Impact of CSR, Brexit and Key Issues on Rolls Royce Business

This report provides an analysis of Rolls Royce, addressing key challenges faced by the company, such as high inventory levels, and suggesting the implementation of inventory management techniques and Management by Objective (MBO) to improve efficiency. It explores the significance of aligning Corporate Social Responsibility (CSR) with business strategy, emphasizing its impact on employee satisfaction, positive public relations, and customer retention. Furthermore, the report examines the influence of Brexit on Rolls Royce, particularly the automotive industry, discussing increased production costs and the re-evaluation of business strategies. The conclusion highlights the benefits of MBO, the importance of CSR alignment, and the initial negative impacts of Brexit on the automotive sector.

REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
1. Key issues that Rolls Royce is facing..........................................................................................2
2. Significance of aligning Corporate Social Responsibility (CSR) to business strategy...............2
3. Impact of Brexit towards organisation.........................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
This report is context to Rolls Royce company. It is one of the luxury automobile maker
which was founded in 1998 by Torsten Muller Otvoas. This report will analysis the key issues'
organisation is facing. Furthermore, the significance of corporate social responsibility (CSR) to
strategy and how Brexit has influenced organisation will also discuss in this assignment.
1. Key issues that Rolls Royce is facing.
The key issues Rolls-Royce is facing its biggest weakness that company is facing is The
Days Inventory is very high as compare to the competitors (Weakness of Roll-Royce (Rising Day
Inventory), 2018). That result in making the company to increase more capital to invest in the
channel. The long term growth of the Rolls Royce is highly influenced due to high days
inventory. It is very important to control the rising of day stock within organisation because it
directly affects the performance of the company. Inventory management is one of the best
strategy that over the key issue in Rolls Royce company (Wild, 2017). This the management
technique that make sure that right products are placed in right time at right cost. Management of
the Rolls Royce can respond quickly to the demands of market as well as stop them from felling
into either having too little or too much stock.
With this management technique of inventory management, Rolls Royce can becomes
more efficient. Management by objective (MBO) is one of the best theory that bring
improvement in the performance of the firm by defining the objectives clearly to both
management and employees. Rolls Royce makes the organisation clear about the goal of the
company so that they the issue which currently Riyal Rice is facing could be solve and company
can meet the demand of the market (Mio, Venturelli and Leopizzi, 2015). The MBO theory of
management will clearly define the goals of inventory management such as reducing the
wastage, losses and unnecessary capital, maintaining the level of production and sufficient stock
tracking.
2. Significance of aligning Corporate Social Responsibility (CSR) to business
strategy.
The self regulating business model that aids organisation be socially responsible to
community, society, environment and all other stakeholders is called as corporate social
responsibility. The main purpose of CSR policy is to make sure that organisation conduct the
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business ethically (Yin and Jamali, 2016). Now the time has changed, it is mandatory for
organisations to adopt CSR policy within their operation's and functions because it directly
impacts on the reputation of the firm.
Importance of aligning the CSR policy to business strategies are as follows-
Satisfied Employees: Employee retention is one of the key strategy of Rolls Royce and as
per the CSR policy, it is very important that employee should feel proud and motivated working
with the company (Grayson and Hodges, 2017). Employee's should not be discriminate by race,
caste, gender or any other basis. Further, organisation could gain talented candidates.
Positive PR: By aligning the business strategies with CSR strategy, Rolls Royce could
get opportunities to share positive stores through online media and traditional channels. Positive
brand image is the biggest and most valuable assert of the company.
Customer Retention: Customers are the key stakeholders of the organisations as
organisations. It is true that customer expect firm to be socially accountable to the society and
care about society instead of just profit. By aligning the business strategy with CSR raise the
trust of customers towards the company that ultimately raise the profit margin of the firm. By
aligning the business strategy, Riyal Royce can retain their customer for longer period (Poddar,
Narula and Zutshi, 2019).
3. Impact of Brexit towards organisation.
Brexit is the withdrawal of United Kingdom from the European Union. Brexit has wasted
huge time of Roll-Royce so, company has decided not to waste big time more on Brexit. The
cost of production is raised due to the impact of Brexit as the average cost of car from EU nation
is increased by £1500 (Bailey and De Propris, 2017). The impact of Brexit is worse and negative
on the Automobile industry in which Rolls-Royce is operating. The impact of Brexit is
catastrophic at initial level on automobile industry. Brexit has raises the import taxes and make
delays in transport that could raise the prices of car. All the strategies of Rolls-Royce was re-
evaluated due to the impact of Brexit.
So, the fact is that, today, the automotive industries of UK and EU are operating closely to each
other. The fact is that:
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 Last year, About 51 percent of cars manufactured in United Kingdom exported were
brought by customers in EU.
 8 out of 10 taxi cars are exported which are made in United Kingdom.
The fact is that the impact of Brexit was highly catastrophic in the beginning but after some time,
thing get settle down (Brown, Liñares-Zegarra and Wilson, 2019).
CONCLUSION
The above report has comes to the conclusion that management by objectives is one the
best techniques to solve the key issues of the cited organisation which is day stock is rising.
Further, it is very important to align the business strategies with the corporate social
responsibilities as it is very beneficial for the organisation. Moreover, the impact of Brexit is
worse and negative on the Automobile industry in which Rolls-Royce is operating in beginning.
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REFERENCES
Books and Journals
Bailey, D. and De Propris, L., 2017. Brexit and the UK automotive industry. National Institute
Economic Review, 242(1), pp.R51-R59.
Brown, R., Liñares-Zegarra, J. and Wilson, J.O., 2019. The (potential) impact of Brexit on UK
SMEs: regional evidence and public policy implications. Regional Studies, 53(5), pp.761-770.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Mio, C., Venturelli, A. and Leopizzi, R., 2015. Management by objectives and corporate social
responsibility disclosure: First results from Italy. Accounting, Auditing & Accountability
Journal, 28(3), pp.325-364.
Poddar, A., Narula, S.A. and Zutshi, A., 2019. A study of corporate social responsibility
practices of the top Bombay Stock Exchange 500 companies in India and their alignment with
the Sustainable Development Goal s. Corporate Social Responsibility and Environmental
Management.
Wild, T., 2017. Best practice in inventory management. Routledge.
Yin, J. and Jamali, D., 2016. Strategic corporate social responsibility of multinational companies
subsidiaries in emerging markets: Evidence from China. Long Range Planning, 49(5), pp.541-
558.
Online:
Weakness of Roll-Royce (Rising Day Inventory). 2018. [ONLINE]. Available through:
<http://fernfortuniversity.com/term-papers/swot/1433/1384-rolls-royce--aerospace-and-
defense-.php>.
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