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Jaguar Land Rover
Transcript of Jaguar Land Rover
In Corporate terms an acquisition is the purchase of a company or the division of a company.
The purchase of Jaguar Land Rover in 2008 involved a £2.3 billion takeover.
The takeover included all the manufacturing plants,two advanced design plant centers in the UK, a national sales company spanning across the world the world as well as licenses of all necessary intellectual property rights.
The TATA group believed that the acquisition would achieve instant global recognition within the motor industry as well as entering the luxury segment of cars
2. How do you think shift of economic activity to emerging regions affects growth in advanced economies?
By Emma, Russell and Satish
Established in the 19th century
The Tata group's core purpose is to improve the quality of life of the communities it serves globally,through long-term stakeholder value creation based on leadership with trust.
Tata group is a global enterprise headquartered in India and comprises over 100 operating companies.
Tata companies employ over 581,470 people worldwide.
Land Rover :
Famous for superior road and off- road performance.
Used by the military for expeditions and projects
By 1976 they had 1 million cars running on the road
Land Rover was sold to Ford Motor's in 2000 for $2.75 billion
Range Rover Evoque
Range Rover Sport
Jaguar was founded by William Lyons
to build motorcycles sidecars in 1922.
In 2008, Jaguar and Land Rover were bought by Tata motors , India's largest automobile manufacturer and officially joined together as one company in 2013.
Sales and profits have risen year on year with more exciting chapters in the histories of these two brands still to be written.
Tata Motor's acquired Jaguar and Land Rover from Ford in 2008.
Sales and profit have risen year on year with more exciting chapters in the histories of these two brands still to be written.
Background to JLR:
WHAT IS MERGER AND ACQUISITION?
It will affect the employment rate of advanced economy.
For e.g. if JLR's manufacturing plant,assembly line,production units that are currently in UK creating 1000's of job locally was to be shifted in a new market (India, China) could potentially create a big unemployment rate in UK.
Affects the core value of brand
3. What is the role of government business linkage in creating emerging market challengers?
4. Discuss if Jaguar could be spun back into an independent brand once again.What are the limitations of such a move ?
5. Discuss Jaguar Land Rover's shift into developing region like Africa? What will be the implications of these on its sourcing and supply chain economies?
1. Describe how Jaguar Land Rover leverages the advantages of its parent company in seeking new markets. Can this be a source of disadvantage as well?
JAGUAR LAND ROVER
Greater potential within the market, giving JLR a competitive advantage.
TATA already has motor companies in operation, this may allow them to use bulk buying between the two different companies.
24% of predominant sales come from china
TATA is known for manufacturing cheap, affordable products. JLR is known for being a luxury brand.
JLR's cheapest car starts from £20,000. Asian markets average income for a family is roughly £5358.
whereas it could mean a growth in profit margin for a company where emerging market possess reserves of raw materials, low wage and high cost labor,growing economy.
in many emerging markets, government plays a vital role in purchasing products, services and right package in areas like railways, banking oils, chemicals, steels, etc.
Emerging market government often announce TENDERS(request for proposals). Where government agencies seek bids from suppliers to procure bulk commodities products and other services. Government prefer dealing with vendors that offers the complete sales and service packages.
E.g. some of the largest construction projects as panama canal expansion, Three Gorges Dam in China which is expected to cost about $25 billion
Investment of $250 billion throughout 2020 to lay 75000 miles of new railway track in China are attracting interest from MNE’S around the world .
-Yes, we think Jaguar can do well as an independent brand now. With the sales and growth rate of JLR rising higher every year it could represent itself better on its own.
-The company has had a successful year of continued growth in all markets with overall volumes up 16% reflecting continued product successes including the launch of the range rover sport and jaguar F-type and a full year sales of range rover.
-Wholesale volumes for FY14 were 429,861 units, an increase of 16%on FY13 Where growth of jaguar was by 37% and 12% for land rover.
-the contract with the parent company TATA motors .
-the unstable European economic market(currency, sales, politics, legislation).
-the downfall in the past years where TATA company saddled a $3 million debt suffering a loss of $100 million in 2009 alone by JLR.
Improving conditions in Africa where African governments are doing a better job of managing their national economies. Policies reforms in countries like Botswana , Ghana , Kenya , Nigeria , etc. emphasize economic and political freedom where better governance is helping drive economic success.
a lot of developed and developing countries has begun a steady inflow of direct investment in Africa with annual flows of FDI and loans exceeding $60 billion per year.
Emerging market such as Africa serves as excellent platform for sourcing. The low cost for man skills, labor, manufacture of plants and subsidiaries, raw materials helps firms to concentrate on their core competencies also creating jobs for Africans.
Cavusgil, knight , Riesenberger International business the new realities, 3rd edition ;Chapter10 Understanding emerging markets
Tata groups Ltd. 2014 www.tata.com
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