Reference no: EM133313045

Case Study: Jaguar Land Rover (JLR), the mainly British-based luxury vehicle manufacturer has been a wholly-owned subsidiary of Tata Motors, since 2008. It is a brand which is steeped in a rich tapestry of timeless designs that is truly unique on the global stage.

Besides vehicle manufacturing, Jaguar also pay attention to the facilities that create them. Recently, JLR's UK vehicle manufacturing and product development sites have been certified as carbon neutral by the Carbon Trust. Its own solar energy is generated by a 3,000m2 rooftop array. All told, they have already reduced the global vehicle manufacturing operating CO2 by 46 per cent per vehicle and would remain committed to an ongoing decarbonisation process.

JLR also realises the importance of its people. They are at the heart of their business. Committed to fostering a diverse, inclusive culture that is representative of the society, people are encouraged to reach their full potential. The company is aware that there are significant benefits to a diverse and inclusive environment where everybody's voice is heard?and each individual is valued.

The global challenges currently facing the automotive industry are extremely difficult, particularly those exacerbated by Covid-19 and the situation in Ukraine. With many automotive companies running 'just in time' operations, material shortages are coming in the short and medium term can have knock on effects throughout the supply chain.

With so much global volatility, automotive businesses have to be more flexible in terms of sourcing than ever before. They have to think differently about what they source, where they source it from and what their general strategy is around certain components.

JLR said its global retail sales in the first quarter of fiscal 2022/2023 were flat as renewed Covid-19 lockdowns in China restricted local production and forced the temporary closure of some dealers. Retail sales for the quarter ending 30 June 2022 were 78,825 vehicles, broadly flat (183 units lower) compared with the previous quarter to 31 March 2022 and down 37% (46,000 units) from the year ago quarter ending 30 June 2021.

Despite a record order book, production also continued to be constrained by the global chip shortage. it has forced manufacturers to remove certain optional or popular features such as heated seats from their car ranges and in some cases halted production.

Professor Ferdinand Dudenhoeffer, director of Germany's Center for Automotive Research (CAR), said JLR's biggest problem is Jaguar, which is too small and has volume more like Rolls Royce and not like its main competitors Mercedes, BMW, Porsche or Tesla. JLR's Jaguar needs a new approach concentrating on sedans but seeking a different market position from the likes of Mercedes. Dudenhoeffer reckons JLR needs a strong partner, like BMW for example, or the ability to use electric technology developed by the likes of Volkswagen or General Motors.

Question 1. Recommend and justify the type of team leadership behaviour or style most likely to be practised by Jaguar Land Rover to ensure a culture of innovation and sustainability.

Question 2. As the organisation grows in size, discuss the challenges Jaguar Land Rover may encounter in maintaining its organisational culture of inclusivity and diversity. Suggest ways how these can be overcome.

Question 3. Justify the necessity of a change management process at Jaguar Land Rover (5 marks)

Advise the senior management of Jaguar Land Rover on how to incorporate the choice, trajectory and change variables in change management process.

Question 4. Discuss any FIVE (5) factors of the PESTLE framework to analyse the external environment Jaguar Land Rover is currently facing.