International Business Strategy

Factors of International Business Environment

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Introduction to International Business Strategy

The business is likely to be affected by various factors within its environment all over the world. It has been with the effective analysis and study of this environment that helps the business to identify these factors and manage its activities to deal with various situations.  The present report is based on studying the factors of international business environment of Jaguar land Rover Automotive that is a British based auto-mobile firm that has its headquarters in Whitley, UK (Schaffer, Agusti and Dhooge, 2014).  It has been involved in the design and development of jaguar and Land Rover vehicles.  This report will study the international business environment affecting this company and the impact of emerging markets over its business. 

There are several different factors of the international business environment that are most likely to affect the operations of Jaguar Land Rover. This define the need of understanding different environmental factors affecting its business and responsible in managing the overall business success (Hill, 2008). Jaguar Land Rover has been operating in many countries of the World and has been a subsidiary product of Indian Car makers Tata Motors. Initially it was owned by Ford that is now acquired by Tata motors and has thus led to the expansion of its overall market. All these factors of international business environment can thus be understood with the help of PESTLE analysis that in turn provides an insight to jaguar to manage its business activities and ensure to sustain its strong position in the market. Certain factors of international business environment can be understood with the help of PESTLE analysis:

Political:  The government within a country is likely to change in few years. UK government is also changed and bring series of changes in the policies and budget plans allotted to the business enterprises that requires the overall business of Jaguar Land Rover to have an idea of all the activities that are being carried out by the government (Doh, 2005).  It is also necessary for the firm to identify the potential demands an d requirements that are to be fulfilled by the government and thus it is important for the jaguar to have better mechanisms and plans for managing the policies.  Taxes are another factors lying under he impact of government over the business of Jaguar. The government has a complete control over the taxes and if the it involves in raising the environment or fuel related taxes, it can have a significant impact over the revenues and sales of the cars.

Economic: Economic environment prevailing in the Uk business environment is more likely to affect the operations of Jaguar Land Rover. It has more impacts over the efficiency and revenues for the firm.  The worldwide flow of recession has highly impacted the care business especially that of luxury cars like Jaguars (Corrigan,  2008). The government in such cases has been involved in showing lesser interest in funding these companies to strengthen themselves.  Further the company in these tough times has got better support and funding from its owner Tata from India that helped it to survive in typical recession times.  Further in such times many a times the company has to suffer a lot of losses and sometimes need to end up its operations in some locations. 

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Social: This is another factor that may have an impact over the business of Jaguar Land Rover (Johnson,  Lenartowicz and Apud, 2006). As the overall world has been facing changes in terns within the society, it has become significant for the business to have concern over such social factors too to ensure its business success. It has become relatively important for Jaguar Land Rover to manage its operations by keeping the customer expectations in minds. The people of the society may be of diverse culture that require the company to ensure that they value the culture and beliefs of its people. Further it is also important for the company to manage better relationships with its people and manage an effective corporate image. By facilitating better management of employees, Jaguar can ensure satisfaction of its customers too (Leung and et. al, 2005).

Technological: Any particular business is most likely to be affected by the advanced design and technological factors that are to be constantly updated by the firms in order to sustain their position. This requires understanding the various trends and advancements in the technology of automotive industry that Jaguar needs to have a knowledge of.  The company has been largely involved in investing amounts fro more research and development that will support the business by world class designs and technical features attracting large number of customers (Kennerley and Neely,  2003).  Further Jaguar also needs to keep a brief idea of the technology that is being used by the competitors car companies that will help in formulating new strategies and innovative design as per customer's expectations and requirements. 

Legal: Legal factors define the need of business to operate under laws and legislations that will be helpful in developing an effective framework and code of conduct.  There are some key laws that Jaguar needs to flow in terms of its success and efficient operations within the market (Chelariu and Osmonbekov,  2014). These laws involve competition law that requires jaguar to have a fair competition with all the other car companies that will be helpful in management of its overall operations. Apart from this Jaguar Land Rover is also expected to work under legislations and policies defined by company law in managing the employees, operations across boundaries and sharing of its profits and dividends etc (Buckley, 2002).

Environmental: For a  business like that of an Automotive company, it is very  important to have a concern over the business activities and ensure that they do not have any impact over the natural environment. In these terms, Jaguar Land Rover has already been maintaining higher standards of its services that ensure lower impact over the elements of environment.  They have been involved in developing technology that will support in reducing the environmental impact and also has mechanisms to ensure sustainable resource being used in manufacturing and production operations (Stokes, Bishop and Phillips, 2007).

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Trend towards economic integration and the impact of emerging markets

There are several different factors that can be studied for Jaguar Land Rover in understanding the impact of the emerging markets and the increasing trends towards the economic integration  of the business (Czinkota and, 2009).  In understanding the trend towards economic integration, it is important to understand the different unions and trading blocs within UK.

Economic integration is the accumulation of various different policies across borders or states that pose tariff restrictions over trade. The economic integration is all about reducing the prices for various customers as well as distributors in terms of combining economic productivity of the states.  There are various reasons why companies like Jaguar land Rover have been moving towards economic integration.  This involves the various economies to integrate with the others in terms of managing managing their contribution and managing their position (Morrison, 2002). Considering Jaguar, the UK asked firm has seen economic integration with the Indian automotive company Tata that has helped it to survive in the strongly competitive market.  There are certain reasons involving the need of higher productivity of the firm that leads to economic integration. Further as an objective of global scale development for Jaguar, the trading blocs and unions play a yet another role. These unions involve ASEAN, NAFTA, SACN, European Union and Transatlantic Free trade Area,  etc.   Association of South East Asian countries is a trading bloc that consists of ten countries among South east Asia to accelerate overall growth of economy, social development and managing peace and stability (Suder, 2004).   Further TAFTA, Transatlantic Free Trade Area is another such trade agreement that covers the area of Europe and North America providing the opportunities of Free trade.  It has been significant for the operations of jaguar to ensure its presence in the American countries and contribute towards economic development (Monaghan, 2013).

Brics is one of the key trading blocs that have been developed and has been largely beneficial to the four countries in boosting their trade and business. These four economies have been benefited with this economic integration and are assumed to become the most powerful economies of the world in the upcoming years (Keillor, 2013).  These countries have been allowing sharing of trade activities by supplying manufacturing products amongst themselves and have been working under a formal trade association named Brics allowing low cost services and raw materials helping them to develop a better scope for future expansion this will therefore be helpful for the business of Jaguar Land Rover as with the help of this bloc it will be able to.

The business of Jaguar Land Rover has been managing growth with the expansion within the various economies of its world by integrating its business. Further there are several possible changes that can be seen as impacts of these emerging markets to the business of Jaguar. With the integration of its its business with an Indian company Tata, it had faced several changes in the form of working culture and management (Rao, 2012). Both the companies had been come up from far apart economies with large cultural differences. Still the company could manage in achieving a better efficiency in its business and building up a strong image so as to achieve excellence within its business.

Globalisation is another factors causing an impact over the merging markets as the business all over the world has been growing with the support of expansions, growth, mergers and acquisitions (Hamilton and Webster,  2012). With the effect of globalisation, the business has been facing necessity to invest in foreign business and see a significant growth. Similarly Jaguar has been getting involved in economic integration of its business in vagarious Asian countries and developing a  scope of more growth and development within the automotive market. Also this globalisation has led to increase in competition that further makes the company to concern their focus towards emerging markets.  These emerging markets are growing at a faster rate providing better importunities for new business to invest and prosper (Johnson and Turner, 2010).

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Multinational enterprise is also a new concept that has been arising in managing business  globally. The firms have been experiencing better growth through development of subsidiaries and making Tehran presence in the international markets to prove their insight and strength and facing the market competition.  The MNCs have a better scope of  developing themselves in terms of expansion by already making a  international market presence and thus carrying out smaller expansions (Doh, 2005). 

There are several other options that business of Jaguar could take up in management of their presence along with facilitating growth and development in the emerging markets.   This may involve the company to outsource some of the activities of its operations that could strengthen it in the competition. The company might involve in bringing a strong market competition by outsourcing the bets facilities from the other parts.

Foreign direct investment is another way that car business of Jaguar land Rover can adopt in managing their business presence in the emerging markets (Leung and et. al, 2005). This is possible by investing significant amounts in business activities within new markets and identifying better scope of development.  For managing such international presence there have been trading blocs like BRICS that have been investing amongst themselves to boost economy and allow trade among the four countries lying within this association. These have been developing as an opportunity for other business to grow and invest in such emerging markets.


The undertaken report is based on studying the international business environment with consideration of Jaguar Land Rover. Firstly the report involves in explanation of the various factors of the international business environment that are affecting the business of Jaguar that is explained with the help of PESTLE analysis. Further this also explains the need of understanding the economic integrations and the impact of such activities over the business. This report also involves studying the impact of emerging markets and the need of Jaguar business to deal with such issues to manage its presence in the international scenario.


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