7BSP0355 0206 2022 Case Analysis Companion Assignment Sample
7BSP0355 0206 2022 Case Analysis Companion Assignment Sample
Unit 1: Introduction to International Business Strategy
Wk1. How has what you have learnt this week from the lecture, tutorial, discussion with classmates and own research helped you to understand your chosen company’s strategies?
I have gained a lot of knowledge from the lectures and classes regarding the internal and external environment of the luxurious automobile of Rolls Royce and its present industrial environment. Furthermore, I gained knowledge about the issues and threats that may impact the external environment of Rolls Royce in the UK, apart from that I also learned similarly there have been opportunities for Rolls Royce after observing its PESTLE Analysis (Christodoulou and Cullinane, 2019). I may argue that my classmates helped me to conduct this research and I am thankful to my classmates for their helping hand in providing me with knowledge about the internal environment of Rolls Royce through the implication of Value Chain Analysis. On a contradictory note, I may state an overview of the interest of the company’s internal and external stakeholders has been provided to me through the utilisation of Mendelow’s Matrix analysis and TOWS Matrix, and on the other hand, a brief analysis of the company’s industrial environment has been provided to me after observing Five Porter’s Forces.
Unit 2: Mega/ Macro environmental Analysis (outside- in perspective 1)
Drawing from what you have learned this week and your own analysis of your chosen company’s industry context, what are the key threats and opportunities to your company? Apply at least one of the theories covered in class such as megatrend trends, PESTEL or CAGE. Show engagement with material covered in class this week.
The opportunities and threats of the luxurious car brand of the UK, Rolls Royce will be described through PESTLE Analysis
Political
Rolls Royce, the luxury car manufacturer of the UK will get suitable opportunities from the present government of the UK, however, the country has been a place for a large number of luxurious automobile brands helping the country to rank 8th in the ease of doing business similarly Rolls Royce will be able to get further opportunities (Doingbusiness.org. 2023). On a contradictory note, it has been stated that the government of the UK maintained trade relationships with the countries of the European Union through the trade agreement for extraction of resources, and as a result, Rolls Royce will be able to improve the market share by getting opportunities from the UK government (Policy.trade.ec.europa.eu. 2023).
Economical
The company of Rolls has opportunities from the political factors of the external environment of the UK, there might be threats in the economical environment due to high economical instability that arises due to geopolitical disruption further resulting in high inflation by 9.2% (Statista.com. 2023). Apart from that Rolls Royce is a luxurious brand having high prices the automobiles, other than the common car brands, however further rising prices of these automobiles will lead to unaffordability in buying the automobiles by the high-income people of the UK leading to threats. It may be argued that there might be a decline in the profit share of Rolls Royce due to the low income of the individuals who were having high income before the inflation and pandemic and as a result the threat of Rolls Royce usually increases.
Social
The European country of the UK has a place of a large population of 2.49 Million people in 2020 that have been counted as millionaires and as a result, the company of Rolls Royce will get opportunities as these millionaires will have the affordability to buy luxurious automobiles (Statista.com. 2023). However, threats may arise for Rolls due to the decrease in the sales of luxurious car companies including Rolls Royce as a large part of millionaires were reluctant to buy the automobiles due to high maintenance (Statista.com. 2023).
Technological
Various technological equipment such as AI, IOT and AR has been introduced by the UK which has been implemented by Rolls Royce for providing new features in luxurious automobiles to satisfy its high-end clients, thus opportunities have been established in technological factors (Newman et al., 2021).
Legal
The company law 2006 has been established by the legal authorities of the UK which helps Rolls Royce to get opportunities to improve its relationships between its shareholders and inventors without any chance of conflicts (Legislation.gov.uk. 2023).
Environmental
Rolls Royce focuses on the environmental measures of the government of the UK focused on adopting environmental sustainability practices, getting opportunities and as a result greenhouse emissions will be reduced through the implication of creating EVs in the market by the company.
Unit 3: An analysis of the industry environment (outside- in perspective 2)
A conduct a critical analysis of your company’s industry context: From your analysis what are the key threats and opportunities to your company? Why? (Spend a few minutes writing down your thoughts in this section during the lecture and then discuss your thoughts with your classmates in the tutorials.)
Porter’s Five forces will be used to analyse the industrial environment of the luxury automobile manufacturing company of Rolls Royce
Bargaining Power of Suppliers
The bargaining power of the suppliers in the luxurious automobile industry of Rolls Royce is low as the company has a large number of suppliers in the global market without sticking to a single supplier.
Bargaining Power of the Buyers
In the luxurious automobile industry of Rolls Royce, the bargaining power of the buyers is comparatively as the company having high brand equity is a luxury brand providing luxury features, while its usual clients are millionaires who have a motive of buying these automobiles to maintain a high status in the society.
The threat of new entrants
The threat of new entrants is low in the luxurious automobile industry as there has been a large number of players in the existing market such as Rolls Royce providing automobiles to its highly profiled clients. Apart from that a new brand will have difficulties in entering the market base as it is completely different from the ordinary car market and on the other hand the new brand will need to invest a large number of resources to observe the market of the high-profiled customers.
Threat of substitutes
The threat of substitutes is moderate as there might be companies that provide premium electric cars at an affordable rate which might be considered as a substitute for Rolls Royce, however, there has been a quite differentiation between the value proposition and switching costs of Rolls Royce and the substitutes.
Competitive Rivalry
There has been high competition in the luxurious automobile industry as there has been a large number of players such as Bentley, Audi, Porsche, and Mercedes to provide tough competition to Rolls Royce which may impact its customer base (McGoun et al., 2019).
Unit 4: An analysis of the firm’s internal environment (inside-out perspective)
The internal environment of Rolls Royce will be analysed with the help of Porter’s value chain analysis and it needs to be mentioned that this analysis will help in assessing the strengths and weaknesses of the company in detail. On the other hand, carrying out a value chain analysis always assists in gaining a sustainable competitive advantage in the industry (Ricciotti, 2020).
Support activities
Rolls Royce keeps updating its infrastructure from time to time along with maintaining all the important activities such as line management, handling administrative activities and financial activities which becomes a strength of the company. Human resource management is also done quite strategically where skilled and experienced employees are employed and skill development training is also provided frequently which enhances the efficiency and productivity of the workforce. It may be implied that maintaining a strong human resource always provides an added advantage in preventing corporate corruption in an organisation (Stone et al., 2020).
The management of Rolly Royce also pays attention to new technology development and innovation which helps in updating the products eventually increasing sales and enhancing the level of customer satisfaction. However, the procurement process often becomes a weakness of the company where the presence of limited suppliers reduces the bargaining power of the company affecting relationships with suppliers and stakeholders which may be regarded as a weakness.
Primary activities
The activities related to the inbound logistics of Rolly Royce include internal management of raw materials, and receiving and storing shipments carefully and all these activities create value for the company. Outbound logistics is another strength of the company as the company has a good transportation network as well as a distribution network which assists in business expansion. It may be added that widespread digitalisation in the field of logistics has become essential for attaining a sustainable business model where technologies such as Industry 4.0 is used (Awan et al., 2022).
The operations of Rolls Royce which include branding and converting raw materials into finished products are done with extreme care and strategic planning which is certainly an internal strength of the company. Furthermore, marketing and sales of the products are also done by in suh as a way to target the premium customer segment and for this reason, the promotional strategy and advertising approach are a strength of the company. The overall quality of service provided by Rolls Royce is also excellent which attracts customers to a great extent.
Unit 5: A critical analysis of your company’s shareholders and stakeholders:
Spend a few minutes writing down your thoughts in this section during the lecture and then discuss your thoughts with your classmates in the tutorials. From your analysis what are your chosen company’s key opportunities, threats, strengths and weaknesses? (Apply at least one framework you have learned in class).
Internal and external stakeholders of Rolls Royce
| Internal stakeholders | External stakeholders |
| 1. Employees
2. Board of Directors 3. Managers 4. Owners |
1. Customers
2. Shareholders 3. Investors 4. Suppliers 5. Government 6. Communities 7. Non-Governmental Organisations (NGOs) 8. Media |
Table 1: Internal and external stakeholders of Rolls Royce (Source: Self-created)
The above table has provided a detailed overview of the internal and external stakeholders of Rolls Royce and it needs to be mentioned that the identification of the stakeholders plays a crucial role in improving the overall performance and productivity of an organisation. However, paying attention to stakeholder identification and analysis always proves beneficial in adding value to a firm along with mitigating the levels of corruption (Wood et al., 2021).
Mendelow’s Matrix analysis
High Power High-Interest (HPHI)
The stakeholders belonging to this quadrant are the Board of Directors, customers, suppliers, managers, investors and shareholders and it needs to be mentioned that these stakeholders are to be managed closely. All the stakeholders maintain collaboration and cooperation for generating desired outcomes along with mitigating any sort of risks and threats.
High Power Low-Interest (HPLI)
The stakeholders belonging to this quadrant are the Government and the employees and they are to be kept satisfied to keep running organisational operations smoothly in the national as well as the international context. The Government imposes strict trade policies and business laws which often become a threat to the organisation.
Low Power High-Interest (LPHI)
Stakeholders of Rolls Royce belonging to this quadrant include media and NGOs and they are to be kept informed about the organisational decisions and strategies for maintaining organisational transparency. NGOs play a vital role in influencing companies to adopt sustainable business models (Sisaye, 2021).
Low Power Low Interest (LPLI)
The stakeholders belonging to this quadrant include society and communities and they are to be monitored closely for analysing their views perceptions opinions for improving the products and services further.
TOWS Matrix
| Internal strengths
1. The internal strengths of the company includes the presence of an effcteive infrastructure, HRM management and an excellent framework for developing new technologies 2. The stakeholders maintain collaboration and cooperation for generating desired outcomes |
Internal weaknesses
1. The presence of a weak procurement process 2. Chanegs in government policies and trade restrictions are a weakness of Rolls Royce |
|
| External opportunities
1. The political condition of the UK may provide an opportunity 2. The social condition of the UK is an opportunity 3. Advanced technological developments are an opportunity |
The presence of good HRM, advanced technologies and the political stability of the UK will prove beneficial in the business expansion | Weak procurement process and overcoming it may generate expected outcomes |
| External threats
1. Economic instability is an external threat 2. Pricing strategy |
Combining the strengths will lead to better profitability | Overcoming weaknesses related to pricing may generate expected outcomes |
Table 2: TOWS Matrix (Source: Self-created)
Unit 6: Strategic options (e.g. innovation, HQ/ Sub relationship, International operational/ strategic choices etc)
Rolls Royce may focus on improving innovation as a strategy option for optimising the overall outcomes of the organisation where making a change in existing partnerships and cost structure may become fruitful. Leadership changes also become important in making effective changes in an organisation where various leadership style provides an added advantage (Alblooshi et al., 2021). Using innovative ideas and turning them into reality will certainly assist Royys Royce in gaining a competitive advantage in the industry in the upcoming years where the value proposition needs to be improved for increasing the overall sales of the products. Leadership roles and responsibilities are associated with implementing organisational policies in a successful way (Nani and Safitri, 2021). Developing a good relationship with the customers is another essential strategy which the company need to focus on for generating expected outcomes in today’s highly competitive busines landscape. Customer relationship management may be done by customer segmentation which will certainly assist the company in improving interaction with customers.
Improving the product distribution network and making changes in the existing distribution channels will also provide a positive result in the long run. Customer relationship management increases customer loyalty which becomes an effective strategy to retain customers along with increasing business profitability (Juanamasta et al., 2019).
Unit 7: Strategy Implementation / recommendations
Short-term recommendations
- Rolls Royce should increase its budget for promoting its products
- The company needs to make improvements in its procurement process and develop a good relationship with the Government for running the business smoothly
- Rolls Royce should focus on improving customer interaction and customer satisfaction
- The company is required to maintain organisational transparency
Mid-term recommendations
- Rolls Royce should make chanegs in its leadership style and approach for generating optimised outcomes where leaders will become responsible for business expansion and growth by adopting suitable strategies by analysing the changing trends in the industry
- The management should focus on maintaining sustainability which may be done by following the Triple Bottom Line theory where attention will be given to maintaining profitability without compromising on the planet of people
- The company needs to increase employee engagement by giving rewards and recognition
Long-term recommendations
- The company should focus on increasing overall revenue collection by increasing product variability and marketing
- Rolls Royce is required to enter new markets for increasing brand recognition along with organising promotional events
- Focusing on product differentiation as well as marketing products through social media platforms will certainly increase sales and ultimately lead to better profitability.
Unit 8
During the assignment, I have learnt various things which include the importance of analysing the internal and external threats related to a business and the ways in which it impacts the overall business outcomes. I have realised that understanding all the aspects related to international business is an extremely essential aspect which enhances the levels of understanding of an individual helping in developing a proper knowledge about the dynamic factors impacting international businesses. It may be asserted that communication plays a vital role in international business which helps in understanding business processes and organisational values and perceptions (Szkudlarek et al., 2020). I have learnt the importance of using micro as well as macro environmental analysis for developing a comprehensive understanding of the performance of an organisation. Using a scientific framework is another aspect which needs to be used for analysing matters correctly and this assignment has helped me in appropriately using these frameworks. I may conclude that I would have paid more attention to using other scientific frameworks and theories related to the assignment if I were to repeat this assignment.
References
Alblooshi, M., Shamsuzzaman, M. and Haridy, S., 2021. The relationship between leadership styles and organisational innovation: A systematic literature review and narrative synthesis. European Journal of Innovation Management, 24(2), pp.338-370.
Awan, U., Sroufe, R. and Bozan, K., 2022. Designing value chains for industry 4.0 and a circular economy: A review of the literature. Sustainability, 14(12), p.7084.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges from the implementation of a port energy management system: A SWOT/PESTLE analysis. Sustainability, 11(21), p.6046.
Doingbusiness.org. 2023. United Kingdom – World Bank (no date). Available at: https://www.doingbusiness.org/content/dam/doingBusiness/country/u/united-kingdom/GBR.pdf (Accessed: March 17, 2023).
Juanamasta, I.G., Wati, N.M.N., Hendrawati, E., Wahyuni, W., Pramudianti, M., Wisnujati, N.S., Setiawati, A.P., Susetyorini, S., Elan, U., Rusdiyanto, R. and Astanto, D., 2019. The role of customer service through customer relationship management (Crm) to increase customer loyalty and good image. International Journal of Scientific and Technology Research, 8(10), pp.2004-2007.
Legislation.gov.uk. 2023. (no date) Companies act 2006, Legislation.gov.uk. Statute Law Database. Available at: https://www.legislation.gov.uk/ukpga/2006/46/contents (Accessed: March 17, 2023).
McGoun, E.G., 2019, From hobby to high end via heritage.
Nani, D.A. and Safitri, V.A.D., 2021. Exploring the relationship between formal management control systems, organisational performance and innovation: The role of leadership characteristics. Asian Journal of Business and Accounting, 14(1), pp.207-224.
Newman, C., Edwards, D., Martek, I., Lai, J., Thwala, W.D. and Rillie, I., 2021. Industry 4.0 deployment in the construction industry: a bibliometric literature review and UK-based case study. Smart and Sustainable Built Environment, 10(4), pp.557-580.
Policy.trade.ec.europa.eu. 2023. EU-United Kingdom (no date) Trade. Available at: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/united-kingdom/eu-united-kingdom-agreement_en (Accessed: March 17, 2023).
Ricciotti, F., 2020. From value chain to value network: a systematic literature review. Management Review Quarterly, 70(2), pp.191-212.
Sisaye, S., 2021. The influence of non-governmental organizations (NGOs) on the development of voluntary sustainability accounting reporting rules. Journal of Business and Socio-economic Development, 1(1), pp.5-23.
Statista.com. 2023. United Kingdom – inflation rate 2027, Statista. Available at: https://www.statista.com/statistics/270384/inflation-rate-in-the-united-kingdom/ (Accessed: March 17, 2023).
Stone, R.J., Cox, A. and Gavin, M., 2020. Human resource management. John Wiley & Sons.
Szkudlarek, B., Osland, J.S., Nardon, L. and Zander, L., 2020. Communication and culture in international business–Moving the field forward. Journal of World Business, 55(6), p.101126.
Wood, D.J., Mitchell, R.K., Agle, B.R. and Bryan, L.M., 2021. Stakeholder identification and salience after 20 years: Progress, problems, and prospects. Business & Society, 60(1), pp.196-245.
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