Fwd_ Navneet SIB7501-B.edited

Introduction The report has been written to critically and strategically analyse the key management practices of a real British company. Rolls Royce Holding has been selected for the report. The report will offer a brief company background along with its chronological history. Industry analysis has been done based on CIS CODE. The company's internal and external environment is analysed using the resource-based view (RBV) theory and Porter's Five Forces. The company's generic strategy will also be analysed, followed by gaining insights into its corporate governance and stakeholder management. Overview of the company with a chronological history Rolls Royce Holding is a multinational aerospace and defence company headquartered in London, United Kingdom, established in 2011 (Rolls-royce.com, 2023). The formation of this company possesses a long chronological history. Henry Royce established a mechanical and electrical business in 1884 and built his first car in 1904. He met Charl Rolls, who used to sell high-quality luxury cars. The company was established in 1906 by Charles Rolls and Henry Royce. The two founders collaborated because Royce manufactured some car designs which Rolls wanted to sell. Thus, Rolls-Royce Limited was formed after the establishment of a corporate owner in 1906. The company introduced the Silver Ghost Model in 1907, its first large-scale automobile production (Stock, 2021). Introducing this model helped the company gain a reputation in the market for its reliability and luxury. The car gained the phrase "best car in the world". Figure 1: The Silver Ghost Model ()

Figure 3: Revenue generated by Rolls Royce from different business segments (Source: Placek, 2023) It has been observed that civil aerospace is the most potential market segment of Rolls Royce Holding Plc. The company generated the highest revenue of approximately 5.7 billion GBP in 2022 (Placek, 2023). The defence segment has generated an average revenue of 3.7 billion GBP. (Refer to Figur 3) Operating industry and potential competitors_200 The operating industry of the chosen organisation can be identified by analysing its CIS Code. According to Delgado and Mills (2020), the SIC code is a four-digit code that categorises different industrial sectors based on their business activities and the primary product they sell. As per the SIC V2 Excel dataset, the CIS Code for Rolls Royce Holding is 3724. It has been found that 3724 is the final level code for the industry "Aircraft Engines and Engine Parts", specifically for the manufacturing division (Siccode.com, 2023a). Thus, the company is primarily engaged in the manufacturing of aircraft engines and other parts of engines. On the other hand, the SIC Code2 is 3728 which signifies that the secondary activity of the company is manufacturing aircraft parts and auxiliary equipment. SIC Code 3 for Rolls Royce Holding is 3519. The value signifies the third level of business activity of the company is focused on manufacturing the "Internal Combustion Engine" (Siccode.com, 2023b). As Rolls Royce Holding is associated with making engines, the industry analysis is justified. The competitors of the chosen organisation can be identified based on the SIC CODE 1,2,3,4, 5 and 6. Considering the SIC Code of the companies, the main competitors of Rolls Royce Holdings are BAE, Melrose Industries and Senior Plc. It has been observed that SICCODE 1 for SENIOR Plc is 3724, which is similar to that of Rolls Royce. Senior Plc is a UK-based global manufacturing group whose primary activity is focused on manufacturing "aerospace, defence, land vehicle and power & energy markets" across the world (Seniorplc.com, 2023). On the other hand, the SICCODE 1 for Melrose Industries is also 3724, which also means that this company manufactures similar products as Rolls Royce Holdings. Melrose Plc is a leading global aerospace business leading in the concerned industry (Melrose Plc, 2023).

External Analysis of the Firm The factors of the external environment play a crucial role in influencing the business performance of an organisation. According to Habich-Sobiegalla et al. (2019), the external environment can be analysed by using macro-level and micro-level analysis. The market competitiveness and industry analysis of Rolls Royce Plc will be done through micro-level analysis using Porter’s Five Forces. Forces Description Impact Threats of New Entrants ● High capital investment (Gisario et al. 2019) ● Strict regulations and certifications can act as potential barriers Low Bargaining Power of Suppliers ● High requirements for specialised materials and components ● High switching cost because it necessitates requalification and testing ● Unique input Moderate Bargaining Power of the Buyers ● High switching cost ● Limited number of aircraft suppliers and manufacturers (Gradl et al. 2022) Low Threats of Substitutes ● Increasing demand for electric and hybrid propulsion engines (Rendón et al. 2021) High Competitive Rivalry ● Fierce competition due to the presence of key players ● Need for continuous innovation and improvements High Table 1: Micro-environment Analysis of Rolls Royce Holding Table 1 has conducted the industry analysis of the chosen organisation to get valuable insights into the market competitiveness. According to the analysis done in the second section, Rolls Royce operates in the aerospace and engineering sector where the company is responsible for manufacturing aircraft engines and defence

compromising product quality is complex and difficult. Rolls-Royce decisively positions itself as a supplier of top calibre, mechanically progressed, and separated items and administrations in the aeroplane engine market. Corporate governance and information on whether the majority shareholder has the same surname as any other shareholder or director Corporate governance can be defined as the set of rules, guidelines, principles, practices and procedures which is responsible for directing and controlling an organisation (Almagtome et al. 2020). It focuses on adjusting the interests of different partners like investors, management, clients, lenders, government, and the local community. The essential objective of corporate administration is to improve the long-term worth of an organisation for its investors while guaranteeing moral conduct, transparency and accountability throughout the tasks. Dat et al. (2020) stated that the key elements of corporate governance include shareholders, Board of Directors and Professional Managers. The shareholders are responsible for the ownership, whereas the Board and C-suite managers are responsible for controlling the organisation.