Strategic Management Analysis of Rolls Royce

This assignment requires a thorough analysis of Rolls Royce's strategic management. Students need to evaluate the company's financial performance using key ratios like ROE, gross margin, and inventory turnover. The analysis should also encompass Rolls Royce's competitive advantages, industry dynamics, and potential future challenges. By examining these aspects, students can provide a comprehensive understanding of Rolls Royce's current strategic position and its prospects for success.

Strategic Management for
Competitive Advantage
(PART C)

Table of Contents
INTRODUCTION...........................................................................................................................1
Corporate social Responsibility and sustainability development...........................................1
Analysis of Triple bottom line................................................................................................3
Rolls-Royce sustainability and CSR......................................................................................3
Financial performance and upcoming implication of expectation.........................................3
Conclusion..............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
In this particular project report a well organize strategies management regarding “Rolls-
Royce company” is being discussed. It is important to analyses all crucial aspects those are
associated with the company are mentioned effectively under this report. Certain aspects which
are need to be taken into account would consists of economic development community,
sustainability, CRS to become an indispensable organization in the market. Environment,
economic and social considerations are primary aims of sustainable development. Theories
related with CRS is discussed in order to analyze valuable resources for the company (Gamble,
Thompson and Peteraf, 2013).
Corporate social Responsibility and sustainability development
It has been seen that private companies are playing an eminent role in overall formulation
of societies and increasing their standard of living. They are not only responsible for providing
jobs but to generate maximum opportunities to grow their business in effective manner. Such as
“Rolls-Royce” is held responsible to have great influence on people will beings and overall
impacts on the environments. There are certain actions on every part of companies that is being
taken in effective manner through considering economical, environmental and social factors of
their business. It has been seen that all those companies that are having well structured activities
are in sustainable position along with their entire value chain which is not only applicable to the
well being of their communities, staffs and other important aspects. They can also make planning
to improve their financial stability and competitiveness in respects to increase future aims and
objectives in effective ways (Slack, 2015).
Corporate governance is the major aspects that provide systematic direction to Rolls-
Royce motors and control their operations effectively. It is a mainly govern by corporate owner
whose entire role and responsibility is to setting up proper strategies aims, operating their
business, monitoring business schedule and present valuable report in front for their investors
other shareholders of the company. The corporate governance would guide higher authorities of
an organizations to the interest of shareholder, customers, suppliers and legal bodies associated
with the company. It determine that business position and formulation prospects, but also
evaluate business which can determine benefits about total interest delivery to various
stakeholders.
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Corporate social responsibility (CSR): It is an appropriate senses which is one of the
oldest automotive brands in the world, producing sports cars those are famous for its valuable
and unique design craftsmanship and performances for the company. It requires Rolls-Royce to
focus on specific relationships among business and social, government and position and
prospects of business in global economic environment. Corporate social responsibility is an
effective business ethic standards for the formulation of business plans in more valuable manner.
But there are some other business selected to ignore CSR which they deliberately ignore genders
equity or to reduce overall production standards of the products on the basis of social
environment have the bad effect (Hitt, Ireland and Hoskisson, 2012). It is more crucial to provide
certain amount for Rolls-Royce for the development of their performance in near future time. It
is a commitment to internal and external aspects for an organization which consists of
environmental securities and responsibility for its shareholders.
These would be valuable aspects for the company to gain maximum advantage, control
cost and additional publicity or to gain more plenty of business opportunities and customers
advantages. In case of corporate trust crisis, CSR will used to encourage companies to assume
social and environmental role which would assist enterprises to regain trust and faith of people
towards their growth and performance in coming period of time. It is said to be appropriate
planning for Rolls-Royce to improve the business in the social impacts for enterprise to
formulate maximum value to investors as well as the society at the same point of time. Rolls-
Royce motor company is has been announced an effective profitability and growth as it
continuous to roll out their long term planning under the direction of their owner policies. Year
end financial reports presented from all sectors of Rolls-Royce business which consists of a new
technological partnership with suppliers of various equipment those are vital for the success of an
organization. As per the sustainability aspects for the company which is connected with lean and
green history. The automobile is seen that least sustainable systems and have plenty of issues is
overproduction (Jarillo, 2013).
Hence, the present automotive business and producing models relies on high level of
manufacturing aspects that depends on upper level of manufacturing as per the requirements for
economic of scales analysis in Rolls-Royce company. Sustainable development is an effective
resources that meets current development need without making any compromise in future need.
It consists of economics, environment and society role at the same point of time. There are
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various types of common terms among both sustainability and corporate social responsible that
are required to be followed in effective manner (Goetsch and Davis, 2014).
Analysis of Triple bottom line
It is known as one of the effective accounting framework which is having three parts:
such as social, environmental and financial aspects. Rolls-Royce used to consider this particular
systems to analyses performance at larges scale perspectives in order to create certain business
value. In 1904 Charles Rolls has formulated this terms. Bottom line is simply means profit or
loss which is usually evaluated at the very bottom line on their respective financial statements of
the company. In other words, it also means that people, earth and profit for the company. TBL
would assist corporate to take long term perspectives and people will be able to determine the
extent of an organization in economic development, business and social environment in order to
make maximum contribution by using TBL.
Rolls-Royce sustainability and CSR
This company is known as family owned British motor cars producers that are establish
in 1910. They are responsible for presenting leading design capabilities and extensive array for
deluxe material and the latest derive trains techniques which combine to create unparalleled
correct driving pleasure (Foss and Knudsen, 2013). Every Rolls-Royce product are expertly
crafted into three core business segment such as Ash, Aluminum and leather etc. The report of
corporate social responsibility and sustainability which is being mentioned that a company's
strategies goal which become global most effective business in other to gain competitive
advantages to the company. Sustainable development that enterprise would not be able to meet
stakeholder but also take into consideration the business and society. The relationships among the
environment is also needed to be analyses before making any vital decision-making for the
company (Schilke, 2014).
Financial performance and upcoming implication of expectation
In order to get more specific information about the companies overall performances, the
best ways is to use financial statements from last couple of years. The table showing all essential
changes on account of CSR issue. There are various charts which are used to determine financial
information of the company (Johnson, 2016). It is certain kind of variations on account of CSR
issues. As per profitability graph of Rolls Royce it is seen that the organization is able to attain
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sustainable success of organization. It is expected that the culture of luxurious car industries will
increase by two times in near future. There are some essential aspects are considered in this
context to evaluate the profitability and success of organization. Four year's increasing trend
indicates that there are positive aspects are considered to grow the graph of sales in near future.
Interpretation:
According to the above mentioned various charts, it has been found that performance of
Roll Royce is more effective, the annual growth indicating more effective results for the
company. The gross margin of the company is increasing in every year with a constant rate. The
earning per share is become negative in 2016 with 2.2. It was constant in 2015 and 2014 with
0.04. The graphs in increase at faster rate in initial stage and get constant in two years after that
start increasing again. As per the present data, the share price is open with 825 and go high to
830.20. The low price of stock is 810.60. The price earning ration of Rolls royce is 3.61% with
the total amount of gains. After this, Rolls royce has also made few remedial aspects those are
issuing a detailed report on incident basis as per the official website of the company (Hill, Jones
and Schilling, 2014).
Conclusion
From the above project report, it has been evaluated that various important corporate
aspects related with rolls and royce are taken into account which are associated with
sustainability and corporate social responsibility. The company's CSR activities are shown to get
significant importance and social attention related with CSR. It is highly competitive market
those are associated in global market in order to determine social responsibility for the company.
It has been a lot of opportunities to fulfill their own needs to increase future sustainability and
growth for the nation in coming time. As per the specific information about Rolls Royce financial
data over the past few years as longs to attain maximum growth for the company.
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REFERENCES
Books and Jorunals:
Foss, N. J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Gamble, J. E., Thompson, A. A. and Peteraf, M. A., 2013. Essentials of strategic management:
The quest for competitive advantage. McGraw-Hill/Irwin.
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Hitt, M. A., Ireland, R. D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
Jarillo, J. C., 2013. Strategic networks. Routledge.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Schilke, O., 2014. On the contingent value of dynamic capabilities for competitive advantage:
The nonlinear moderating effect of environmental dynamism. Strategic management
journal. 35(2). pp.179-203.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
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APPENDIX
Statement of profit
Particular 2016 2015 2014 2013
Revenue 14955 13725 13736 14642
Earning -2.2 0.04 0.04 0.72
Gross
profit 11907 10448 10533 11482
Gross
margin 20.4 23.9 23.3 21.6
ROE -117.28 1.46 1.15 23.38
Acid test 0.94 1.13 1.06 0.94
Inventory
turnover 4.16 3.87 3.46 4.04
Gearing 60.00% 61.00% 58.00% 60.00%
Total asset
turnover 0.62 0.62 0.61 0.75
1 2 3 4
18
19
20
21
22
23
24
25
20.4
23.9
23.3
21.6
Rolls royce gross profit margin
Gross margin
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Earning per share:
1 2 3 4
-2.5
-2
-1.5
-1
-0.5
0
0.5
1
-2.2
0.04 0.04
0.72
Earning per share
Row 4
7

Present share price of Roll Royce
8