Swot Analysis Of Rolls-Royce
About Rolls-Royce
Rolls Royce is UK base company and it has expanded its business to Singapore by maintaining their office in Singapore since 1950. Later in the year 2012 they established their manufacturing facility in Singapore .hence today now Singapore is a key business hub for Rolls Royce and it plays major role in aerospace industry.
Rolls Royce regional customers include : Malaysian Airlines, for its A380 fleet, powered by Rolls-Royce Trent 900 engines and supported by TotalCare® services; All Nippon Airways, the launch customer for the B787 Dreamliner, powered by Trent 1000 engines; Cathay Pacific Airways, the customer of the 1,000th Trent 700 engine; Thai Airways will soon become an operator of every member of the Rolls-Royce Trent
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Every component of the engine should highest quality so ensure the minimization of risk. There are some difficulties and challenges in Rolls Royce Supply chain .their production quantity is comparably low than other products. When the volume is low it is not possible to take the advantage of economies of scale. Hence they cannot get cost reduction from the suppliers based on volumes. Another most important fact is since there engines involve with highly sophisticated and technical requirements product standardization is not possible. Hence, the design process comes into play whereby there is exchange of critical information, confidentiality, negotiation and protection of Intellectual Property Rights. A typical supply chain of an aero-space is extremely complex that spans across geographical regions, time, and responsibilities, hence multi-dimensional in nature (aero-mag, …show more content…
It is needed to deal with many suppliers and customers form many countries and from different cultures. Hence due to these uncontrollable external factors there can be some quality issues, low negotiation power with suppliers, and also information gaps and weak communications. So it it’s a major challenge in international business.
Below is the list of few challenges that Rolls-Royce has to face in managing its supply chain as a global company (simtech, 2013).
1. Regulation and approvals
2. High entry barrier and cost
3. High cost for Sub-Standard Performances
4. Significant and long-term effect of “con quality compliance”
5. Quality of work force- any negligence or non-adhering to Standard Operating Procedures by a worker not only affects his performance, but has an overall impact.
6. These is always a significant gap in the developing countries with respect to the educational standards, technologies, high quality material, operational excellence and most important, the aerospace approvals
7. High investment required for equipment that act as a bottleneck or entry barrier.
8. There is a log start-up or set-up period which adds up to the
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