ROLLS-ROYCE STRATEGIC ANALYSIS

Rolls-Royce Strategic Analysis



Rolls-Royce Strategic Analysis

Introduction

In this assignment I am going to research Rolls Royce plc, at first I will explain about the nature of the company, I will also identify and state what information may be required to aid managers and then go on to apply four management accounting techniques to Rolls Royce plc and how they would affect the company, in particular the advantages and disadvantages of each.

Company Information.

Rolls Royce PLC is the second largest multinational organisation that produces power integrated systems after GE Aviation. Rolls Royce operates in four different types of economic markets which are the civil and defence aerospace market as well as the marine and energy markets. The company makes engines for jets, helicopters, and turboprop aircraft not only do they produce engines but they also install these systems. Rolls Royce PLC has 50,000 engines in service with 500 major airlines.

Rolls Royce PLC is a global company that is known in over 50 countries, the name Rolls Royce comes from the s of its founders, Henry Royce and Charles rolls. The company was initially formed in 1904 to produce cars and car engines. In 1914 it also produced its first aircraft engine, as the company expanded in 1971 it became a PLC, the company was then split into two and sold to a BMW company that is now known as Rolls Royce motor cars LTD. Rolls Royce PLC retained the right of its trademarks so it can use it to operate in the markets it does.

Rolls Royce has invested a sufficient amount of money into research n development of its products and technology it uses to produce them. It also invests somewhat £300 million a year on capital projects. In recent events Rolls Royce was awarded a contract by the ministry of defence to supply those engines for their aircrafts for the next five years, they also secured more than $1 billion worth of orders from an recent air show.

Mission

“A great company is built by first class, passionate and highly skilled people. We have these in Rolls-Royce and I believe that we will continue to improve our business and deliver excellent value for all our shareholders.”

Vision

“During 2010, we have continued our programme of investment, funding world-class facilities in all major geographies, providing capacity for future growth, contributing to improved productivity and delivering products with operational lives which may well extend to half a century. We remain confident in our ability to double revenues in the coming decade through organic growth alone. However, we also have the management and financial capability to accelerate growth through acquisition and partnership.”

Strategic Objective

“Our consistent strategy, applied over many years, has helped deliver a more broadly based, better balanced and more resilient portfolio. This strategy has five key elements:

address four global markets, civil aerospace, defence aerospace, marine and energy;

invest in technology, infrastructure and capability;

develop a competitive portfolio of products and services;

grow market share and our installed product base; and

add value for customers through the provision of product-related ...