Contrasting Economic Climates

Topics: Inflation, Range Rover, Gross domestic product Pages: 7 (2727 words) Published: May 22, 2013
Contrasting Economic Climates|
P5 M2|
Justosh Singh|

To Denise Portman|

The UK Economy3
Overall Conclusion5

NB- any numbers at the top of a word/sentence indicates a reference number, for example, the cat sat on the mat99. Please refer to the bibliography for the source of the reference.

This document will look at a multi-national company (MNC) that has active operations in the UK and China. I will consider the state of each economy and the effect this has on the organisation. I will describe the influence of two contrasting economic environments on business activities and compare the challenges that the organisation face and in particular there will be consideration to: * Changes in demand

* Changes in supply
* Inflation
* Recession

My chosen company is TA-TA Group who acquired Jaguar and Land Rover (J&LR) from Ford in 2008. TA-TA is an organization (based in India) that own 100+ companies working in different sectors and countries. The total amount of revenue combine was around $100.09 billion in 2011-2012, 58% of their total revenue comes from out-side of India. The organisation was initiated because they want to improve the quality of life in the communities they serve1 by giving back to the community what they earn, so this in turn builds up trust.

I will be comparing the UK economic state and the Chinese economic state and their influence on Jaguar and Land Rover (J&LR).

TA-TA is a value driven company, they try to accommodate the needs of all their customers and communities; they have 5 key values that they operate on: * Integrity
* Understanding
* Excellence
* Unity
* Responsibility

The UK Economy
In the UK the TA-TA Group bought out the car manufactures Jaguar and Land Rover from Ford. The deal cost £1.15 billon, the negotiation started June of 2008 when Ford put the “For Sale” sign up and both organisations (J&LR) employ around 16,000 staff at UK plants. Ford Reported that they failed to make profit on the Jaguar range but the Land Rover range proved to be profitable, but Ford decided to sell it as a package.3 The current economic state in the UK is, in a word is, recession, with fears of double dip recession this recession has an impact on many organisations, for example the public sector have capped the salaries and therefore people would have less money in their pocket to spend. Gross domestic product (GDP); this is the market value of all officially recognized final goods and services in the country, the formula is: GPD= Private consumption+ gross investment +...
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