Rolls Royce Essay

935 words - 4 pages

Rolls Royce

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...

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