Rolls-Royce Corporations Project Management Stakeholders - Case Study Example

Rolls-Royce CorporationThis company is more famously known for its high-quality massive jet engines but it manufacturers power systems for the marine, aerospace (civilian and military) and the power-generation sectors as well (both conventional and nuclear). However, the bulk of its revenues comes from the sale of powerful but relatively-silent jet engines. It brought in £ 62.2 billion for the year 2011 (up by 5% from 2010); it had developed and marketed the new Trent series of engines, designed for large aircraft, specifically the Airbus 380 (Rolls-Royce plc 1).

Major project management stakeholders are present big commercial airlines and its prospective customers are newer airlines from poorer countries. The richer airlines which can afford its huge price tag will get tremendous fuel savings (by flying non-stop 8,000 miles), a higher efficiency (lower crew needed as each plane can carry up to 550 passengers), fewer stopovers and thereby save on airport landing fees that result in greater economic viability. The savings derived can thus be used to counteract budget airlines which operate on lower costs.

Financing can also be arranged for them, such as through the World Bank at very concessional rates or through its private subsidiary, International Finance Corporation (IFC). For both types of customers (rich airlines and newer but poorer airlines), a main drawback or disincentive is the price which can run into several million dollars. To help address this concern, Rolls-Royce can help them obtain financing at favorable terms, either by syndicated loans, leases (wet, dry, operating, option, walk-away, etc.) or direct government guarantees (U.S. ITC 9).

It can manage these various stakeholders based on the degree of interest and power it wields on the particular project, based on the four quadrants as shown in Figure 1 below. This simple yet effective tool is for creating a sense of priority amid the jumble of conflicting and often contradictory demands and maps the several stakeholders; it can simplify the task by the order of priority based on the classification of their individual concerns (Bourne 65). Figure 1. Power-Interest Quadrant for Prioritization of Stakeholders(x-axis is for the degree of Interest while the y-axis is for the amount of Power) Keep Satisfied Always (High power but low interest)1.

Lenders and financiers2. Financial analysts3. Present customers4. Jet aircraft lessors5. Jet fuel suppliers Manage Very Closely (High power and high interest)1. Airframe manufacturers2. Government defense people3. Big corporations and clients4. Big commercial airlines5. Freight companies Minimum Effort Monitoring (Low power with low interest)1. Families and relatives 2. Friends and allies3. Environmentalist groups4. Consumer advocacy groups5. Niche players in the jet market Keep Informed Constantly (Low power but high interest)1.

Workers and co-employees2. Airlines of the developing a world3. Militaries of the Third World4. Other future customers5. Smaller regional airlines