MGT 672 ROLLS ROYCE VS GE Essay Example | Topics and Well Written Essays - 2500 words

MGT 672 ROLLS ROYCE VS GE - Essay Example It helps in achieving the objectives of organizations as a whole. A strategy refers to the coordinated means by which an organization pursues its goals and objectives (book_study, n.d.) In this context, the strategies of the two leading companies in the aircraft engine industry-GE and Rolls Royce assumes significance. GE is the market leader in aircraft engine sales. It is a highly diversified conglomerate with exposure in business of light bulbs, medical devices, commercial jet engines, home mortgages, broadcasting and self storage facilities. The sale of aircraft engines accounts for less than 10% of its revenues. In contrast, Rolls Royce holds the second position in aircraft engine sales. 74% of its revenue comes from this industry. Therefore, business strategy in the aircraft engine industry is the key for Rolls Royce, while corporate strategy assumes much importance for GE (book_study, n.d., p. 10). This paper aims to study these two companies of the aircraft engine industry and comment on the differences in strategies adopted by them. From the findings of the study, the paper draws conclusions regarding the differences of business strategy and corporate strategy. ... Depending on the position of the resources in the continuum, an organization has to decide on the set of businesses it should operate and other design criteria. General nature of resources gives wide scope of business. Co-ordination is achieved through transfer of resources. Size of corporate office is small and financial control system is adopted. Specialized nature of resources narrows the scope of business. Co-ordination is achieved through sharing of resources. Size of corporate office is large and operating control system is adopted. (Collis, Montgomery, Campbell & Goold, 1999, p. 4-6) Vision & Strategy of Rolls Royce: Rolls Royce is a global company that believes in the principle of sustainable development. The Global Code of Business Ethics of Rolls Royce includes continuous improvement of production facilities, being world class in health, safety and environment management and being socially responsible. Social progress depends on economic development which can be brought abo ut by fresh, dependable and inexpensive energy and transport system. Rolls Royce has strong R & D facilities and record of innovation. It uses these strengths to develop efficient energy and transport system. Through the application of consistent business strategy, Rolls Royce has matured during the previous 2 decades. â€Å"Civil aerospace, Defense aerospace, Marine and energy† are the four global markets in which Rolls Royce operates. Of these global markets, civil aerospace accounted for almost 45% of the underlying revenue in the year 2010. (Our consistent strategy, 2011) The core characteristics underlying the strategies of Rolls Royce are as follows: Closeness to customers: Rolls Royce is an organization highly focused on its