Importance of Strategic Management and Change Management in Rolls Royce

Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
A critical assessment of the process used by organisations to determine their strategy........3
Evaluation of critical models and tools used by organisations to determine their strategy. . .4
Application of these tools in context to select company Rolls Royce...................................6
Critical Appraisal of the importance of the change management ........................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic Management is an effective approach of managing the resources of an
organisation to achieve the goals effectively and efficiently. The process help the organisation in
setting objectives, analysing the competition in the market, evaluating the affecting factors and
then formulating the policies and strategies in accordance with the ongoing environment. It
examines the flexibility of an organisation as it is easy for flexible company to adapt such
changes. Further along with the plans it also devise measures for organisation to attain its goals.
The organisation that was chosen in this report is Rolls- Royce Holdings Plc as it is one of the
most leading firm in the auto mobiles industry and maintains the strategy management to meet
its objectives. It is wholly owned subsidiary of German Group BMW. The brand was
incorporated in the year 1998. Charless Rolls & Sir Henry Royce are the founder of the
company. It has its headquarters in Kings Place, London. The brand deals in aerospace, defence ,
energy and marine industry. It is a most famous British luxury car manufacturer. AS it deals in
the product civil & military aero engines , marine propulsion system Power generation
equipment equipments. The company placed a great emphasis on the core of strategy plans to
gain competitive advantage. This report examines the strategic management analysis and its
utmost important in an organisation.
MAIN BODY
A critical assessment of the process used by organisations to determine their strategy
Critical Analysis of the strategic management defines the strategies developed by the
managers to achieve the organisational goals. As it is the managers concern to carry out the
strategies in order to meet the objectives of the company to maintain the sustainability as failure
may led an adverse effect on the growth and survival of the company. Thus, critical analysis
requires the managers to focus on evaluating all the aspects of the management process. It differs
in the companies, as without strategies the company will not be able to achieve the targets which
they are set in advance. Hence some of the prominent procedure in this context are analysed
below.
 Internal Analysis: The process that could be follow by organisation in terms to determine
their strategy is to analyse and observe the internal weakness and competencies of the
business. The respective analysis is so important with regards to having an appropriate

insight with in the firm's capabilities, whereas elements that need effective improvement.
Various essential elements are included in the process like strength and weakness to
business and several opportunities that business can grasp for the purpose of business
expansion and growth. As well as it also covers threat which is faced by company which
is mostly linked business failure and looses.
 External Analysis: The strategies for business is framed by marketers after analysing the
external environment as company do not have direct control on the situations that are
exist due to the reason of external factors. The factors are based on various elements
such as political, environmental, social, legal, technological, economic etc.
This process include analysis of industrial position of organisation in context to suppliers,
competitors, companies, substitute , new firms etc. All the forces have prominent impact on
performance and their decision making. Thus this process is effective in preparing strategies in
terms to gain competitive advantage as well as stand in sustainable position in the competitive
market place. This procedure look sound but it has many limitations also . For example, while it
plays very crucial role in relation to determining different external forces and leads to analyse its
impact on performance of the company, it tends to fails to evaluate various competencies that are
most commonly present in the company. Also several facts are not taken into consideration, that
whether exclusivity is present within the firm's offerings, which might overpower the external
forces due to its uniqueness.
Evaluation of critical models and tools used by organisations to determine their strategy
As per the above discussion, the procedure utilised by the organisation is very prominent
in context of analysing their strategies in an effective manner. In relation to this some models are
adopted by the company that offer guidelines as well as to provide support to firms. To
determine the strategy it is important to observe how best these models are use & implement so
that it gives benefit to the business organisation. These models are effective and influential when
a company use all the strategies of these model. The main reason to choose this models are all
the specific factors reflected effectively and demonstrate their positive impact to recognise the
strengths and weaknesses of the organisation and beside this these model are helpful to identify
the internal and external factors that are directly affect all the operations of the company.