Rolls- Royce Group is a “world leading provider of power systems and services for use on land, at sea and in the air”. The company has established a strong position in global markets in providing services in civil and defence aerospace, marines ,energy and nuclear. (Royce- rolls, 2011). Barlett and Ghoshal, (1989) define a global company as one that takes a much centralised strategy with central control. They further define a global company as one that produces few and specific products to a target customer group.
Rolls Royce fits this description as the company provides products and services to specific customers in the airline, marine and energy industries. Because of its Global stature, Rolls Royce maximises on economies of scale in selling its few and homogenous products as per Barlett and Ghoshal’s attributes of a Global company. The company has a reputation for producing high quality products and services as it concentrates on the production of engines for different operational areas.Undoubtedly, Rolls- Royce Group is a global business as it operates in a number of various countries with its headquarters located in London.
The company has manufacturing and service facilities in over 50 countries in Asia-Pacific, Europe, the Middle East, Africa and North and South America regions. (Market research, 2011). Most of its innovative technology is developed from its headquarters in the UK and disseminated to its manufacturing plants around the world and this is consistent with Barlett and Ghoshal’s definition of a Global company.The company has a broad customer base comprising more than 500 airlines, more than 4,000 marine customers and energy customers in nearly 120 countries, with an installed base of 54,000 gas turbines.
These attributes are line with the definitions of a Global company based on Barlett and Ghoshal. Specific examples of its business include the following: Recently, Rolls-Royce was awarded US$99. 9 million contract for US Navy T-45 trainer engine support. More than forty of the world's top fifty airlines have selected Rolls- Royce engines for their Airbus and Boeing aircraft. Vault, 2011).
In India Rolls Royce has more than hundred gas turbines in service generating power and driving gas compressors for on-shore and off-shore applications. Rolls Royce has orders worth around 18 million for the supply of Azimuth thrusters to power 18 new tugs being built in China. (Bloomberg business week, 2011). The above examples illustrate that Rolls Royce sells its products and services in different countries apart from its UK home market. Rolls Royce group’s suppliers are also global companies.
One of its big suppliers is Triumph Group in USA providing overhauling aerospace systems and operating in sixty four locations. (Triumphgroup, 2010). Kuehne + Nagel, another supplier operates in over a hundred countries providing logistics. (Rolls-Royce 2011). The type of suppliers that Rolls-Royce group use are evidence of how globalised the company is.
Given that the United Nations lists one hundred and ninety three countries , Rolls Royce Group operates in more about three quarters of these countries (120 countries: Rolls Royce 2011) classifying it as a global company.This shows that Rolls Royce is a Global Company. It can therefore be concluded that Rolls Royce is a Global company offering few and homogeneous products and services to different customers across the world, maximising on economies of scale and superior product quality in line with the definition of a Global Company as defined by Barlett and Ghoshal 1989. Reference Lists http://www. marketresearch.
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