Rolls Royce Case Study

Question 1: Rolls Royce grew extensively from a weak position in 1960’s to world famous organization by its wholehearted embrace of globalization as it transformed itself from Britain to a global one becoming the central element of advanced and competitive strategy and these are illustrated by using 4 different stages.

In the internally neutral stage they had poor strategies and their sales collapsed .In 1960, other companies dominated them by making big passenger jet engines in the market where Rolls Royce stick only to the European Aircraft manufacturing and changed in externally neutral stage. To understand the company’s success, one must need to understand the actual technologies that uses in the jet engines and they used the creative relationship in a useful way which was helpful for the customers in the near future. They developed and tested turbine blades which are very difficult to make thinking it is the entry ticket to the market. Unlike 1960, they concentrated more on American airlines as it has the largest domestic market. Rolls Royce employees thought of changing the actual basic architecture of jet engines in 1960’s by making it with 3 shafts instead of 2 and can be scaled either up or down now to fit it into any type of jet engines and aircrafts. This has become a huge advantage to Rolls Royce as they don’t have to design a new engine each time when the new airlines are introduced in the market. In 1960’s they faced many critical issues and they missed the targets because of low performance and finally ran out of cash .But, Rolls Royce came out with flying colors by crossing all the hurdles in 1960’s by more fuel efficiency and suffered nothing in wear and tear. In 1960’s they never deal with servicing and selling the spare parts but realized and offered the services and made profits by using the motto: Make, sell and service. In the third stage, it gives ability to control the engine performance by adapting to best methods. It also predicts future problems and engine behavior under any type of conditions and finally it emerged from a poor/weak position in 1960’s to world famous position now by designing more reliable engines and by becoming more flexible and cost/quality/fuel efficient.

Question 2: Rolls Royce has become more powerful in British manufacturing of big jet engines with fewer unhappy/dissatisfied customers. Apart from the aircraft jet engines manufacturing Rolls Royce also has many markets which makes huge profits. It deals with marine operations which earns revenue around twice the rate of 2002 when compared to present condition and their equipment has installed in more than 30000 ships and it has setup a new civil nuclear business. List of elements included in the Operational model are Key performance Indicator, profit and Loss, System and technology, key knowledge, process responsibilities and common interaction. For companies there are two kinds of perspectives of operations strategies and they reflect both of the following, top-down and bottom-up. Marketing, HR and other functions plays a major role in top-down perspective of operations strategy and day to day experience of operations are included in bottom up perspective.