1. Consider where you would situate the Rolls Royce operation on the Hayes and Wheelwright model of operations contribution (p. 44 of the textbook) in the 1960’s and now – discuss the differences?
2. Evaluate the main markets of Rolls Royce (new engines, ‘power by the hour’ and in-service remote engine monitoring); what are the order winners and order qualifiers in these markets? P. 54 of the textbook should provide some insights into this. An answer in table format – as shown on p. 55 is acceptable, provided there is some description to accompany it.
3. Make some recommendations for the operations strategy of Rolls Royce to consider in the future. What does the company need to do to ensure that the market requirements and organizational capabilities remain aligned?
• Limit your analysis to three pages. The page count includes all analysis and recommendations, graphs, tables and references.
• As a formatting guideline for doc or PDF files use: Font Arial 12 pt. 1 inch margins on all four sides, A4 pages
Hayes and wheelwright proposed an ability and development model that clarifies how an operation could shift from being a hindrance to key accomplishment (“Four Stages”, 2016). The model is highlighted in four stages namely (“Four Stages”, 2016). Rolls-Royce operations since 1960s have been following this model. The early years of the company’s operations are characterized with first and second stage of the model whereas the present time conforms with the third and fourth stage of the model.
Rolls-Royce Company was reactive in 1960s and their operations were dependent on the big players’ actions. The market was dominated by Pratt & Whitney. Therefore, Rolls-Royce was driven by fear of being pushed out by big player. The company developed from a point of weakness because of pressure from other companies. The internal and external neutrality stages are characterized with this kind of the operations. At this stages, the operations of the company are at the poorest and the business seeks to adopt strategies that will put it at per with the competitors (“Four Stages”, 2016).
Internally supportive stage is associated with an entity being able to consider itself as best in industry (“Four Stages”, 2016). When the business operations reach the fourth stage, externally supportive, it is easy for the business to outdo the competitors. Rolls-Royce has championed the strategy of charging fees for each hour that the engine runs. Also, it is the market leader in the world, leaving competitors to imitate the strategies the company has championed (“Four Stages”, 2016). The entity has transformed itself to enter global stage as the major providers of aircraft engines. The business has managed to establish its operations in many countries in the world, something the competitors have not been able to accomplish.
An order qualifier is a trait that a product or service should possess in order to be considered by the consumer (Sanders, 2011). On the other hand, order winner is a given trait that will win customers (Sanders, 2011). Rolls Royce targets people with high disposable income. Their high-end products targets individuals as well as big corporates. The net worth of consumers targeted by Roll Royce is at least $ 30 million. The table below shows the order qualifiers and order winners for the Roll Royce target markets;
|Market||Order winners||Order qualifiers|
|civil aerospace, defense aerospace, marine and energy||Cost Quality Delivery||Flexibility Innovation speed|
The company has invested in high cost items to get the best materials to make the aircraft. The materials obtained have helped to provide the best quality. How the product is perceived is a major cornerstone for the Rolls Royce Company; that is why the business has focused on producing the best automobiles. The customer is also able to get customize products delivered in appropriate time.
The company has been doing great and it is dynamic in its operations. The payment of fee for one hour has been a progressive change that has elevated the company. The business has also used modern technology especially in the development of new engines. The velocity or speed include the time the firm takes to manufacture new aircrafts and the time it takes to reach the final consumers.
Address all four markets
The company needs to concern itself with four major businesses: civil aerospace, defense aviation, marine, and the energy ones, because they are the main beneficial markets to the business. Furthermore, there are still some substantial strategies to be undertaken bearing in mind that the desired results are to reach out to wider global markets (“Rolls Royce Strategic And Business Management Essay”, 2015). European and the American markets holds a fair share in income, therefore Africa and Asia are two emerging markets to keep an eye on. In these emerging nations, Rolls-Royce will accumulate more profits by applying specific approaches, which may include reducing the employees’ wages.
Investing in technology and infrastructure
Roll Royce requirements to put more in Research and development to grow more inventive, environment-accommodating products with the desire of maintaining the ownership of developed technologies. Meanwhile, with the progression of the global market, it is vital to take part in developing more in the infrastructure to offer better administrations and draw in more consumers (“Rolls Royce Strategic and Business Management Essay”, 2015).
Build up a focused portfolio
As said over, aggressive arrangement of products and services can cement further current markets and investigate new markets.
Increase market share
Over the group, the introduced base of motors in services is required to create alluring returns over numerous years.
Customer value addition
The entity will be required to seek methods of adding values to their clients with post-retail advantages that will increase the quality of their products and level of customers’ satisfaction (“Rolls Royce Strategic and Business Management Essay”, 2015).
Four Stages. (2016). Aesthetica Technica. Retrieved 28 October 2016, from https://graelaws.wordpress.com/today-is-tomorrows-yesterday-so-do-not-delay-just-do-it- now/energising/empowerment/operations-and-process/hayes-wheelwright-four-stage- model/
Rolls Royce Strategic and Business Management Essay. (2015). www.ukessays.com. Retrieved 29 October 2016, from Essay. Retrieved from https://www.ukessays.com/essays/management/rolls-royces-strategic-and-business- management-management-essay.php?cref=1
Sanders, R. (2011). Operations Management (4th ed., pp. 40-45). George Hoffman.