Rolls-Royce Limited and the Global Business Environment Analysis

This research project investigates the benefits and drawbacks of the global business environment within the UK automobile industry, with a specific focus on Rolls-Royce Limited. The study examines the impact of external factors such as legal, social, technological, political, and economic influences on the industry's profitability. It also explores various market entry modes used by Rolls-Royce and their effects on the company's operations. The methodology includes a literature review, qualitative research methods, and thematic analysis to interpret data. The report addresses research objectives by analyzing the synergy between external and internal factors affecting Rolls-Royce, culminating in conclusions, recommendations, and a reflection on the research process. The analysis covers the period between 2017 and 2019, offering insights into the challenges and opportunities faced by the UK automobile sector in a globalized market.

Research Project

EXECUTIVE SUMMARY
Businesses are impacted by an external environment in direct manner. There were
different global factors such as legal, social, technological, political and economy. All these
factors have been impacted within UK Automobile Industry. For this dissertation, literature
review have been developed which will help an investigator by providing in-depth and accurate
data about the study. In this section, different number of authors have been provided their
opinion about the benefits and risks of global business environment on business. As it will help a
researcher to complete each task of study within given time duration. Along with this different
number of research methods such as qualitative and quantitative, primary and secondary,
research philosophy, research approach sampling etc. All these are useful methods which have
been applied by researcher to collect valid and reliable information according to the current
study. Data analysis and interpretation have been done by using thematic analysis. In this,
various number of themes have been developed on each question which will further help an
investigator to analysis accurate response from the respondents. At last conclusion and
recommendation have been done by addressing each objectives of research in systematic and
accurate manner.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................1
Overview of the Research......................................................................................................1
Research Aim.........................................................................................................................1
Research Objectives...............................................................................................................1
Reason for Choosing the Research.........................................................................................1
Research Questions ...............................................................................................................2
The scope of your research.....................................................................................................2
LITERATURE REVIEW................................................................................................................3
Benefit or drawback of external factors on profitability of Auto-mobile industry due to having
changes in global business environment within 2017 to 2019...............................................3
Benefit or drawback of different market entry modes on the operations of Rolls-Royce
Limited within the time period of 2017 to 2019.....................................................................3
Benefits or drawbacks on Rolls-Royce Limited company due to the synergy impact of
external and internal factors present between the time period of 2017 to 2019.....................4
METHODOLOGY..........................................................................................................................5
Type of Investigation..............................................................................................................5
Research Philosophy..............................................................................................................5
Research Approaches.............................................................................................................5
Research Design.....................................................................................................................6
Data collection........................................................................................................................6
Sampling.................................................................................................................................7
Ethical Considerations............................................................................................................7
RESULTS/FINDINGS....................................................................................................................8
DISCUSSION................................................................................................................................20
Conclusion.....................................................................................................................................23
Recommendations..........................................................................................................................23
Reflection.......................................................................................................................................24
REFERENCES..............................................................................................................................25

Topic: “The benefits and drawbacks of a global business environment within UK Automobile
Industry.
INTRODUCTION
Overview of the Research
Global business environment is considerably a vast concept which refers as the
environment in different sovereign countries, with factors exogenous to the home environment of
the firm, influencing decision making on resource use and capabilities. The global business
environment can be emphasises into the external as well as internal environment. External
environment involves the social, political, economies, regulatory, tax, culture, legal and
technological environment. The present investigation work is based on Rolls-Royce Limited and
it is British Luxury Car and an aero of engine manufacturing business. Global business
environment is an effective aspect that provides an opportunity to the business to develop its
operations at wide scale.
Research Aim
The main aim of this project is “To determine benefits and drawbacks of a global business
environment with in UK Automobile Industry. A Case Study on Rolls-Royce Limited.
Research Objectives
 To ascertain the benefit or drawback of external factors on profitability of Auto-mobile
industry due to having changes in global business environment within 2017 to 2019.
 To ascertain the benefit or drawback of different market entry modes on the operations
of Rolls-Royce Limited within the time period of 2017 to 2019.
 To ascertain the benefits or drawbacks on Rolls-Royce Limited due to the synergy
impact of external and internal factors present between the time period of 2017 to 2019.
Reason for Choosing the Research
This present report is based on the “benefits and drawbacks of a global business
environment”. It helps in learn about the globalisation concept in an effective or significant
manner. With the help of this knowledge of a learner will be enhanced and it will not face
any kind of difficulties in future. This investigation take in to consideration is regards as most
valuable in the nature when it is related to specific purpose. In context to this, it is necessary
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for an investigator to identify the main rationale behind conduct this particular research on an
effective or significant manner. Globalisation is a wider concept and under this firms conduct
their business at global level for the purpose of getting many benefits for an instance
attracting more consumers, enhance productivity, long term sustainability of business and
many others. On the other hand, it will help researcher in determine the main issues and their
solution in an effective or significant manner. This kind of investigation will help a
researcher or learner to get the proper knowledge and learn the effective ways so that it can
able to conduct any investigation in future without facing any kind of complexities. It will
help in provide the positive outcomes effectively.
Research Questions
 What are the benefit or drawback of external factors on profitability of Auto-mobile
industry due to having changes in global business environment within 2017 to 2019?
 What are the benefit or drawback of different market entry modes on the operations of
Rolls-Royce Limited within the time period of 2017 to 2019?
 What are the benefits or drawbacks on Rolls-Royce Limited due to the synergy impact
of external and internal factors present between the time period of 2017 to 2019?
The scope of your research
The considered work is based on analysing the benefits and drawbacks of global business
environment. This is an academic research which explores opportunity for an individual to
developing their idea and knowledge base in regards to the specified area of research and
develops their skills to conduct globalised business. The potential scope of this investigation is
to provide a clear idea about the aspect of global business environment and give a brief analysis
to learners and researchers. This investigation is also effective in providing future benefits to the
people or learner who is implementing their career or profession in regards to the similar area of
study.
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LITERATURE REVIEW
Benefit or drawback of external factors on profitability of Auto-mobile industry due to having
changes in global business environment within 2017 to 2019
Global business environment is explained as environment in various sovereign countries
which the exogenous factor to home environment of company that impact on the decision
making on capabilities as well as resource use. Basically, it is a company that operates facilities
in many countries around the world. The auto industry is one of the most complex and alluring in
the world. Auto-mobile industry consists of wide range of firms which include design,
development, manufacturing and marketing of motor vehicles. The range of auto mobiles is very
brief and at most, it could only run at a stretch of fifteen minutes. In year 2017-2019, this sector
face some issues from the external environment. It is complex for the organisations to control
external factors. Under this factors include political, economic, social, environmental,
technological and legal. On the other hand, auto-mobile sector is vulnerable to change in
lifestyle, sharing an economy that leads to the people to purchasing some cars. It is necessary to
this sector to minimize labour cost and also production by proper use of the global supply chain.
It is necessary to managers of organisations to take the appropriate as well as effective steps in
order to reduce the impact of external factors and conduct business operations at global level in
an effective or significant manner. The rise in middle-class income and young population has
resulted in strong growth of auto-mobile industry.
Benefit or drawback of different market entry modes on the operations of Rolls-Royce Limited
within the time period of 2017 to 2019
For the conduct of business at an international level, Rolls-Royce Limited use the
different entry strategies and provides various benefits to them in successfully conducting the
business at a global business environment. In United Kingdom, Rolls-Royce Limited is pre-
eminent engineering organisation that focus on the propulsion as well as world- class power
systems. In year 2017 to 2019, it conduct many business operations in the other country in order
to expand its market. Some of the entry modes taken by them with their benefits mention below:
Joint venture- It is one of the most common method of combining expertise and
resources of two unrelated firms. The benefits from adopting this strategy are access to new
market becomes easy, risk can be shared , enhanced capacity etc.
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Exporting- It is related to selling to consumers outside the country and it can help in
change the business or selling of goods from the domestic country to the international. It consists
of exporting the goods directly to consumers who are interested in purchasing the products. The
main benefits of using this entry mode is that it will maximise the sale, it will increase the
domestic competition and will gain global market shares etc.
Benefits or drawbacks on Rolls-Royce Limited company due to the synergy impact of external
and internal factors present between the time period of 2017 to 2019.
The Rolls-Royce Limited is global company and its market size is 5.6 million units. The
external and internal both environment develop its impact on this company. For this firm,
external analysis of environment is required because it is helpful in making the effective strategic
decisions. In addition to this, technique related to the external analysis provide the different
useful information set. It is very complex to manage the external factors in a proper manner.
These are those factors which are present in the business externally and cannot be controlled by
business. The external factor consists political, economic, social, environmental, technological
and legal factors. On the other hand, internal factors are the inner strengths and weakness of
sector and which can be easily controlled or managed in an effective or significant manner. The
internal factors consists human resource, finance, intellectual resources etc. It was complex or a
kind of drawback for this sector to combine the internal or external factors in year 2017 to 2019.
Rolls-Royce Limited face some complexities in managing the business operations as well as
activities in an effective manner.
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METHODOLOGY
Methodology refers to system of the wider principles from which particular methods may
be derived to be interpret various issues with in specific discipline (Altbach, 2012). It explains
actions need to be taken to investigate research problem and also rationale for application of
particular techniques to determine, choose, process and then analyse information that applied to
understand issue.
Type of Investigation
Research method defined as tool for conduct an investigation. It is a strategy that
investigator has to be devised to collect data. Different research methods are given below:
Qualitative- It is explained as process that mainly use to inquiry and help in
understanding the issues in better manner (Aromataris and et. al., 2014). It is based on
experience of researchers and the questions which used to be probe sample.
Quantitative- It is one of the structured way to gather and analyse data for draw
conclusion. This research method use statistical method to collect as well as analyse data.
In this, qualitative method has been used through investigator because it provides the
theoretical information related to particular area.
Research Philosophy
It is an over- arching term that is related to development of knowledge. It is set of the
beliefs that guide an action. Two types of research philosophies are mention below:
Interpretivism philosophy- It contend only through subjective interpretation as well as
intervention in reality that cab understood in proper manner.
Positivism philosophy- It believes that the reality is stable and observed from objective
viewpoint without any interfering with phenomena that being studied. This research philosophy
has rich and long historical tradition (Baars and et. al., 2016).
This research is based on the interpretivism research philosophy because it helps in
analyse the opinion and viewpoint of other investigators in better way.
Research Approaches
It is explained as plan for investigation that span steps from wider assumptions to the
detailed data collection methods, analysis and also interpretation (Case and Haines, 2013).
Inductive and deductive are different kinds of research approaches which are given below:
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Inductive approach- This approach is based in the qualitative method and it does not
include formulation of the hypothesis.
Deductive Approach- It is related with developing hypothesis that based on the existing
theory and then developing effective research strategy to test hypothesis. This research approach
is based on qualitative method (Grau, Kuemmerle and Macchi, 2013).
In conducting this investigation, inductive research approach has been used because it
provides detailed information related to particular area in proper way.
Research Design
It is defined as process and methods which are mainly used to gathering and analysing
measures of variable specified in problem investigation. It is one of the effective framework that
mainly developed to search to questions related to research.
Different research designs are mention below:
Experimental design- Under this design, human behaviour can not be properly measured
by microscopes and test- tubes. It is mainly used to develop effect and cause relationship among
two different variables.
Explanatory design- In this, investigator uses own imaginations as well as ideas. It is
related to personal judgement and obtain information about particular field (Hoffmann and
Kumar, 2013).
Descriptive design- In given research design, investigator is interested in explain specific
situation in study. It is based on designing and the presentation of collected data.
Descriptive research design has been used because it provides information in detailed
manner and based on particular area.
Data collection
It refers to process of gathering information from relevant sources to search answers to
problems and test hypothesis fort get valid outcomes. In this, data is collected by using accurate
sources. Different methods of data collection are given below:
Primary method- It is related to gather data directly through an investigator for first time,
it is specific to investigation problem under study (Jetnikoff, 2015). The different ways of data
collection are surveys, questionnaire, observation etc.
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Secondary method- In this method, data is gathered and analysed through someone
already. To collect data, various secondary sources are books, articles, internet sources and many
others.
The primary method of data collection has been used in developing a questionnaire to
know about opinions of different respondents (John, 2014). On the other hand, secondary method
of data collection has been used in conducting the literature review.
Sampling
Sample refers to group of the people which are taken from large size population for
purpose of measurement. It is necessary that sample should be the representative of population in
order to assure generalise findings from research sample to population as whole. Probabilistic
and non- probabilistic are two different kinds of sampling methods (Merna and et. al., 2016). In
probabilistic sampling method, researcher use random data sampling method and select 30
respondent. This method is effective because it is equal for every one and the chosen respondents
are employees of an organisation.
Ethical Considerations
Ethics is related to norms, values, beliefs which need to be followed when conducting an
investigation. Ethics in research helps in give guidelines to conduct an investigation. It is a
responsibility of researcher to use relevant sources for gather information in better manner. The
data of respondents should be confidential (Noe and et. al., 2017). Researcher should be ensure
that research topic should not hurt the sentiments and feelings of people.
Timescale
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RESULTS/FINDINGS
QUESTIONNAIRE
Name:
Age:
Gender:
Contact no.:
Address:
Q1) Do you have knowledge about globalisation?
a) Yes
b) No
Q2) In what manner, globalisation impact on business operations of company?
a) Positive manner
b) Negative manner
Q3) Which global factor has high amount of impact over UK Auto-mobile Industry?
a) Political factor
b) Social factor
c) Technological factor
Q4) Does globalisation aids in give competitive advantage to UK Auto-mobile Sector?
a) Yes
b) No
Q5) What are the main benefits attained by the organisation through presence of positive
global environmental factors?
a) Attract more customers
b) Enhance productivity
c) High brand image
Q6) What are the benefits available for the Rolls-Royce in UK due to presence of strong
economic situation?
a) Availability of adequate amount of fund
b) High demand of products
c) Innovation in future projects
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