rolls royce paraphrase 2

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Osmania University *

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2002

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Management

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Nov 24, 2024

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2.1 Evaluation of competition in the firm Rolls Royce employs a differentiation strategy to attract a larger customer base by offering unique features in their products. The company not only introduces new products but also makes significant improvements to their existing product lines. Rolls Royce's developed user-friendly applications for Android-powered cars. Additionally, Rolls Royce has implemented various features such as basic jetpacks, waste reduction measures, lightweight construction, sporty jetpacks, and safe jetpacks to make a distinction in their models from those of other companies. This adoption of a differentiation strategy has proven to be successful for Rolls Royce, which allowed them to generate economic value by capturing, creating, and sustaining their success. Therefore, by embracing this strategy, Rolls Royce can effectively establish, maintain, and capitalize on its market position in the automotive industry. Figure 1 Product research of Rolls Royce

2.2 Company’s Market share The utilization of sporty, safe, green, and basic jetpacks has been identified as a beneficial strategy for the market share expansion in the automotive industry. Specifically, the introduction of the green jetpack has significantly contributed to Rolls Royce's increased market share. According to Sumanasiri's (2020) viewpoint, incorporating sustainability practices in the organization has emerged as a crucial factor in attracting a larger customer base. Thus, making the green jetpacks gain highest level of market popularity. Figure 2 Recent quarter's Product sales Furthermore, it has been discovered from the models like Veera and Beast that the inclusion of the sporty and basic jetpacks has proven to be advantageous within the automobile industry in securing its significant market share. Figure 3 Rolls Royce's Market share

2.3 Internal Capabilities of the organisation According to the research conducted by Huang and Huang (2020), the internal capabilities of an organization, which encompass its talents, competencies and resources, play a vital role in achieving its objectives and gaining a competitive advantage. Moreover, these internal capabilities enable the organization to identify and capitalize on new opportunities, as well as innovate and revise to altering market conditions. The performance of Rolls Royce, for instance, has been exceptional, leading to the company receiving numerous awards in recognition of its business achievements. Figure 4 Awards received by Rolls Royce In terms of net income and total revenue from sales, Rolls Royce held the top position in the marketplace as the market leader during Q2 Y2.

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Figure 5 Rolls Royce as Market leader in Q2 Y2 Furthermore, in Q4 Y2, the organization secured the third position in terms of units produced, specifically manufacturing a total of 5,279 units. Figure 6 Rolls Royce at third place in Q4 Y2 in terms of its units produced In addition to that, due to the consistent rise in its equity, quarter by quarter over the course of a year, the company received the prestigious 'Gardener' award in Q4 Y2.

As a result, the company has earned numerous accolades for its business achievements over the years. It is worth noting that these competencies directly influence the organization's effectiveness and its ability to effectively respond to challenges and external opportunities. 3. Performance Outcomes 3.1 Outcomes arising from the simulation performance 3.1.1 The Company’s position The company's market position is influenced by the level of its products demand. According to the findings of Gupta, Guha, and Krishnaswami (2016), the company's growth is determined by factors such as product, location, automation level, capacity, service design, layout, and vertical integration.Therefore, in the case of Rolls Royce, it has been identified that the Pink, Beast, and Veera models are the most significant for its growth. After a detailed analysis of the demands for these models, it is evident that the Pink model holds a higher level of demand compared to the other two, which can be ascribed to its layout, design, and product quality. According to the observations of Atnafu and Balda (2018), the importance of inventory management in maintaining competitiveness and performance in the market is emphasized. Therefore, to maintain a strong market position, Rolls Royce must effectively manage its inventories according to customer demands and needs. In that case, it has been observed that the Pink model is more beneficial comprising a well-managed inventory system that aligns the number of inventories with customer demand.

Figure 7 Company's position in the automobile sector Moreover, upon examining the company's performance, it has been determined that Rolls Royce, within the automobile industry, holds the fifth position. Additionally, according to Zygiaris et al. (2022), for proper maintenance of its market position, the organization must prioritize the level of customer satisfaction with its products or services. As emphasized by Zhao et al. (2021), the role of the cost factor is also crucial in attracting a larger customer base. Many individuals prefer an organization that offers a proper cost strategy, making their purchases more sensible and valuable. However, in this context, Rolls Royce has neglected the cost factor and mainly concentrated on the differentiation strategy.

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Figure 8 Rolls Royce Ranking 3.1.2 The organization’s Key Performance Indicators(KPIs) The Key Performance Indicator (KPI) is a metric to measure the organization’s performance which is used to strategically achieve organizational objectives. Upon assessing the last quarter, it has been recognized that the company holds the products in its inventory that incur additional storage costs per each product. In order to reduce these storage costs and unwanted expenses, as suggested by Parzen et al. (2022), the company should analyze the customer demand for that particular model. Furthermore, it has been observed that the company has not generated any profit margin despite selling their models. Rounaghi, Jarrar, and Dana (2021) highlight that implementing a strategic cost management system can help address the issues and limitations by accurately determining costs, appropriately allocating them to products, and eliminating waste. However, from a marketing perspective, the company has performed well, which can potentially drive enlarged demand for its models in the future, leading to company’s higher revenue and profitability.

Figure 9 Last quarter's analysis of KPI However, it has been observed that the company faced challenges in maintaining satisfactory Key Performance Indicators (KPIs) across various factories. Upon analysis, it was evident that factories 4 and 6 to 10 outperformed the remaining 4 factories. These particular factories exhibited a high activity level, with a team engagement rate of 100%. Figure 10 Production KPI 3.2 Rolls Royce’s Financial Performance An organization’s financial performance reflects its ability to manage expenses, effectively utilize resources and generate profits to achieve its goals and objectives. Upon analyzing the financial performance of Rolls Royce, it has been observed that the company generated total revenue of $237,000 during the first year’s fourth quarter.

Figure 11 : Rolls Royce's Income statement in Q4 Y1 Subsequently, during the third year’s fourth quarter of Rolls Royce, the business experienced a significant decline as its total revenue plummeted to $0. This substantial downturn over the years indicates a negative impact on the organization. Figure 12 Rolls Royces Income statement in Q4 Y3 On the contrary, the business has managed to recover from it’s turndown and has witnessed a notable rise in its revenue. During the fifth year’s fourth quarter, the revenue of business reached a total of $1,133,200.

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Figure 13 Rolls Royce’s Income statement in Q4 Y5 After a detailed examination of the Rolls Royce invoice, it reveals that the substantial sums of money have been disbursed to different entities despite the company's total sales amounting to $724,800. For instance, loan repayments accounted for $40,600, $53,417, and $49,368, among other expenditures and approximately $425,522 was spent on interest payments related to the overdraft. Figure 14 Rolls Royce’s Invoices during Q4 Y5 According to Li and Wang (2021), small and medium-sized enterprises face significant financial consequences due to their frequent utilization of limited resources and intense competition. It is crucial for organizations to ensure robust financial well-being, as inadequate financial performance can result in reduced productivity and financial instability.

3.3 Decision-making process The role of decision-making process is to enable individuals and organizations to identify and evaluate various options that lead to informed decisions basing upon their fundamental principles, objectives and resources available. Upon examining the Rolls Royce’s decision report, it has to be noted that the company is having a negative net income, like -$418,907, which paints a depressing image of the business. Despite sales amounting to $1,133,200, there is no cash available, and the total equity is also significantly low of about -$4,570,309. Figure 15 Rolls Royce’s Decision report Therefore, with regards to the decision of product marketing, the assessment reveals that the promotion of the model Veera incurred approximately $5000 in costs and resulted in the sale of 2500 units. Conversely, the promotion of Pink also incurred similar costs of approximately $5000 but did not yield any sales. Figure 16 Rolls Royce’s Decision process report regarding the market of products

Therefore, this indicates that the company has identified several loopholes and negative consequences resulting from their decision-making process and thus, it is in need of further improvement in their decision-making practices for a positive business expansion and for maintaining competitiveness in the market.

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