Jaguar Land Rover plc Essay Example | Topics and Well Written Essays - 2000 words

Jaguar Land Roer plc - Essay ExampleJLR has managed to capture commercialises in North America, UK, Europe and China. JLR has a large sales and distribution network. Jaguar and Land Rover postulate in 101 and 174 respectively. Its large distribution network comprises of 18 National Sales Companies, 61 trade partners, 83 importers and 2,241 franchise dealers. (JAGUAR priming coat ROVER PLC. 2011 BANERJEE, B. 2008) Financial Results JLR Plc has shown improvement in its financial results over the years. In 2008 when it was acquired it was a loss making company, with the improvement in technology, speak to cutting strategies, increased volume, product and market mix and favorable ex smorgasbord movements Tata Motors has managed to make JLR Plc a profitable business for the group. In 2011, due to its refinement in new markets of China and Russia where demand of premium cars was high, helped improve the companys performance. An increase in revenue- retail and wholesale twain, earnin g before interest, tax, depreciation and amortization (EBITDA) and net income have also been recorded in 2011 as compared to previous financial years due to efforts made in development of new products, debut new markets and resulting increase in volumes, decrease in be and better working capital management. (JAGUAR LAND ROVER PLC. 2011 BANERJEE, B. ... Information could be affectd about ROI, RI, payback periods of a product etc. Mangers require financial cultivation like revenue and costs to determine profit. In this analysis cost of goods sell is involved which is closely related to inventory management that is an important aspect of managements work. In an automobile business like JLR inventory management and valuation (completed products and work in progress) is the key to success, prop large inventory increases cost or keeping less inventory results in stock outs, both effecting customers. (DRURY, C., & DRURY, C. 2005) On the other hand JLR managers need information to take routine decisions and also strategic yen term decisions. Information is required relating to profitability to know which products to retain and which should be abandoned. Cost information is critical aspect of the business too. Based on this information managers take decisions about companys cost cutting strategies and enables them to compete in highly competitive markets. (DRURY, C., & DRURY, C. 2005) Activity Based Costing Cost information and its analysis is an important aspect of any business to gain a competitive edge over other business. The breakup of costs and easy, fairer allocation of costs incurred can provide a true ideate about the profitability of the products. In automotive business like JR Plc, a large portion of costs are incurred in administrative activities which are difficult to apportion directly to the products. ABC can change the way organization measure their performance and view their performance. (ANDERSON, S. W., & YOUNG, S. M. 2001) Data collection an d employee