Strategy Analysis: Rolls-Royce Motor Car Limited Uk

Strategy Analysis: Rolls-Royce motor car limited UK

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Executive summary

Rolls-Royce Motor Cars Limited manufactures and distributes luxury cars worldwide, it’s a wholly owned subsidiary of BMW; The Rolls-Royce brand has been in existence since 1906, the company operates from England United Kingdom. The main products of this company are; Phantom, Ghost, Wraith, Dawn and most recently SUV. The company achieved all time high sales records in year 2014 selling 4063 cars worldwide, in the same year sales in UK increased by 30 percentages. This paper explores Rolls-Royce existing strategies using PESTEL analysis, SWOT analysis, porter’s five forces, value chain analysis and porter’s three generic strategy framework, the goal of this analysis is to evaluate news ways in which Rolls-Royce Limited can remain the brand of choice in the UK through more marketing and greater use of technology to appeal to more potential customers.

Table of Contents

Executive summary        2

1.        Introduction        4

2. External environment analyses.        4

2.1. PESTEL        5

2.1.1 Political aspect        5

2.1.2 Economic aspect        5

2.1.3 Social Cultural aspect        6

2.1.4 Technological aspect        6

2.1.5 Environmental aspect        6

2.1.5 Legal factors        7

2.2 Porter’s five forces        7

2.2.1 Bargaining power of customers        8

2.2.2 Bargaining power of supplier        8

2.2.3 Threat of substitute        9

2.2.4 Threat of new entrant        9

2.2.5 Competition between established firms        9

3 Internal environment analyses        9

3.1 value chain analysis        9

3.1.1 Inbound logistics        10

3.1.2 Operations        10

3.1.3 Outbound logistics        10

3.1.4 Marketing and sales        11

3.1.5 Services        11

3.2 SWOT analyses        11

3.2.1 Strengths        11

3.2.2 Weakness        12

3.2.3 Opportunities        12

3.2.4 Threats        12

3.3 porter’s three generic strategies        12

4 conclusions        13

REFERENCES        13

1. Introduction

Rolls-Royce Motor Cars Limited is a company based at West Sussex, England, United Kingdom; it engineers, manufactures and distributes luxury automobile and automobile parts worldwide. Rolls-Royce Motor Cars Limited is a wholly owned subsidiary of BMW. The company has various products which include Phantom, Ghost, Wraith, Dawn and SUV (Rolls-Royce motorcars, 2015). The company was established in 1998 when rights to Rolls-Royce brand name and Logo were acquired by BMW which opened its administration and production facilities in 2003 in United Kingdom. The current chief executive officer is Torsten Muller, (Mansfield, 2015^[a][b])

Rolls-Royce Motor Car Limited works in cooperation with its holding company, BMW. This paper have been divided in to various segments in order to analyze the current strategies being applied by Rolls-Royce Motor Cars in United Kingdom, this is done with an objective of proposing  better strategies that will further enhance growth and profitability of the company in the UK. The paper evaluates and analysis the external environment that Rolls-Royce Motor Cars Limited operates in in the UK this is achieved using PESTEL analyses and Porters five forces, it further appraises the internal environment through value chain analyses, SWOT analyses and Porter three generic strategies. Finally the author suggests some recommendations and conclusion.

2. External environment analyses.

The following focuses on assessment of the external influences that influences Rolls-Royce Motor Cars Limited. This is achieved using a PESTEL analyses and Porter’s five forces of analyses.

2.1. PESTEL        

A PESTEL analysis analyses political, economic, social, technological, environmental and legal influences on a business. Organizations need to understand the environments in which it operates in order to facilitate decision making, (Yuskel, 2012)^[c]

2.1.1 Political aspect

Political factors can have various influences on a business^[d]

The UK has a stable political atmosphere; the country is governed by a rule of law under their constitution monarchy headed by the prime minister as the head of government (Byrne, 2008). Companies in the UK are not interfered with politically by the government; furthermore^[e] any disagreement with the government can be resolved amicably through a court of law. This creates a favorable political environment in UK for Rolls-Royce motor car limited to thrive. Government in UK encourages the growth and expansion of Rolls-Royce Motor Car limited for Rolls Royce is a British brand and source of pride for the British (Fenton, 2008) ^[f]