Rolls Royce CW1 Presentation: Business Strategy, Trent 1000 & Analysis

This presentation provides a comprehensive analysis of Rolls Royce, focusing on its business strategy and market position. It begins with an introduction to the company, highlighting its key products like the Rolls Royce Trent 1000 engine, and its competitive landscape. The presentation then delves into an external business environment analysis using the PESTLE framework, examining political, economic, social, technological, legal, and environmental factors affecting the company. Following this, Porter’s Five Forces model is applied to assess the competitive intensity and attractiveness of the industry. The internal business environment is analyzed using the VRIO framework to evaluate the company's resources and capabilities, and a SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The presentation concludes with key findings, including the need for increased investment in research and development, addressing the expensive and unmotivated workforce, and leveraging the Rolls Royce Trent 1000 engine to maintain a competitive edge.

“ROLLS ROYCE” CW1
PRESENTATION

“INTRODUCTION”
• Rolls Royce deals with the designing, manufacturing and distribution of power and propulsion
systems for automotive, aviation, marine and energy sectors.
• It was founded in 1906 and is publicly owned, having functioned in the Renewable energy and
Electric utilities sector.
• The company’s current CEO is Warren East and it has the annual revenue of $ 20.4B, along
with employing 50,000 people as of now.
• The key competitor of the company in this industry is General Electronics.
• The main highlight of the company’s products is the Rolls Royce Trent 1000 engine with more
benefits than its predecessors.
• The company believes in excellence and leading through increase in employee motivation.
• The business strategy of the company is to maintain the reputation of the company through
skilled workers and production of unique products for the global markets.

“PESTLE ANALYSIS”
POLITICAL
FACTORS
ECONOMIC
FACTORS
SOCIAL
FACTORS
TECHNOLOGI
CAL FACTORS
LEGAL
FACTORS
ENVIRONMEN
TAL FACTORS

“EXTERNAL BUSINESS ENVIRONMENT
ANALYSIS (PESTLE)”
1. POLITICAL: - The impact of political factors is that the company has had to change
policies and adapt to the government regulations.
2. ECONOMIC: - The impact of economic factors is that the company dealt with reduced
demands and increased fuel costs.
3. SOCIAL: - The impact of social factors is that the company’s UK redundancy uncertainty
factor has increased along with the influence from Unions and politics.
4. TECHNOLOGICAL: - The impact of technological factors is that the company faced
cyber threats of various types.

4. LEGAL: - The impact of legal factors on the company is shown through the legislative
changes that the company has to go through in its specific countries of operations.
5. ENVIRONMENTAL: - The impact of environmental factors on the company is shown
through the Climate change and increasing demand for products with fewer emissions.

“PORTER’S FIVE FORCES MODEL”
THREAT
OF NEW
ENTRANTS
THREAT
OF
SUBSTITU
TES
COMPETIT
IVE
RIVALRY
BARGAINI
NG
POWER
OF
SUPPLIER
S
BARGAINI
NG
POWER
OF
CUSTOME
RS

“INDUSTRY/SECTOR ANALYSIS (PORTER’S
FIVE FORCES)”
1. THREAT OF NEW ENTRANTS: - International companies in the same sector pose a great
threat to the company in terms if product development and technological advancements to grasp
the market’s attention.
2. THREAT OF SUBSTITUTES: - Although the Trent 1000 engine by the company is unique in
its own way, the company still faces the challenge of dealing with substitute products such as 3D
printing, UAV and Scram Jets etc.
3. COMPETITIVE RIVALRY: - Being a British company and having a good reputation gives the
company an upper hand in terms of competitive advantage.
4. BARGAINING POWER OF SUPPLIERS: - The major issue in this aspect is the suppliers
delivering the resources to competitors.
5. BARGAINING POWER OF CUSTOMERS: - The major issue in this aspect is the customers
getting more aware and knowledgeable regarding nuclear and energy sufficient products.

“VRIO FRAMEWORK”
VALUE RARITY IMITABILITY ORGANIZATI
ON

“INTERNAL BUSINESS ENVIRONMENT
ANALYSIS (VRIO)”
1. VALUE: - The value of the company is its main product, the Rolls Royce Trent 1000
engine that has multiple benefits apart from the ones its predecessors offered.
2. RARITY: - The resources used for this manufacturing aspect are not limited to Rolls
Royce only, but also to its competitors, that the suppliers provide.
3. IMITABILITY: - Even though the products are adaptive and unique, many competitors
make use of the R&D of Rolls Royce to create their own prototypes that can provide the
same benefits and functions.
4. ORGANIZATION: - Company has limited investments in the R&D sector and in the
aspect of development and availability of new products.

“SWOT ANALYSIS”
STRENGTHS WEAKNESSE
S
OPPORTUNIT
IES THREATS

“STRATEGIC POSITION ANALYSIS (SWOT)”
1. STRENGTHS: - Major strengths of the company include Reputation & British origin of
the company, established brand name and skills of the company’s workforce.
2. WEAKNESSES: - Major weaknesses of the company include expensive workforce, low
morale and motivation of the company’s workforce and increased competition due to market
evolution.
3. OPPORTUNITIES: - Major opportunities for the company include investment in the
educational sector, International partnerships to enter new markets, ability to operate
offshore, advancements in the technological aspects of the company and growth in the
worldwide nuclear industry.
4. THREATS: - Major threats for the company include formation of competitor companies,
Global trends and oil developments along with the public’s opinion regarding nuclear
development and involvement of the company.

“CONCLUSION”
The following conclusions can be driven to narrow down the understandings regarding
the analysis;
Limited products that are updated but still lacking when compared to products made by
the competitors.
Lack of investment in the research and development sector.
Increase in the strength and number of competitors that Rolls Royce has in the same
industry.
An expensive workforce that is highly skilled but not motivated.
The company lacks in highlighting its main product, the Rolls Royce Trent 1000 engine
which is the backbone of its aviation department for manufacturing.