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2014

Name?

PM3110

Mr. ?

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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. Statement of the Problem

Airbus and Rolls-Royce’s gamble on their future endeavors with the Airbus 380

model did not meet the project’s 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.

III. Causes of the Problem

Gambled on the assumption that the commercial passenger market would triple in

the next 20 years (Pinto, 2010).

Issues with installing electrical wiring harnesses

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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

IV. Decision Criteria and Alternative Solutions

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

Stakeholders.

Compensations were made to clients for delays (Reuters, 2006)

V. 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.

VI. 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

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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 Rolls-

Royce should develop partnerships with other manufacturers similar to Airbus’s

consortium (Snyder, 2010).

Benefits Drawbacks

Steady Revenue Spread a company too thin

Not relying on just one business deal May exceed income

Improves Company Image/Reputation May cut corners by having too many projects

Could lead to a Long-Term contract

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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-delay-

hits-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-rolls-

royce-faces-uncertain-future-after-engine-failures/