Due to recent mistakes by the company Rolls Royce, they have found themselves in a minor predicament. In this past week after talking to the companies CEO an article written by Forbes magazine the company announced a 1 billion dollar decrease in pre-tax profit. The huge loss taken by Rolls-Royce included a 20% drop in stock market shares. The problems leading up to this unfortunate situation put the company in such a large hole that they aren't predicted to recover until 2017, but what is it exactly that caused this and what can we learn from it?
Well, according to this scholarly article this turn of events wasn't completely the companies fault. Some of the factors contributing to this downfall were out of the companies hands, but a few were not. In this article the author, Richard Aboulafia, discuss how a lot of Rolls-Royce's problems can be contributed to bad marketing strategies and performance issues.
In conclusion, there is much that can be learned from this companies mistakes; not only for the company itself, but for anybody interested in running a business someday. This article uses Rolls-Royce as an example to show how even some of the largest most luxurious companies can slip up. This serves to show how vital it is to never lose focus of your companies/your own goals and values, because even the smallest mistakes can turn out to be detrimental in the long run.
By Hunter Griffiths
Aboulafia, Richard. "Rolls-Royce: Bad Decisions, Tough Luck, and a Long Road Ahead." Forbes. Forbes Magazine, 13 Nov. 2015. Web. 16 Nov. 2015.
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