Section A: Jaguar Land Rover (JLR) - Do you agree that UK manufacturers need to operate on a global scale in order to succeed?

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  • Created by: Megan
  • Created on: 14-06-15 21:42

Section A: Jaguar Land Rover (JLR) - Do you agree that UK manufacturers need to operate on a global scale in order to succeed?

Advantages

  • YES, I agree that UK manufacturers need to operate on a global scale to succeed because... Successful manufacturers are increasingly near-shoring and 'following the demand.'
  • Many UK manufacturers are now locating production capacity to where demand is growing fastest.
  • JLR are opening a new plants in emerging economies China and Brazil.
  • Operating globally and close to demand will ensure manufacturers are able to maximise their sales through being close to the customers.
  • Sales will be increase, which should in turn increase UK manufacturers global market share in particular industries.
  • JLR are opening a plant in China to consolidate its position in the world's largest car market.
  • Increase in global competitiveness for JLR and this should mean they are succeeding through growth.
  • EV: There is very strong competition within the automotive sector and many other competitors have also targeted the Chinese market in particular, such as BMW and Mercedes. So more companies are near-shoring, so could make it harder for JLR to compete on a global scale.
  • YES, I agree that UK manufacturers need to operate on a global scale to succeed because... Globalisation has meant that it is creating groups of powerful multinationals who are starting to dominate key industries.
  • Increasingly harder for national manufacturers being able to sustain a competitive advantage and their market share.
  • Automotive sector is a very global industry and is dominated by multinationals.
  • Larger multinational manufacturing businesses mean that they have access to larger capital and economies of scale, which can act as a competitive advantage on a global scale.
  • UK manufacturers need to operate on a global scale in order to remain competitive in many industries.
  • Strongest UK manufacturers are already operating as multinationals and investing in both UK and international markets, such as JCB, JLR and AstraZeneca.
  • Going global will allow many UK manufacturers to succeed further by growing and expanding into international markets in order to remain competitive in a very interconnect world.

Disadvantages

  • NO, I disagree that UK manufacturers need to operate on a global scale to succeed because... Other factors can ensure UK manufacturers succeed, such as stability and long-term investment.
  • Tata Group ownership has bought much needed stability to JLR with long term investment and thinking.
  • JLR has invested heavily in many of it's UK manufacturing plants as well as opening a new 500 million engine plant in Wolverhampton - not on a global scale.
  • Long-term investment will ensure JLR are able to keep innovating and expanding in the long term through organic growth.
  • Organic growth in JLR has meant expanding globally, while keeping UK manufacturing secure and growing too - was very successful just operating in the UK.
  • JLR operate on a global scale successfully due to long-term investment in innovation, improving their product quality.
  • Product quality is JLR's source of competitive advantage.
  • EV: JLR have succeeded by operating in just the UK in the past, however they may not be able to succeed in the long term if they do not operate on a global scale if they are growing and want to ensure growth continues.
  • NO, I disagree that UK manufacturers need to operate on a global scale to succeed because... It's possible to operate in a niche or national manufacturing industry and still succeed.

Evaluation

I believe that UK manufacturers should operate on a global scale because it ensures that UK manufacturers are able to consolidate their market positions within industries and not become uncompetitive with the rest of the market who are manufacturing on a global scale. However, I don't believe that they need to operate on a global scale to be successful because success can be measured in different ways and it depends on the objectives of a business. It can also be said that for Tata, taking JLR to emerging markets was all about building a global car brand as a opposed to gain market share or increasing sales. Therefore, I believe that UK manufacturers do not need to operate globally, but need to if it the business requires expansion.

Comments

Amy Tinegate

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