Fidan Demir

Student No.: 20190202906

"Prowling for Success: The Revival of Jaguar and

Land Rover"
1. Describe how Jaguar Land Rover leverages the advantages of its parent
company in seeking new markets. Can this be a source of disadvantages as well?
Advantages
 Multinational automotive manufacturing companies
 Greater potential within the market, giving JLR a competitive advantage.
 operations in more than 80 Countries
 TATA already has motor companies in operation, this may allow them to use bulk
buying between the two different companies.
 Experience in different vehicles
 24% of predominant sales come from china

Disadvantages
 TATA is known for manufacturing cheap, affordable products. JLR is known for being
a luxury brand.
 cultural differences (Values, expectations, hierarchy)
 JLR's cheapest car starts from £20,000. Asian markets average income for a family is
roughly £5358.
 Current Reputation (loss of customer, less sales)

2. How do you think the shift of economic activity to emerging regions affects growth
in advanced economies? Discuss if a reverse shift of activity is possible.
It will affect the employment rate of advanced economy:
- For e.g. if JLR's manufacturing plant, assembly line, production units that are currently in
UK creating 1000's of job locally was to be shifted in a new market (India, China) could
potentially create a big unemployment rate in UK.
- affects the core value of brand
- Whereas it could mean a growth in profit margin for a company where emerging market
possess reserves of raw materials, low wage and high cost labor, growing economy

Economic Activity to Emerging Region Impacts

Negatives Benefits
Businesses Businesses:
 cannot compete within the competitive  Cheaper labour
market forced to shut down  Increase Profit Margins
 Local businesses have, high labour  Effective use of Resources
costs and expenses  Less Waste

Consumers: Consumers:
Rapid job losses impacting on the standard  gain higher purchasing power
of living or income  More variety of goods and services
 Emerging Advanced
Negatives: Positives:
 Not able to produce own goods and  Decrease in unemployment rate
services to ell within the competitive
marketplace Negatives:
 Standard of living decreases  working person maybe paid less
 Job Scarcity  price of goods and services might
 Families might not able to afford to feed increase
their family

3. What is the role of Government Business linkages in creating emerging market

challengers? in many emerging markets, government plays a vital role in purchasing
products, services and right package in areas like railways, banking oils, chemicals,
steels, etc.
- Emerging market government often announce TENDERS (request for proposals).
Where government agencies seek bids from suppliers to procure bulk commodities
products and other services. Government prefer dealing with vendors that offers the
complete sales and service packages.
- E.g. some of the largest construction projects as Panama Canal expansion, Three
Gorges Dam in China which is expected to cost about $25 billion
- Investment of $250 billion throughout 2020 to lay 75000 miles of new railway track in
China are attracting interest from MNE’S around the world.

Why are government and business linkages important for FCs like JLR in particular:
1. Government protection via subsidies, loans, tax incentives and setting up market-entry
barriers to Fc competitors
2. Access to capital
3. Access to superior market knowledge
4. Allow FCs access to extensive networks in various industries.
5. Tenders: that are formal offers government may make to purchase certain products or
services, particularly when purchasing bulk quantities of products and Services.
6. Vendors like FCs offer complete sales and Service packages and assists in creating local
jobs, employing local resources, reducing import dependence and providing other level
advantages.

Do you think that emerging and transition economies can move to a more hands-off
approach with time?
Transitioning Economy= a subset of emerging markets that evolved from centrally planned
economies into liberalized markets.
Emerging transition economies will not be able to proceed with a more hands-off approach
with tim.

Why can’t emerging transition economies achieve a more hands-off approach from the
government?

Without significant government support the below would be hard to achieve:

1. Foreign alliances
2. Competitive market positioning
3. Diversification

It is important to consider:
Developed and emerging regions have vested interests in attracting FDI into industries to
sustain a large labour force.
An example would be that a clear case of inward FDI from India was used to stop decline
within a region and to create new job in an advanced economy.