Rolls Royce

Rolls Royce

Rolls Royce is a global company providing power for land, sea and air.

It employs some 40,000 people in more than 30 countries, including

over 25,000 in the UK, 5,000 in the rest of the Europe and over 8,000

in North America. The company has a balanced business portfolio with

leading positions in civil aerospace, defence aerospace, marine and

energy markets. With annual sales of around £6 billion and a forward

order book of nearly £17 billion, its technology is applied over a

wide range of products that generate high-value services throughout

their operational lives.

E1

Rolls Royce is a worldwide organisation that deals in many areas;

because of this it is a Public Limited Company. There are both

benefits and drawbacks to been a Public Limited Company. As you are

selling shares on the stock market, the company gets a huge capital

injection allowing the company to expand quicker and invest in new

products. In Rolls Royce's case it allows them to use high quality

machinery and materials to produce expensive goods such as motor

vehicles and aeroplane engines. Within a Public Limited Company such

as Rolls Royce there is also a limited liability and continuity as

their turnover is huge per annum. Been on the stock market also can

have a positive effect on your publicity and suppliers are more

willing to offer you credit as they can see how secure your finances

are. However a Plc. has its drawbacks, as the company is sold on the

stock market it therefore entitles the shareholders to dividend at the

end of each financial year. Therefore any profit made has to be paid

out amongst the shareholders. Also the shareholders...

... middle of paper ...

...ts. It

is there they must make a new objective to keep the shareholder happy

and informed on the running of the business. This alternative would

make the investor happier to input more money into the business if he

or she believes there stake will hold its value or possibly increase.

One other objective that needs to be met is the issue with been

environmentally friendly; this could mean the creation of a new

department within the business known as the environment protection

department. However the drawback with creating a new department like

this it would increase the wage bill as more workers are been

employed. There is one other alternative to hiring new staff, you can

train current staff already on the payroll from different departments

as the need to make an entirely new department would not be cost

effective.