4 Jul 2022


Operation Strategy of Jaguar Land Rover Limited

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Executive Summary 

This report analyzes the operations strategy of Jaguar Land Rover a UK luxury car manufacturer. Through the analysis of the company’s corporate strategy in relation to quality and environmental sustainability, their green business practices, lean operations, and quality leadership policies are critiqued. The analysis sheds light on the broad car manufacturing industry in the UK and how recent market trends have impacted the car manufacturers with the Jaguar Land Rover Company as the organization of focus. The analysis will find that the company has a strategic management system in place and their lean operations and greener operations are commendable, but there are limitations and hurdles in the implementation process. The report will also discuss issues that have faced the UK car manufacturing industry like the Brexit issue, the Volkswagen scandal and the Jaguar Land Rover lawsuit and the impacts of these events on the Jaguar brand. The report will recommend that the car manufacturer puts in more effort into the research and development of green technologies to compete more competitively in the marketplace. Investment diversification will also be recommended, and the expansion into low-income countries recommended for increased profitability and spreading of risks. 

Scope of the Report 

The UK car manufacturing industry produced 1,722,698 vehicles in 2016 marking an 8.5% increment on total production from the previous year (Jasiński, Meredith & Kirwan, 2016) . The car export business has been booming which has been attributed to increased financial injections into the sector, technological advancement and highly qualified employees in the automotive industry. The United Kingdom is currently the second biggest producer of luxury cars after Germany and the third-biggest car producer in Europe. The growth in the sector has been spurred by the increased market share growth abroad with British-made cars' demand increasing by 10.3% in 2016 to 1,354,216. Britain exported 758,680 cars to the European Union with notable growth being experienced in the American export market as well (Jasiński et.al. 2016) . The profitability and growing market share of the Britain made vehicles is an indicator of the competitiveness of the UK car manufacturing sector to which the Jaguar Land Rover Company falls under. 

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Jaguar Land Rover Limited is a multinational corporation which is the biggest British car manufacturer and a subsidiary of the Indian based Tata Motors (Jasiński et.al., 2016) . It accounted for 30% of total British car production in 2016 and is headquartered in Whitley, Coventry. The company deals in the designing, development and the manufacturing and sale of automobiles from their three plants and made 544,401 cars in 2016. Jaguar produces a variety of cars which include ; Jaguar XE, Jaguar XF, Jaguar XJ, Jaguar F-Type and Jaguar F-Pace. Land Rover, on the other hand, produces the Land Rover Discovery Sport, Land Rover Discovery , Range Rover Evoque, Range Rover Velar , Range Rover Sport and Range Rover. The company, therefore, has diverse operations all of which are run by the Jaguar Land Rover Company (Jasiński et.al. 2016) . The Jaguars are luxury cars, and they compete through offering luxurious, premium, and fashionable products. Through lean manufacturing, they produce models guided by customer tastes and preferences, timelessness and design and exclusivity. The company's restructuring saw £4 billion invested in the procurement of the largest aluminum body shop in Europe, state of the art press lines and in technological upgrades. The investments have seen to the increased production capacity and an increase in the workforce with the company offering jobs to more than 19, 000 people (Jasiński et.al., 2016) . The company in its lean manufacturing agenda has invested £3 billion in product development and is putting in more effort towards green manufacturing and providing quality management in all their plants. Jaguar Land Rover won the award for the most Responsible Business of the Year by Business in the Community (BITC) due to their green business strategies and corporate social responsibility activities in 2016. 

Operations Strategy 

Operations strategy is a term used to describe the sum practices an organization employs towards achieving their set goals and objectives while maintaining effectiveness and efficiency in the production process (Carroll, 2017) . These strategies are categorized into corporate level strategy, business level strategies and functional level strategies (Brocke, 2012) . They are aimed at improving the business process, facilitating product development, customer attraction, and retention, improving core competencies and cultivating a competitive advantage (Slack, Brandon-Jones & Johnston, 2016) . The corporate strategy involves operating the various departments of an organization harmoniously using cross-functional interactions. Customer driven strategies include formulating customer centered practices aimed at retention and attraction of customers (Baldwin, Cave & Lodge, 2012). On the other hand, core competency driven strategies are geared towards the maximization of organizational strengths and the resources within an organization (Carroll, 2017) . Strategies are also formulated with the aim of cultivating a competitive advantage which involves designing the strategic process in a way that competitors can’t duplicate which keeps the company a step ahead of the competitors (Zokaei, Lovins, Wood & Hines, 2013) . Product development strategies work towards adding value to the company’s final products and services and focus on the designing and innovation processes. 

Corporate level strategy is the top most level and determines the resource allocation process (Nieuwenhuis & Wells, 2015) . It determines how the production process operates across subsidiaries if there are any and oversees the execution of the other business strategies. The business strategy determines how the organization competes within the industry in line with their strategic goals and objectives (Slack et.al., 2016) . The functional level strategy involves the specific departments in an organization. It involves spelling out the specific contributions of the department, its objectives and how they relate to the overall corporate strategy and how resources are managed within the department (Carroll, 2017) . The operation's objectives of every operation strategy are cost reduction, production of high-quality output, and minimization of the time between customer orders placement and delivery (Long, 2013) . They also aim at creating reliability and flexibility in the operations process such that the system is adaptable to change (Baldwin.al. 2012) . Operation strategy, therefore, serves the purpose of laying out the production process, informing the focus of factories, designing, and development of the outputs, selecting the technological process and resource allocation and facility (Brocke, 2012) . Corporate strategy is crucial for profit maximization, market share expansion, and corporate growth and in risk avoidance in the production process. 

The Green Operations Strategy 

The need for green operations in the production process has intensified with pressure on business from different factions of the public and the government (Nieuwenhuis & Wells, 2015) . Green operations refer to the practice of operating businesses with minimized negative effects on the environment and the society (Carroll, 2017) . Companies in various industries have increasingly realized that environmental pollution preventive measures are easily aligned with business goals than pollution control measures (Long, 2013) . The key drivers of the green strategy are the government through legislation, advocacy groups, the customers, investors, company management policies, competitors, need for performance gains, and maintaining the corporate image (Zokaeiet.al, 2013) . The different forms of green business practices are; eco-design, green building, green manufacturing, green supply chains, innovations in the business models, corporate social responsibility and reverse logistics (Slack et.al. 2016) . Most luxury car manufacturers operate low volume production facilities which enable them to concentrate on invention and innovation of green technologies which are later adopted as standard features by high-volume car manufacturers (Carroll, 2017) . The technological capacity, therefore, makes them the testing and maturation grounds for greener technologies since they can afford the trial runs and development costs, therefore, making brands like Jaguar champions for green manufacturing in the automotive world (Nieuwenhuis & Wells, 2015) . Luxury car brands like Jaguar have therefore played a crucial part in the adoption of engineering expertise, engine and power efficacy innovations, green manufacturing techniques, and in the development of driver and passenger safety technologies. 

At the organizational strategic management level, the company identifies, selects, procures, applies and disseminates technologies that minimize their carbon footprint and the emission of pollutants into the environment (Miller, 2015) . The green manufacturing strategy can be implemented in two ways. It can be embedded in the decision-making process in the operations strategy, and it can also be done through adopting the sustainable practices alongside corporate social responsibility initiatives (Baldwin.al. 2012) . In the car manufacturing industry, the green manufacturing business strategy has been widely adopted (Carroll, 2017) . The companies aim at energy and water conservation, waste reduction and minimization of toxic gasses emission in the production process. The automotive sector is responsible for environmental pollution through the emission of greenhouse gasses, contributing to the depletion of the ozone layer and noise pollution (Slack et.al. 2016) . The Jaguar Land Rover Company has adopted eco- design as part of a green operations strategy; they are using fuel-efficient engine technologies and adhere to the carbon emission percentages set by the law in their production process (Brocke, 2012) . The company has also adopted the use of lighter, fewer pollutant fuels and alternative fuels, and has also integrated information technology systems in their production process for greener products ( Wilson, 2015) . The company has also adopted the green buildings and green manufacturing through the reduction of their oil usage by harnessing landfill gas and the wind and solar energies which have a significant effect on carbon emissions and reduces the depletion of natural energy sources. 

However, despite the green efforts by car manufacturers, the sustainability of these efforts comes under scrutiny time and time again (Carroll, 2017) . The industry's vulnerability to an economic downturn, the overcapacity of manufacturing sites, their contribution to traffic jams, air, and noise pollution, as well as the many casualties of their products, are major areas of scrutiny (Wilson, 2015) . Despite their efforts, these factors seem inevitable as long as they’re in production. An ideal green car manufacturing industry would be one that provides pollution free personal mobility solutions which are yet to be achieved by current green technologies (Slack et.al., 2016) . Despite an average luxury car traveling approximately 12,000 Km per year, and emitting 4.5 tons of CO2 which is equal to the emissions made by a saloon car for 23,000 Km, the prices make them exclusively for the wealthy (Zokaei et.al., 2013) . Therefore the green manufacturing strategy of Jaguar Land Rover cars is limited by its accessibility to the low-income population. 

The lean operations Strategy 

Henry Ford is considered the inventor of the lean manufacturing strategy in 1913 (Miller, 2015) . Ford employed the concept of continuous flow in assembling the parts for the Model T automobile whereby he runs the production process sequentially using specialized task machines and go or no-go gauges (Carroll, 2017) . The tactic shortened the assembly process to a few minutes and resulted in perfectly fitting components which saved time and resources (Brocke, 2012) . The downside of the process, however, was in its inadaptability since it reproduced replicas of the same car model with limited modification opportunities ( Wilson, 2015) . The lean manufacturing strategy was, therefore, a push process, which entailed the manufacturer setting the production capacity instead of the more effective pull process where production is dictated by consumer demand (Miller, 2015) . The inflexibility led to heavy losses as consumer tastes and preferences changed to demand more diverse models. 

Kiichiro Toyoda and Taiichi Ohno of Toyota came up with a more improved lean manufacturing system in the 1930s the Toyota Production System (TPS) which within a short time made them the most profitable car manufacturer worldwide (Nieuwenhuis & Wells, 2015) . The new system shifted the determinant factor from the producer to the market demand forces and was widely adopted in the automotive manufacturing sector. The lean manufacturing process operates on some principles. It involves the specification of the product demanded by the customer and the identification of the value stream of every product and eliminating the wastages in the production process (Carroll, 2017) . Then an uninterrupted flow is put in motion for the value-added step and pull is introduced between all steps where continuous flow is possible. The process is aimed at perfecting the manufacturing process such that the production steps, time and information components fall as the system progresses (Miller, 2015) . The lean process involves monitoring waste in the production process, the production timeline, and inventory, logistics, processing of products, employee-machine coordination, and correction processes and in the workforce. 

The lean process involves some steps. Firstly, the waste is identified using a value stream map (Carroll, 2017) . The map highlights the whole production to the market process, how various departments collaborate and identify the waste which forms a basis for a future VSM with as few non-value adding activities as possible (Nieuwenhuis & Wells, 2015) . The second step is the waste analysis and exploration of its root cause through the root cause analysis, brainstorming or the cause-effect diagram (Slack et.al. 2016) . Once the waste is discovered, the third and final step is problem-solving, and the cycle is repeated through all the departments in the production process. The tool utilized in the process vary. The procurement of materials is done on demand and the production done in small phases for efficiency and to minimize errors and wastage of resources (Carroll, 2017) . The kanban concept is used to notify the production team when a raw material needs replacement, order or location such that resources are only availed when need be. The zero defects concept involves producing the product the right way the first time to save resources and manpower. Single Minute Exchange of Die (SMED) is another tool used in the waste reduction process (Slack et.al., 2016). This involves designing the production machinery in an adaptable and flexible manner such that in the event of an urgent change, the company can produce a different model in days. 

The lean manufacturing practices and quality leadership management at Jaguar Land Rover are achieved through the adoption of a visual factory management technique (Nieuwenhuis & Wells, 2015) . This management style involves the use of visual signs in the dissemination of information to the workforce on a need to know basis (Carroll, 2017) . The Jaguar Land Rover uses signs, symbols and infographics on their machinery for the smooth running of the operations and to save time. They provide detailed information on the whole work process, offer information on what the employee needs to know to complete their tasks as well as the layout of the factory. The factories at the Jaguar Land Rover sites are fitted with electrical display boards which relay real-time production progress and inform workers when their services are needed (Nieuwenhuis & Wells, 2015) . The factories also have the floor marking aids which clearly show the different departments of the factories and act as navigation aids (Carroll, 2017) . The visual factory has been influential in the production of the high-quality output by the Jaguar workforce since they save time and facilitate coordination in the workflow. It has also facilitated lean manufacturing through facilitating timeliness in the production process, reducing errors in the work process and reducing wastage of resources which has led to higher profitability in the company. 

The company also uses the 5s in the running of a lean manufacturing process. They are sort, shine, set in order, sustain and standardize (Nieuwenhuis & Wells, 2015) . The sorting process involves the elimination of the things that are not needed in the production process and organizing the required resources (Bhasin, 2016) . The shine involves putting the working area in place and making it conducive for the employees to work in while the standardization involves setting rules to w ork by and the sustenance entails sustaining the established standards. The company also utilizes bottleneck analysis in its lean manufacturing structure (Carroll, 2017) . It involves the identification of the part that drags the manufacturing process behind and working on it. The Jaguar Range Rover also uses the jidonka or the autonomation tool in the lean manufacturing process (Slack et.al. 2016) . They have set specialized partially autonomous plants in different parts of Britain which report to the center at their headquarters. 

As much as the lean manufacturing has contributed tremendously to the profitability of the Jaguar Land Rover Company, it has come with limitations and challenges (Nieuwenhuis & Wells, 2015) . The lean manufacturing process focuses on perfectionism which is hardly acquirable when dealing with human beings which lead to stress and low job satisfaction rates (Carroll, 2017) . This leads to high turnover rates which lead to losses in wasted employee training, expenditure on the hiring process, lack of continuity in the customer relations department and poor output. The system also fails to account for a margin of error which is overreaching and could lead to the collapse of the production process in case of a mistake (Slack et.al. 2016) . The fact that resources are fixed, and there are no contingency resources means that in case a mistake needs rectifying the whole production process halts which beat the continuity objective of the lean manufacturing process (Nieuwenhuis & Wells, 2015) . Also, the focus of lean on the present is precarious and could lead to future losses. For instance, the fact that resource storage is kept at a minimal may lead to the company missing out on purchasing materials at a lower cost and saving them money (Carroll, 2017) . The system instead gambles with future uncertainties which could bring higher prices, shortages or total depletion of the resources required in the production process (Bhasin, 2016) . Therefore, the lean manufacturing process is efficient, saves time, money and minimizes waste but leads to losses in the long run. 

The Key Strategic Issues that UK Carmakers Have Faced Since the Global Financial Crisis 

The UK automotive industry has been faced by various issues both environmental and quality related with the effects of these scandals touching the Jaguar Land Rover brand either negatively or positively (Carroll, 2017) . The JLR Company was faced by a breaching the Health and Safety at Work Act charges after a worker's leg was crushed at their Solihull, West Midlands, in February 2015. The court found the company liable, and they were ordered to pay £900,000 to the worker who lost his leg (Nieuwenhuis & Wells, 2015) . Considering that one of the lean management tools is the improvement of the working conditions, the accident negatively affected the company’s image which affects their brand equity and could lead to loss of customers (Sarma & Lochan, 2014) . The major issue that shook the entire car manufacturing sector was the Brexit issue. Different manufacturers had different reactions to the issue (Zokaeiet.al. 2013) . The Nissan Company supported the move and stated that their production process was unshaken. Ford closed both its plants in the UK and increased their prices in Britain while General Motors recorded a £329 Million loss from the Brexit (Nieuwenhuis & Wells, 2015) . Jaguar Land Rover reacted by promising to invest more outside the UK. Brexit’s effect on the car manufacturers and Jaguar Land Rover specifically was both positive and negative. It meant increased trade duties for exports but domestically, the exit of Ford one of largest car, manufacturers created an opportunity for market growth for Jaguar Land Rover. 

The issue of environmental conservation has also received attention from stakeholders in the automotive industry (Bhasin, 2016) . A network of 250 Major investors worth over £20tn in an Investor Expectations of Automotive Companies report said that climate change must be given precedence if they are to continue investing in the car manufacturing industry. They argued that the companies should formulate green policies and invest in the production of low-emission vehicles (Carroll, 2017) . In line with the issue, Volkswagen was hit by a scandal which exposed the fraud in their pollution monitoring devices which showed their emission levels lower than they were (Sarma & Lochan, 2014) . The scandal affected the brand but also created a bad image for the entire car manufacturing industry since it displayed the companies as unconscious to the effect their products have on the environment. 

The Lessons that Jaguar Land Rover has learned from Japanese Car Manufacturers and the Implications of Setting up Operations in Low-Income Countries 

The company has learned the utility of lean manufacturing in the production of high-quality goods to cultivate a competitive advantage in the marketplace (Béndek, 2016) . The process is based on the production of high-quality output through the elimination of bottlenecks and ensuring that the manufacturing process is error free. The concept has helped JLR in the production of high-quality cars with few recalls. The visual management style in the JLR has helped increase productivity and improved working conditions (Carroll, 2017) . After the accident in 2015, the company adopted the visual management system to divert future accidents caused by poor signage in the production sites ( Chopra & Meindl, 2016) . The company has also learned about the importance of lean manufacturing in the improvement of the efficiency of the manufacturing process. Line balancing and standardization in the lean process ensures the workforce follows a certain set of guidelines (Nieuwenhuis & Wells, 2015) . They facilitate specialization in the work process which leads to repetition of the task until the employee can do it perfectly without making any errors. The company has also learned that the lean process requires management once it has been put in place failure to which causes accidents in the workplace. 

The setting up of business operations in low-income countries is beneficial to both the company and the countries. It facilitates the diversification of capital and investments (Nieuwenhuis & Wells, 2015) . In the present day economic uncertainties, investment diversification is a survival tactic. When a company invests in the low-income countries, the risks are spread as seen in the case of the Brexit issue. Companies that had invested heavily in one country in this case Britain suffered the heaviest losses (Sarma & Lochan, 2014) . Investment in the low-income countries is also beneficial in cutting down the production costs. Labor costs and raw materials are exponentially low compared to the developed countries which reduce the cost of production which translates to higher profit margins (Béndek, 2016) . Investment in the low-income countries also facilitates the transfer of technology and good business practice globally which is favorable to environmental conservation and good governance ( Chopra & Meindl, 2016) . The companies also create jobs for the locals which helps in the economic growth and development of the low-income countries. 

Evaluation of Green business as good business 

Green business practices involve the implementation of environmentally conscious policies in the production process (Nieuwenhuis & Wells, 2015). It is profitable to the organization as well as to its stakeholders across the production and supply chains. It leads to increased profitability and saves business costs. It incorporates the recycling of products whose cost is less than the cost of acquiring new products (Carroll, 2017). Lean manufacturing minimizes waste while optimizing the supply chain which also increases the profitability in the production process (Béndek, 2016). Green business is also an invaluable tool in the mitigation of risks because it ensures that the business abides by the set laws, therefore, avoiding legal actions, fines, and penalties which are bad for the brand equity and general operations (Long, 2013). The green business initiative is also important in the cultivation of a competitive advantage in the overcrowded marketplace. It is essential in market share growth since it attracts the green consumers and attracts investors whose capital is necessary for expansion into new markets ( Chopra & Meindl, 2016). It also fosters invention and innovation in the business process since the sustainability scope is ever changing and it also improves the brand equity since it showcases the company in a good light (Sarma & Lochan, 2014). Most importantly, green business is crucial for the continuity of the business process. It ensures that natural resources are conserved and saved from depletion which gives future generations a chance also to conduct business. 


The Jaguar Land Rover Company should put more effort in its green manufacturing practice so as to attract more investors (Long, 2013) . The benefits accrued from the green manufacturing and increased investment will spur growth, increases the company’s market share improve the competitive advantage and increase the overall profitability. 

The company should also adopt more sustainable management styles. As much as the lean technique is efficient and employee reviews high, the company should come up with sustainable ways of decreasing turnover rates and mitigate the negatives of lean thinking ( Chopra & Meindl, 2016) . The company should build up to date recreation facilities in the factories to reduce monotony and redundancy on the work process caused by the lean practices (Slack et.al., 2016) . The company should also be vigilant about workplace safety to prevent occurrence of the accident where an employee lost his leg due to negligence. 

The company should also diversify their investments to the Bric countries so that they can reap the benefits of low labor costs, cheaper low materials and also contribute to the economic growth and development of the countries ( Wilson, 2015) . The investments will spur growth, increase profitability and reduce the cost of production which will, in turn, enable the country to offer competitive prices for their products. 


Baldwin, R., Cave, M., & Lodge, M. (2012). Understanding regulation: theory, strategy, and practice . New York: Oxford University Press. 

Béndek, P. (2016). Beyond lean: a revised framework of leadership and continuous improvement . Cham: Springer. 

Bhasin, S. (2016). Lean management beyond manufacturing . Switzerland: Springer International Pu. 

Brocke, J. V. (2012). Green business process management: towards the sustainable enterprise . Heidelberg: Springer. 

Carroll, A. B. (2017). Business & society: ethics, sustainability & stakeholder management . Nashville: South-Western. 

Chopra, S., & Meindl, P. (2016). Supply chain management: Strategy, planning, and operation . Boston: Pearson. 

Jasiński, D., Meredith, J., & Kirwan, K. (2016). A comprehensive framework for automotive sustainability assessment. Journal of Cleaner Production, 135 , 1034-1044. doi:10.1016/j.jclepro.2016.07.027 

Long, B. (2013). The zero carbon car: green technology and the automotive industry . Marlborough, Wiltshire: The Crowood Press. 

Miller, M. (2015). The internet of things: how smart TVs, smart cars, smart homes, and smart cities are changing the world . Que Corporation, U.S. 

Nieuwenhuis, P., & Wells, P. E. (2015). The global automotive industry . Chichester, West Sussex: Wiley. 

Sarma, A. D., & Lochan, R. (2014). Lean princiiples and applications in BPO . Oxford, UK: Alpha Science Int'l. 

Slack, N., Brandon-Jones, A., & Johnston, R. (2016). Operations management . Harlow: Pearson. 

Wilson, L. (2015). How to implement lean manufacturing . New York: McGraw-Hill Education. 

Zokaei, A. K., Lovins, L. H., Wood, A., & Hines, P. (2013). Creating a lean and green business system: techniques for improving profits and sustainability . Portland, OR: Productivity. 

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