Business Strategy - Rolls Royce
Added on 2020-12-28
11 Pages3885 Words74 Views
Leadership ManagementProfessional DevelopmentMechanical EngineeringPolitical Science
|
|
|
Business Strategy1
ContentsTASK 1............................................................................................................................................3P1 Capabilities of Rolls Royce and impact of macro factors on same...................................3TAKS 2............................................................................................................................................5P2 The internal environment and organisation capabilities...................................................5TASK 3............................................................................................................................................8P3 Competitiveness................................................................................................................8TASK 4............................................................................................................................................9P4 Understanding and interpreting strategic direction...........................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................112
INTRODUCTIONIn the present business world, it is important that the administration work in a way that it cancompete with tough competition prevailing in the market. for same strategies need to beformulated well in advance as it assists in carrying out business in a competitive manner.business strategies are the plans that are made prior to commencement of any project so that thedesired goals and objectives can be achieved (Ackermann and Audretsch, 2013). An effectiveapproach minimises the gap between actual and desired results as these are prepared afteranalysing all the factors that affect the function of business. Rolls Royce cars limited is a Britishautomobile organisation having its headquarters in UK. It was founded in 1998 after BMW waslicensed the rights to the Rolls – Royce brand name. As the referred brand belongs to a sectorhaving a range of competitors it is important for same that it formulates such strategies whichcan help it in maintain the higher image in market. The following report will talk about how aneffective plan can be made using distinct tools for auditing like PESTLE and SWOT analysiswhich helps in understanding the business surroundings.TASK 1P1 Capabilities of Rolls Royce and impact of macro factors on sameThe external surroundings of business keeps on fluctuating and it is important that thechange taking place in the environment are dealt with care. Automobile industries fluctuate muchand has to operates within the legal obligations made against the same. There are differentfactors that are present in the external surroundings and effects the day today function of thebusiness (Annabi and McGann, 2013). This is of great importance that these factors areidentified in advance so that corrective actions can be taken. For same PESTLE analysis is aneffective tool that shows how the elements that are present outside has their indirect impact onbusiness. The following discussion will show how these factor has their influence on thebusiness.Political factors - These are the factors that are part of the political change or policiesprevailing in a particular nation. Whenever any business operates it has to first go through thepolitical conditions prevailing as they are different in distinct nations. As the referred company isoperating in different nations it is effected by the policies that are followed there. The tax rates3
are high for the referred firm and also strict laws are made for controlling the air pollution whichfurther affects the business as pressure on the manufacturing unit increases. The long termprofitability of the firm further gets effected as it uses the products that are supplied from thedifferent nations hence become more prone to global political changes. it is important for thefirm to first go through the political stability of an enterprise. It involves identification of themilitary invasion as it has its indirect impact on the scope of business (Auzair, 2011). Apart fromthis Rolls Royce also uses the intellectual properties in order to protect the important assets andgetting the same involves range of formalities which gain effects the growth of business. Thereare different laws and regulation which are capable of restricting the growth of a business likethe safety regulations made for protecting the work force.Economic factors – This is another factor which has its influence on the working of anenterprise. the economic condition of different countries is distinct from one another and it isimportant that it remain stable so that the predicted sales level can be achieved (Murano and et.al., 2011). Before formulating the plans for a particular nation it is crucial that same areexamined against the present economic state of the country. Change in the interest rate, inflationor any other monetary or equivalent value aspect has to be given maximum care so that thefinancial factor of the business remains unaffected. The government intervention is high in thissector in order to maintain stability in the automobile market. as the referred enterprise isoperating globally it further faces restrictions of trade that are made to maintain the economicconditions and exchange rates. in the process of manufacturing of cars high labour is requiredwhich add additional cost to the business. It is difficult to find cheap labour and therefore RollsRoyce add that cost to its final product which is already out of reach to a middle class customer.It takes loans too to carry out the daily operations for which interest is paid and hence the rate ofinterest become another factor through which the business of referred institution gets effected(Azar, 2011). In this sector it is important to have skilled labour so that effective and efficientwork is done which again become a challenge for the company to find in different countries. Social factors – This is a part of external environment of Rolls Royce which effects theoperations in indirect way and most difficult to determine in advance. The culture and way ofliving of different individuals is a part of this segment which has a major effect on how aparticular company receives demand in the market (Oestreicher-Singer and Zalmanson, 2012).the designing and changes that are made in the company’s product are influenced by the society4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Analysing the Impact of Macro Environment on Business Strategieslg...
|19
|6614
|66
Challenges Faced by Automotive Industry in UKlg...
|1
|1815
|57
Impact of Cultural and Natural Environment on Rolls-Royce Motor Carlg...
|11
|3483
|98
Macro environment of an organisation 5 TASK 47 P4 Porter's five force model to devise strategic planning for given company 7 CONCLUSION 10 REFERENCES 1 INTRODUCTION 1 TASK 11 P1lg...
|13
|4298
|497
Strategic planning for a business strategylg...
|13
|3761
|79
Business Strategy Assignment - Sainsburylg...
|15
|5066
|279