Issues in Global Business and Strategic Concepts

Running head: ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPT
Issues in Global Business and Strategic Concepts
Name of the Student
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Author’s Note

1ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPT
Executive Summary
This specific study has provided deep insight on how Rolls Royce after facing issues in
implementing global strategy in civil aerospace division. This organization has already occupied
a predominant place in the realm of aviation craft industry. After identifying a problem in Trent
1000 of airline the company has faced immense challenges in maintaining their organizational
glory. In addition, the sudden announcement of 4000 job cut within the organization had
rendered a catastrophe for achieving business success. The study has provided detailed analysis
on how the business experts can increase their market share. Some of the major
recommendations have also been provided in this study in order to evaluate on how the
organization can overcome these major issues and improve their global strategies for regaining
international glory.

2ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPT
Table of Contents
1. Introduction:................................................................................................................................3
2. Background of the company and its current trading environment:.............................................4
3. Issue faced by Rolls Royce especially in civil aerospace division:.............................................5
4. Civil aerospace global strategy and its future scopes:.................................................................7
5. Current market share of Rolls Royce:.........................................................................................9
6. Five force analysis and improvement strategy on five forces:..................................................11
7. Strategy for increasing the rate of market share:.......................................................................13
8. The reasons of business expansion of Rolls Royce in other country with proper justification:14
9. Recommendations:....................................................................................................................14
10. Conclusion:..............................................................................................................................14
Reference List:...............................................................................................................................16

3ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPT
1. Introduction:
The study has identified some of the major issues of Rolls Royce while expanding global
business especially in the Aerospace sector. It has provided in-depth overview about the
importance of global strategic concepts implemented within the organization to overcome
organizational issues. Established in the year 1884, Rolls Royce is one of the most prestigious
engineering companies occupying a predominant place in the market of London. In quest of
expanding widespread wings in various geographical boundaries Rolls Royce always searches
for merger and acquisition. Rolls-Royce has won a significant boost after budget airline
Norwegian agreed a $2.7bn (£1.9bn) deal to buy engines from the company (Rolls-
royce.com 2018). Providing superior quality of products in affordable price range is the unique
selling point of the organization. The business experts by implementing participative form of
leadership style at the workplace intend to maintain a friendly environment within organization
in order to get effective services from the employees. Especially in the department of aerospace
it is observed that Rolls Royce has gained immense business image and popularity by providing
effective services to the customers.
The entire business cycle of Civil Aerospace department is constituted with five major
stages that include cutting edge technology, dynamic technology management, compelling
customer proposition long term value creation and resilient business. The company aims to build
strong heritage in mechanical engineering in quest of producing electro mechanical chain and
hybrid power system (Ellis 2015). However, while expanding their regional business wings in
the international market the organization has faced innumerable issues in the department of Civil
Aerospace especially.

4ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPT
This very specific study has provided detailed overview about the key major issues that
Rolls Royce have faced in order to while making global strategy and technical barrier. By
making effective five forces of Porters’ the study has critically evaluated on how Rolls Royce
has to face threats from its competitors and substitutes in order to run the entire process of
business effectively. By identifying the issue the study has focused to provide some of the major
recommendations on how to overcome the challenges of Rolls Royce in making global strategy
and regain their organizational glory and reputation (Dobbs 2014). In addition, the study has also
focused in making critical evaluation on the reasons of business expansion of Rolls Royce in
other country. Apart from Britain if the country needs to expand its wide range of business in
other regional boundary it should be Vietnam where Rolls Royce can expand its widespread
wings.
2. Background of the company and its current trading environment:
As already mentioned Rolls Royce is one of the most remarkable engineering companies
occupying a predominant place in the market of London (Yunna and Yisheng 2014). This
particular brand has already established its entire business wings in Africa, America, Asian
Pacific, Europe and Middle East. Among most of the Asian pacific zone Azerbaijan, China,
India, Indonesia, Japan, Malaysia are the most prominent. However, it is observed that Roll
Royce is still intending to have new market entry based on which the company can easily drag
the attention of international customers (Indiatsy et al. 2014). Airline, Business Aviation,
Helicopters are the three prime stakeholders of Rolls Royce. Among three Airline $2.7bn
(£1.9bn) has made the deal to buy engines from the company due to which Roll Royce has
achieved a huge success. However, Trent 7000, Trent 1000, Trent XWB, Tend 900, Trent 700,

5ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPT
Trent 500 are the core products that are delivered to Airlines on behalf of Civil Aerospace
department.
However, this very specific study has focused to make detailed overview on how Airlines
has faced innumerable challenges with Trent 1000 engines as a result of which the company has
decided to render huge job cut as a consequence (Porter and Heppelmann 2014). However, this
specific incident has rendered immense disaster in maintaining entire business image and
reputation. As a result, the current trading environment has become in turmoil situation based on
which the business experts are unable to gain customer loyalty.
3. Issue faced by Rolls Royce especially in civil aerospace division:
Rolls Royce has received a complaint that Trent 1000 engines is getting affected with its
compressor durability. The primary purpose of making this engine is fast services than
expectation. In order to fulfil this need Trent 1000 engines have failed to meet its sustainable
compressor durability (Sassen 2016). However, it has become a major problem in the realm of
aviation industry due to which Rolls Royce has lost customer loyalty to some extent. After
finding the issue within “Package B version” with compressor durability, Rolls Royce has tired
to fix up the flaw by launching “Package C”. However, the issue faced by the British Airways
and Norwegian cannot be avoided even after launching the next version of Package C in the
market (Lasserre 2017). Aircrafts powered by trent1000 was compelled to be grounded due to
compressor issue. Due to the sudden cancellation of leading flights such as Airlines, Virgin
Atlantic the entire transportation system has become demolished. As a result, it has become a
major challenge for international business experts and other international visitors as well.