Business Analysis Report: Rolls Royce Company and its Positioning

This report provides a comprehensive business analysis of Rolls Royce, a British multinational luxury automobile company. The report examines the company's positioning within the fashion sector, utilizing Porter's Five Forces model to assess its competitive advantages. It delves into the company's history, brand attributes, and target market, highlighting factors such as advertising, human resources, pricing, and supply chain management that influence its performance and profitability. The analysis includes a detailed look at Rolls Royce's competitors, particularly Bentley, and evaluates the factors contributing to its brand positioning, consumer perception, and overall market strategy. The report concludes with a summary of key findings and recommendations for maintaining its market position and expanding its global operations.

BUSINESS ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY .................................................................................................................................1
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
.........................................................................................................................................................7

INTRODUCTION
Business is an essential term and economic activity which is mainly related with regular
and continuous distribution and production of services and goods for satisfying needs and wants
of human. According to Stephenson; business is a regular purchase or productions and sale of
goods which are taken with a motive of earning maximum amount of sales and getting well-
being through the fulfilment of human requirements and wants. There are different features and
importance of business such as exchange of services and goods, profit in the foremost
objectives, risks and uncertainties and so on (Wilson, 2014). All these are highly essential for the
company to maximise their profitability and performance. Business is very important in different
terms such as saving time and cost, creation of market, exchanging business information,
substitutes tobpersonal visit, establishing business relationship and many other. In present
assignment, given organisation is “ROLLS ROYCE”, it is British multinational and luxury
automobile company headquartered in Westhampnett, United Kingdom. It was established by
Charles Rolls, Henry Royce in 1904. Organisation is positioned within the fashion sector which
is determined in this study. Porters 5 Forces model also used in order to gain competitive
benefits. This assignment also includes some factors such as advertising, Human resource,
pricing, supply chain etc. all these are highly influence on business performance and
profitability.
MAIN BODY
ROLLS ROYCE is a British Multinational manufactured and pre-eminent engineering
public organisation. They mainly focused on propulsion and world-class power. Main work of
such enterprise is to design, distributes and manufactures power or strong systems for aviation
and many other industry. Its second-largest market in all over the world. All shares of the
business is tradeable or exchangeable on the London Stock market. Main aim and motive of this
company is to achieve long term goals and objectives in given time period. The top five
competitors of Rolls Royce are Airbus, The Boeing company, Northrop Grumman, Lockheed
Martin, Rockwell Collins etc. all these are deals in air industry (Hair, 2015). There are also
different competitors which are deals in car products such as Bentley, Ferrari and many other.
These are highly effects on business positions and performance in marketplace. One of the main
challengers of the Rolls Royce in car industry is Bentley. Rolls Royce has some unique norms
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and conditions are carries out a full background, profile, history and social standing for the ago
years considering past generations. Position of the company is strong in all over the globe
because of its quality and brand of cars. They mainly targeted people who have reputation and
lot of money in order to purchase products. Perception of this brand in customer's mind is more
better as compare to other car products (Laudon and Laudon, 2011). On the other hand Bentley is
also a car manufacture, designer and distributor maker worldwide but as compare to Rolls
Royce, Bentley brand position is less famous.
Position of the Rolls Royce: These business is one of the well-known and most
fascinating brands in all over the globe with its luxury motor car quality (Position of Rolls Royce
in different sector,2018). For few 100 year, company have stood for really outstanding
engineering, reliability and quality. They are grew and develop from the British mechanical and
mechanical enterprise formed in 1884 by Frederick Henry Royce. They develop its first cars
products in 1904.
(Source: Position of Rolls Royce in different sector, 2018)
Rolls Royce (1906-1987):- These business entity is a aero-engine manufacturing and
motorcar company in all over the world. It was nationalized in year 1971 and the existing Rolls-
Royce Plc., it was re-privatized in year 1987.
Rolls-Royce Plc (1987):- It is world- leading manufacture of power services and system
for apply of sea and in the air (Anderson and et. al., 2014). They operates in mainly four global
places such as defense aerospace, energy, marine and civil aerospace.
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Illustration 1: Position of Rolls Royce in different sector

Rolls-Royce motor (1973-1988):- They was developed from the de-merger car
organisation from Rolls-Royce Ltd in 1973. The facility of production at Crewe plus the Bentley
in 1973 name were produced to Volkswagen, on the other BMW obtained, for the regular
production and development of business car products.
They mainly targeted affluent and rich people who are comfortable for purchasing
expansive and luxury cars. Rolls-Royce is a most premium brand in all over the global. In order
to increase their sales and revenues, they develop innovative technologies such as data
connectivity, machine learning and IOT. All these are highly attract large number of customers
and maximise sales and profitability of the company.
Factors that attribute to the positioning: There are mainly five factors which are highly
involved in order to defining brand position. These are described as below:
Brand Attributes: It is one of the main and foremost part of the business position in
marketplace. Rolls-Royce is a world famous organisation that delivers quality features in its
motorcar. So it is beneficial to the consumers to satisfy their needs and wants.
Consumer Expectation: In this customers expectation about the luxury car is more
powerful and strong (Robyt, 2012). Thus, it is good for the enterprise to accomplish desired
goals and objectives in limited time duration.
Competitors attributes: In the marketplace, there are different competitors but one of the
main challengers of the Rolls-Royce is Bentley. They also deals is luxury cars which is
beneficial for the rich person.
Price: Price of the motorcar products is different for the all companies. Rolls-Royce
Ghost is £ 3.66335-3.94239, Wraith price is £ 3.83773, Dawn is £4.36124, Phantom is £
5.23349-7.92002 and many other. Another price of Bentley car products Flying Spur is $189,000
- $244,600, Bentayga is $195,000 - $298,000, Continental price is $236,100 - $322,600 and
Bentley Mulsanne is $304,670 - $335,600.
Consumer Perception: It is another and main part which is defined business position in
marketplace. Perception of the customers about Rolls-Royce cars products is much better as
compared to other brand.
Porter 5 Force Model: It is a best tool and framework for evaluating business competitions. It is
one of the important and beneficial factor that is used by each and every enterprise in order to
analysis their competitors (Cobanoglu and et. al., 2011). It is apart of strategic management
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techniques which is analysis by company to understand and underlying profitability level. It
influence on company profitability and performance as well as create a strategy for improving
competitive benefits and long term profit in company (Porter's Five Force Model, 2018). This
framework includes five parts which are determined as below:-
(Source: Porter's Five Force Model, 2018)
Threat of New Entrants: New entrants in organisation services and goods carry out
innovation, essential aspects of doing things and set force on Rolls-Royce through reducing
costs, lower pricing strategy and giving innovative value propositions or concept to the audience.
Company handle all these situation and develop effective obstacle to protect its competitive
advantages.
Bargaining Power of Suppliers: Large number of the business in the services and goods
sector purchase their raw material or resources from many suppliers. In dominant position,
supplier can reduce the margins of organisation. In order to tackle bargaining power of suppliers
Rolls-Royce can develop effective supply chain system with numerous suppliers.
Bargaining Power of Buyers: They have many power in order to demanding lot of. They
want and need to purchase the best substance which are present by discharging the minimum
cost as possible. It influence of company profitability and performance in the long run. To tackle
the buyers bargaining power, an enterprise developing a large and strong base of clients
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Illustration 2: Porter's Five Force Model

(Engemann and Henderson, 2011). It will be beneficial to decrease the buyers bargaining power
and will give a chance to the company to streamline its production and sales process.
Threat from Substitute products: When an innovative service or products meets a similar
needs of customers in certain ways. For example: Google Drive and Dropbox are service
substitutes to powerful hardware drives. It is a threat which is high if it renders a value
propositions or concepts that is not same from actual offerings of enterprise. In order to tackle
this Rolls-Royce knowing the basic need and wants of clients rather than what the audience is
purchasing.
Rivalry among the existing players: It is intense then it will reduce the entire profitability
and drive down prices of the sector. Rolls-Royce operates and run in all over the global so they
can gain competitive advantages as compared to other brand (Follett, 2013). In order to handle
rivalry among the present competitors, company developing a sustainable differentiation and
collaborating with challengers to maximise the size of market rather than participating for small
marketplace.
Different factors such as Advertising, Pricing, Human resource, Supply chain: All these
factors are highly influenced on business performance and profitability in a direct manner.
Human resource of the company is capable to provide effective training and development to the
employees. Further they are highly trained and give their full efforts in maximisation of profit
and sales. On the other hand incapable HR is not good for the business growth and success.
Another is advertising; Rolls-Royce is not required to advertise their car products because brand
position of the company is world famous. Pricing is another factor that highly effects on business
profitability in a negative and positive manner (Ragas and Culp, 2014). Rolls-Royce cars are
more expansive and thus it is not purchase by lower and middle class people. Supply chain is
also effects on company and its profitability ratio in different ways. There are different steps
which are includes in this such as; Maintain delivery and performance, Award, Accredit,
Negotiate and select, deselect following tender submissions, select for REP, pre-selection
inspection, register and invite interest. All these are highly influenced on sales and profit of Rolls
Royce.
Position of the Rolls-Royce is well-known and famous automobile sector which deals in
different variety of luxury car products. Position of the business is changed time to time which is
highly influence on its profitability and performance. Business entity is maintain its perspective
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as the leader of market in company aviation engines related to its trademarked corporate care. In
this company is cost effective and most comprehensive engines maintenance programme. For
providing flexibility which are being present for both in and innovative services such as BR727,
Tay, AE 3007 engines, BR710, all these gives operators with essential benefits of finance,
including decreased capital investment, maximised aircraft residual value, predictable
maintenance costs, perhaps most importantly and many other (Wirtz, 2012). In order to maintain
their position in marketplace, they should tries to use different promotional mix which help them
to introduced their services and products to the customers and in marketplace. Along with them
variation, in technologies, organisation culture, customers preference and many other aspects that
highly effected the sales and profitability of company. In this business has to responds with the
targeted customers and pricing policies. They also tries to conduct research program that assist
the Rolls-Royce to understand basic needs and wants of the clients about Luxury car products
and market trend.
CONCLUSION
From the above mentioned report, it can be concluded that Business is one of the main
and foremost part of the human because it satisfy the needs and wants of them. There are
different tools and tactics are used in order to expand business operations in international and
national level. There are different factors which are highly influence on company performance
such as human resource, pricing, supply chain , advertising and many other. There are some
factors which are attribute to the company positioning. Porters 5 force model is very essential
and main aspects which is applied by the organisation in order to compete with their rivals. In
order to expand their business operations and functions in global level, company should tries to
used different promotional mix. This tool help in introducing of innovative products and services
in marketplace and to the customers. Further, an enterprises tries to maintain their working
environment and provide guidelines to their employees while achieving long term goals and
objectives in limited time period. Another recommendation for the business is to provide quality
and innovative products with adding unique features at affordable prices to the customers. It turn
in the higher achievement of long term growth and success.
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REFERENCES
Books and Journals:
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Wilson, J., 2014. Essentials of business research: A guide to doing your research project. Sage.
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Saddle River: Pearson.
Anderson, D.R and et. al., 2014. Essentials of statistics for business and economics. Cengage
Learning.
Robyt, J.F., 2012. Essentials of carbohydrate chemistry. Springer Science & Business Media.
Cobanoglu, C and et. al., 2011. The impact of technology amenities on hotel guest overall
satisfaction. Journal of Quality Assurance in Hospitality & Tourism. 12(4). pp.272-288.
Engemann, K.J. and Henderson, D.M., 2011. Business Continuity and Risk Management:
Essentials of Organizational Resilience. Rothstein Publishing.
Ragas, M. and Culp, E., 2014. Business Essentials for Strategic Communicators: Creating
Shared Value for the Organization and Its Stakeholders. Springer.
Wirtz, J., 2012. Essentials of services marketing. FT Press.
Follett, M.P., 2013. Freedom and co-ordination (RLE: Organizations): lectures in business
organization (Vol. 15). Routledge.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. Pearson.
Prewitt, J.E. and Weil, R., 2014. Organizational opportunities endemic in crisis
leadership.Journal of Management Policy and Practice.15(2). p.72.
Romano, A., 2013. Investigative Essentials for Journalists in Multicultural and Diverse
Communities. In Journalism Research and Investigation in a Digital World (pp. 263-
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Online
Position of Rolls Royce in different sector. 2018. [Online]. Available through:
<https://seekingalpha.com/article/2030391-rolls-royce-robust-demand-from-civil-
aerospace-will-offset-declining-defense-spending>.
Porter's Five Force Model. 2018. [Online]. Available through:
<https://www.strategicmanagementinsight.com/tools/porters-five-forces.html>.
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