Page 1: Introduction
This case study focuses on how the creation of risk and revenue sharing partners (RRSPs) has enabled Rolls-Royce to take on contracts which have increased its market share in the civil aerospace business.
During the 20th century the development of different means of transport has radically changed the global economy. The introduction of the jet engine and the development of commercial aviation have shrunk distances and reduced cultural differences by allowing people to holiday and develop business opportunities in almost any part of the world. In fact every day more than three million people fly on commercial aircraft and each year there are more than 18 million flights.
One of the reasons that commercial aviation has become such a well-accepted part of our lives is because it has become an exceptionally safe way to travel. As one of the most heavily regulated industries in the world, stringent engineering requirements have helped to reduce the likelihood of being involved in an accident to approximately one in three million, which means that it is many times safer to travel in a jet than travel by car.
The Rolls-Royce portfolio
Rolls-Royce plc has not made motor cars since 1971 when the business was split into two and when the motor car company was incorporated as a separate business. This is currently owned by Volkswagen. Rolls-Royce plc is a global company with customers in 135 countries and production facilities in 14 countries. It employs around 40,000 people focused upon the present and future requirements of civil aerospace, defence, marine and energy markets. It has 56,000 aero engines in service with 300 airlines, 2,400 corporate and utility operators and more than 100 armed forces.
The range of its applications covers all sizes of commercial aircraft from business jets to the largest modern airliners made by Airbus Industrie and Boeing. On the defence scene, Rolls-Royce engines are again a versatile source of power for transport, trainer and combat aircraft. Civil and military helicopters are also part of the Rolls- Royce portfolio.
Rolls-Royce is one of the most powerful brands in the world and perhaps the most famous name in the world of engineering. The name symbolises its promise to deliver consistently a series of features for buyers and users with qualities such as reliability, integrity and innovation.