Aerospace Manufacturers Head to Singapore Innovation Hub, Research Paper Example
Words: 2272Research Paper
With the onset of modern operations of international tourism around the globe today, the creation of new aircrafts that are designed to support the new age pressure for air travel increases accordingly.
In this discussion a focus on the current success of the Singaporean Aerospace industry shall be given particular attention to (Kaur, 2007). The involvement of the investors in the process of improving the overall industry of aerospace in Singapore is considered as a key tool for making the whole system work and successful enough to establish strong competition between the nation and all the other countries involved in the industry of manufacturing air-travel vessels. In this presentation, a distinct discussion on Rolls-Royce investment in Singapore through the Seletar Airport area utilization (Kaur, 2007) shall be given particular attention to, as it relates to the overall function of the industry in the country. Focusing on supply chain management challenges, the below review will highlight some of the main industry-related trends on the global marketplace.
Focusing on the business side success of the report, this presentation shall measure how the different elements surrounding the Singaporean aerospace manufacturing industry create a distinct sense of impact on how the operation of the industry is supposed to increase and/or improve on its competence:
What factors drive Rolls-Royce to choose Singapore as its manufacturing location for making sophisticated engines and parts?
There are three primary factors that made it certain for Rolls Royce to take on the option of investing in the Singaporean Aerospace manufacturing industry. These elements include:
Low Corporate Tax
The Singaporean international investment system is expected to take on a definite turn, once Western companies realize the feasibility of the market that is present in Singapore as well as to how robust the system of work exchange is in the country. It could be analyzed that the Singaporean system of business development is considered more complex and effectively supportive of how the world in itself survives the concept of improvement that the business-systems entail to engage in.
With low corporate tax rates, it could be understood that the investors coming from other nations would find creating an alliance with the nation a rather feasible choice to take into account. At this point, Rolls-Royce saw the feasibility of such option and how well it could be able to create definite distinctions on how modern aerospace production operations could be further improved through a much more effective budgeting-system that the industry is engaged in.
Stable Political Environment
Unlike other nations, investors are not afraid to invest in Singapore, because for such a long time, the nation boasts of a rather stable political environment. With a rather controlled manner in supporting the system’s operation, the stability of the political environment in Singapore is understood to be an important come-on to investors as they know that they are in safe hands and that they are in great capacity of what is considered as the most competent source of social and governmental trust, when engaging in an alliance with the government.
The protection provided by the government for business entities that are existing within their midst makes it easier for the said organizations to trust the national system and be more open towards making large investments in the country, thus further supporting the economic standing of the nation.
Predictable and Transparent Regulations
The transparency of the business systems in the country makes it easier for foreign investors to be more interested in the process of accomplishing business operations in Singapore. Rolls-Royce is indeed a strong organization that is able to see the massive advantages apart from the possible risks that are present in the process of making invested alliances with Singaporean business owners and aerospace manufacturers as well.
The clear outline of labor rules as well as business-operation rules makes it much easier for investors to realize the real value of effective work regulations in the country; this allowing them to adjust fully to the capacity of the economy of the country to support the businesses that investors are to establish in the area.
Based on these three primary points of interest-campaign, investors are able to see the beneficial value of establishing business with the existing organizations in the country. In the field of aerospace airplane manufacturing industry, the investors like Rolls-Royce see these elements to be a strong foundation for making a decision that would fully equip the company with the support they need to expand their business and deal with budget-issues more effectively while creating continuity. The control that they have on the expansion of the business based on effective budgeting-strategies shall allow the business to allot money on elements that matter the most instead of simply putting them in government defined fines and taxes that could largely take away from the creation of innovative designs that would require extensive monetary support.
What potential challenges/risks should be considered in order to improve Rolls-Royce’s international supply chain performance?
The supply-chain performance of Rolls-Royce is primarily defined through the mandate of what is understood as strategic outsourcing and resourcing. Having connections with Germany and Japan as suppliers of the major resources they use for the production of airplanes, the company is able to get the best quality of materials with the most reasonable pricing schedule. The possible cause for the unstable course of pricing is further balanced with the kind of alliance that the company has with its suppliers. Establishing a particular source of manufacturing operation in Singapore gives Rolls Royce a chance to have access to the most effective power-source and human-strength support that is needed for the management of the materials and the creation of the aircrafts. Globalization trends are likely to influence the development of corporate strategies, given the high cost associated with R& D (Arbor, 2009, p. 8).
Practically, the supply-chain operations in the country and even towards the outside alliances of the organization are properly managed according to the needs of the industry. Practically, this option of operation improves the way the company responds to current market demands and how it is able to mandate a sense of control on how it makes use of the resources made available at its disposal. With effective resources of materials and manpower, Rolls Royce is able to establish a good sense of direction especially in making sure that the budget it has allotted for operation and production of aircrafts would be helped out accordingly; hence making it easier for the organization to fully invest in the country, its people and its resources.
According to Shurrab et al., Rolls-Royce has implemented Six Sigma, Lean, quality management, and benchmarking systems. However, the main challenge for the company would be to modify the existing systems to include plants located in Singapore. One of the main challenges identified by Stevenson et al. (2013, p. 1) is related to the “understanding of major supply chain risks and BCM (business continuity management) across the business”.
Rolls-Royce (2013, p. 4) focuses on profitable growth and innovation. This means that the main challenge of the company is to reduce waste and make processes more effective and cheaper. While the implementation of Lean and Six Sigma has already been completed, continuous development of strategies based on Six Sigma principles, due to the international expansion and the appearance of competitors in Singapore is needed.
The main supply chain challenge identified by Rolls-Royce in its 2012 review (Rolls-Royce, 2012) is based on the fact that the aerospace industry works with low volumes and high mix, while the cost of research and development is high. Further, long life-cycle of products also creates a challenge for supply chain managers. Capabilities worldwide for aircraft operations are increasing, while the product created by the company are “high value added” (Rolls-Royce, 2013, p. 16).
What recommendations you would like to propose to Rolls-Royce to handle the potential challenges/risks in Rolls-Royce’s international supply chain?
The international field of competition is rather an important aspect of concern that Rolls Royce should give specific attention to. Noticeably, the growing demand for a more innovative form of aircraft production is an intense requirement for modern aircraft manufacturers at present. Rolls-Royce has already garnered a relative sense of reputation for quite some time. Such reputation is already hard to break; for instance, the culture of operation it already adapts to fully instantiates on how the people of the organization are directed towards aiming to gain more from the hard work they imply in the process of development they hope to engage in.
As Grant (2014) confirms, “Singapore has become a global manufacturing hub for the aerospace industry”, and this means that the country has the capability of providing cost-effective services for more than one company. This indicates that Rolls-Royce needs to consider the high bargaining power of suppliers. Sinha et al. (2012, p. 7) states that the impact of suppliers’ bargaining power creates a risk for the aviation industry. Further, the authors (Sinha et al., 2012, p. 7) confirm that “The industry has lately been plagued with high ATF prices which have demonstrated the inverse relationship between airline profitability and fuel prices”. This means that measures and controls need to be implemented in the supply chain of Rolls-Royce in order to reduce the risks of price fluctuation.
Competition is an inevitable element in any existing industry, and in the field of aerospace aircraft production, the competition is most likely identified through the emergence of innovative demands from the market. The field of tourism is one that is to be highly affected by this option of industrial growth. Noticeably, tourism is one aspect of social advancement that identifies well with the emergent growth of other industries related to it. For Rolls-Royce, learning more about the system and making sure that distinct research is handled to support the idealisms of the whole industry would do well to support the final presentations of support that the organization hopes to provide to the aerospace industry and its point of maturity.
True, in engaging in international business operations, risk is something that cannot be avoided. The main risks can be related to political, economic, market, and regulatory challenges, which need to be monitored and addressed accordingly. Rolls-Royce needs to fully engage in international provision of innovative aircraft designs that would support the general needs of the modern public from the intuitive operations of modern travel options supporting the overall value of modern tourism. Through the use of good management of resources and supply chain, it is expected that Rolls-Royce would be able to get the best benefits from the operations of its branch in Singapore.
Considering the current success of the business in the Singaporean aerospace industry, it could be analyzed how Rolls-Royce could actually take on the challenge into a much farther course, especially that it engages in modern ways of operating in the international market. Most likely, it is the willingness of the business to take on new ways of operating in the industry and engaging in new cultures dedicated to the creation of innovative designs and sustainable aircraft blueprints, Rolls-Royce is expected to take on the step towards making a definite name in the industry, thus affecting the course of competition in the industry accordingly. Basing on an internationally-measured performance, Rolls-Royce is assumed to make definite alliances with other operating businesses in the industry later on; this alliances are expected to make a more distinct impact on how it basically operates especially for the sake of embracing possibilities of improvement that would best benefit the being of the organization and the reputation of its workers both in Singapore and outside the said outsourced operations.
Since growth is a primary desire of the organization, it is expected that new risks ought to be dealt with accordingly. Most likely, it is through this desire that the formation of new adjustments to modern concerns for advancement is better identified especially for the sake of aiding the company in embracing the option of making a more expansive form of operation as response to the demands of the market. Rolls Royce is expected to take on larger challenges in the future- and somehow, its alliance with the Singaporean Seletar Airport (Kaur, 2007) is one that basically gives it a better chance at embracing a better sense of what it is capable of doing, especially the benefits that come from such connection. It is through this partnership that larger options of growth are fully opened for the organization; specially engaging in competition with other UK-based aircraft producers and other US-based competitors in the industry, is expected to make a mark on the competitive stance of the business in the face of international connections and extensive development as challenged by the emergence of massive distinct competitions.
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