Tata Buys Jaguar (Pest Analysis)

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Tata Buys Jaguar (Pest Analysis)

Tata buys Jaguar in £1.15bn deal

Thousands of workers at Jaguar and Land Rover plants were told that the marques have been
sold to the Indian conglomerate Tata.
A deal between Tata and Ford over the sale of two of the best known names in British car
making was concluded after months of painstaking negotiations.

Overview of the two companies:

Tata:

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores
(USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and
the second largest in the passenger vehicles market with winning products in the compact,
midsize car and utility vehicle segments. The company is the world's fifth largest medium and
heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus
manufacturer.

PEST ANALYSIS

Political:
• Strong tax incentives for inbound investors
• Strong political motivation for globalization
• Strong reputation

and trust
• Adaptive legislative framework
• Negative effect on the IT industry after 2009 as the government’s initiative of Tax holiday under STPI
expires (Thinking Street 2007).

Economic:
• Strong technical skills
• Strong export base
• Strong infrastructure links
• Competitive labour cost model
• Adaptive investment authority to technological investments
• Highly mobile work force

Social:
• Strong science and educational culture
• Strong management culture
• Adaptive English speaking population

Technological:
• Strong R & D culture and facilities
• Strong tie-ups with western technology companies
• Adaptive to new technologies

Jaguar:

Jaguar Cars Limited is a luxury car manufacturer based in Whitley, Coventry, United Kingdom with two
production plants in Castle Bromwich and Halewood. It was founded as the Swallow Sidecar Company in
Blackpool in 1922, changing to SS Cars Ltd in 1934 in Coventry, and finally becoming Jaguar Cars Ltd in
1945, followed by several...

Pest Analysis On Ford - 10 Hours Ago

The Ford Motor Company (NYSE: F) is an American multinational corporation based in Dearborn, Michigan, a
suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In
addition to the Ford, Lincoln, and Mercury brands, Ford also owns a small stake in Mazda in Japan and Aston
Martin in the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in
March 2008. In 2010 Ford sold Volvo to Geely Automobile.[5] Ford will discontinue the Mercury brand at the
end of 2010.

Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial
workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry
Ford's methods came to be known around the world as Fordism by 1914.

Ford is currently the second largest automaker in the U.S. and the fourth-largest in the world based on
number of vehicles sold annually, directly behind Volkswagen Group.[6] In 2007, Ford fell from second to
third in US annual vehicle sales for the first time in 56 years, behind only General Motors and Toyota.
However, Ford occasionally outsells Toyota in shorter periods (most recently, during the summer months of
2009). By the end of 2009, Ford was the third largest automaker in Europe (behind Volkswagen and PSA
Peugeot Citroën).[7] Ford is the eighth-ranked overall American-based company in the 2010 Fortune 500
list, based on global revenues in 2009 of $118.3 billion.[8] In 2008, Ford produced 5.532 million
automobiles[9] and employed about 213,000 employees at around 90 plants and facilities worldwide. During
the automotive crisis, Ford's worldwide unit volume dropped to 4.817 million in 2009. Despite the adverse
conditions, Ford ended 2009 with a net profit of $2.7 billion.[10] Starting in 2007, Ford received more initial
quality survey awards from J. D. Power and Associates than any other automaker. Five of Ford's vehicles
ranked at the top of their categories[11] and fourteen vehicles ranked in the top three.[12]The Ford Motor
Company (NYSE: F) is an American multinational corporation based in Dearborn, Michigan, a suburb of
Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the
Ford, Lincoln, and Mercury brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the
UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008.
In 2010 Ford sold Volvo to Geely Automobile.[5] Ford will discontinue the Mercury brand at the end of 2010.

Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial
workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry
Ford's methods came to be known around the world as Fordism by 1914.

Ford is currently the second largest automaker in the U.S. and the fourth-largest in the world based on
number of vehicles sold annually, directly behind Volkswagen Group.[6] In 2007, Ford fell from second to
third in US annual vehicle sales for the first time in 56 years, behind only General Motors and Toyota.
However, Ford occasionally outsells Toyota in shorter periods (most recently, during the summer months of
2009). By the end of 2009, Ford was the third largest automaker in Europe (behind Volkswagen and PSA
Peugeot Citroën).[7] Ford is the eighth-ranked overall American-based company in the 2010 Fortune 500
list, based on global revenues in 2009 of $118.3 billion.[8] In 2008, Ford produced 5.532 million
automobiles[9] and employed about 213,000 employees at around 90 plants and facilities worldwide. During
the automotive crisis, Ford's worldwide unit volume dropped to 4.817 million in 2009. Despite the adverse
conditions, Ford ended 2009 with a net profit of $2.7 billion.[10] Starting in 2007, Ford received more initial
quality survey awards from J. D. Power and Associates than any other automaker. Five of Ford's vehicles
ranked at the top of their categories[11] and fourteen vehicles ranked in the top three.[12]

Political

* The company’s move must be in accordance to the governmental policy


* The acts of the company must n according to the tax policies on every government

Economic

* The company can reduce the cost of structures of its products


* The increase in the market share can also be applicable to the company
* It can also maintain its profitability

Social

* Cut on the personnel and on the jobs


* The impact on many lives and to the strong partnerships in the suppliers
* The minimal number of staffs can be a hindrance

Technological

* The upgraded technology on the product of Ford for strengthening the growth segments and to produce
profitability
* The company’s Chicago Assembly Plant that can be use for the production of vehicles
* Creation of new small cars and crossover cars signifies technological advancement
* Fuel saving devices can also be introduced

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