Unit 1 Assignment 2
P4 & M3
Introduction:
Jaguar land rover is a car manufacturer owned by TATA MOTORS in India. TATA
MOTORS bought Jaguar and Land Rover in 2008 from ford for £2.3bn because they
were losing money and needed to concentrate on their other brands elsewhere, so
they decided to sell up. Tata acquired JLR on June 2008. They manufacture luxury,
sports and 4x4 cars and vehicles. They want to produce cars that are sustainable
and emission free, they call this mission ‘destination zero’. Their CEO
is Ralph Speth who became CEO of JLR in 2010. JLR has over
43,224 employees and have sold 500, 000 cars a year on average
every year.
PESTLE ANALYSIS:
Political:
Currently in the UK, the political party that is in charge is the
conservatives. At this moment Boris Johnson is our prime minister.
Since the conservatives have come into power, they have created a
referendum by the former prime minister, David Cameron, that leads
us out of the EU referendum. These changes have impacted the UK
as Brexit (Britain’s- exit) was supposed to happen in 29 th march in
2019 but had got extended twice. This has impacted JLR because
they had to shut down and delay business 3 times overall which affects their profits
and time in the business.
The government offers a regional funding opportunity so if businesses need
additional funds, they can apply for an RGF. RGF is expected to create 289,000 jobs
in the uk. RGF programmes are run by national or local organisations offering grants
and/or loans to eligible businesses. If you run a business, you can get funding of less
than £1 million. The government does this to boost the economy making available
jobs for people to strengthen the uk. This leaves a good impact on businesses
because they can employ more people to sell their goods and products.
The EU is the European Union that was formed on the 1 st November in 1993 at the
Netherlands. This was an agreement that was created to stop further conflict against
countries in the EU. This helps businesses because it increases the market size of
the product/service which can also help with sales and profits. It costs less to trade in
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, Unit 1 Assignment 2
the EU, so it helps reduce the reduction of the business’s profits. However, The UK
leaving the EU will affect businesses like JLR because even though they are an
Indian based company, it will be harder for them to trade across the EU as all their
parts and components of their cars travel from there. Leaving the EU will increase
costs of production and supplies for JLR as trade costs are expensive.
The change in the value of the pound has affected JLR because this means that they
will receive less of their profits as each year it changes. If the pound is strong the
imports are cheap however exporting these items would be expensive.
Economic:
Employment Rates:
The Employment rate is a measure that tells us the amount of
people who are in work, Full-time or Part-time in the UK. The
employment rate has fallen since the last recession in the last
quarter of 2009; however, it has recovered and is now strong
and at a percentage of 75.9% which is the highest rate for
nearly 20 years.
If employment rates were to increase at JLR it would benefit them as a business
because it meets their aim to make a profit; if they have more people working in the
production line or sales, they can earn more money as a company.
If unemployment rates rise, then it would affect JLR because they are losing out on
profit because there aren’t many people to sell their cars.
The current interest rate in the UK is 0.75% this is a very low
percentage in terms of interest. Interest is the rate of reward for
saving issued by banks and the cost of borrowing when taking out
a loan. This percentage is added on to the money you owe. The
bank of England sets these rates based on previous economical
years.
This rate doesn’t impact JLR as it is not that
high however as the UK leave the EU the bank of England is
planning to raise the interest in the next meeting of the monetary
policy committee this will impact JLR because as a car
manufacturing company they will be borrowing money, with high
interests it could leave a negative influence.
If interest rates increase this will affect JLR’s customers because most of them like to
buy cars using a finance method if they are not able to make a payment, then they
would have to pay much more than usual. This could make customers repel from the
company.
Inflation:
Inflation is when the prices of goods or services rise, it affects what consumers buy
for their money. This is given as a percentage increase or decrease. The figure is
usually issued by the Bank of England annually/monthly. The current inflation rate is
currently at 1.8% since September 2019 it has changed from the past 5 years. In
2|Page
P4 & M3
Introduction:
Jaguar land rover is a car manufacturer owned by TATA MOTORS in India. TATA
MOTORS bought Jaguar and Land Rover in 2008 from ford for £2.3bn because they
were losing money and needed to concentrate on their other brands elsewhere, so
they decided to sell up. Tata acquired JLR on June 2008. They manufacture luxury,
sports and 4x4 cars and vehicles. They want to produce cars that are sustainable
and emission free, they call this mission ‘destination zero’. Their CEO
is Ralph Speth who became CEO of JLR in 2010. JLR has over
43,224 employees and have sold 500, 000 cars a year on average
every year.
PESTLE ANALYSIS:
Political:
Currently in the UK, the political party that is in charge is the
conservatives. At this moment Boris Johnson is our prime minister.
Since the conservatives have come into power, they have created a
referendum by the former prime minister, David Cameron, that leads
us out of the EU referendum. These changes have impacted the UK
as Brexit (Britain’s- exit) was supposed to happen in 29 th march in
2019 but had got extended twice. This has impacted JLR because
they had to shut down and delay business 3 times overall which affects their profits
and time in the business.
The government offers a regional funding opportunity so if businesses need
additional funds, they can apply for an RGF. RGF is expected to create 289,000 jobs
in the uk. RGF programmes are run by national or local organisations offering grants
and/or loans to eligible businesses. If you run a business, you can get funding of less
than £1 million. The government does this to boost the economy making available
jobs for people to strengthen the uk. This leaves a good impact on businesses
because they can employ more people to sell their goods and products.
The EU is the European Union that was formed on the 1 st November in 1993 at the
Netherlands. This was an agreement that was created to stop further conflict against
countries in the EU. This helps businesses because it increases the market size of
the product/service which can also help with sales and profits. It costs less to trade in
1|Page
, Unit 1 Assignment 2
the EU, so it helps reduce the reduction of the business’s profits. However, The UK
leaving the EU will affect businesses like JLR because even though they are an
Indian based company, it will be harder for them to trade across the EU as all their
parts and components of their cars travel from there. Leaving the EU will increase
costs of production and supplies for JLR as trade costs are expensive.
The change in the value of the pound has affected JLR because this means that they
will receive less of their profits as each year it changes. If the pound is strong the
imports are cheap however exporting these items would be expensive.
Economic:
Employment Rates:
The Employment rate is a measure that tells us the amount of
people who are in work, Full-time or Part-time in the UK. The
employment rate has fallen since the last recession in the last
quarter of 2009; however, it has recovered and is now strong
and at a percentage of 75.9% which is the highest rate for
nearly 20 years.
If employment rates were to increase at JLR it would benefit them as a business
because it meets their aim to make a profit; if they have more people working in the
production line or sales, they can earn more money as a company.
If unemployment rates rise, then it would affect JLR because they are losing out on
profit because there aren’t many people to sell their cars.
The current interest rate in the UK is 0.75% this is a very low
percentage in terms of interest. Interest is the rate of reward for
saving issued by banks and the cost of borrowing when taking out
a loan. This percentage is added on to the money you owe. The
bank of England sets these rates based on previous economical
years.
This rate doesn’t impact JLR as it is not that
high however as the UK leave the EU the bank of England is
planning to raise the interest in the next meeting of the monetary
policy committee this will impact JLR because as a car
manufacturing company they will be borrowing money, with high
interests it could leave a negative influence.
If interest rates increase this will affect JLR’s customers because most of them like to
buy cars using a finance method if they are not able to make a payment, then they
would have to pay much more than usual. This could make customers repel from the
company.
Inflation:
Inflation is when the prices of goods or services rise, it affects what consumers buy
for their money. This is given as a percentage increase or decrease. The figure is
usually issued by the Bank of England annually/monthly. The current inflation rate is
currently at 1.8% since September 2019 it has changed from the past 5 years. In
2|Page
