PESTLE Analysis of Rolls Royce and Impact of Technology

This presentation provides a comprehensive analysis of the business environment of Rolls Royce, including a PESTLE analysis of political, economic, and social factors. It also discusses the opportunities and constraints faced by the organization, as well as the impact of technology on its operations.

BUSINESS ENVIRONMENT

TABLE OF CONTENT
 Introduction
 Company profile
 PESTLE analysis of Rolls Royce
 Opportunities and Constraints of Rolls Royce
 Impact of technology on Rolls Royce
 Conclusion

Introduction
 Business environment is basically referred to
an environment of the business.
 The concept of business environment focuses
upon the various surroundings that have an
impact over the business and its operations.
 The environment of the business can be
referred as internal as well as external.

Company Profile
 Rolls Royce is a British based luxury auto mobile
manufacturing organisation. Rolls Royce motor cars
Limited basically is operating with purpose built
administrative and production facilities that opened in
2003.
 The organisation established across from the Historic
Goodwood Circuit in Goodwood, West Sussex,
England, UK.

PESTLE Analysis
 The PESTLE analysis is basically the study of
various external factors that are more likely to
affect the business operations of an organisation.
 The PESTLE analysis highlights various factors
like Political factors, Economic factors, Social
factors, Technological factors, Legal factors and
Environmental factors.
 Among the above listed six factors, Three
factors have been discussed in the aspect of Rolls
Royce.

Political factors
➲ Political stability in the region and importance of
industrial Goods and services sector in the country
➲ Possibility of military invasion
➲ The corruption levels in the region and specifically in
industrial sector.
Economic factors
➲ The various types of economic systems that are
followed in the various countries. The economic
system and its stability
➲ The intervention of of government in the free market
and the related industries.
PESTLE Analysis

Social factors
➲ The demographics and the skill level of the population
➲ The class structure, hierarchical structure as well as
power structure in the society.
PESTLE Analysis

Opportunities and Constraints
Opportunities for Rolls Royce
➲ Focus upon digitalisation
➲ Strategic partnerships, joint ventures and collaboration
Constraints for Rolls Royce
➲ Weak risk management
➲ Business models Disruptive technological changes
➲ High debt to equity ratio

Impact of Technology
Technology has been upgraded on a rapid scale
lately and is still on rise. The impact of
technology upon Rolls Royce have been
discussed below.
 Pushing limits of IoT sensors
 Unlocking more value throughout the entire
manufacturing chain

Conclusion
➲ It can be concluded that Business environment plays a significant role in the
business operations of an organisation.
➲ The presentation has highlighted the concept of PESTLE analysis and discussed
Political, economic and social factors that have an impact over the primary
organisation.
➲ The presentation has discussed various opportunities and constraints of Rolls
Royce. Also, impact of technology has been discussed in aspect the primary
organisation.

References
➲ Calabrese, M. and et.al., 2018. From mechanical to cognitive view: The changes of
decision making in business environment. In Social Dynamics in a Systems
Perspective (pp. 223-240). Springer, Cham.
➲ Cepel, M., 2019. Social and Cultural Factors and their Impact on the Quality of
Business Environment in the SME Segment.
➲ Cepel, M. and et.al., 2019. Selected economic factors of the quality of business
environment. Journal of International Studies.