Contemporary Developments in Business and Management

This document discusses the primary external influences on Rolls Royce, including political, economic, social, technological, environmental, and legal factors. It also analyzes the marketing communication mix and its impact on the organization.

Contemporary
Developments in Business
and Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of primary external influences subjected to the organisation......................................1
TASK 2............................................................................................................................................3
Choice of theme and analysis of it...............................................................................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Contemporary development can be defined as the process which facilitate the
management to analyse that multiple levels of company which are involved in human life are
integrated systematically or not. While planning for effective execution of business it is very
important for the managers to pay attention towards it so that future goals could be accomplished
by achieving desired growth and success (Abbott and Bamforth, 2019). The enterprise which is
selected for this report is Rolls Royce which is a multinational motor vehicle manufacturing
company Headquartered in Manchester, UK. It was founded by Henry Royce and Charles Rolls
in year 1904. CEO of the entity is Warren East. This assignment covers various topics such as
analysis of primary external influences for the organisation and theme which is selected for this
report is marketing communication mix. Additionally, relevance of the theme to the company,
influence of it in policies and decision making along, critical evaluation of its effectiveness along
with areas of improvements are also discussed in this project.
TASK 1
Overview of primary external influences subjected to the organisation
Rolls Royce is one of the largest motor vehicle manufacturing companies operating
business all around the world. It is mainly established in United Kingdom but offering innovative
cars to different nations as it has expanded its business at global level. In order to execute all the
operational activities it is very important for the top management to make sure that external
environment is analysed properly. With the help of it, the factors which may leave negative
impact upon operational activities could be identified and strategies to deal with them could be
formulated. For the purpose of analysing external influences PESTLE analysis could be
conducted (Aldrich and Cormac, 2016). It is a combination of six different factors which are
required to be focused by all the companies as it can help to formulate effective policies and find
appropriate ways to execute business operations. All the elements of it are discussed below in
context of Rolls Royce:
Political: This factor consist different elements such as governmental policies, stability
of political parties, corruption, trade restrictions etc. In order to operate business in systematic
manner it is highly important for Rolls Royce to focus upon all these forces. In UK political
stability is very low which has resulted in Brexit and affecting the organisation as the top level
1

executives have to pay additional taxes while importing or exporting cars. It is essential for the
management of the company to give importance to this factor as it can affect the market share
which is captured by Rolls Royce by selling its cars in different locations around the world.
Economic: The forces which are required to understand impact of this influence are
economic growth, unemployment, disposable income and different rates such as interest,
inflation, deflation, exchange etc. Unemployment rate in UK is 3.8% which is a high percentage
which is affecting business of Rolls Royce because due to them economic growth gets affected
that leaves negative impact upon business execution processes and higher tariffs. The chart
below shows the fluctuation in this rate in United Kingdom:
Illustration 1: Unemployment rate of UK, 2019
(Source Unemployment rate of UK, 2019)
The above chart shows that unemployment rate in UK is decreasing since last four years
which means the GDP of the country would have increased (Unemployment rate of UK, 2019).
For managers of Rolls Royce it is very important to pay attention towards economic influences
so that they can analyse that the business could grow or not as all of them direct impact the
economic growth of the nation.
Social: Forces such as population growth, demographics, customer buying trends, career
attitudes, age distribution, organisational image etc. are social factors which are the external
influences affecting functionality of companies. Buying behaviour of customers changes with
time regarding cars as with the passing of time new and innovative vehicles are launched in the
market (Beckett, 2019). Due to this preferences and demand of motor cars changes with market
2

trends. It is very important for Rolls Royce to make sure that these influences are focused by it as
ignorance of them may result in lower revenues, sales and market share.
Technological: Level of innovation, automation, technological awareness and change,
technology incentives etc. are components of this element which are influencing operational
efficiency of companies due to frequent changes in technology (Duncan, 2014). Rate of
technological diffusion in the auto mobile industry is very high and apart from this different
innovative cars are launched by competitors of Rolls Royce in the market which is affecting
sales of the organisation. In order to retain its market share it is very important for the managers
of the company to make sure that they have gathered detailed information of them. With the help
of it the whole enterprise can deal with technology related issues as the management will form
strategies according to latest trends and innovation.
Environmental: Policies of environment protection, weather, climate change, pressure
from NGOs etc. are elements of this external influence. In UK and other countries around the
world governmental parties are becoming strict for environment protection as they want that
citizens should live a healthy life. It is very important for Rolls Royce to make sure that the cars
which are manufactured by it are not harming the earth and spreading pollution because it is vital
to execute operations systematically (PESTLE analysis of Rolls Royce, 2019).
Legal: Different types of laws such as discrimination, consumer protection, copyright,
patent, employment etc. are some factors of legal influences. For reaching long term business
goals such as profit maximisation, capturing large market share etc. it is very important for
companies such as Rolls Royce to operate business according to law and in legal manner. This
element is required to be focused by the organisation as it can help to ignore governmental
influence in the operations.
By analysing all the above described external influences managers in Rolls Royce Will
be able to analyse the negative events which may take place due to all of them and they can form
effective strategies with the help of them.
TASK 2
Choice of theme and analysis of it
Marketing communication mix refers to the promotion mix which consist different types
of elements such as promotion, selling, public relation, direct marketing and so on. Herein,
3

public relations and direct marketing both are key elements of marketing communication that
always have impact on decision making and policies of firm's. It is a mixture of different
promotional elements that are required to be focused by all the organisations to reach the long
term business goals such as profit and sales maximisation. It plays a vital role in the process of
attracting large number of customers because it guides the business entities to form such
strategies that may grab attention of targeted market (Earl and Potts, 2016). It is beneficial to
communicate with clients properly and aware them about all the products that are sold by an
organisation. Rolls-Royce organization is one of the better British luxury auto mobile maker
which was established in 1998 and it is headquartered in United Kingdom. It deals with so many
luxury cars and make heavy engine to satisfy their customer's wants and needs. It is a subsidiary
of BMW that has no directly relationship with RR branded vehicles. This company are using
several kind of marketing elements in order to achieve there goals and objectives in an
appropriate manner. Therefore, the ordinary sector of this firm will be public relations and direct
marketing as they have both good or bad impact on company, but on the same side as per the
current situation Rolls-Royce is able to focus on their overall operating system to achieve huge
success across the globe. For Rolls Royce it is very important to make sure that all the elements
of it are taken in to consideration for the purpose of performing marketing and promotion related
activities in systematic manner. There are five major elements of it that should be focused in
decision making process to promote all the motor vehicles sold by it in the market. All the
components of it are public relations, direct marketing, personal selling, sales promotion and
advertising. Discussion of all of them in context of Rolls Royce is as follows:
Public Relations: This term refers to the practice of managing the overall information
between individual and organization like government, business, agency along with non profit
organization. It can be said that, there are lots of people who has trust on this brand by using
their vehicle and watching news on TV towards RR. As they are promoting its aid through so
many advertising channels so that people can easily aware about this brand and able to afford
these luxurious vehicle from this brand. It is most expensive brand so it mainly target high class
and standard people who can easily buy vehicles from them (Harmon, 2019). By following these
assorted steps they always make good relations with public and able to gain competitive
advantages at marketplace. In addition to this, make a good relation with public/people this can
achieve their target in a instant manner and give so many other facilities to their customer's like
4

heavy discount during festival and gift hampers while purchasing vehicle. This type of business
ideas increase brand image of Rolls Royce and encourage them to beat competition at
marketplace.
As per the above specified definition of public relation is one of the best marketing
communication channel that help firms to achieve their targeted goals and objectives in a
successful manner. With the help of this channels manager of Rolls-Royce is able to reach high
goals within competitive advantages. But there are few negative and positive aspect of this
elements, that are:
Positive: This element has positive impact on firm as it is always available and help firm
to build strong relationship people so that they can make huge connection with them and achieve
its target (Hatherly, 2016).
Negative: It includes lac of control across the message release so that it impact
negatively on RR.
Recommendation for improvement: As per this Rolls Royce should understand their
customer's first and focus on their overall activities in order to build strong relationship with
them. It will help firm to meet future goals and objectives in a perfect manner.
Direct Marketing: It is the form of marketing communication mix whereas,
organizations is able to directly communicate with their customers in a proper way. Along with
this, it is considered as a method for a direct response and develop good image of brand within
consumer's mind. In reference with Rolls-Royce manager of this firm always use this tool in
order to attract large number of customers in a one time. For this process they generally used
direct communicating tool through advertising their overall vehicles image and use hoardings.
On the basis of this respective firms is able to communicate directly through pre selected
customers and able to give their goods and services in a fixed time. It directly influence people in
a positive manner and increase huge sales of Rolls-Royce. In order to have different types of
marketing communication channels Rolls Royce is able to achieve their goals in a proper way
(Hoskins, 2016).
Direct marketing occurs when industries approach customers by following so many
multitude of channels such as phone, e-mail etc. with the help of these channels RR involves
taking instant action towards customer's queries. There is some positive and negative aspect of
this, those are:
5

Positive: It has graceful positive impact on respective firm by which they can easily
target customers and able to send message to a specific groups of people on the behalf of buying
behaviour of consumers.
Negative: Environmental impact is one of the negative aspect of this element which is
associated with direct mail which impact negatively on Rolls-Royce.
Recommendation for improvement: It includes so many approaches and tools in which
Rolls-Royce can directly communicate with their customers & end users. So it has been
recommended for this that they should bring more technologies so that they can make firm's
more famous. Along with they can use telemarketing and face to face conversation it will good
impact on consumers and make firm attractive so that they can achieve its target successfully
(Jackson and Brunger, 2014).
Personal selling: This means an activity in which a person sale its products and services
by using face to face communication. In other words, personal selling is a face to face selling
technique in which salesperson uses their interpersonal skills in order to persuade their customers
in purchasing products. This is also a promotional method which is used by organisation to
convince the customers and make a sale. It is different from advertising because in advertise
strategy organisation uses different sources to promote their products. In context to Rolls Royce,
management uses this element to sale their cars personally to customers which helps to increase
the selling activity of organisation and maintain the good performance. It uses personal selling
with the help of dealers who give chances to customer to touch, drive and make buying decision.
This is effective for organisation as managers promote their products with the aim of informing
and encouraging the customers to buy or at least trial the product. In this method, customer select
the product by feeling or touching the products.
From the marketing communication mix strategy it has critically evaluated that Rolls
Royce can use personal selling which responds positively and negatively such as:
Positive: This gives advantages to Rolls Royce as people get information about their new
car and shows buying interest which impacts positively. This is effective strategy for business
entity which helps to promote its products and increase the number of customers as well as brand
image (Jackson and Lockwood, 2018).
Negative: If organisation is using personal selling in marketing communication then it
may be difficult for managers to reach many customers quickly and build awareness of their
6

products as well as brand. It is also expensive for organisation that it incur cost per action which
reduces profits (Pearce, 2015).
Recommendation for improvement: To improve the response of organisation there is
need to focus on needs of targeted customers who wants luxury products and should provide
information to them on priority basis. There should be budget plan in which managers can use
personal selling to inform people. Organisation needs to make effective marketing, referrals,
favourable attention, strong sale skills and customer service which can help to improve the
negative responds. This will also help to promote the products and increase organisational image.
Sales promotion: It can be defined as the process of motivating the customer to buy a
product so that revenues and sales of an organisation could be increased (Milanovic, 2016). Main
purpose of it is to build brand loyal clients who remain the part of entity for a long period in
future. It is also focused by Rolls Royce for the purpose of enhancing profits and revenues of the
organisation. It directly impacts the strategies which are formulated by the organisation for the
purpose of spreading awareness of all the cars which are launched by the entity in the market.
The company make efforts for sales promotion by conducting marketing campaigns which helps
to aware all the targeted customers about the cars that are going to be introduced in the market. It
directly influences the policies of the company because the management have to change their
decisions according to the market situations and trends. For example, most of the entities in
automotive industry are using digital media for marketing perspective therefore it is vital for
Rolls Royce to use it for promotional activities. If these are not focused by the management then
it may leave negative impact upon functionality of the company. Main purpose of the enterprise
for paying attention towards it is to boost sales and achieve competitive advantage in the
industry. The organisation have successfully implemented the strategies which are formulated for
the purpose of sales promotion and it has also resulted in higher revenues. If other competitors
are using some unique techniques for this purpose then it is vital for the company to make
changes in its decision making because to attract customers it is important to follow market
trends. The critical evaluation of the effectiveness of this element of marketing communication
mix is as follows:
Positive: By paying attention towards sales promotion Rolls Royce attract large number
of customers and increases its sales and revenues. With the help of this communication channel
the entity reaches to its business objectives such as higher profits (Rees and Smith, 2017).
7

Negative: If the management make mistake in the formulation of strategy for sales
promotion then it may affect the overall functionality of operations because it may result in
losses and decreased market shares. When the company will not be able to attract customers then
its profits will be declined and it will not be able to spend money upon marketing activities.
Recommendation for improvement: There are various types of errors that are made by
managers of Rolls Royce while taking decision regarding sales promotion. One of them is
ignoring the tactics adopted by competitors and due to this factor the entity may face the issue of
lower profitability and revenues. In order to respond this issue properly the management is
recommended to conduct market research and gather information of the strategies used by
competitors for sales promotion. With the help of it, the management will be able to deal with
the problems which may take place in future.
Advertising: An activity which is used by business organisation to provide the
information about new products and services, consider as advertising. This is the way of
marketing communication where management uses different sources to promote their products
and sell them effectively. A person who uses advertises is known as sponsor who are typically
businesses wishes to promote their products. By using this element business organisation attracts
people and encourages them to buy which they wants (Sadgrove, 2016). There are different
sources which are mass media and traditional media uses by business entity to inform people and
sell them goods. Traditional media includes newspapers, magazines, outdoor advertising, direct
mail, radio etc. where as mass media covers social media, television, websites, blogs and text
messages. This is a luxurious auto mobile maker organisation that uses new technology and
design cars which attracts customers. Advertising is relevant in such organisation which
influences decision making in chosen entity. For instance, management of Rolls Royce introduce
from new car model by using mass media and traditional media which helps to operate their
administration effectively as customers get attracts with products and make decision to buy them.
Organisation make decision to increase their sale which is possible through advertisement that
helps to increase the number of customers.
By using advertising it has critically evaluated that organisation response positively and
negative by selecting the appropriate sources of promotions that are as defined:
Positive: This helps to increase the brand image of organisation by using promotion and
selling the number of products. Rolls Royce is using different types of marking communication
8

advertising is out of them that provides information to people and promote its products (Sultana,
Hashim and Shafii, 2016).
Negative: It increases the cost of organisation while giving advertisement and undermine
the social values. This also creates confusion in customer's mind and some times which resulting
bad results.
Recommendation for improvement: In business era, there are some area in which
organisation can improve their response as it should research the market what people wants and
then provide products. There is need to bring some new technology in advertisement and online
promotion which will help Rolls Royce to improve their response and also will raise the number
of customers.
From the above described different types of marketing communication channels it has
been determined that by paying attention towards all of them Rolls Royce will be able to achieve
its targeted goals and objectives such as profit and sales maximisation. Therefore, it is necessary
for firm to use each and every channel of marketing in a perfect mode. With the help of all of
them Rolls Royce can easily make their potential customer's and attract them a lot (Valkeapää
and Ducloux, 2014).
CONCLUSION
From the above project report it has been concluded that contemporary development is
the process of paying attention towards the opportunities that are available in the market for
growth. While planning for analysing the external influences on the business it is very important
for companies to conduct PESTLE analysis which is highly focused with six different elements.
These are political, economic, social, technological, legal and environmental. Marketing
communication mix is a blend of five components which are personal selling, direct marketing,
sales promotion, advertising and public relations. If an organisation is not able to pay attention
towards all of them then it may create difficulties for it to reach the goals such as profit and sales
maximisation. In order to deal with all the negative impacts it is essential for an organisation to
make improvements in the organisational policies.
9

REFERENCES
Books and Journals:
Abbott, M. and Bamforth, J., 2019. The Early Development of the Aviation Industry:
Entrepreneurs of the Sky. Routledge.
Aldrich, R. J. and Cormac, R., 2016. The black door: spies, secret intelligence, and British Prime
Ministers.
Beckett, J., 2019. Public parks and urban development during the nineteenth and twentieth
centuries in Nottingham.
Duncan, K., 2014, August. Relationship between the audit function and effective governance.
In International Conference on Business Management2014: Corporate Governance in
International Era.
Earl, P. E. and Potts, J., 2016. The management of creative vision and the economics of creative
cycles. Managerial and Decision Economics. 37(7). pp.474-484.
Harmon, P., 2019. Business process change: a business process management guide for managers
and process professionals. Morgan Kaufmann.
Hatherly, D., 2016. The failure and the future of accounting: Strategy, stakeholders, and
business value. Routledge.
Hoskins, Z., 2016. Collateral restrictions. Rowman & Littlefield.
Jackson, J. and Brunger, Y., 2014. Fragmentation and harmonization in the development of
evidentiary practices in international criminal tribunals. Oxford University Press (OUP).
Jackson, T. W. and Lockwood, S., 2018. Business Analytics: A Contemporary Approach. Red
Globe Press.
Milanovic, M., 2016. The lost origins of lex specialis: rethinking the relationship between human
rights and international humanitarian law.
Pearce, M., 2015. The spread of early copper mining and metallurgy in Europe: an assessment of
the diffusionist model: a key-note lecture.
Rees, G. and Smith, P. eds., 2017. Strategic human resource management: An international
perspective. Sage.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Sultana, M., Hashim, M. H. and Shafii, S., 2016. Prominence of new Luxury car sales in
Malaysia. In MATEC Web of Conferences (Vol. 74, p. 00008). EDP Sciences.
Valkeapää, V. and Ducloux, M., 2014. Service infusion in practice: A Case study of the
development and practice of service sales at Rolls-Royce Marine AB.
Online
Unemployment rate of UK. 2019. [Online]. Available through:
<https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/
unemployment/timeseries/mgsx/lms>
PESTLE analysis of Rolls Royce. 2019. [Online]. Available through:
<https://www.swotandpestle.com/rolls-royce-holdings/>
10