Company Analysis

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  • Topic: Pratt & Whitney, Rolls-Royce plc, Rolls-Royce Trent
  • Pages : 8 (2458 words )
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  • Published : January 1, 2013
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Company Analysis Report: Rolls Royce Plc
Vinay Thakaria

Contents
1.Summary3
2.Introduction3
3.Rolls Royce’s products3
4.Rolls Royce’s competitors4
5.Rolls Royce’s order winning criteria.4
6.Rolls Royce’s Main Opportunities and Threats4
7.Recommendations for Rolls Royce’s strategy5
8.Conclusions6
9.References6
10.Glossary7
11.Appendix7

1. Summary
Rolls-Royce is a public limited company and is listed on the FTSE 100 index. Since December 2011, Rolls-Royce PLC is the 28th largest company on the FTSE, it has a market capitalisation of £13.58 billion. The shares of Rolls Royce are available to the public. Rolls-Royce PLC’s business segments are divided down as the following :Civil aerospace-(44.3%), Defence aerospace-(19.9%), Marine-(25.6%), Energy-(10.2%). Civil aerospace is where the company generates its largest amount of revenue. This report analyses the current competitors in the Aerospace manufacturing industry, the opportunities and threats Rolls-Royce currently face and provides a strategy on how Rolls Royce could possibly compete more effectively in their current market. 2. Introduction

This report has been devised by myself to explain and analyse the : * Products
* Competitors
* Order Winning criteria
* Main opportunities and threats
* Strategy
* Conclusion
Of Rolls-Royce PLC.
3. Rolls-Royce’s products
There are 5 different sectors to Rolls Royce.
* Civil Aerospace
* Defence Aerospace
* Marine
* Energy
* Nuclear
Civil Aerospace
There are different types of Civil Aerospace engines that Rolls-Royce produce, large aircraft engines, small aircraft engines and helicopter engines. Figure 1 shows the Trent 1000 engine, this is one of many different types of large engines that Rolls-Royce provide. There are also small engines and helicopter engines, that Rolls-Royce have to offer. The Trent 1000 in this case is an engine which powers the 787 Boeing Dreamliner. As of 2010 it has been reported that the underlying revenue £4,919m and an underlying profit of £393m in Civil aerospace. Defence Aerospace, Marine, Energy and Nuclear

For defence aerospace, Rolls-Royce provide a variety of engines for different types of aircrafts. These include : Combat jets, Tactical aircrafts, Trainers, Helicopters and unmanned aerial vehicles. The engine shown in figure 2 is one which is used in the combat jets. This product is a collusion between GE aviation and Rolls-Royce, where Rolls-Royce has a 40 % share. The Lockheed Martin F-35 lighting II is where this engine will be used along with Pratt and Whitney’s F135 engine. Rolls-Royce also provides various products in Marine, Energy and Nuclear. 4. Rolls-Royce’s competitors

Rolls-Royce’s main competitors in the engine market are GE-aviation, Pratt and Whitney and SAFRAN. The market that Rolls Royce competes in is an Oligopoly, where barriers to entry are high and products produced by each company in these fields are innovative and differentiated. Figure 3 shows the market shares in the Civil aerospace industry. 5. Rolls-Royce’s order winning criteria.

Past success o.f Rolls-Royce shows evidence that the company is reliable and can provide services to the highest quality. The new Trent XWB engines are at the moment the fastest selling Trent engines, partially because of the fact that they are the most efficient civil aerospace engines at present. Rolls-Royce has also demonstrated further innovativeness by creating integrated power and propulsion systems for two cargo vessels. It follows a concept which Rolls-Royce has identified as enviroship. The design involves a ‘wave piercing bow, gas powered engine and an innovative Promas propulsion system’. Fuel efficiency is said to be increased by up to 18%. Environmental benefits also have been taken into account in this design and Rolls-Royce have stated that Carbon dioxide emissions will be reduced by more than...
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