The automotive industry is changing. Home-markets of world-known automakers become saturated. Many companies seek new opportunities and chances in new markets.
The major future challenges for JLR are from economic nature. Economic growth in Europe is stagnating which leads to moderately increasing sales. Additionally, there is pressure to adhere to environmental standards which complicates competition further.
Although Europe is a mature market with comprehensive intellectual property rights, and low corruption, without satisfying growth, JLR needs to seek new markets.
In general, there are 3 types of motives for companies to engage in foreign direct investments (FDI), market-seeking motives, resource- or asset-seeking motives and efficiency-seeking motives.
Table of Contents
- I. Assignment Part A
- 1. Which Developments Impelled Jaguar Land Rover (JLR) to Implement the Partnership with Chery Automobile Ltd.?
- 1.1 The Anticipated Internal Benefits and Synergies
- 1.2 Why is the Chinese Government involved?
- 2. Categorization of the Partnership Between JLR and Chery Automobile Ltd.
- 2.1 Which Risks does a Joint-Venture Entail?
- 2.2 The Acquisition of Jaguar and Land Rover by Tata Motors.
- 3. The Possible Influence of National and Corporate Culture on the Joint-Venture
- 3.1 The Possible Influence of National Culture
- 3.2 The Possible Influence of Corporate Culture
- 4. The Importance of Exchange Rate Movements for JLR and Chery Automobile Ltd.
- II. Assignment Part B
- 5. Aspects or Challenges of Doing Business Internationally.
Objectives and Key Themes
This analysis aims to examine the partnership between Jaguar Land Rover (JLR) and Chery Automobile Ltd., exploring the motivations behind the collaboration, its structure, and potential cultural and economic influences. The study also considers broader aspects of international business.
- Factors driving JLR's expansion into the Chinese market.
- The strategic categorization and risks associated with the JLR-Chery joint venture.
- The impact of national and corporate cultures on the partnership's success.
- Economic considerations, such as exchange rate fluctuations and market analysis.
- Challenges inherent in conducting international business.
Chapter Summaries
I. Assignment Part A: This section delves into the reasons behind Jaguar Land Rover's (JLR) decision to partner with Chery Automobile Ltd. A PESTLE analysis reveals stagnant economic growth in Europe and increasing pressure to meet environmental standards as key drivers for seeking new markets. The analysis uses the BCG Growth-Share Matrix to illustrate the potential profitability of entering the Chinese market, highlighting China's significant growth and JLR's existing demand there, categorizing JLR's position in China as a "question mark" with high growth potential. The section further explores anticipated internal benefits and synergies, such as improved market access, shared resources, and learning opportunities, through a detailed analysis illustrating advantages for both JLR and Chery.
II. Assignment Part B: This part of the assignment focuses on the broader challenges and aspects of conducting business internationally. While the specific content of this section is not provided, it can be inferred that it would discuss potential obstacles and opportunities faced by multinational companies operating in diverse global markets, building upon the case study of the JLR-Chery partnership.
Keywords
Jaguar Land Rover, Chery Automobile, joint venture, international business, China, market entry, PESTLE analysis, BCG matrix, cultural influence, economic factors, exchange rates, risk assessment, synergies, strategic partnerships, global automotive industry.
Frequently Asked Questions: Jaguar Land Rover and Chery Automobile Ltd. Partnership Analysis
What is this document about?
This document provides a comprehensive preview of an academic analysis focusing on the partnership between Jaguar Land Rover (JLR) and Chery Automobile Ltd. It includes a table of contents, objectives, key themes, chapter summaries, and keywords. The analysis explores the reasons behind the partnership, its structure, potential cultural and economic influences, and broader aspects of international business.
What are the main objectives of the analysis?
The analysis aims to examine the partnership between JLR and Chery, exploring the motivations, structure, and cultural and economic influences. It also considers broader challenges of international business. Key themes include factors driving JLR's expansion into China, the strategic categorization and risks of the joint venture, the impact of national and corporate cultures, economic considerations (exchange rates and market analysis), and challenges of international business.
What are the key aspects covered in Assignment Part A?
Assignment Part A delves into the reasons behind JLR's partnership with Chery. It uses a PESTLE analysis to identify factors like stagnant European growth and environmental pressures as drivers for seeking new markets. The BCG Growth-Share Matrix illustrates the potential profitability of the Chinese market. The analysis also explores anticipated internal benefits and synergies for both JLR and Chery, including improved market access, shared resources, and learning opportunities.
What does Assignment Part B cover?
Assignment Part B focuses on the broader challenges and aspects of conducting international business. While the specific content isn't detailed, it implies a discussion of obstacles and opportunities faced by multinational companies in diverse global markets, building upon the JLR-Chery case study.
What are the key takeaways from the chapter summaries?
The summaries highlight the strategic rationale behind JLR's move into the Chinese market using frameworks like PESTLE and the BCG matrix. It emphasizes the potential benefits and risks of the JLR-Chery joint venture, considering both internal synergies and external factors like cultural differences and economic conditions.
What keywords are associated with this analysis?
Key words include: Jaguar Land Rover, Chery Automobile, joint venture, international business, China, market entry, PESTLE analysis, BCG matrix, cultural influence, economic factors, exchange rates, risk assessment, synergies, strategic partnerships, and global automotive industry.
What kind of partnership exists between JLR and Chery?
The analysis focuses on a joint venture between Jaguar Land Rover and Chery Automobile Ltd. The specifics of the joint venture structure are likely detailed within the full analysis.
Why did JLR choose to partner with Chery in China?
JLR's decision to partner with Chery was driven by several factors, including stagnant economic growth in Europe, increasing environmental regulations, and the significant growth potential of the Chinese automotive market. The partnership aimed to leverage the strengths of both companies to achieve improved market access, resource sharing, and learning opportunities.
What are some of the challenges and risks associated with this partnership?
The analysis likely discusses potential risks associated with the joint venture, including those related to cultural differences between British and Chinese corporate cultures, economic factors such as exchange rate fluctuations, and general challenges associated with international business operations.
- Quote paper
- Ender Gülcan (Author), 2017, An Analysis of the Partnership Between Jaguar Land Rover and Chery Automobile Company Ltd., Munich, GRIN Verlag, https://www.grin.com/document/376522
