CASE# 4: JAGUAR
[ANALYSIS REPORT]
Managing Strategic Transformation [MST] under guidance of Prof. Indrajit
Abhirup Bose[G19002]
Kumar Utkrist[G19021]
Manisha Bhatia[G19022]
Sashidharan Chandershekar[G19037]
Mahak Kapoor[G19073]
MANAGING STRATEGIC TRANSFORMATION[MST] CASE# 4: JAGUAR
Core Issue Description
The Halewood plant is undergoing a reorientation under the leadership of Hudson. For long the plant has
been producing Escort and now the transformation to production of jaguar involves a renewed focus on
quality, productivity, customer service and improved culture as oppose to the prevalent cost savings
approach currently in place. We need to closely evaluate if the current management team is able to fix the
lack of attention that Ford management showed towards the plant, transform the work practices, attitudes
and deal with the Unions.
Will Hudson be successful in institutionalizing the new found spirit, which has led to a much-appreciated
turnaround. Does the cultural change and performance transformational noticed by Hudson and his
team conclude to a long-term success?
Submitted By: GROUP 1
Analysis of Data and Events
1. Between 1980-1990 there was 50% drop in employee strength against 25% drop in car production.
Again in 1990-1998, there was 53% drop in employees and 33% drop in car production. Was the
management in the mode of finding quick solutions to the problems by finding the easy way-
retrenchment? They might have been scanning the issues superficially without probing deeper or
were they left with no other option?
2. The organisation might have been suffering from Nut Island Effect. The employees might have
gotten isolated from top management for too long otherwise the problems didn’t surface
overnight. There were persistent problems for four decades. Did the fact that Halewood produced
number one UK selling car for years make the top Management complacent and not address issues
like lack of quality, customer focus, and accountability on part of Plant Managers? Workforce had
probably less belief and were more negative because of the unkept promises they had in the past.
3. There might have been political or bureaucratic power influencing the company’s decisions for
decades, which might have driven the autonomy of union. Hence the intension of the management
to fix Halewood might be questioned. They might intend to let the plant die an organic death. It
might also be a smart move on their part considering the plant had major economic and
developmental implications for Merseyside. Eventually the government was forced to pump in the
required funds in the company and align itself with the Ford management for the continued
survival of the plant.
4. Did Castle Bromwich and Brownslane receive preferential treatment & it wasn’t until a requirement
to produce higher volumes of X-400 surfaced? We must remember that only Halewood had the
unique capabilities and other provincial advantages to realize the scale of such a venture
SUBMITTED BY: GROUP 1 1
MANAGING STRATEGIC TRANSFORMATION[MST] CASE# 4: JAGUAR
5. A close proximity of Assembly Plants & Engine Plants would be desired. However, they were located
at separate locations. Could or did the Ford Management contemplate on having the plants closer?
Were they not far-sighted enough to see this dichotomy?
6. There might have been an information asymmetry between Jaguar Management and Ford
management as the former was surprised by the amount of work that needed to be done in fixing
human resources. Why is this surprising?
7. For decades, the Union has been clashing with the Management. The dramatic turnaround in
stance by Union raises suspicion. Hudson’s team might have been indeed been efficient to convince
it and honest to communicate their vision succinctly. Their visit to West Midlands plants might have
also contributed. However, we can’t completely rule out usage of any foul measures by the
Management to get Union’s buy-in. Could it be that Shop Stewards were promised “personal
favours/gains” in exchange for complying with them? If so, it does little to fix the underlying
problem of lack of synergy between the management & Union, and only serves to mask the
problem temporarily. They might have done this to inject a sense of urgency which was diffused
across the organization
8. The case doesn’t speak of any incentive-based Performance Management System (PMS) in
alignment with the strategic changes to reward those who would have complied and performed
well.
9. The Management was using pressure tactics to mould the employees instead of addressing the core
issue which was that of lack of communication and motivation for the employees. It wasn’t until
when the Management faced stiff resistance from employees did it realize the importance of
communication, the need to display early wins and to showcase their continued commitment
towards the change. We see a reactive approach in bringing credibility rather than a proactive one.
10. Retrenchment was a way to terminate the weaker links which was good considering the quality of
the factory had gone down and there was a widespread belief that there is no requirement for
change or improvement because they produced the no 1 UK selling cars for years. The morale and
trust of the retained employees could have been affected due to this downsizing. They were also
losing out on experienced people and the knowledge was lost forever.
11. There can be apprehensions regarding Hudson’s plan of employee’s interdepartmental movement.
Without any specialisation and experience on a particular field, how much quality work could be
implemented specially when the work would require high expertise. On the other hand, it might
have a positive effect of broadening of knowledge
12. Heavy upgradations were made like use of computer simulation techniques to ensure strain-free
conditions for operators but were the employees upgraded enough technically to handle all the
SUBMITTED BY: GROUP 1 2
MANAGING STRATEGIC TRANSFORMATION[MST] CASE# 4: JAGUAR
new and special equipment’s delivered and deliver premium quality products within the stipulated
time.
13. Was David Hudson, having operationally transformed two Jaguar plants, the right person to
transform a non-luxury car manufacturing plant? Could the Halewood plant transformation have
been completed at a earlier date with a person more experienced in the relevant field. Without
any data presenting David’s performance, one cannot speculate if he was the apt person for the
role
14. Given the fear of project loss and job loss, was the cultural transformation genuine or just on a
temporary basis? With an aim to please upper management did Hudson only concentrate and
present cases that showed a positive turn around. Without reports on the production volume and
after sales customer feedback, one cannot be sure of the validity of Hudson’s success story. The
improvements highlighted could only be attributed to escort production, but does it translate the
same to Jaguar.
15. With majority of the activities outsourced can the success story solely be attributed to Halewood
plant transformation? How committed and invested are the external vendors? Have they been
properly vetted to prevent any quality or malpractice issues? A detailed analysis is needed about
the dependency on external vendors and how the firm is able to maintain and minimize its risk
exposure.
Hypothesis
1. There must have been a sizeable political coalition (might include Govt) that fuelled extreme
autonomy of the Union. The firm’s Management didn’t wish to confront them and let the Plant die
an organic death.
2. Halewood employees got isolated from the top management – lack of far-sighted insight or will
from top management to fix long standing issues.
3. The Management forced Govt’s hand in providing them investment, the only way perhaps for Ford
Management to fight the long-standing political coalition and Union’s autonomy. The investment
from Govt. would ensure their commitment to the Plant, help tackle the troublemakers within the
company. Such a strategic plan on part of Ford Management might have been a smart move to
tackle the long-standing powerful opposition.
Recommendation
1. The employees demanded a higher salary for building “a Jaguar car”. Even if the Management
didn’t want to agree to their exact requests, it could certainly have provided motivation to them
through PMS. The PMS should be in alignment with new goals and objectives. KPI’s can be created
giving utmost priority to quality.
2. Multiple surveys and feedback to check employee morale, to check how vested they are in the
Jaguar brand and to check if they take pride in being associated with Jaguar. Regular review
SUBMITTED BY: GROUP 1 3
MANAGING STRATEGIC TRANSFORMATION[MST] CASE# 4: JAGUAR
meetings with the employees or visits by officials other than the Union will motivate the
employees. These steps would help senior management
3. Get in touch with the ground reality
4. Selecting multiple vendors to decrease sellers bargaining power, thus solidifying value
appropriation. Setting stringent quality standards for vendors to meet and having facility to check
on it too.
5. Management should also look towards taking initiates for promoting integration of the processes
outsourced with the Halewood plant.
6. The employees should also be up skilled and cross skilled in technical competencies to manage
inter departmental processes as well as the newly installed equipment.
7. A very small percentage of employment could be reserved for locals to promote popularity of the
firm within the region.
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SUBMITTED BY: GROUP 1 4
