Strategies and Resources
Introduction
In the report I will be discussing the strategic and operational approaches JLR makes for conducting international
trade. The strategies discussed are: Subsidiary business, Joint ventures, Partnerships, Agencies, Licensing,
Franchising Subcontracting and Outsourcing. Therefore an analysis of the strategies, product portfolio and how
they have adapted to new markets will help conclude JLR effectiveness to commit to strategies and the relevant
influencing factors.
Subsidiary business
Subsidiary business is a business which is owned by a majority share of 50% upwards. A subsidiary business
has to abide by the laws and regulations within the country they are based regarding employment and taxes. The
parent organization can set up a subsidiary by purchasing a majority share within an existing business. As result,
the parent company has the most shares meaning they can make decisive decisions within the business. For
Jaguar land rover, in 2008, they and their assets were bought as a majority for $2.3billion by TATA Motors. TATA
Motors owns Jaguar land rover as a subsidiary meaning they own the majority of the companies and have the
control to make decisions for the companies future. TATA has given JLR the opportunity to trade internationally
by providing international infrastructure and opportunities. https://www.bloombergquint.com/business/how-
much-has-jlr-cost-tata-motors#:~:text=The%20Tata%20Group%20acquired%20JLR%20in%20June
%202008%20for%20nearly%20%242.3%20billion.
Joint ventures
A joint venture is when two or more companies engage within an enterprise inorder for profit and growth.
Businesses often engage in joint ventures when they want to split the investment to keep steady cash flow.
Having more than one business engaging in trade, as a whole they have better access to resources and
knowledge and also, if the joint venture fails, the loss is split meaning that the effects are shared rather than
wholly on a sole investor. Jaguar Land Rover engaged with a joint venture with China's chery automobile
company in 2012. The deal was for Jaguar Land Rover to manufacture their cars in China to facilitate the
growing luxury car market. They shared a 50/50 split of the Chery Jaguar Land Rover Automotive Company Ltd
meaning they have equal rights when decision making. Also, as Chery already had the infrastructure within china
to make cars and is state owned, Jaguar Land rover made a deal to trade with them in order to boost revenue
and sales within the chinese market. As a result, they generated 146,000 sales in 2017, more than any other
country worldwide.
https://www.theguardian.com/business/2012/mar/21/jaguar-land-rover-china-chery
https://www.statista.com/statistics/386952/jaguar-land-rover-global-regional-sales/
https://www.bbc.co.uk/news/av/business-20386558
Partnerships
Partnerships are when multiple parties start a business or venture using shared capital. These partnerships are
usually long term however, if a party wishes to buy out another, they can with their approval. Partnerships bring
together different skills sets, resources ideas and access to capital. Being a partnership means that all parties
have a right to the profits and also the liabilities. Big decisions made within the business have to be made by all
parties as they all have voting rights for their best interests. Jaguar is in a partnership with Panasonic in the
formula E championship. Both Jaguar and Panasonic are heavily invested within the race team. They fully utilizes
each other's skills and resources to produce a respectable mid field race team. Panosonic develops and
manufactures the powerful 54KWh batteries which allow the car to reach 174Mph and 0-60 in 2.8sec. Being a
partnership, they have access to more resources and specialized staff which improves their status within the
sport. They have a multi year partnership deal and are fully focused on the success of the race team. They both
benefit from being involved in the team because they get vast media coverage and get to develop technology for
their road car for example, batteries.
, https://teamtalk.jaguarlandrover.com/news/jaguar-and-panasonic-to-charge-up-the-public-s-interest-in-
sustainability
Agencies
An export agency is an organisation which undertakes a majority of the exporting for the exporter while taking
commission. Their role is to manage the exportation of goods and identify opportunities internationally in order to
drive business. The exporter is the owner of the goods and is always in their control. They assist with the
transportation or selling of their goods to international clients. As a result, they make international trade more
convenient and relieve pressure on the business concerning transport and finding clients. The UKEF (UK export
and finance), provides support though a new general export facility to aid UK exports. Also, jaguar sells 80% of
cars abroad meaning inorder to do this, using an export agency is essential. Jaguar is committing to a long term
investment into research and development for electric cars. They have received £650million from the UKEF as a
long term loan to manufacture sustainable electric cars. They have stated ’’ Jaguar and Land Rover models will
be exported around the world in the future’’. As a result, using the export agency, UKEF, has raised capital for
R&D with addition towards sorting out transportation and delivery of their goods.
http://www.businessdictionary.com/definition/export-agent.html
https://www.theguardian.com/business/2015/may/26/jaguar-land-rover-britains-biggest-export-success-story
Licensing
Licensing is where a business engages with an agreement with another to manufacture or sell their
goods/services in another country as a license. The business can give another external party permission to sell
their goods on behalf of the licensor. This increases the scope of their market as they are able to sell and
manufacture goods using a third party. This also means that they increase the awareness of their brand
internationally. However, the actions taken by the third party can be negative and impact the licensors brand
image. As a result, managing the licensee overseas may affect the brand image as they may be making
decisions which negatively impact the licensors business. One all sports are a clothing manufacturer who are
officially licenced to manufacture jaguar apparel. They have been manufacturing jaguar apparel for 2 years and
have outstanding reviews concerning quality and price. This gives the jaguars brand image and allows them to
provide replica items to their fans and enthusiasts. In addition, One all sports own the licensing to make any good
using their brands, however, jaguar is a separate entity and cannot make decisions regarding One all sports
goods. This relieves pressure off jaguar manufacturing their own goods and leaves one all sport to manufacturing
and selling their goods on their behalf.
https://media.jaguarracing.com/news/2018/08/one-all-sports-join-jaguar-racing-official-clothing-supplier
Franchising
Franchising is where a legal agreement between the franchisor and the franchisee which concerns the
distribution and sale of goods on their behalf. Companies often do this process to expand their brand and to
increase the volume of sales. The franchisee purchases the goods of the franchisor however, the franchisor
expects the franchisee to work and operate the same as the parent business. There is an initial fee depending on
the size of the company to franchise. After the initial fee, the franchisee pays a % of the profits to the franchisor.
For the franchisor, they can franchise to generate income while boosting their brand image and increasing sales
volume. JRL does not franchise their brand and keeps business operations internal.
https://www.investopedia.com/terms/f/franchise.asp#:~:text=Key%20Takeaways,that%20grants%20licenses
%20to%20franchisees.
Sub-contracting
Subcontracting is when a business undertakes work for another using a contract. Large businesses may
subcontract external smaller businesses to manufacture parts which they specialize in to ensure quality and to
Introduction
In the report I will be discussing the strategic and operational approaches JLR makes for conducting international
trade. The strategies discussed are: Subsidiary business, Joint ventures, Partnerships, Agencies, Licensing,
Franchising Subcontracting and Outsourcing. Therefore an analysis of the strategies, product portfolio and how
they have adapted to new markets will help conclude JLR effectiveness to commit to strategies and the relevant
influencing factors.
Subsidiary business
Subsidiary business is a business which is owned by a majority share of 50% upwards. A subsidiary business
has to abide by the laws and regulations within the country they are based regarding employment and taxes. The
parent organization can set up a subsidiary by purchasing a majority share within an existing business. As result,
the parent company has the most shares meaning they can make decisive decisions within the business. For
Jaguar land rover, in 2008, they and their assets were bought as a majority for $2.3billion by TATA Motors. TATA
Motors owns Jaguar land rover as a subsidiary meaning they own the majority of the companies and have the
control to make decisions for the companies future. TATA has given JLR the opportunity to trade internationally
by providing international infrastructure and opportunities. https://www.bloombergquint.com/business/how-
much-has-jlr-cost-tata-motors#:~:text=The%20Tata%20Group%20acquired%20JLR%20in%20June
%202008%20for%20nearly%20%242.3%20billion.
Joint ventures
A joint venture is when two or more companies engage within an enterprise inorder for profit and growth.
Businesses often engage in joint ventures when they want to split the investment to keep steady cash flow.
Having more than one business engaging in trade, as a whole they have better access to resources and
knowledge and also, if the joint venture fails, the loss is split meaning that the effects are shared rather than
wholly on a sole investor. Jaguar Land Rover engaged with a joint venture with China's chery automobile
company in 2012. The deal was for Jaguar Land Rover to manufacture their cars in China to facilitate the
growing luxury car market. They shared a 50/50 split of the Chery Jaguar Land Rover Automotive Company Ltd
meaning they have equal rights when decision making. Also, as Chery already had the infrastructure within china
to make cars and is state owned, Jaguar Land rover made a deal to trade with them in order to boost revenue
and sales within the chinese market. As a result, they generated 146,000 sales in 2017, more than any other
country worldwide.
https://www.theguardian.com/business/2012/mar/21/jaguar-land-rover-china-chery
https://www.statista.com/statistics/386952/jaguar-land-rover-global-regional-sales/
https://www.bbc.co.uk/news/av/business-20386558
Partnerships
Partnerships are when multiple parties start a business or venture using shared capital. These partnerships are
usually long term however, if a party wishes to buy out another, they can with their approval. Partnerships bring
together different skills sets, resources ideas and access to capital. Being a partnership means that all parties
have a right to the profits and also the liabilities. Big decisions made within the business have to be made by all
parties as they all have voting rights for their best interests. Jaguar is in a partnership with Panasonic in the
formula E championship. Both Jaguar and Panasonic are heavily invested within the race team. They fully utilizes
each other's skills and resources to produce a respectable mid field race team. Panosonic develops and
manufactures the powerful 54KWh batteries which allow the car to reach 174Mph and 0-60 in 2.8sec. Being a
partnership, they have access to more resources and specialized staff which improves their status within the
sport. They have a multi year partnership deal and are fully focused on the success of the race team. They both
benefit from being involved in the team because they get vast media coverage and get to develop technology for
their road car for example, batteries.
, https://teamtalk.jaguarlandrover.com/news/jaguar-and-panasonic-to-charge-up-the-public-s-interest-in-
sustainability
Agencies
An export agency is an organisation which undertakes a majority of the exporting for the exporter while taking
commission. Their role is to manage the exportation of goods and identify opportunities internationally in order to
drive business. The exporter is the owner of the goods and is always in their control. They assist with the
transportation or selling of their goods to international clients. As a result, they make international trade more
convenient and relieve pressure on the business concerning transport and finding clients. The UKEF (UK export
and finance), provides support though a new general export facility to aid UK exports. Also, jaguar sells 80% of
cars abroad meaning inorder to do this, using an export agency is essential. Jaguar is committing to a long term
investment into research and development for electric cars. They have received £650million from the UKEF as a
long term loan to manufacture sustainable electric cars. They have stated ’’ Jaguar and Land Rover models will
be exported around the world in the future’’. As a result, using the export agency, UKEF, has raised capital for
R&D with addition towards sorting out transportation and delivery of their goods.
http://www.businessdictionary.com/definition/export-agent.html
https://www.theguardian.com/business/2015/may/26/jaguar-land-rover-britains-biggest-export-success-story
Licensing
Licensing is where a business engages with an agreement with another to manufacture or sell their
goods/services in another country as a license. The business can give another external party permission to sell
their goods on behalf of the licensor. This increases the scope of their market as they are able to sell and
manufacture goods using a third party. This also means that they increase the awareness of their brand
internationally. However, the actions taken by the third party can be negative and impact the licensors brand
image. As a result, managing the licensee overseas may affect the brand image as they may be making
decisions which negatively impact the licensors business. One all sports are a clothing manufacturer who are
officially licenced to manufacture jaguar apparel. They have been manufacturing jaguar apparel for 2 years and
have outstanding reviews concerning quality and price. This gives the jaguars brand image and allows them to
provide replica items to their fans and enthusiasts. In addition, One all sports own the licensing to make any good
using their brands, however, jaguar is a separate entity and cannot make decisions regarding One all sports
goods. This relieves pressure off jaguar manufacturing their own goods and leaves one all sport to manufacturing
and selling their goods on their behalf.
https://media.jaguarracing.com/news/2018/08/one-all-sports-join-jaguar-racing-official-clothing-supplier
Franchising
Franchising is where a legal agreement between the franchisor and the franchisee which concerns the
distribution and sale of goods on their behalf. Companies often do this process to expand their brand and to
increase the volume of sales. The franchisee purchases the goods of the franchisor however, the franchisor
expects the franchisee to work and operate the same as the parent business. There is an initial fee depending on
the size of the company to franchise. After the initial fee, the franchisee pays a % of the profits to the franchisor.
For the franchisor, they can franchise to generate income while boosting their brand image and increasing sales
volume. JRL does not franchise their brand and keeps business operations internal.
https://www.investopedia.com/terms/f/franchise.asp#:~:text=Key%20Takeaways,that%20grants%20licenses
%20to%20franchisees.
Sub-contracting
Subcontracting is when a business undertakes work for another using a contract. Large businesses may
subcontract external smaller businesses to manufacture parts which they specialize in to ensure quality and to
