International Marketing Management: A Case Study of Rolls-Royce

International Marketing
Management

Table of Contents
Executive Summary.........................................................................................................................3
INTRODUCTION...........................................................................................................................4
Overview of the organisation...........................................................................................................4
Critical Evaluation of Models..........................................................................................................4
PESTLE Analysis.......................................................................................................................4
Porter's Five Forces Analysis......................................................................................................6
CAGE Model..............................................................................................................................6
OLI Framework- Market entry...................................................................................................7
Hofstede's model of international culture...................................................................................9
Justification of models to be used.............................................................................................10
PESTLE Analysis of Rolls Royce in Australia..............................................................................10
PESTEL Analysis of Rolls-Royce in Canada................................................................................12
Hofstede's Cultural dimension- A comparison..............................................................................13
Cage model....................................................................................................................................15
Marketing mix analysis- Country comparisons.............................................................................16
Justification of choice of country...................................................................................................17
Mode of entry strategies.................................................................................................................18
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

Executive Summary
The mentioned report was aimed at global expansion of respective business organisation
i.e., Rolls-Royce (A British Car manufacturing company). For instance, it was comprised of
various frameworks and models in order to accomplish the standards and goals of completion of
this particular report assessment. The entire assessment was basically aimed at international
expansion of company in Canada and Australia.

INTRODUCTION
International Marketing Management is determined as process of carrying out
multinational marketing practices in different economic nations. For instance, it includes
development of strategic plan and further execution of plan including strategies for promotion,
pricing, and supplying products in order to fulfil consumer demands. There are various elements
involves in essential process of international marketing management including research, product
localisation, communication, inbound & outbound marketing, etc. Within this report, Rolls
Royce is a UK-based organisation that is taken into consideration for demonstrating different
aspects of this report (Akter and et.al., 2021). This report assessment will be comprised of
significant and insightful information and knowledge regarding International marketing with
context of Rolls Royce. Furthermore, it will further highlight risk factors as well as opportunities
associated with respective organisation in carrying out international marketing practices for
growth and expansion.
Overview of the organisation
Rolls Royce Motor Cars Limited is UK based auto-mobile manufacturer engaged in
manufacturing of luxury motor cars. Moreover, respective business organisation was established
in the year 1904, and has been headquartered in Westhampnett, United Kingdom. The company
operates worldwide by providing customers of richer section of society as motor cars offered by
respective organisation are quite costly as compared to other competitors in the market. The
respective organisation is functioning for the purpose of developing administrative as well as
production facilities that are opened in the year 2003 (Baack, Czarnecka and Baack, 2018). After
this year, the company has expanded its product range in order to involve two-door coupe,
extended wheelbase along with the convertible versions of Phantom Sedan and smaller ghost
four-door sedan, Dawn Convertible, Wraith two-door coupe as well as Cullian SUV.
Critical Evaluation of Models
PESTLE Analysis
It is a tool that is used to analyse the impact of macro-environmental factors that are
influencing the functioning of an industry. This tool helps the managers of Rolls-Royce in taking
strategic decisions and building remedies for the strategic management of the company. The
Pestle Analysis of Rolls-Royce is given as under:

 Political factors: UK Union has strong stability and has less trade restrictions because of
this it provides opportunities for firm like Rolls Royce to trade freely at global level. It
brings positive impact on company as the organisation can expand it business throughout
the world. But impact of pandemic situation in the year 2019 has highly influenced the
performance of company as government of country has made various guidelines such as
social distancing, etc (Cantoni and et.al., 2019). This has resulted in declining the sales of
company as thereby its profitability and efficiency too.
 Economic factors: Economy of UK is globalised and market oriented which brings
positive impact on company such as Rolls Royce. It helps in encouraging business
worldwide which increases sales volume as well as profitability of the company.
However, impact of pandemic situation of COVID-19 such as economic lockdown has
greatly influenced the business operations due to which, the company has suffered loss
and negatively impacted.
 Social factors: Social market of UK is well developed along with fair as well as strong
society. Rolls Royce is a status icon and a brand which is popular across the world by
making positive impact on society. The company is producing the cars by knowing and
understanding the perceptions of its market share. It positively impacts business
operations of company as the sales of organisation will get increase through capturing a
large number of customer-base.
 Technological factors: UK has upgraded technological sector which impacts positively
on ventures like Rolls Royce as the company is using latest technologies that facilitates it
in saving the cost and time of the overall business. It brings favourable influence on
organisation and enhance its productivity and profit margins within the business.
 Legal factors: UK authority has legislations like Health and Safety at Work Act, 1974,
Employment Rights Act 1996, Equality Act 2010 (Cateora and et.al., 2020). Rolls Royce
follows legislations to work ethically which ultimately brings good impact on it.
 Environmental factors: UK environment is pleasant and has temperate climate and
Rolls Royce introduced electric vehicles to reduce pollution level which positively
impacts company's performance as it will attract a large number of customers within the
market place.

Porter's Five Forces Analysis
The model of Porter's Five Forces will help company in analysing the level of
competition within the industry through examining surplus potentiality of industry and therefore
its attractiveness. There are five forces within this model and all these forces are discussed as
below:
 Competition in existing market: This force helps the company in determining the level
of competition within the industry of automobiles. Therefore, there is a high threat for the
organisation as market share can switch to another competitors who is offering the same
products at lower cost in comparison to first company.
 Threats of new entrant: The political system of UK has made certain barriers and
regulations within automobile industry for new entrants. There is a requirement of license
in order to enter into the markets of respective industry. Hence, there is a low threat of
new entrants for company because a large amount is required to enter into the industry.
 Bargaining power of suppliers: There are a large number of suppliers in automobile
industry so if a supplier charge high prices then the respective company has an option of
switching to the another supplier who offers same raw material at lower cost than others.
So there is a low threat of bargaining power of suppliers for company.
 Bargaining power of buyers: Buyers are large in number who are demanding modified
and innovative cars having unique features at low rates. Though, the company has
maintained customer loyalty but its market share can switch to other competitors who are
offering identical products at less cost than respective company (Czinkota and et.al.,
2021). Hence, there is a moderate threat of bargaining power of buyers for company.
 Threats of substitutes: When the price of substitute car products is more than the
company, then the customers will not switch to other company as the organisation will
offer products at less cost with same benefits. Thus, there is a low threat of substitutes for
business.
CAGE Model
This is a model that helps an organisation in making comparison of a possible target
market to the home market of a company on the basis of certain dimensions such as culture,
administration, geography and economy (Farrell, 2020). Rolls-Royce use this model because it
gives insights to company in key differences between target and home markets and permit the