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PM3110
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[UNIT 2 ASSIGNMENT 2:
SIMULATION CASE STUDY 2.1
ROLLS-ROYCE CORPORATION]

Rolls-Royce Corporation

Name?
PM3110
04 Jan 2014

Case Analysis:
I.

Executive Summary
This Case Analysis was a brief history of the Rolls-Royce Corporation and who some
of their competition is in the jet engine manufacturing business are. Then the case led
into a business venture between Rolls-Royce and Airbus in which they gambled on a
prediction that the growth of the commercial passenger market would not only increase
for the next 20 years but triple. Throughout this Case Study Rolls-Royce has several
principal project management stakeholders have an investment in the company and they
are as follows; Boeing, Airbus, Department of Defense, an assortment of miscellaneous
Foreign Airline Companies, the Project Manager, and all employees involved with any of
its ongoing projects (Pinto, 2010).

II.

III.

Statement of the Problem

Airbus and Rolls-Royces gamble on their future endeavors with the Airbus 380

model did not meet the projects deadline date of 2006.

Delays in production could cost 12 Billion euros in development costs
Rolls-Royce experienced setbacks and questionable future with Airbus on A380

Project.
BAE of Britain (Airbus 20% Stakeholder) sells its stake in venture costing 4.5

Billion pounds.
Causes of the Problem
Gambled on the assumption that the commercial passenger market would triple in

IV.

the next 20 years (Pinto, 2010).

Issues with installing electrical wiring harnesses
Rolls-Royce experienced major issues with its Trent 900 engine (Reuters, 2006)

Vendors did not follow through on deliveries

Contractors may not have met expectations, job criteria/requirements
Decision Criteria and Alternative Solutions

Rolls-Royce Corporation

Name?
PM3110
04 Jan 2014

As Decision Criteria to design a stakeholder management strategy I would have

each Management Representative from each of the Stakeholders to do an Analysis
of their role in the Project. As part of the Analysis they must provide details of
their assessment of the Project as it pertains to their particular role/department.
They should list the pros and cons of the benefits and drawbacks of the Project in
order for the Project Manager to address their concerns. These topics will be
addressed, negotiated, and come to a mutual beneficial resolution between all

V.

VI.

Stakeholders.
Compensations were made to clients for delays (Reuters, 2006)
Recommended Solutions, Implementation
Regularly scheduled meetings with all Stakeholders for Project status updates
Address issues and concerns at meetings
Have backup vendors/contractors in mind as a contingency plan
Have an Analysis done for the overall Project in order to make an assessment and
to help foresee any further short comings.
Closing
In closing the financial risks involved in this line of work can be devastating if a
Corporation invests in only one Business Partner for a single project at a time, Putting
all their eggs in one Basket so to say. The best strategy would be to have multiple
projects in the works at the same time, but not so many as to spread the company too thin
and have more revenue going out then coming in. In the Analysis of the Case Study of
Rolls-Royce and Airbus partnership you can see that there are substantial financial
repercussions. Below is a table that shows the benefits and drawbacks of why RollsRoyce should develop partnerships with other manufacturers similar to Airbuss
consortium (Snyder, 2010).
Benefits

Steady Revenue
Not relying on just one business deal

Drawbacks
Spread a company too thin
May exceed income

Rolls-Royce Corporation

Name?
PM3110
04 Jan 2014

Improves Company Image/Reputation

Could lead to a Long-Term contract

May cut corners by having too many projects

References
Works Cited
Pinto, J. K. (2010). Project Management Achieving Competitive Advantage (Second Editon ed.). Upper
Saddle River: Pearson Education, Inc. Retrieved Dec 15, 2013
Reuters. (2006, Jun 14). Fresh Airbus A380 delay hits parent EADS earnings. Retrieved Jan 05, 2013,
from Moneycontrol.com: http://www.moneycontrol.com/news/business/fresh-airbus-a380-delayhits-parent-eads-earnings_220038.html
Snyder, B. (2010, Nov 11). Qantas A380: Rolls-Royce Faces Uncertain Future After Engine Failures.
Retrieved Jan 05, 2013, from CBSnews.com: http://www.cbsnews.com/news/qantas-a380-rollsroyce-faces-uncertain-future-after-engine-failures/