Rolls Royce Report 2019

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ROLLS ROYCE REPORT 2019
Name
Institutional Affiliation

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EXECUTIVE SUMMARY
This research pertains to the company Rolls Royce that is a part of the Renewable energy
and Electric utilities sector. It combines my analysis of the company through the Pestle,
Porter’s 5 models; VRIO and SWOT framework to understand its corporate strategies, its
areas for further development and what its internal and external business environment factors
are.
The research pertains to the analysis through the following areas of description;
1. Current standing and statistics of the company.
2. Analysis of the External business environment through the PESTLE framework.
3. Analysis of the Industry/sector of the company’s operations through Porter’s 5
Model framework.
4. Analysis of the Internal Business environment through the VRIO framework.
5. Identification of the company’s strategic position through the SWOT analysis
framework.
I have tried my best to concisely add all the points of importance in these 5 aspects to
brief on the subject matter. Each of these aspects analyses the company in a different light for
better description and identification of the core principles, values, market entry barriers, and
other factors that relate to the success of Rolls Royce.

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CONTENTS
INTRODUCTION......................................................................................................................4
EXTERNAL BUSINESS ENVIRONMENT ANALYSIS-MACRO FACTORS (PESTEL)...5
1. POLITICAL FACTORS....................................................................................................5
2. ECONOMIC FACTORS....................................................................................................6
3. SOCIAL FACTORS...........................................................................................................6
4. TECHNOLOGICAL FACTORS.......................................................................................6
5. LEGAL FACTORS............................................................................................................6
6. ENVIRONMENTAL FACTORS......................................................................................7
INDUSTRY/SECTOR ANALYSIS (PORTER’S FIVE FORCES MODEL)...........................7
1. The threat of New Entrants.................................................................................................7
2. Competitive Rivalry...........................................................................................................7
3. The threat of Substitute Products.......................................................................................8
4. Bargaining Power Of Suppliers..........................................................................................8
5. Bargaining Power of Customers.........................................................................................8
INTERNAL BUSINESS ENVIRONMENT ANALYSIS-CAPABILITIES (VRIO
FRAMEWORK)........................................................................................................................8
1. Value...................................................................................................................................9
2. Rarity..................................................................................................................................9
3. Imitability...........................................................................................................................9
4. Organization.......................................................................................................................9
STRATEGIC POSITION OF ROLLS ROYCE (SWOT ANALYSIS)..................................10
1. Strengths of Rolls Royce..................................................................................................10
2. WEAKNESSES OF ROLLS ROYCE.............................................................................10
3. OPPORTUNITIES FOR ROLLS ROYCE......................................................................10
4. THREATS TO ROLLS ROYCE......................................................................................11
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................13
APPENDICES..........................................................................................................................14
1. PESTLE ANALYSIS....................................................................................................14
2. PORTER’S FIVE FORCES MODEL...........................................................................14
3. VRIO FRAMEWORK.....................................................................................................15
4. SWOT ANALYSIS..........................................................................................................15

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INTRODUCTION
Rolls Royce is a company dealing with the designing, manufacturing, and distribution
of the power and propulsion systems for automotive, aviation, marine and energy sectors with
the headquarters in London. Rolls Royce is an organization that represents a structure having
close reflections of the markets in which it operates (Connor et al., 2012). It was founded in
the year 1906 and is a publicly owned company working in the Renewable energy and
Electric utilities sector. The company's current CEO is Warren East, and it has an annual
revenue of $ 20.4B. 50,000 employees work at Rolls Royce currently. As of now, BMW has
acquired the assets and managed the manufacturing plants of Rolls Royce in the recent
developments (Gong, 2013).
The company's initial outline was dealing with automotive products and industry after
which they expanded to the marine, aviation, and energy sectors in time. Their main
highlighted product is the Rolls Royce Trent 1000 engine, used for powering the Boeing 787
dream liner that has recently replaced Boeing 767, providing the added technology and
experience of the four previous generations of Trent engines. Some of many advantages of
the Trent 1000 engine are given as follows;
 It has an IP power off-take which helps it in efficiently driving the aircraft’s
electrical systems while also improving the operability and handling of engines at
low power.
 It is the quietest engine on the Boeing aircrafts today with a 10.1 bypass ratio.
 Delivers superior performance retention through improved FOD protection and
maximizing of the airflow through its low hub tip ratio.
 It reduces the operational burden in cold climates or high moisture environments
through a heated ESS (Engine Section Stator) system.
 It has an adaptive HP cooling system that lowers fuel burn in general.