Rolls Royce PLC is the second largest multinational organisation that produces power integrated systems after GE Aviation. Rolls Royce operates in four different types of economic markets which are the civil and defence aerospace market as well as the marine and energy markets. The company makes engines for jets, helicopters, and turboprop aircraft not only do they produce engines but they also install these systems. Rolls Royce PLC has 50,000 engines in service with 500 major airlines. Rolls Royce PLC is a global company that is known in over 50 countries, the name Rolls Royce comes from the last names of its founders, Henry Royce and Charles rolls. The company was initially formed in 1904 to produce cars and car engines. In 1914 it also produced its first aircraft engine, as the company expanded in 1971 it became a PLC, the company was then split into two and sold to a BMW company that is now known as Rolls Royce motor cars LTD. Rolls Royce PLC retained the right of its trademarks so it can use it to operate in the markets it does. Rolls Royce has invested a sufficient amount of money into research n development of its products and technology it uses to produce them. It also invests somewhat £300 million a year on capital projects. In recent events Rolls Royce was awarded a contract by the ministry of defence to supply those engines for their aircrafts for the next five years, they also secured more than $1 billion worth of orders from an recent air show. b) Information required to aid managers.
Managers need to plan ahead they require important information to enable them to run the day to day and future operations of the company. Depending on where your company stands in the economic market and its needs at that particular time it wants to be able to sift through information selecting what is relevant and applying it to the company. Rolls Royce understands how important it is for management data as this coupled with their knowledge and expertise helps them to maximise their operational expertise. Rolls Royce needs information such as income, expenditure and capital employed to be able to plan and prepare budgets for the future this information is very important to Rolls Royce as for example it can help them to work out any repair costs to engines being produced and how many extra components that maybe needed. Forecast is very important for Rolls Royce, as it can help them predict how many contracts they may receive and what companies to target in certain circumstances for example wars are predicted, this means the demand for military aircrafts will increase this will aid Rolls Royce to keep up with changing economic environments. Information such as pricing is also very important to Rolls Royce as they are the second largest company supplying engines to the aviation market they need to be able to set prices ahead of their competitors so they can win large contracts to stay in the game. Feedback from customers is very important not just from the customers Rolls Royce provides to but even to the extent of feedback from the public for example; emirates airlines customers expected more leg room in their planes, not only this the airline through research predicted more first class passengers if there planes where designed with more room and better bathroom facilities for the high class passengers. All this information could help Rolls Royce design and produce larger planes which require larger more complicated engines not only this it could set a new trend of better travel. 2. Management accounting techniques are necessary to run a business effectively. These techniques primarily affect costs and prices within the corporation.
A budget is developed to plan for the future. A company as big as Rolls Royce needs a master budget to predict costs and revenues for the year. Budgets can also be used to control stock levels, predict the amount of staff required on particular projects...