Enterprise Risk Management at Rolls Royce
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Case Details:
Case Code : ERMT-004
Case Length : 11 Pages
Period : 2003
Pub Date : 2003
Teaching Note :Not Available Organization : -
Industry : Aero Engines
Countries : UK
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Introduction
Incorporated in 1906 by Henry Royce and Charles Rolls, Rolls Royce offered a
broad range of engines for all types of aircraft ranging from business jets to
the largest airliners. It had succeeded over the last 15 years in raising its
share of the global civil aero engine market from 8 % to 35 %. 55,000 Rolls
Royce aero engines were actively in service in 135 countries with 500 airlines,
2,400 corporate and utility operators and more than 100 armed forces. The
company was also a leading supplier of marine propulsion equipment.
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Rolls Royce was also strengthening its presence in the energy
sector, taking advantage of the deregulation of energy markets and the growing
usage of gas as a fuel for generating electricity.
Background Note
Rolls Royce began around 1904 when Henry Royce, who had been building cars for
some years, met Charles Rolls who sold quality cars in London. The success of
this partnership led to the establishment of the Rolls-Royce Company in 1906.
The company's move into the defence industry was motivated by World War I with
the design and production in 1914 of their first aero-engine, 'The Eagle'.
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During the next two decades, Rolls Royce set about
promoting the gas turbine engine for the civil and military aviation
industry. After a series of mergers during the 1960s, the two main
players in the UK aero-engine industry were Rolls Royce and Bristol
Siddeley. These two companies finally merged in 1966.
Rolls Royce was taken into state ownership in 1973. In 1990, Rolls
Royce strengthened its global presence by establishing an aero
engine joint venture with BMW (Rolls-Royce took full control of the
venture in 2000). In 1995, Rolls Royce strengthened its presence in
the strategic American market with the acquisition of the Allison
Engine Company... |
In 1999, Rolls Royce acquired the US oil and gas company
Cooper Rolls, and Cooper Energy Services (who deal with rotating compression
equipment) and the repair and overhaul facility of National Automotive in
California.
The company also completed the £576 million acquisition of the tank and marine
equipment manufacturer, Vickers, in September...
Excerpts >>
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