jaguar

Strategic Analysis 1

RUNNING HEAD: STRATEGIC ANALYSIS

Strategic Analysis

[Name of the Writer]

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Strategic Analysis

Introduction

Jaguar Cars is a manufacturer of automobile, founded in 1922

as "Swallow Sidecar Company" by William Lyons, it was renamed

Jaguar Cars after World War II by the unfortunate connotations of

the initials, The company now belongs to the industrial and

automotive Indian Tata Motors. Jaguar is known for its luxury

saloons and sports cars, market segments where it has been since

the 1930’s. The company was independent until it became part of

the national company British Motor Corporation in 1966. It

surfaced in 1984 as a separate company in the stock market, one

of the many privatizations of the Thatcher government only to

become part of Ford in 1989-1990(Allen, 1984). In 1999 it became

part of the new Premier Automotive Group of Ford to Aston Martin,

Volvo and Lincoln. Land Rover was added to the group in 2000

after being sold by BMW. In July 2006, Jaguar passed Ford in car

sales in 2007 became the first car manufacturer in the world

overtaking General Motors, and there is speculation that this

year 2008 there will be a production and sales of approximately

9.8 million vehicles, along with increased sales (Liebeskind,

1996).

Jaguar is the leader in the automotive industry featuring a

box of eight-speed automatic transmission guide, real time


traffic routing with dynamic reallocation and a four-zone climate

control with infrared technology in some of their models.

Mission

Our mission at Jaguar, since the company was founded by Sir

William Lyons in 1922, has been to

``Create and build beautiful fast cars, Cars that bring the

enjoyment and exhilaration of driving to life.’’

Vision

Our vision is to celebrate 75 years of Jaguar design,

besides being a clear statement of the brand vision on the

direction and future of the automotive industry. Our vision is

long term, since the relationship with our customers does not end

with the sale of a car, just at that moment is when it starts.

Objectives

The aim of Jaguar Motor is to produce not only the most

innovative Jaguar but the most beautiful of all time, a Jaguar

that hints at the exciting evolution of the award-winning design


of the brand while paying homage to some of the most admired

cars. Advanced design features such as an innovative propulsion

system and active aerodynamics have led to conceive a sleek body

lines has remained stable at very high speeds.

Jaguar Company introduced the concept supercar on electricity

with the extended-range, and the belief in a bright and green

future (Khanna, 1995). C-X75 was designed in honor of the 75-year

anniversary mark Jaguar, but that, according to Mike O'Driscoll

Managing Director of Jaguar Cars, and more "innovative pilot

model, which embodies the technology of the future" is guarantee

that the glory of our engineering does not fade even 75 years or

even longer

Pest analysis

It is important to define the mission of the company in

order to generate value for the customer, society and the

economy. This key step is to direct the organization towards a

common purpose is more important than just making money (Khanna,

1995). The design of work processes is important to achieve added

value and reduce time spent waiting for another process to finish

before continuing. It is essential to the flow available to the

entire organization to continually improve and develop people.

The analysis is as follows:


• Government’s golden share (designed to prevent takeover)

to end 1990

• British industry highly unionized; many different unions

• Economic developments have led to major upturn in demand

for luxury cars

• Oil prices/interest rates low; standard of living

improvements; low cost of capital

• Exchange rate fluctuations

• Car manufacturing capital intensive

• Move towards environmentally friendly cars

• “Conscience factor” - not to be seen to be flaunting

wealth

• Car manufacturers with broader ranges exploiting

technical/engineering merits

• New technologies not solely the domain of original

innovators - available to competitors

• Technological diversification (i.e., aerospace industry)

produced spinoffs for car industry


Porter’s model (explained)

• Potential entrants: Japanese

• Barriers: Economies of Scale: Large investment reqd;

existing players enjoying large economies of scale; also

high exit barriers due to high investment

• Product differentiation: customers look for certain

attributes in luxury cars

• Capital requirements: Car makers require large

investments; however, interest rates low

• Access to distribution channels: Difficulty by Jaguar in

Germany, secured Saibu in Japan, upgrading of

distribution channels (divorce themselves from BL)

• Threat of Substitutes

• Other forms of transport

• Volume car manufacturers (what is a luxury car?)

• “Fashion statement through other means - Condo, etc

• Power of Buyers & Sellers:

• Buyers demanding excellence, quality & service


• Appears to be no forward/backward integration (except

parts). However horizontal integration through

acquisitions

• Competitive Rivalry:

• Appears low in the luxury cars? Mercedes & BMW in

Europe; Lincoln & Cadillac in US

• Different cars appeal to different people

SWOT Analysis

Strengths:

• Quality/culture identity

• History of culture (Pre-BL Years)

• Image of luxury

• Re-entry into international car races

• Upgraded distribution channels

• Arrangement with SEIBU

Weaknesses:

• Small car range

• Engineering/R&D disadvantage


• UNION problems

• Dealership network in Germany

• Jaguar unable to radically alter design

• No economies of scale

Opportunities:

• Economic growth

• Japanese market opening up

• New technology readily available

Threats:

• Competition from Mercedes, Porsche & BMW

• Japanese may try to enter market

• Substitutes - what is a luxury car?

• US$ exchange rate fluctuations

• US legislation

• Government’s golden share

• Environmental pressures


Future Implementation

• Generic strategy: differentiation (cost leadership is

difficult as Jaguar does not have economies of scale and manpower

productivity). Emphasize luxury and ample design. Emphasize

participation in races.

• Within differentiation, focus on wealthy buyers (Mercedes

emphasizes on Engineering and attracts upcoming rich; BMW

attracts yuppies - compete with S class & 7 Series rather than

all)

• Strategic Direction: market development and consolidation

rather than product development (keep the small range; don’t go

into consultancy, R&D).

• Market development: China, HK, Taiwan & Singapore, oil rich

SEA countries and ME

• Consolidate in US and UK

• However, Jaguar needs to continue to lower costs, improve

quality and productivity (to support main strategies, and to

forestall takeover after Government’s golden share

Porter’s Model


This system indicates to store small quantities of each

product and replacement frequency on the basis of what the

client actually asked.

Level the workload eliminating waste, the excessive burden

on individuals and teams, and inequality in production

planning.

Be they automated or manual processes; develop a culture to

stop in case of failure. In the long run this will benefit

productivity.

Using a stable and repeatable method always produces the

same performance to maintain the predictability of


processes. It allows those who use these processes to make

suggestions for improvement.

Simplify working with visual indicators to let people know

if they are operating in a normal condition or less (Coase,

1937). Whenever possible, simplify the reports to a sheet of

paper.

The new technology is probably unstable and therefore

endangers the flows. However, encourage your people to

consider new technologies when new approaches to work.

Leaders grow within the company. A good leader must

understand the daily work in great detail so it can be the

best teacher of philosophy of the company.

It teaches people to work together as a team toward common

goals. Teamwork is something that has to be learned. Train

exceptional individuals and teams to achieve exceptional

results.

Have respect for your partners and suppliers and treat them

as an extension of your business, proportional ambitious

goals for growth and development (Monteverde, 1995).

Even the executives and senior managers need to see things

for themselves, so they have a deeper understanding of the

situation. Think and speak in person after verifying the

data.


It is the process of discussing problems and possible

solutions with all stakeholders, to gather ideas and reach

agreement on a way forward. This process of consensus,

although time consuming, helps broaden the search of

solutions available, and once a decision is made, the stage

is set for rapid implementation.

Reflect on each milestone of a project to openly identify

all the shortcomings experienced (Allen, 1984). Develop

countermeasures to avoid the same mistakes again.

Implementation (present)

In fact, it was not the design or performance of the

vehicles to make a difference, but the way Jaguar designed and

manufactured the car (designed faster, with greater reliability,

and cost competitive, even when the wages of workers were

relatively high). Emphasized that every time Jaguar showed an

apparent weakness and seemed vulnerable to competition,

miraculously corrected the problem and became even stronger

(Arthur, 1989). In the book "The Jaguar Way" describes the

management style and the Jaguar production system is what is

revealed as the winning strategy of the company. In this article

I explain how the success of Jaguar model can be applied to any

organization to improve business processes, marketing and sales,

logistics, product development and eventually management. Jaguar


expands its range of diesel models with the addition of a new

engine with 2.2 liter turbo for the X-Type. first units arrived

in Argentina in late 2005.. The drive with four-cylinder engine

delivers a power of 155 hp and a torque of 400 Nm with over

boost. The maximum speed is 220 mph and accelerates from 0 to 100

in 8.9 seconds.

One of the values that best represents the progress of the

benefits of the modern diesel is its elasticity. With the fourth

gear engaged needs just 6.7 seconds from 80 to 120 kilometres per

hour. Both the new engine as the current 2.2D and 2.0D meet the

provisions of law relating to Euro IV emission levels (Tripsas,

1997). The levels of performance, refinement and acceleration of

the new X-Type 2.2D are among the best in its class.. It has

introduced a new six-speed manual transmission adapted to the

2.2D engine performance.

The sound insulation ensures excellent levels of refinement

and NVH (noise, vibration and harshness).. The 2.2 diesel is a

new step in the successful evolution of Jaguar in the diesel

vehicle market and reflects the growing demand for luxury diesel

models. This power unit has been developed by the joint venture

between Jaguar Cars and Ford Motor Company. Engineers at Jaguar

Cars, as in the development of 2.0D, have played a key role in

creating the new diesel, establishing priorities driveability and

refinement that customers expect from an engine of the brand.


Jaguar’s Effective Management

Leadership Provide effective management of projects Provide

technical leadership communication procedures defined and located

teams to force a better communication not force communication is

simply the natural result of setting personal management

structure is added to force individual behaviour. The new

engineers have to go to the policy area as soon as possible to be

promoted in his career just happens. Organizational behaviour is

important to support the paradigms of their processes. The work

of leadership is to get the technical knowledge of persons

Relations with suppliers are treated from an administrative

perspective (Klein, 1978). Specifications hard work to complete

works in collaboration with suppliers, vendors have less job

autonomy insists on imposing standard processes more is done for

free It is assumed that workers know what to do and how to do it.

Cultural Aspect of Jaguar

Action oriented (what motivates staff) what matters is to

impress the Chief. "Being good" because they feel that their

future is decided by the person who impressed engineers are only

motivated to be an excellent engineer in product design

orientation to learning (how to share technical knowledge) there

are models of how do things and some experts who are responsible


for these models (e.g., Process PDSP) It is expected that all

individuals learn what works and what does not. They document the

results of all the designs, which all staff have access and are

supposed to make use of that knowledge (Khanna, 1995).

Opportunities and benefits are achieved by personal creativity

and participation of all ego threat and fear.

Core competencies

Core competence is its unique benefits to customers (value)

that can bring a unique technology that cannot easily imitate

others, skills that are the core competitive ability is built

with a combination of know how. For a source of competitive

advantage, building management strategy has become an

indispensable element.

The key to success of Jaguar is asked something, I'm Here are the

Jaguar Production System. "Where is secret, is not enough world-

famous" You might believe that as long as they recognize that

this is just a production system, and understand the nature of

the company would not be a Jaguar (Christensen, 1997). It was in

the early 60 When Jaguar left the high competition, at that time

was planning a car that was going to use within 24 hours, the

decision not to continue, completely remodelled into a car

production supercar series called "E". Top speed, something not

many could say. Its central section was pressed steel monologue


and combined with a trellis frame structure, all was wrapped in a

sleek, aerodynamic body, which includes some headlights that were

behind a glass cover and a large air intake at the center

position.

Jaguar production system is more than a manufacturing system

is a philosopher of the overall operations of Jaguar. "The

strength of the Jaguar Production System is something. Who is a

beginner, we have a few in stock. And as intermediates, will

become apparent problems, improve productivity, but that includes

a mechanism to enforce quality improvement it.

However, experts do say? To repeat the task of solving the

problem to become apparent became anxious and there is never a

problem, as it's hard to start looking for a problem together.

Tens of thousands employees, such a state is a kind of addiction

problem solving. Be said that Jaguar's great advantages (Dyer,

1996).

It is recognized for offering the best products and highest

quality in the industry. Production of cars per year is higher

than any other car manufacturer. It uses a quarter of the

engineers that U.S. companies in the project of a car. Engineers

and managers tend to reach 80% productivity. Senior management

provides a 90% value added to their work.

Value chain analysis


The automotive industry can sometimes be a complex area for

the suppliers and major manufacturers, distributors and

resellers.

• If poorly prepared may represent a major problem.

• Many suppliers can toil to negotiate favourable terms

with their largest customers.

• The "just in time" and transport of goods are hazardous

activities hidden.

• Finally, the dangers of the workplace and the many risks

to staff can, if not anticipated and managed, cause

financial problems, operational and health and safety.

• Marsh understands the risks that impact on all the major

players in the automotive industry - be it the leading

manufacturers, smaller suppliers, or distributors and

dealers.

• Over the years, we became the first company of insurance

and risk management industry to offer solutions covering

risks related to employment in areas such as reducing

long-term illnesses or worker absenteeism.

• We have a long history of engineering risks to help

companies avoid major risks, including damage to the

stock in the open air or in transit (Mitchell, 1989).

• Our ability to leverage the strengths of our sister

companies allow us to contrast a range of options to


problems, like difficulties in financing pensions that

currently face major automakers.

Financial analysis

India's Tata Motors has exceeded all expectations by

achieving a profitable year for the fourth consecutive quarter,

thanks to strong demand for its Jaguar and Land Rover brands,

boosting the share price to historic levels.

Jaguar and Land Rover, Tata has bought from Ford in 2008,

should boost sales in coming quarters thanks to growth in demand

for luxury brands, especially in emerging countries.

The growing market for affluent Chinese connoisseurs and car is

overtaking that of the West indebted as sustainable source of

revenue for luxury cars.

Conclusion

Jaguar is a car manufacturing company which is struggling

hard in the competitive market. In order, to sustain this

competition it must develop cut edge strategies to be the market


leader (Downes, 1997). Jaguar strengths can be overcome by

availing opportunities and creating and acquiring new markets.

Engineers at Jaguar Cars, as in the development of 2.0D, have

played a key role in creating the new diesel, establishing

priorities drivability and refinement that customers expect from

an engine of the brand (Khazam, 1994). As a way to celebrate 75

years of the Jaguar name, the brand confirmed its presence this

year in the GT2 class of the 24 Hours of Le Mans. With this, it

marks the return of Jaguar to the competition that earned seven

victories between 1951 and 1990. On 12th June will be the

emergence of Jaguar in the competition, which will go with the

GT2 XKR, led by Jaguars.


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