Rolls Royce is a public Limited Company. To become a public limited company. It is required a Memorandum of Association, Articles of Association and Statutory Declaration. When Rolls Royce got a certificate of Incorporation, they began to publish a prospectus. That means, they can issue shares for inventors to buy and raise capital from the market. Advantage: PLC raises a large amount of capital to expanse its business or diverse business. . In case one of the industrial declined, other industrials can cover the loss. So that it can reduce risks.
They can raise funds from many ways. For example: issue shares, debentures etc. They raise the capital more easily and the interest rate would be much low. They employ expertise and specialist to manage its business and develop new products. The companies come response the market efficiently. And they design appropriate products for potential customers. It generates profits for the company. PLC enjoy limited liability. When the company goes bankrupt. The shareholder will no be liable to lose its own possessions to pay the debts. It is only lose what they invested in the company.
It is a kind of protection for the shareholders. Production costs may be lower. The companies buy raw materials in bulk and regular basic. They enjoy economies of scale. Disadvantage: Raise fund for stock exchange can be costly and risky. As if the people think the company aspect is not good. They will not buy the shares. And the company can’t raise any money. As a Public limited company, it can’t keep its finance and some plans in secrete. This information can be easy taken by the competitors. And make some planning to against the firm.
The shareholders many lose control of company. It is because shares are freely bought and sold in the exchange market. If other companies target the company, they can take over it. Also, most of the organisation split up the ownership and management of the company. That mean, the manager may make wrong decisions that cause shareholders suffer. PLC is a large size of company. They have to deal with millions of customers. In other words, it can satisfy individual needs compare with sole trader. So they won’t purchase the products or use the services.
They company lose customers and lose profits. The Objectives of Rolls Royce Group Rolls Royce provides the best value to their customers. They expect to satisfy customers’ wants or needs throughout the international networks. They have got world-class capabilities, experience and technical understanding to ensure suit for the market. Therefore, they set themselves objectives to make sure the right way they are operating. Producing High Quality Products Rolls Royce focused on engine design for using in the air, at sea and on land.
They try to minimize no just only the cost of production, but provide the best overall value to their clients. Rolls Royce is designing a new type of engine called “Trent 900”, both suitable for civil and defence plane. The engine is stable and saves 30% of petrol. It is 50% cheaper than other engines. It is going to start of flight-testing is October 2004. They anticipate the Trent 900 will enter service in spring 2006. The customer will enjoy the high quality but latest low cost engine. Rolls-Royce expanse high technology products for its near, medium and long term needs.
It is as know as ‘Vision’ technology and they ensure that Rolls-Royce products and services will continue to meet customer needs over the next two decades and beyond. Offering High Quality Services The group concentrates on customer services. The have established an excellent technical support engineers for different regions. They provide technical and documentation supports for assisting their clients operate machines safe and efficient. Also, they set up a department for selling spare parts for equipment. Rolls Royce designs a modern course to train their customers in recent year.
They try to reduce their customers operating cost, fuel savings as well as extend the life of the equipment. They built a web site for their customers to specific require and search their prices, lead-times, product descriptions and technical data for the range of products. Caring for the Environment Rolls Royce provides engine for the customers for use in the air, at sea and on land. So they realize these products can have an impact on both the local and the global environment. The do a lot of research and development on the new products with together reduce pollution and noise.
They target ten percent reduction in fuel consumption of all newly designed engines by 2010 and each flight on the earth can fly 100 miles with a gallon per passenger of petrol. It is eight times save the fuels and 50 per cent of noxious emissions will greatly reduce. They design and manufacturing the engine with innovative ideas and use electric engine in order to fulfil the target. Service to the community The Group continues to work closely with schools, colleges and universities to promote science, technology careers for students. The group donates around 1565,000 to sponsor the school for educational programmes such as:
Charitable donations, contributions of around 1565,000 were made to projects through the Group’s corporate sponsorship committee and through educational programmes: business start-up programmes, environmental education project etc. In addition, Rolls Royce opens its industry for different communities to visit every year. Also they are offering children the chance to learn more about the plane industry by offering to attend the air show for free. It is to arouse their interest and encourage them to learn science. Making profit “Rolls-Royce objectives and offer long-term security of revenue.
” The group’s priority is to increase the margins is regularly. In 2003, the rapid growth military engines demand which is very profitable and win a significant engine and service contact. They expect there will be continued 10 percent growth in the business in 2004. Gross margin increased from 16. 3 per cent to 17. 3 per cent as the substantial increase demand in engines. They would reserve part of the profit to do research and develop its products. For motivate the employees, they increase the training and rewards to its employees. They expect 10 growth in the profit in 2004.