Over the last few decades, there has been a fundamental movement and change in international business. The globalization of the world’s market to an extent has played a significant role in the facilitating of this movement and more also has aided the forms in which businesses operate in today’s business environment. One of such cases can be likened to the systematic merging, acquisition and strategic alliances undertaken by firms in recent times, with business quest best known to these business brands. It has been opined by various scholars that firms have resulted to these approaches for various amounts reasons, i.e. need to expand, to facilitate R&D, to aid production of goods and services, to facilitate internationalization processes, to enter new markets etc. For whatever reasons, firms have done this for a common motive i.e. growth and an example of this can be found in pact between Luxury British brands Jaguar and Land rover.
1.0.1 Company Overview
The Jaguar Land Rover Company is a product of the alliance of two iconic British car brands. Jaguar cars limited, founded in 1922 is one of the world’s premier maker of luxury saloons and sport cars. Land Rover manufactures four-wheel drive vehicles with the widest range of off-road capabilities since 1948. This long-term alliance, built on trust, is focused on product development driven by desires to design great products, create outstanding experiences for customers and Environmental Innovation. (Jaguar Land Rover, 2012).
The structure of the alliance is such that both companies, being luxury brands, maintain their identity with regards to products and services but bringing their skills and knowledge base to improve their individual products in every area possible. With an investment of £1 billion every year in product development, Jaguar Land Rover is at the center of the UK automotive Industry’s energies to develop innovative vehicle technologies. (Jaguar Land Rover, 2012)
Environmental Innovation Strategy has been identified as the future competitive advantage in a low-carbon world. With the global consciousness of the environment and well-being, Jaguar Land Rover intends to make their contribution by minimizing the environmental impact of their products and operations.
Environmental Innovation, which is centered on carbon management strategy, includes reducing CO2 emissions from the vehicles, reducing operational footprint from site energy use, transport of parts and products and business travel, and development of lower emission vehicles and more efficient manufacturing processes. One of their achievements in this regard is the Range Rover Evogue, which is the smallest lightest and most fuel-efficient Range Rover ever and the Jaguar XJ (Jaguar Land Rover, 2012).
Managing Sustainability entails identifying existing and emerging issues that are most important to JLR. This is carried out through business planning process and a gap of analysis of risks and opportunities and future sustainability trends. These issues include climate change, resource management, water reduction and employee engagement. Stakeholder engagement is also important in managing sustainability therefore, the aim to develop effective relationships is crucial and a working plan of JLR. (Jaguar Land Rover, 2012)
1.1 STRATEGIC ALLIANCES
Strategic Alliances can be seen as “cooperative agreements in which two or more separate organizations team up in order to share reciprocal inputs while maintaining their own corporate identities” (Ard-Pieter de Man, 2003). Strategic Alliances either takes a narrow form; confined to joint R&D or the broad form, which includes other activities. It allows for each party to do what it knows best and still transfer its knowledge, skill and resources to other participating parties.
1.1.1 Jaguar Vs Land Rover Strategic Alliance
Jaguar Land Rover alliance can be said to belong to the broad form. This form of collaboration however,...