Rolls Royce

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Question 1
Deterministic system is 100% predictable results from output or activities. An exam-ple of Deterministic system will be the Mathematical formulae. Probalistic system is outcome or results that cannot be 100% predicted as it is con-trolled by chance event. Example of Probalistic system will be the growth of a com-pany. Closed system is a system which does not exchange material, information or energy with its environment. Finance department is an example of Closed system. It does not exchange information with its environment. Open system is a system which continually exchange materials and other infor-mations. It also receives input from the environment and releases output to the envi-ronment. One of the examples of the open system is the Marketing department. It regularly exchanges feedbacks with its external environment to have a better under-standing of the market and consumer needs. Rolls-Royce is open system taken as a whole, while their sub-systems may be either open or closed. Open system in Rolls-Royce will be Human Resource department as they have to recruit employees therefore requires them to work with external parties to find suitable candidates. Operation/ Technical department will be closed system as it does not have any interface with its environment and is rather self-contained and is affected in predictable ways. Basically, open systems are needed for survival in uncertain and unstable circum-stances while closed systems are required for stability, consistency and efficiency.

Question 2
Rolls Royce Holdings Plc (RR) is a publicly traded company on the London Stock Exchange. Through 2 key Joint Ventures (JV) with Singaporean businesses, RR also has a strong presence in Singapore, hiring more than 1400 staff in the country. One of such JV is SAESL (Singapore Aero Engine Service Ltd.), which is a tripartite venture between Rolls-Royce (UK), SIAEC (Singapore) and HAESL (Hong Kong). The second of such JV is IECO (International Engine Component Overhaul), which is collaboration between RR and SIAEC. Both JV conducts aero engine component repair and maintenance. In regards to the source of capital for these businesses, since RR is a public listed company, its source of capital can be unlimited. RR can potentially raised capital by issuing more shares in the market. SAESL and IECO being a JV partner will most likely benefit from the size of RR and its huge source of capital. The companies, SAESL and IECO, are structured as a line network. The source of communications is directed from top down. For example, the CEO will present its mission and vision for the company at the annual kick off meeting. Then the expectation is that the VPs will translate these messages into an operational strategy for the lower line supervisors. Subsequently all line supervisors will need to put strategy into goals and targets for the workers. For example instructing workers on how many repairs they need to accomplish per week in order to reach target. In this company structure, both line and lateral working relationship can exist. There is a distinctive hierarchy within the company such that each person has a reporting line. For example, the line supervisors report to the respective functional VPs and likewise, VPs report to the CEO. At the same time, there are lateral relationships be-tween people of the same hierarchy level. For example different functional VPs have a lateral workshop relationship. And the same goes between same level supervisors and workers. Taking IECO as an example, the chain of command is flat, with only 4 hierarchical levels. The company is lead by the CEO, followed by the functional VPs, line super-visors and then the floor workers/electricians. As mentioned, the CEO sets the mis-sion/vision for the company. While the VPs sets the strategy for each of their func-tions. And the Line supervisors implement those strategies for their respective teams, and the workers are the...
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