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Q: ecomomics ( Answered,   0 Comments )
Subject: ecomomics
Category: Reference, Education and News > Education
Asked by: ince2-ga
List Price: $100.00
Posted: 14 Feb 2004 13:09 PST
Expires: 15 Mar 2004 13:09 PST
Question ID: 306806
select a with gobal operations.  Discuss the firm's
activities outside the U.S., identfy which economic concepts, such as
comparative advantage, apply to your firm.Explain how these
economicconcepts can be used to address the firm's problems and
operations?  Identify which economic and political policies affect
your firm and explain how they impact business decisions.  Discuss the
impact of globalization on the firm's cost structure, markers,
currency risk, and overall strategy.  Be sure to provide defination of
globalization in your answer.

Request for Question Clarification by leader-ga on 15 Feb 2004 15:21 PST
Dear ince2-ga:

I am willing to undertake this assignment. I will need a little
clarification before proceeding.

Since, it is a very detailed issue, how comprehensive the answer
should be? By comprehensive, I mean an approximate length of the

It will allow me to establish a strategy.


Clarification of Question by ince2-ga on 16 Feb 2004 16:43 PST
the tolal number of pages required is four for the entire question.

Request for Question Clarification by leader-ga on 16 Feb 2004 17:42 PST

I am working on your question. I will try my best to write a quality answer. 


Request for Question Clarification by leader-ga on 18 Feb 2004 09:37 PST
Hello ince2-ga:

Please be advised that you will get my response by 19th Feb 2004 (EST). 

Thank You for your patience. 

Subject: Re: ecomomics
Answered By: leader-ga on 18 Feb 2004 20:23 PST
Hello ince2-ga:

Here is the report for your review. Please let me know, if you are not
satisfied. I will make every effort to fulfill your needs, even if I
have to rewrite.

Also, note that most of the information was taken from the Rolls Royce
North America website at

Thank You.


Few companies in the world are known for their successful global
approach to the business. Rolls-Royce North America is the premier
example of a global company and many of its core business areas act as
a benchmark in their respective industries. It would not be an
oversimplification to suggest that Rolls Royce North America has
pioneered the word ?Globalization?. In simple terms, Globalization is
defined as the growth of the business on a global or world wide scale.

Rolls Royce North America is a private company that originated from
its parent company Rolls Royce. Rolls Royce Company started in 1906
with the merger of CS Rolls & Company and Royce Limited. From its sole
business of a luxury car manufacturer, the company has expanded its
business to establish itself a world leader in the manufacturing of
Civil and Military engines. It is also well known throughout the world
for its Marine and Engineering technology.


The main manufacturing and research facilities of Rolls Royce North
America are located in the United States. From this region, the
management controls the global technical operations of the company.
The four main areas of operations are aerospace, defense, energy and


The aerospace sector primarily concerns with building some of the
world?s most powerful civil and commercial airline engines. This
sector is also active in pursuing greater innovations in the corporate
aircraft sectors as well as the helicopter industry.
The civil aerospace sale in the 2003 was 2.7 billion pounds. The
company delivered its engines to 48 commercial airlines around the
world. Its current share in the civil aerospace operations is around
30 percent, globally. Its most prominent recent transactions involve
the supply of Trend 800 engines to Thai Airway?s Boeing 777?s. These
engines can produce a thrust equal to 95,000 lbs. Other notable trades
are the sale of Trend 700 engines to upgrade the fleet of Cathay
Pacific. It is expected that the there will be a huge demand of
engines in the future and the global economic growth will be 3 percent
until 2022. These sales account for the transactions of around 2000
billion dollars.

Rolls Royce North America is the number one provider of business jet
engines. By the end of 2003, it enjoyed a market share of around
31percent, globally. 1600 operators and 2200 business jets relied on
Rolls Royce for their needs. Rolls Royce has the major share of
private engines in the world leading companies such as Cessna,
Gulfstream and Bombardier.


Rolls Royce North America will power the needs of the future Air
Force, around the world. Rolls Royce has a 35 percent stake in the
EUROJET. The power behind the Eurofighter TYPHOON is the Rolls Royce
EJ-200 engine. The production of these engines for the German,
British, Italian and Spanish Air Force is in full swing. It is not
only Europe that has relied on the professionalism of Rolls Royce
engineers but also the US F-35 has most of its engine components made
by the Rolls Royce Company.

On the other hand, the company operates a network of 57 authorized
maintenance centers for the business helicopters. The needs of Apache
helicopter are met by these maintenance centers. Also, other types of
renowned helicopters such as MK-1/3 of the British Navy, NH-90 medium
class helicopters of the European Union and Tiger Military helicopters
of Australia rely heavily on these centers because of their inherent
Rolls Royce engines.

When it comes to military trainers, Rolls Royce engines power the
Swedish SK-60 and several Hawk and Viper trainers of the militaries
all around the world. South Africa has asked the company to provide
its engines for the new fighter trainer called, LIFT. It is not only
the fighter aircraft that need Rolls Royce but also the military
transportation sector. The success of the company speaks for itself as
its reliable T56 and the new AE 2100 power the world famous C-130.
Rolls Royce is also under contract to develop future engines for the
advanced Airbus A400M airliner.


Rolls Royce North America provides a range of products and services
that are being used in small water skis to the largest of the world
cruisers. Its support facilities and offices are located in 33
different countries where the emphasis is on employing the
professionals who are adept in the knowledge of the local culture.
There are over 7000 employees who are employed in the Marine sector.
The main manufacturing facilities are located in UK, North America and
Scandinavia. Its marine T-30 type turbo gas engines are the first of
its kind and are reported to form the backbone of the UK Royal Navy.
The demand for the highly innovative marine technology of the Rolls
Royce is in demand in 34 countries.


The company products are widely used in the Oil and Gas sector
throughout the world. There are 120 countries which are using the
powerful engines manufactured by Rolls Royce. The gas turbine engines
are extensively used in the Oil stations located all over the world.
There are four major Oil and Gas projects outside the USA that are
directly overseen by the Rolls Royce Company. These include projects
in Azerbaijan, United Kingdom, Morocco and Brazil.

Similarly, Rolls Royce North America is a global leader in the supply
of aeroderivate gas turbine engines used in large power generation
plants. Some of these plants have the capacity to produce 150 MW of



The global growth of the Rolls Royce North America is tremendous.
Rolls Royce fulfills the needs of the world?s 38 major airlines.
Although, Rolls Royce lost one of its lucrative businesses of
providing Concorde with the engines after the airline?s final flight,
the civil aviation giants, Boeing and Airbus intend to use the Rolls
Royce engines for their future Jets. Boeing is already using Trent 600
engine for its finest Boeing Derivate Jumbo Jet. Its rival, Airbus
will be using Trent 900 engines for its Airbus A380?s, the world?s
first twin deck, twin aisle airliner.

The ten year forecast for its turbine engines for the civil
helicopters included a 50 percent share in the global market with the
delivery and maintenance to more than 5000 helicopters. Similarly,
Rolls Royce North America will also enjoy a 50 percent share in the
supply and maintenance of Military helicopters, worldwide. During
these years, the growth rate will be around 5 percent per annum which
is exceptional for a company this size.

The future outlook for its defense aerospace is very bright as the new
EUROFIGHTER, Hawk and F-35 will all be powered by the Rolls Royce
Engines. The Rolls Royce engines will be used in approximately 3800
military helicopters, within the next ten years. Forecast for 2002 to
2012 indicate 1500 major engine upgrades. The market demands will be
led by large twins (46%) and intermediate twins (25%). Until, 2012 the
global sales of military helicopter engines will amount to 6.3 billion
dollars and airframe sales to 75 billion dollars.

In the energy sector, to date, there are more than 1600 new Avon gas
turbines sold with 60 million hours of operating experience. The
revolutionary low emission systems are sold with 30 million operating
experience. Success of RB-211 engines is unprecedented with many
onshore pipelines in Saudi Arabia, Canada and Russia, using it. It is
also widely in use on off shore oil rigs in Middle East, Malaysia and
South America. When it comes to Marine technology, worldwide, over 50
submarines, 2200 warships and 15000 vessels are using the Rolls Royce


Since, Rolls Royce North America produces engines both for large and
small airlines, cruisers and refineries, the concept is to gain market
share by producing highly effective engines in large quantities. This
trend is visible in the production of Trent series engines for the
future Jets of Boeing and Airbus Company, RB-11 turbine engines for
the major turbines and auxiliary gas turbines for every cruiser in the
US Army and many other naval ships around the world. From the
historical trend, it seems that the objective of Rolls Royce North
America is to equip the world civil and defense machines with as much
Rolls Royce engines as possible so that the future maintenance needs
of these machines are only to be carried out by the company.


The strength of Rolls Royce Business lies in its diverse portfolio of
products. It has a product range for a business jet like Cessna to
large commercial airliners. It makes engines for the smallest of the
freighters to large destroyers. The ability of the company to
integrate its production process to fulfill the demands of a wide
range of companies, make it more market friendly.


Rolls Royce is facing a stiff competition from the General Electric
Aircraft Engines and Pratt & Whitney. Unlike, other companies, Rolls
Royce has actively pursued partnerships with its competitors to
further its cause. Recent examples include the development process of
Joint Strike Fighter along with General Electric, and F-35 with Pratt
& Whitney.


One of the greatest threats that Rolls Royce North America faces is
from the environmental sectors. In the light of recent campaigns by
the environmental groups, the company has been extremely cautious in
the development of energy efficient and environmental friendly
engines. After the initial failure of its RB-211 engines, the company
has successfully produced the world?s most efficient engines like AE
3007 turbofans, and Avon on and off shore gas turbines.

Another major concern falls in the face of diversification. The recent
creation of European Union has promoted many European companies to
force Airbus to contract the local companies instead of North American
industries. Rolls Royce can loose its market share with a slight
mistake. Such was the case in 2001, when a few of the European groups
claimed that the Trent 500 engine used in Airbus A 340-500 was
malfunctioned. Fortunately, Airbus backed Rolls Royce and denied those

Political risk has also been rampant. The recent war in Iraq and
Afghanistan has promoted anti-western attitudes. Rolls Royce North
America has high stakes in the oil and gas sectors of many Muslim
countries including Saudi Arabia. Sudden outbursts in the political
environment can quickly change the scenario which can restrict the
supply of future technology to these countries.


Rolls Royce North America has many qualities that constitute the
hallmark of any global company. Its aim is to deliver the world most
efficient machines for the future world needs. Until now, it has been
very successful in maintaining its image in the eyes of consumers.
Yet, it will always face the challenges of a global economy where only
the fittest survives.

Clarification of Answer by leader-ga on 19 Feb 2004 06:23 PST
Hello ince2-ga:

If you want me to add a couple of other terms. Let me know. THANKS.
There are no comments at this time.

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