Corporate And Business Strategies For Rolls Royce

Based on the analysis provided in Assignment 1 (improved based on feedback received), your assignment 2 will be in the form of a consultant’s report. The exact presentation style will be at your discretion but should be a professional, business like report.  It should also use Harvard referencing. For guidance, the report should include

1.Identification of the possible strategies at the corporate and at the business level including a justification of those possible strategies al evaluation of the different possible scenarios using strategic models
2.Your recommended route forward: explanation of the scenario chosen and critical analysis of the implications.
 

Corporate Strategies of Rolls Royce

Corporate and business strategies developed for Rolls Royce will facilitate in analyzing the ways in which decision is made by the organization regarding its maintenance and generation of business level strategies. Through developing both business and corporate level strategies, Rolls Royce will be able to develop company’s product line, competition and target market through which it can be able to identify its competitive advantages (Rolls Royce 2017). The objective of the paper is to analyze and select appropriate corporate and business strategy of Rolls Royce along with evaluation of such selected strategies. Such strategies are developed in consideration to the company’s internal and external business environment analysis.

Evaluation of the selected strategy justification along with relevant recommendations is offered. Analysis of the existing academic literature on the subject along with data gathered related to the automobile industry will facilitate in elaborating the concepts related with the Rolls Royce business strategy along with selecting the most appropriate strategy (Johnson et al. 2018). Evaluation of the proposed corporate and business strategy will be carried out through offering suitable explanation for such strategies. Through developing effective corporate and business strategies Rolls Royce will be sustain its reputation as an experienced and skilled British manufacturing organization. This can further facilitate in developing unrivaled products in international engineering market. 

In developing the corporate strategy internal and external business environment of Rolls Royce is analyzed that indicates it is an international organization that offers exceptional solutions for the customers within the defense and civil aerospace, energy and marine markets (De Man, Nevin and Roijakkers 2016). The organization’s corporate strategy is focused on maintaining exceptional commitment to investing within research and development. This offers certain technologies along with intellectual property which facilitates the company in attaining competitive advantage within an international basis. Such corporate strategies can generate increased entry barriers within the global markets. The corporate strategy of Rolls Royce is focused on employing its research and development funding for such strategy implementation (Visnjic et al. 2017). The corporate strategy of “invest once use many times” can be implemented by the company within products all through the four major segments of the company. The manufacturing operations along with supply bases must be integrated and international.

The corporate strategies that are proposed for Rolls Royce in attaining competitive edge within the international market are explained under:

• Addressing the four global markets: To attain the competitive strategy of becoming a leading producer of mission-based, integrated power systems along with services for use within defense and civil aerospace, energy along with marine business segments (Johnson et al.2018). In implementing this corporate strategy, Rolls Royce must focus on maintaining compelling consumer propositions as consumer relationships can turn out to be the company’s greatest competitive advantages. The company must focus on providing its consumers with a combination of innovative technologies in overall systems solutions that can be optimized all through its life. Rolls Royce must develop a combination of systems, technology along with aftermarket performance that can make the company’s consumers highly competitive (Amshoff et al. 2015).
• Investing within the technology infrastructure along with the capability: Increasing research and development expenses to £1 billion yearly along with investing increased funds within capital projects in order to develop its global productivity along with capability. The development of dynamic technology management corporate business strategy will focus on dealing with complex and existing new challenges within the technological world (Rugman and Verbeke 2017). This corporate strategy responds to the deeper and broader collaboration with others along with making sure that the new technology will bring increased value to its businesses and consumers. This corporate strategy of the company must focus on maintaining pursuit and cooperation in the application of aggressive technology commoditization.
• Developing a competitive portfolio related with Rolls Royce products and services: Developing more than forty major engineering programmers under management. In implementing the corporate strategy, Rolls Royce must focus on introducing new products such as the Trent 1000 (Kwak and Kim 2016). The major products of the company must explain the power systems markets for the future years. In implementing its corporate strategy, the company must focus on redefining its business system that is used all through Rolls Royce business units. Investing within R & D for developing cutting edge technologies can facilitate Rolls Royce in addressing increased consumer needs. The company must focus on perusing new technologies that can facilitate the company in offering safer, clear and developing highly competitive solutions. In developing the key horizon technologies which can develop a competitive advantage for the company in the long term (Böhm et al.2015).
• Increasing the market shares along with the company’s installed product base: All through the company the increasing installed product base along with developing integrated systems is necessary in generating high returns in future. In following such corporate strategy Rolls Royce must focus on developing renewable fuel cell systems which has the potential to be clean, cost effective and quiet along with being highly fuel efficient. The company will be able to attain increasing stable sales and for such reasons financial resources must be invested by the company for further business development (Cushman, Kahl and Suarez 2015).
• Add value for the consumers by means of product related services provision: It has been observed from the business environment analysis of Rolls Royce that most of its revenues are derived from its exceptional services. The company must develop long term consumer relationships by means of long term service contracts through which it can enhance its strong business collaboration (Bo et al.2015). In this corporate strategy, the company focuses on maintaining resilient business that can have a major impact on the global economy and the company’s community. This strategy must focus on the fact that the company is free to operate and invest within the long term through employing its financial resources. In developing this corporate strategy, the company must implement and improve its “Rolls Royce Operating System” (Grubic and Jennions 2017). Developing digitization can facilitate the company in developing innovative ways of manufacturing along with serving consumers all across the geographical locations. Through developing activities in which electrification is important like micro grids Rolls Royce will be placed better in the global market through developing better electrification of aero engines. 

Business strategy of Rolls Royce is focused on retaining the leading position within the international market. The company identifies an increasing number of customers get loyal towards its brand based on the company’s effective business strategies.  The business strategies that are recommended for Rolls Royce are explained below:

• Cost leadership strategy- Cost leadership strategy can be implemented by Rolls Royce in positioning its competitive position among the low cost car manufacturers of the world. Through attaining the competitive advantage of becoming a low cost car manufacturer, the company will be able to reduce its costs each year (Jovanovich and Jerbrant 2015). It can also be indicated that decreasing expenditure along with the reduced cost must be a part of the company’s management policy. Cars offered by Rolls Royce is deemed to attain benefits from its decision to maintain a reasonable profit margin, particularly when the cars are in short supply and ask for an increased premium. This results in increased demand growth along with providing it the opportunity of positioning itself as a profiteering organization. Value pricing business strategy of Rolls Royce is relied on the assumption that the pricing objective is not focused on recovering expenses but also to realize the product value perceived by the consumers. The advantages of the cost leadership strategy for the company can facilitated it in offering consumers with great value for money (Vladimirova 2015).
• Focused differentiation strategy- Business strategy of Rolls Royce must also focus on implementation of proper focus strategy as this considers the strategic plan within which the company can focus its resources on tapping within narrowly defined market segment. In implementing this strategy, the company must focus on a narrow niche market within which to develop a strong competitive advantage. It must also be used in case Rolls Royce identifies its target consumer segment along with having products that can competitively satisfy the needs of its consumers. In implementing this strategy, Rolls Royce can aim to differentiate within just one target market segments (Baines 2015). For instance, the company can act as niche players of the automobile industry and it can have niche of its niche products that is available in a premium price. Certain competitive strengths can be attained by the company in implementation of focus strategy for the reason that the competitors do not have capability to attain specific needs of target consumers. This business strategy can also facilitate Rolls Royce to compete on basis of differentiation, low cost along with rapid response along bigger businesses with increased resources.
• Consumer focus strategy- This business strategy must be implemented by Rolls Royce in order to attain a better competitive position in the market along with attaining huge market shares through tapping new geographical segments (Jovanovic, Engwall and Jerbrant 2015). Based on the demands of the consumers, the company must also focus on maintaining its position as a motor car brand that offers luxurious drive. For instance, Rolls Royce Ghost can be introduced in the untapped geographical segments such as Asia. Moreover, along with luxury it must also offer a low price in comparison to the company’s previous models for instance, (Phantom Holt Brown and Walker 2016). The consumer focus strategy must also focus on offering best care for the car service attained by the consumers through providing service from best technicians of the world. The company must centre its business strategy on fixing its consumers and considering the same the company attempts to develop and sustain consumer equity so that the market of the company remains the same. The target consumers of Rolls Royce are observed to belong to high income group segment and buy its products for increasing company revenues and growth. It must offer differentiated products to its consumers based on consumer focus strategy that should center on offering luxurious drive with simplicity, effective after sales service, calm environment within the cars and offering hand finished personalized features.
• Market penetration strategy- This business strategy of Rolls Royce must focus on penetrating new business segment through implementing better generic strategy (Morden 2016). This can facilitate the company in attaining better competitive advantages against other business rivals within the automobile industry. The market penetration strategy of the company is focused on offering advanced technologies within its electric vehicles to the nations where there is high demand for pollution less cars. Market penetration strategy of Rolls Royce Company must also serve as an intensive growth strategy that can facilitate the company in increasing its sales revenues within current markets. For instance, with the help of aggressive marketing, the organization must focus on selling and rollout all its electric cars within the nation. In this manner, the company can increase its revenues from the markets within which it do not operate its business (Mendibil, Rudberg, Baines and Errasti 2016). Rolls Royce can increase its market reach for through establishing new facilities and offices in Asian market. This strategy also facilitates international businesses of the company through maintaining alliances with other organizations that makes it simpler to tap new markets. 

Business Strategies of Rolls Royce

The selected business and corporate strategies are deemed to be suitable for Rolls Royce and it is gathered that it is best suited in comparison to the internal and external business environment situation of the company (Ramirez et al. 2017). The business strategies those are recommended to be implemented by Rolls Royce includes cost leadership, market penetration, consumer focus and focused differentiation. Moreover, the corporate strategies that are considered to be implemented within the company are Addressing the four global markets, investing within the technology infrastructure along with the capability, developing a comparative portfolio related with Rolls Royce products and services, increasing the market shares along with the company’s installed product base and adding value for the consumers by means of product related services provision. There are many ways in which the strategic capabilities are diagnosed by the company in implementing the strategies (De Man, Nevin and Roijakkers 2016). The strategic capabilities attained by the company are deemed to be highly effective in facilitating Rolls Royce to attain competitive advantages. The value chain framework of the company is highly effective in supporting its corporate as well as business strategies.

The corporate strategy of implementing focused differentiation strategy is supported by Rolls Royce Company’s effective value chain that focuses on effectively maintaining the process of receiving, warehouse and inventory control of the input materials (Mendibil et al. 2016). Such operational activities of the company are deemed to add value to its newly developed financial services and cars. Differentiation and market penetration strategy of Rolls Royce is deemed to be feasible as marketing and sales capabilities of Rolls Royce makes sure that availability and maintenance of all its car products. Through benchmarking the suitability of the company’s business and corporate strategy can also be analyzed by means of evaluating the effectiveness of the company’s strategic capabilities in comparison to its competitors. The benchmarking strategies that are employed in analyzing feasibility of its strategies are historical, industry and best in-class. Improved internal and external communications capability, high net profit margin, better asset turnover position of the company indicates better performance of Rolls Royce in addressing its strategic goals (Skertic and Myer 2017). The focused differentiation and consumer focus strategy along with its other business and corporate strategies are deemed to be achievable by Rolls Royce. With all the major people, resources along with effective financial resources it can be able to attain high advantages from attaining opportunities from its recommended strategies. The company can also excel themselves in implementing the strategies and in maintaining larger commitments within research nod development within engine along with manufacturing processes.  

Suitability of the Selected Business and Corporate Strategies for Rolls Royce

The objective of the paper was to analyze and select appropriate corporate and business strategy of Rolls Royce along with evaluation of such selected strategies. Such strategies are developed in consideration to the company’s internal and external business environment analysis (Scholes 2015). Through developing effective corporate and business strategies Rolls Royce will be sustain its reputation as an experienced and skilled British manufacturing organization. This can further facilitate in developing unrivaled products in international engineering market. It was gathered from the paper that in developing the corporate strategy internal and external business environment of Rolls Royce is analyzed. This indicates it is an international organization that offers exceptional solutions for the customers within the defense and civil aerospace, energy and marine markets. The organization’s corporate strategy is focused on maintaining exceptional commitment to investing within research and development. Business strategy of Rolls Royce is focused on retaining the leading position within the international market (Larson and York 2017). The company identifies an increasing number of customers get loyal towards its brand based on the company’s effective business strategies. It is gathered from the existing literature along with company’s strategic position; cost leadership strategy can be implemented by Rolls Royce in positioning its competitive position among the low cost car manufacturers of the world. Through attaining the competitive advantage of becoming a low cost car manufacturer, the company will be able to reduce its costs each year. It can also be indicated that decreasing expenditure along with the reduced cost must be a part of the company’s management policy (Cusumano, Kahl and Suarez 2015).

The business and the corporate strategies that are considered to be highly suitable to be implemented in the Rolls Royce Company among all the strategies explained are increasing the market shares along with the company’s installed product base and focused differentiation strategy. Focused differentiation strategy of the company is deemed to be effective and highly feasible for the reason that the manufactured cars of the company have been highly competitive and different in comparison to its competitors. As the company is an aero engines producer, the cars will be manufactured by the company, through employing high investment in its research and development (Mansor et al. 2015). This strategy is feasible as the company has efficient resource and capabilities in the engines manufacturing sector, particularly core technology along with technical abilities. Another selected strategy of company’s installed product base is deemed to be highly feasible for Rolls Royce for the reason that the company has been very effective in satisfying changing consumer needs and has been focused on manufacturing different cars. For attaining competitive advantages over its major business rivals. In developing technologically advanced engines, the company must employ various equipments so that there is huge cost within the company’s manufacturing abilities. The company must focus on providing its consumers with a combination of innovative technologies in overall systems solutions that can be optimized all through its life. Rolls Royce must develop a combination of systems, technology along with aftermarket performance that can make the company’s consumers highly competitive.

The company has enough resources along with better profitability position within the global automobile market because of which it can produce small quantities of special products. For accomplishing this strategy successfully they have attained some special equipment that requires low utilization. In addition, because of the reason that Rolls Royce have increased number of facilities that can combat external and internal competition between its new and old products (Wheelen et al. 2017). Focus strategy is deemed to be suitable for the company in attaining competitive advantages for the reason that Rolls Royce aero engines based market focus strategy has been highly efficient in offering better services to its consumers. Focus differentiation strategy of implementing electronic ERP system, turbo propeller engine, and fuel jet and turbo jet engine will be highly efficient in alignment with its exceptional technical research and development abilities. 

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