Rolls Royce Holdings PLC Boardroom Presentation

K
ROLLS-ROYCE
HOLDINGS PLC

Political factors of Rolls-Royce Holding Plc
Political factors regulate the activities of a company according to the law and policies of
government of the country. As for the Rolls-Royce Holding group is operating in multiple
countries providing industrial goods and services hence the company face various political risk
and threats such as political stability, policies and government system, corruption and taxation
policy.
 Political tensions of the country the company is operating in can influence the industry
growth and minimize the opportunity available to Rolls-Royce Holding.
 Rolls-Royce Holding can study the current policies of the country’s government as
government can changes policies toward the development of the related industry.
 High taxation rates affect the import and export also international business hence Rolls-
Royce Holding should enter in a market where taxation rates are low and create more
profit that can be invested in research and development activities.
Economies factors that influence the Rolls-Royce Holding Plc
Economic factors include inflation rates, foreign exchange rates, completion rates and
interest rates. It is important for Rolls-Royce Holding to understand these economy factors
as they determine the economy environment of the company. A comprehensive
understanding of the economy can help the industry in estimation of the growth. Following
are the economies factor that the Rolls-Royce Holding Plc should consider:
 Type of economy system and stability of economy in the country company is operating.
 Economy growth rate of the operating country.
 The company must analyze the labor market conditions to attract talented workforce to
improve business performance. Along with this company should also analyze the availability
of skilled labor as their shortage can affect efficiency of business.
Social factor of the Rolls-Royce Holding Plc
Social factor affect the culture of an organization. Beliefs and attitudes of the public play
a large role in understanding customer’s behavior. Following are the social factors the
Rolls-Royce Holding Plc should analyze:
 Rolls-Royce Holding Plc analyzes the demographic characteristics that help the
company in selecting the best market segment with high growth opportunity.
 Online shopping has increased after the e-commerce initiation and customers are
giving more consideration to online shopping. Thus the Rolls-Royce Holding
Plc also needs to understand the shopping behaviors of customers and develop
their marketing strategies according to new social pattern.
 Each country and society has different social norm and culture and Rolls-Royce
Holding Plc should make local teams to understand the societal values and

develop their marketing strategies according to the culture and values of the
society.
Opportunities and Constraints Company is facing in general environment of
the company
 Political factor: Rolls Royce is a global company that works in multiple
markets and face different political reasons that directly affects its sales.
1. Opportunities: Company got the benefits from political factor while
working for air force and army there is certain power is connected
with them thus can influence political situations in company’s favor.
2. Constraints: Political situation of European market is not as stable as
other Asian market hence the business operation has been affected.
Company has another area of operation that is supplying advanced
vehicle engines to military and armies. But the company have to
bend down it operations due to the pressure from particular countries
and countries in power.
 Economic factor: Since the company operates in multinational market
economic stability is important for maintaining the company’s position in
market. Economy stability, employment rates, economic growth rate are the
essential factor for Rolls Royce to remain profitable in automobile industry.
1. Opportunities: The segment market for the company is premium
with upper social class people who can afford the automobile
product of the company. Fluctuation of exchange rates of a country
can affect the company but not much extent because buyers belong
to the premium group who can easily pay for their product and
service.
2. Constraints: Company gets affected by a recession period during
2008 and sale of the company went down. Thus economy down
can impact the company’s profitability.
 Social factor: Rolls Royce is a popular and established brand known for
beautiful automobiles in international market. Social factors such as
education level in company, attitudes of the people. These cars are the art
and symbol of status for people. The company also manufactures civil air
jets and engines which increased the stakes for the company.