FAST SCHOOL OF BUSINESS
BBA 09 (SECTION N)
A. BACKGROUND & BUSINESS CASE OF THE PROJECT
White Star Chairman Bruce Ismay met Harland and Wolff's Chairman Lord Pirrie and they together decided to build a huge fast moving fleet. This was their vision. It was expected then to be the most expensive and the largest fleet ever built. The reason for initiating the project was to capture the target market of customers who desire luxury instead of just having great speed. It comprised of that era's state-of-the-art technology.
The benefits identified were reaching breakeven in just two years. The first class of the large commercial ship was to generate 75% of the total revenue. Funds for the project were acquired from J.P. Morgan, who was that time's richest man in the world. They had decided to build a third ship which was to be funded by the revenue generated from the first two.
The first two ships were built together. A total cost fixed cost of $3m and $15m for repair was allocated. The workforce consisted of 3000 members. Thomas Andrews was the appointed project manager and he included the top-line technologies to improve safety. The Olympic's first voyage and Titanic's launch were on the same day. Due to several incidents with the Olympic that needed repairs, the completion of Titanic project was delayed, this caused serious financial losses.
Titanic went on its first voyage in 1912 with 53 millionaires on board. After Titanic received its certificate it went on sail to the Atlantic. It travelled at full speed until they got close to the Iceberg Alley. The officers neglected all the warnings passed on to them through the feedback systems. Titanic had hit an iceberg but without any visible damages. Ismay being pessimistic and to gain publicity ordered to set sail the ship once again. This caused the plates of the ship to be further damaged and hence Titanic started to flood. No one ever expected it to sink and Titanic was claimed and marketed as being "Unsinkable". The crew members were not even prepared to handle such a disastrous situation.
Ismay was asked to make himself present for the hearings in New York. The fact that he ordered to set sail the Titanic once again even after it had crashed into the iceberg never came up and the court shifted the blame on to the Board of Trade and Captain Lord of California. Hence Ismay went away with manslaughter and was saved by the United Kingdom government from his reputation being destroyed and from bankruptcy. This was all done due to the fact that World War I was imminent in the near future and UK needed large ships for carrying troops and materials.
B. QUICK FACTS
Construction of Titanic was started on 31 March 1909 by Harland and Wolff of Belfast.
The cost incurred to build Titanic was around $7,500,000 which was financed by J Bruce Ismay.
It took 26 months for the construction of Titanic to be completed, which was launched on 31 May 1911.
The Titanic was claimed to be "practically unsinkable" in 1911 by Harland and Wolff, in shipbuilder magazine, describing construction of the ship.
17 people died in the process of construction of Titanic and Olympic.
During its construction any proposed change in design was to be discussed at a meeting of department heads of Harland and Wolff.
Titanic's maiden voyage was delayed due to an accident of Olympic causing a collision with Royal Navy Cruiser Hawke.
Titanic's sea trial started on 2nd April 1912 which conducted different handling characteristic tests.
Titanic's maiden voyage from Southampton to United States began on 10th April 1912.
Titanic had only 20 lifeboats having a capacity of 1178 people, half to the total passengers of the ship.
On 13th April messages were received on Titanic, warning about large amount of icebergs.
The Titanic sank on 15th April at 2:20 am after being hit by the iceberg....
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