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psychology and OB report on rolls royce

Rolls Royce
Rolls Royce was founded in 20th century with the partnership of two of the
most intellectual Industralist namely Henry Royce and successful engineer
Charles Rolls who were amongst the first to operate a motor car manufacturer
in Britain, they agreed to sell the cars under the name of Rolls Royce.
Over the years the company would rise to heights that were never touched
before. Appealing to the taste of Actors, Politicians and businessman. The
company has also been in the ownership of giants like BMW and Volkswagen.
Currently having a new style of production then from its previous versions, the
company has amassed great experience in luxury and comfort.
What does the Spirit of Ecstasy mean?
The spirit of ecstasy which is the symbol present in front of every car that is
constructed. The spirit is representing a woman leaning in front with her hands
outstretched back for, her clothes moving from her hands to the back and
flowing. The symbol depicts the quiet and elegant nature of the car. It is based
on a woman named Elanor thorton who is believed to have an affair lasting 10
years, her brother seeing this asked a famous sculpture to design a symbol
which he would then showcase on his car and thus the spirit was born.
S.W.O.T Analysis
Strengths are defined as what the business is best in its Gamut of Operations
and that can enable it to give an upper edge over its competitors. The
strengths of Rolls Royce are as follow.
1. Brand Image: Rolls Royce cars have always been associated with top quality and best
performance. They are the pinnacle of luxury in the automotive world. This
Brand image has enabled them to charge prices that are much higher than any
other company.
2. Backing from the parent company: Rolls Royce has the support of its parent company that is BMW which is
always pushing its limits in the Research sector enabling to bring
innovations that are already ahead of the time.
3. Superior Designs: Rolls Royce have been through their experience perfected their designs,
they also have an exemplary take on the interiors and are able to provide
the best services to their customers.
4. Luxury Variants: The company has worked hard to provide the best possible quality of
products that they can produce no matter the amount of expense that is
incurred, instead they lay great emphasis on Perfection of their cars.
5. Durability: Rolls Royce has always been a sign of luxury which has been the image of the
brand since its inception, the emphasis on the perfection of every component
has resulted in the fact that off every Rolls Royce that have been produced
since the inception of the company 66% are still running on the road, providing
support to their claim of superior quality as none of the other reputed car
makers have such a magnificent figure in the durability of their product.
1. Status: Rolls Royce has over the years developed a certain brand image in the minds of
the potential customer, this constant development of their reputation has
become a cause of concern to some extent, because their customers belong to
the highest social sector and expect that the product which they buy is of the
best quality, this has become a weakness for the company as they are forced
to maintain that particular status which is sometimes not possible for the
company due to certain forces that are beyond the control of the company’s
2. Loyalty: -
There is a serious issue of brand loyalty in the current market and customers
do not feel hesitant to shift the products if they feel that the quality of the
product has reduced. This is a weakness because the standard which has Rolls
Royce has itself set is very difficult to maintain which decreases the brand
loyalty on behalf of the customers.
1. Automation/Technology
The modern world is based on the principle of automation, the cars and the
methods of production that have been adopted by Rolls Royce should be
upgraded in the wake of any new technological development, the new
concepts that are now viable to work on are based on Robotics and Artificial
Intelligence, Rolls Royce has ample resources and finances that are required to
finance such activities.
2. Enterprise Resource Planning
Enterprise resource planning is a method used by companies to manage and
integrate the diverse and important components of a business, this will
exponentially reduce the costs that are incurred on the business, these
departments include inventory, sales, marketing, finance and more.
1. Increased competition
Rolls Royce has gotten into a fix, other luxury car makers have stepped into the
market and are a cause of great concern for the company, they might capture
the market share and hence cause reduction in the profitability of the
corporation. Example of such companies are Mercedes, Ferrari, Lamborghini.
2. Increasing Costs
Due to the constant increase in inflation, the cost of production has rapidly
increased this is a severe problem for Rolls Royce because if the cost of their
products increases any further than their customer base might get disrupted.
Organizational Behaviour at Rolls Royce
Rolls Royce has throughout its history focused on team building, the company
still focuses on pursuing collaboration, seeking simplicity and being bold. Those
who are affiliated with the company have a broad range of talents, expertise,
perspectives furthermore they are all expected to work as a single unit and
with complete harmony. To further improve and excel the organizational
behaviour RR has taken a lot of steps that are worth mentioning.
 Apprentice program
The company has throughout its existence believed in quality training of the
employees as according to their management skill can only be learned through
proper training. If the current employees are taken into consideration 30% off
all the senior management started their career as clerks. This fact again
highlights the importance which the company gives to employee enrichment,
they have and are still practicing the same norms that they one developed,
they have the same program in all off the 12 working units that are currently
functional in UK.
 Value Chain
Rolls Royce has been through the course of time been prized for its quality
which it has maintained no matter the hurdles that came in the way of their
production. Employees also feel associated with the products as it is through
their efforts that the product was developed. The intensity of affiliation that
the employees have leads to a cooperative environment that is suitable for the
efficient and effective use of the working and production.
Individual behaviour at Rolls Royce.
Abilities: In the organization great emphasis is laid on how an individual works,
employees who are part of the rolls Royce corporation make considerate
efforts to attain as much knowledge and ability as they can, they are always
ready to listen to anything which is worth listening and understanding.
Personality: There are several programs that are introduced from time to time to further
improve the knowledge as well as the personality of the individuals, this will
lead to a calm and peaceful working environment that will enable the
individuals to be more successful in their future lives.
Being bold: In the field work it should be necessary and vital that one should be able to
speak what is right from his/her point of view, the employees at Rolls Royce
are taught and expected to be ready to express their point of views and ideas
whenever it is necessary.
Problems As A Organization
Rolls Royce has expanded to new highest over the years and Rolls Royce
motors alone control 27 Departments, this huge size makes it difficult for those
employed at the highest level of hierarchy to work effictevily, as a
consequence profuts for Rolls Royce motors declined in the years from 2013 to
2015, they started to increase only after changes in the top level management,
in particular the CEO of the company.
The second which the company is facing is of the increased costs which is due
to the fact that the company is renowned for its exemplary attention to detail,
under this situation if there is even the slightest issue in their products then it
is completely changed and rebuilt from the ground up
Individuals problems
Interpersonal Conflicts: Interpersonal conflicts are amongst the most common that abrupt among any
group of employees, the basic cause of this is the feeling of jealousness and
shame that others are able to achieve what you are not, even though the
company has tried the level best to reduce these conflicts still they are not able
to do this even after spending millions of dolls on human Resource
Barriers to communication: Diversity is one the most important factors that is given a lot of importance
while hiring still besides the fact when there are people belonging from
different ethnic groups there is a constant fear that it will create
communication gaps in the working, this problem occurs frequently as there is
little understanding of other groups.
Comparison of Rolls Royce with Competitors
Rolls Royce Wraith with Bentley Mualsanne
Rolls Royce and Bentley were at one point in time, part of the same group,
they however separated and now both are in the ownership of two giants of
the automotive industry, namely BMW and Volkswagens.
Their comparison would look at few aspects namely price, cargo volume,
mileage and customization. Moving towards the price Rolls Royce would cost
about 7 cores while the Mualsanne is significantly less priced at 6 corers 40
lakh rupees.
Cargo volume of Rolls Royce is 490 litres whereas of Bentley is 443 litres,
Mileage of both the cars is nearly the same having a difference of 0.1 % in
favour of Rolls Royce. Heading towards the last aspect of Customization, Rolls
Royce stands out amongst any car producer that is present in the whole global
market, they provide their customers with extravagant and luxurious
customization offers ranging from diamonds to cigars to extravagant pens and
much more.