechnologyThe technologies that are change not just Jaguar but the automotive industry as a whole are the variety of methods aimed at reducing atomic number 6 dioxide emissions and improving eco-friendliness.One such engineering science which is arguably the most popular and well known is the Hybrid galvanising vehicle (HEV) engine room. This technology utilises the standard gasoline engine that works in conjunction with a separate electric engine. This technology is advantageous as the average consumer does not have to change their driving and refuelling routines as, on the surface, the HEV operates exactly the same as a traditional vehicle but with greatly lessen coulomb emissions and greater fuel economy. There are, however, concerns over the batteries, mainly due to performance and reliability as well as concerns over toxicity. 7Electric cars are also growing in popularity in recent years. As the name suggests these cars shape entirely from electricity and, assuming the electricity is gathered from a renewable source, they are completely carbon free. Range and lack of charging stations are proving to be the technologys main stumbling block as well as overall performance of the car. 8Another technology is the hydrogen fuel cell. Hydrogen is advantageous over common petrol and diesel fuel sources as it does not produce any carbon dioxide emissions and, unlike electric cars, it does not greatly hinder the cars performance and range. Unfortunately, at this time, hydrogen is proving nasty to exploit in large useable quantities and there are currently no effective means of storing it. 9Biofuels such as biodiesel are another alternative that researchers are looking into. Another replacement for standard gasolines, biofuels are often made from vegetable oils or animal fats. Many companie s are already using biofuels effectively. In East Ayrshire, leg operate a fleet of Bio-Buses that run on the fuel. It has been noted that due to this Stagecoach have reduced their carbon emissions by around 2450 tonnes. A key advantage to this is that used vegetable oils can be exploited and this can be seen as a form of recycling. Although biofuels will help to reduce carbon emissions, they are not as clean as hydrogen or purely electric cars and as such, are not placed in high regard by many. 105.2 Impact on JaguarThe impact these eco-friendly technologies have on Jaguar is huge. If Jaguar were to continue to produce cars in the current way they would simply lose their strategic position and be left well behind their competitors. Not solitary(prenominal) that but there could be the potential for new government regulations that could completely force them out of business, for example if the company were required by law to produce cars that did not produce above a threshold amou nt of carbon dioxide.Jaguar have, of course, outlined these concerns and have begun research into a variety of methods to ensure their carbon footprint is reduced as can be seen from this excerpt from their annual report 2010-2011To comply with current and future environmental norms, the company may have to incur additional capital expenditure and RD expenditure to upgrade products and manufacturing facilities, which would have an impact on the companys cost of production and the results of operations and may be difficult to pass through to the companys customers. If the company is unable to develop commercially viable technologies within the time frames set by the new standards, the company could face significant civil penalties or be forced to suppress product offerings drastically to remain in compliance. 11One such method is an innovative new aluminum body as opposed to the traditional steel body of most cars. Jaguar claim that using aluminium results in significant reduction in weight and thus reduced carbon emissions. Of course, being that Jaguar are renowned for producing cars that are of high performance, simply changing materials with the sole focus on reducing emissions could also be detrimental to their position. Jaguar claim that in conjunction with reduced emissions, the new material offers a stiffer body and thus better performance and handling. It can be seen that Jaguar have implemented necessary changes to reduce their carbon footprint without affecting their strategic position. It could also be argued that this has even strengthened their position by improving the performance of their vehicles.Intent on ensuring they continue to be a leader in their market, Jaguar have also began production of crisscross vehicles. Two of the first hybrid vehicles produced by Jaguar were concept cars known as the C-X75 supercar, which was unveiled at the 2010 Paris Motor Show, and the more conventional C-X16 sports car, which was unveiled at the 2011 Frankfur t Motor Show.The C-X75 was built with the intent of inspiring and influencing ideas for future hybrid cars and due to its success, Jaguar have announced plans to develop a road legal variant in conjunction with the Williams F1 team in 2013. 250 cars will be built at a price of 700,000 each and Jaguar claim that the car will disport emissions of just 99g/km.The C-X16 will also be made into a road variant at a much cheaper cost of under 100,000. The C-X16 will boast an acceleration time of 4.4 seconds from 0-60mph and a top speed of almost 190mph. 12It can thus be seen that Jaguar look set to overcome this major obstacle whilst still maintaining their strong position as a top quality car manufacturer. This has been achievable through their strengths in research and development.6 ConclusionThis report has successfully evaluated Jaguars strategic position and identified emerging technologies and their impact on this position.The internal environment was evaluated and showed through th e culture web, value chain and core competencies that Jaguar operates very strongly and how they successfully achieve this. The mission statement and vision also showed a clear understanding of what they stood for and where they see themselves.The external environment was also evaluated and showed Jaguars position in its relevant market area. PESTL and five forces analyses were carried out to demonstrate just how strong Jaguars position in their market was.The overall strategic position was then outlined and a SWOT diagram showed Jaguars strengths, weakness, opportunities and threats. Overall, Jaguar sit very comfortably as a leader in their market.Finally, emerging technologies affecting Jaguar were shown to be related to global warming and eco-friendliness. It was shown that Jaguar had taken necessary steps to combat this and maintain their strong strategic position.