Jaguar Land Rover Business Strategy and Ethics

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Table of Contents

Executive Summary
External Environment and CSR Activities
Stakeholder management and CSR
Summary
References

Executive Summary

The overall picture consists of embedding the key elements of the strategic CSR into Jaguar Land Rover business operations and procedures to ensure competitive advantage while stakeholder needs and expectations are upheld. This study evaluates the internal and external environments using different tools and techniques, including the PEST and four corners models to study the impact of CSR in line with the Jaguar Land Rover business strategy.

The study abstracted the operations of the company given doing business and giving back what is taken from the environment. Findings show that the company has a strong guiding strategy in its operations in the short term and long term, which entails organizational, social, and environmental responsibilities for sustainable business operations. The underlying strings bind strategy with stakeholder management in the context of product design, environmental innovation, and a 360-degree sustainability strategy that responds positively to the global challenges.

External Environment and CSR Activities

The mechanism Jaguar Land Rover uses for competitive positioning in the business environment varies according to the challenges and expectations accruing due to the paradigm of strategic corporate social responsibility (CSR). Strategy implications by Balmer (2013) should be in line with elements that are defined in the strategic analysis tools and techniques besides showing sound consistency with the existing environmental elements.

Here, a profile of the company’s key strategic elements that can be factored into the four corners model proposed by Michael Porter of drivers, current strategy, management assumptions, and organizational capabilities. The four corner model differs from the PEST model that includes social, economic, political, and technological factors. However, the strategic benefits that the company wishes to pursue and achieve in line with the strategic corporate social responsibility.

Consistent with the PEST model of political stability, compliance to laws and regulations, adherence to governance policies, and adequately defined tax laws as the means of being socially responsible is delineated in the company’s strategy depends on the viability of the means of achieving its business goals. This is evident in the policies that define the means and desire to pursue changes in the environment such as are caused by climate change risks, Plans that enable the company to respond to such changes promptly are in the pipeline. In addition, it entails the reduction of the use of water as a manufacturing component to ensure that the effects on the environment are ameliorated.

This is true of Jaguar Land Rover, which is among those companies that have adopted strategic corporate responsibility as a means of leveraging their technologies to share social and economic value. Evidence of using the strategy for sustainability has mounted as the company sees the strategy to be of a competitive advantage as well integrated into its business strategies. That does not factor every element in the dichotomy of strategic cooperate social responsibilities.

Here, the SWOT analysis of the strengths, weaknesses, opportunities, and threats of the company’s internal and external environments fail to meet the most appropriate technique of abstracting sufficient arguments for recommending the preferred strategy. It does, in response, however, engender a stream of challenges that the organization needs to factor and realize as being fundamental to its success. The challenges arise from external factors such as the global economy as constituted in the economic component of the PEST model.

The defining attributes which commonly feature in the discourse on strategic cooperate social responsibility signify the importance of the suite of practices that Jaguar Land Rover deploys in seeking to achieve its business goals. Researchers deviate from the fundamental tenets that define the CSR because of the inability to stringently translate the defining elements of CSR into practice. In its motto, the theme of sustainability and competitive advantage emerge as defining elements of Jaguar Land Rover’s business strategies in the internal and external business environments.

One could be tempted to think that Jaguar Land Rover’s sustainability is based on the context of supportive activities that are voluntary and that are aligned to business values that keep on emerging in an economically sound and preserved environment. While sustainability seems to emerge in the argument, the true nature of Jaguar Land Rover’s CSR begins with the internal environment that consists of decisions and products that reflect what and why the company invests in its business practices. That leads to the question of what challenges does Jaguar Land Rover face in its pursuit of strategic CSR, what recommendations should be adopted to address the challenges to ensure sustained competitive advantage.

Internal Environment and CSR Activities

A critical analysis of arguments by Dhaliwal, Li, Tsang, and Yang (2011) and Wadams (2014) on CSR concepts based on the technology component and the financial components of the four corners model depicts Jaguar Land Rover as being defined with high-performance behaviors framework in its business environment. Employees have developed a culture of social behavior that is consistent with corporate social responsibility (Cooper 2013).

Embedded into the strategy that is defined by high-performance teams involves members who contribute positively to the organization, an open and trustworthy environment, advising members to engage in the pursuit and fulfillment of business objectives, and embrace the issues that drive effective teams. Besides, Flammer (2013) notes that the internal environment is characterized by agility and flexibility where the organization works to improve the quality of the company’s products, embrace innovation and creativity, and provide a clear direction in the pursuit of strategy (Sukitsch, Engert & Baumgartner 2015).

Here, continuous improvement of the company’s technology, as one of the components defined in the PEST strategy assigns commitment to the company of the need to adhere to the CSR in innovation, research, and development, use of highly skilled and well trained human resources, better integration of new greener and energy-efficient technologies (Cooper 2013). Here, the company has been driven to the development of core skills that define the environment, which includes investments in key skills and workforce development based on a 360° approach to the sustainability approach.

Evaluation of the outcomes in internal and external environments

Strategy is about taking the path with the least resistance to achieve the business goals by incorporating the right tools and mechanisms to understand how strategy and cooperate social responsibility fit into each another.

Srinivasan, Lilien, and Rangaswamy (2002) say that it involves taking advantage of every available opportunity based on the purpose of the company. At a minimum, it is imperative to argue that Jaguar Land Rover’s strategy was established for profit. However, the government and other regulatory bodies develop and provide the regulations and rules that should be adhered to while optimizing profits from the same environment. Here, Strumickas and Valanciene (2015) note that the complete patchwork of complex interactions that occur between the environment and the company as it provides vehicles that are used in the environment shows the need to determine the nature of the sustainability of the strategy as a long term strategy that models techniques and tools for a better future.

O’Riordan and Fairbrass (2014) argue that the external and internal environments matter a great deal like the evolving business strategy that has grown significantly. The critical and controversial nature of the CSR paradigm is because it entails crystallizing the Jaguar Land Rover’s pyramid of corporate social responsibility that encompasses the key elements of economic responsibility, legal responsibility, ethical responsibility, and discretionary responsibility. Here, being the means and an end in itself of achieving its objectives based on the fluid concept of strategic CSR leads to the underlying theme.

In the discourse by Peattie (2001), an emerging theme shows that the use of the company’s strategy appears in the statement that where the company seeks to change the mind-sets and behaviors to ensure better lives and competitive advantage. Rothlin and McCann (2016) argue that the tactical options that saw the company being named as the ‘responsible business of the year 2013’ provides a discourse on how the strategy leads not only to innovation but also to its responsibility in upholding the rules that define the company’s engagement with CSR. This is a critical point that shows how the company engages its audience, the market, and other stakeholders in upholding its business strategy and other elements in the process.

The strategy is based on the four pillars of sustainability, which encompass sustainable operations, global corporate social responsibility, sustainable products, and our people. The justification rendered in the key elements that define the strategy is based on the moral argument that profits from sales of the vehicle are generated from people’s money who live in the same environment where the company generates the profits from. According to Hayat (2014), the nature of interactions and interdependent relationships established among the company’s products and the environment is shaped by the moral, ethical, and other values that are upheld by those who live in the environment and who enjoy the services rendered due to the use of the products, which are in the forms of vehicles.

The contemporary views by Sen and Bhattacharya (2001) of the human rights and justices seem to prevail in the definition that is captured in Jaguar Land Rover’s strategy because the company makes every effort to repay to the people what it has taken from people. The moral responsibility of the institution is exemplified in the processes and the observance of laws and rules that the company is obliged to adhere to.

Direction in terms of critical analysis of the strategy in itself calls for a departure from the classical models of SWOT analysis to the inclusive PEST analysis to show the current position and future trend in strategy. On the other hand, the four corner’s analysis that was developed by y Michael Porter can be used to model the state of a company and provides certain advantages over the other models. This is consistent with the desire for a strong position for long-term growth.

This is where the pitfalls in the strategy start to appear. The underlying question as to what should a business do once it has generated profits from the environment comes out in the form of how to invest in the people. Here, the argument is a moral issue rather than an argument that is based on profit generation. Here, strategy should direct the business to do something better and not to be a means to an end in itself and reflects a give and take situation. In theory, the tenets which define the strategy are embedded in the moral values that emerge from the cultural heritage that builds on the diverse values such as folkways and the moral acceptance behavior.

Sustainable Products

Jaguar Land Rover’s strategy embeds issues such as the development of sustainable products (Servaes & Tamayo 2013). Vehicles are among the major sources of pollution in the environment and the company has, as argued before, the moral obligation to reduce the adverse impacts on the environment (Kumar 2008). The rationale is to ensure that as the lifespan of the vehicle keeps on increasing, attributes such as the level of efficiency, the emission levels into the environment and other factors that tend to breach the un-codified contract between the people and company in its strategic CSR should entail the obligation to keep emissions as low as possible. That is true if based on the rational argument for CSR, which is defined in the iron law of social responsibility.

The argument is based on the discretionary abuse of cooperate social responsibilities that serve as a requisite to the unwelcome elements of mandated solutions. Jha and Arora (2013) are made to argue that power should be taken away from those who abuse it and that calls for the entrenchment of ethical issues into business operations. The contemporary argument by Ganescu (2012) shows how the company has demonstrated a strategy by ensuring that the emission of CO₂ takes the highest priority. Evidence shows that the company has remained in track to achieve a reduction in tailpipe CO₂ emissions of 25% by 2017 (Gănescu, Gangone & Asandei 2013). Besides, the true meaning of the strategy is exemplified in the economists’ view of a strategy that makes the business to grow and become sustainable.

The truth of the matter is that the strategy factors the needs and expectations of stakeholders because a good outlook in terms of CSR should be strongly inclined to the goodwill of the public to operate successfully (Konar & Cohen 2001). The absence of such goodwill led to the loss of faith in the strategy and cold generates negative attitude and opinion (Shah 2014). The long term success of the company depends on the relentless focus the company has adopted in its pursuit of innovation to develop vehicles that address the customer needs and expectations and future needs. Besides, the company has outlined in its strategy a roadmap of how the company plans to reduce the level of carbon emissions from the cars in 2020.

Other elements that have been used to define the CSR include the reduction of the lifecycle impact of the products based on a complete lifecycle analysis of the products (Kumar Singal & Kumar Jain 2014). In its progress report, the company has defined a target to achieve. The target consists of a U fleet average of 182g CO₂/km, which appears to have been achieved. Also, the company has remained in track to recover the cumulative greenhouse gas debts for compliance with the stipulated US Environmental Protection Agency requirements. Besides, the company has stimulated the development of new models that are more environmentally friendly. However, Luo and Bhattacharya (2006) note that the pitfall in this strategy is lacking in direction on the creation of sustainable mobility solutions. Besides in the development of the strategy, the model does not illustrate the approach that embeds CSR into its business operations into the future.

Sustainable Operations

The profit agenda that underpins the core functions of the company is reflected in its sustainable operations. Sustainable operations as noted by Marquis and Qian (2013) entail a technical approach that underpins the development of vehicles with engines that are energy efficient and the approaches that are used in the development of renewable energy. Evidence shows that the company invested 200 million pounds in energy-saving projects.

The process is in line with addressing the stakeholder concerns which underpins the acid test of a good corporate philanthropy. Results from different studies converge with the argument that the important components of the strategic CSR are achieved through sustainable operations. In the CSR, the company has outlined plans to reduce waste besides advising other companies to make environmental improvements.

Bases of CSR obligations as regards this component of the company’s strategy that enisles the delivery of the components that deliver the infrastructure and sustainable profits. According to Michelon, Boesso, and Kumar (2013), the measures that have been taken include sanctioning all companies in its chain of operations to build new projects of refurbished projects that comply with the laws and regulations that govern sustainable practices. Evidence shows that the different companies in the UK have embedded the practices into their operations and are on the way to meeting the required specifications.

The other areas of observation include the rate of reduction of emissions into the environment. Particularly, the hope is in the reduction of greenhouse gases into the environment. It is evident that “CO2 emissions from UK vehicle manufacturing operations reduced to 0.73 tonnes CO2 per vehicle produced. This has been achieved through on-going energy efficiency improvements and takes amendments to the carbon conversion factors into account” (Gareth Bell 2013, p.12). Also, the company has developed a long term strategy that factors financing, renewable energies, low carbon technologies, and energy procurements.

However, a detailed use of the four corner analytical model along with the PEST model shows the need for the company to build a sense of resilience to both physical climatic changes and to adhere to the binding obligations to the legal environments (Ghose 2013). The problem with the company’s model is that no matter what is constituted, the moral argument for CSR demands that the firm should be able to discriminate its obligations and prioritize the component that demands the protection of the environment in its profit-making ventures. That is also consistent with the rational argument on CSR. Besides, the need to ensure the elimination of waste is observed, which is consistent with the social and technological factors that underlie the performance of the company’s technology systems (Deepa & Chitramani 2013).

It entails concluding that economic factors should not override other PEST elements. That should also be consistent with the CSR component of ecological sustainability. The underlining factors include the potential of destroying the environment and the consequences that happen as a result of the lack of stewardship in the economic activities as envisaged in the ‘our people’ element of Jaguar Land Rover’s strategy (Balakrishnan, Malhotra & Falkenberg 2015). Feedback involving employees that enables sustainable practices and responsible business behavior constitutes the elements that should be factored into the strategy process.

Our people

Jaguar Land Rover’s current strategy is based on the need to embed sustainability into its business planning process as part of its CSR. This is based on the training and development of the staff at different levels of the organization. Our people strategy component is propped on the key objectives of developing the people’s values diversity that depends on the development of target that should be achieved within the stipulated time.

The lessons depicted by Mithas and Arora (2015) show that employees with the right skills and knowledge provide the foundation for determining the success of the strategy based on CSR. However, an analysis of the component shows the need to align it with the CSR based on the four corners and the PEST model elements in the course of the expansion of the company based on the concept of globalization.

Global CSR

Globalization is a concept that spans explanations on the business operations in the global environment. Mitra (2016) argues that the complexity of the global environment reflects multiple cultures with diverse cultural subtleties and social norms that have increased the number of stakeholders to whom the company is held responsible. The PEST model denotes the social factors such as social safety index, demographics, human development index as attributes that emerge and the positive impact of the company’s CSR. The global social responsibility emerges with the desire to achieve the sustainability strategy of organizational, social, cooperate, and environmental responsibilities.

Challenges

It is imperative to note that the Jaguar Land Rover Company operates in the global environment (Hoskisson, Wright, Filatotchev & Peng 2013). That defines several challenges that are political, economic, social, and technological in nature and consistent with the competitive forces defined in Porters four corners model, which includes the technical, physical, psychological, and social forces.

Put together, the challenges that emerge on the company’s strategic CSR include the ability to develop fuel-efficient vehicles and other products, be competitively sustainable in the business environment (Boulouta & Pitelis 2014). The volatile political environments, the changing laws, politically unstable states, dwindling global economy, and competition from other companies that offer similar products at cheaper prices, and the need to protect the environment as part of the CSR defines the challenges that the company is facing.

Recommendations

Baumgartner (2014) notes that a competitive strategy is goal-based and inclusive of all elements of the CSR for optimal resource utilization in making economic gain along with achieving the company’s strategic goals by making strategic CSR to be part of the process. Typical components of the proposed strategy revolve around a clear framework for engraining with stakeholders to be able to address those issues that are important to them. That is in addition to creating sustainable products with sustainable business operations through the advancement of knowledge and skills to improve the lives of the people. The key components of the strategy include global social responsibility and environmental responsibility embedded in the elements of the strategic CSR.

Stakeholder management and CSR

A well-answered question on the Jaguar Land Rover stakeholder business environment answers the questions on the link stakeholder management with strategic CSR. In Jaguar Land Rover’s sustainability report, the corporate positioning entails aligning the strategy of “transforming our products and our business operations through environmental innovation, investing in our people, advancing knowledge and supporting communities worldwide” (Brem & Ivens, 2013, p.8) to the strategic CSR. In this alignment, stakeholder management constitutes the strategic approaches the company should factor in ensuring that its business operations are consistent with the stakeholder needs and expectations.

That makes the CSR strategy consistent with the responsibility of the company on the effects the company’s products have effects on the business, legal, physical, and political environments. It calls for the means to use to manage the stakeholder within the confines of the expectations of the stakeholder. What does the company stand for? What are the day to day transactions or operations that affect the relationship between the stakeholder and the company? How do the foundational tenets of business ethics, social wellbeing, and social economics matter on the short and long term relationship between the company and the stakeholders in the context of CSR? Such questions arise due to the analysis.

A dichotomy on the stakeholder approach is for the company’s activities sustainable approach of activities that reflects the company’s approach of environmental innovation where products are designed with creative destruction to match the desired quality. No implicit accusations should arise when the stakeholder intentions have been fully understood leading to the empowerment of stakeholders, customers, media, and those who belong to the same group. That leads to the well thought out plan that Jaguar Land Rover has implemented to reflect sustainable operations that are consistent with the CSR requirements.

Based on the concept of stakeholder management, the organization must put in place the elements that allow for stakeholder engagement within the company’s principles of acting responsibly towards stakeholders. It entails Barone, Ranamagar, and Solomon (2013) views on commitment to the society, climate change, effective resource management, employee engagement, and an overall plan of stakeholder engagement. The kind of engagement must revolve around accountability that is founded on response to stakeholder concerns, support for the community, provision of effective environmental solutions, creating value for stakeholders, providing products designed to meet customer needs and expectations, and creating a culture of mutual trust and respect with the stakeholders.

The results could lead to a sustainable strategy that factors organizational responsibility to address the customer needs and expectations by making sustainability and business processes responsive to the CSR of the company. That is in addition to environmental responsibility that includes elements such as reduction of environmental impacts, waste elimination, development of sustainable infrastructure, and elimination of adverse impacts in water resources.

Summary

A summary of the key points that have emerged in the study includes issues such as the impact of the external environment and internal environments on the sustainability of Jaguar Land Rover business operations. The point that crystallizes includes an effective exploitation of the CSR activities in tandem with the company’s strategy based on effective approaches to stakeholder management in the context of CSR activities.

The overall goal is to ensure stakeholder needs and expectations are accounted for, conducting business operations inclusive of all CSR activities based on the strengths of the company and the underlying elements as depicted in the PEST and four corners model. The suite of practices, the suitability strategy of involvement, the provision of better lives, effective employee engagement, core skills development, taking the best path, the four pillars of the company’s strategy and the need for globalization emerge as the key concepts that have been discussed. That s inclusive of stakeholder management based on the core elements of the CSR activities that are summarised in the need to create products that improve the lives of the people using technology for ensuring that the environment remains safe and secure.

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