Posted: February 20th, 2017

The evaluation of performance of business units in either GE OR RR using financial and non-financial measures

Rolls Royce wins largest ever order from Emirates (Friday, 17 April 2015) Rolls-Royce has won its largest ever order, worth $9.2bn, to provide Trent 900 engines and TotalCare® service support to Emirates. The engines will power 50 Airbus A380 aircraft that will enter service from 2016. The decision confirms the Trent 900 as the engine of choice on the four-engine A380. It has now secured more than 50 per cent market share on the aircraft, in addition to being selected by the majority of A380 customers. John Rishton, Rolls-Royce, Chief Executive Officer, said: “The success of Emirates over the last thirty years has been extraordinary; this is in no small part thanks to the exceptional leadership of Sir Tim Clark. Rolls-Royce has been proud to have been part of this success, powering Emirates aircraft since 1996. We are delighted that Emirates has again placed its trust in our technology, with the biggest order in our history.” The recent press reports of Emirates order for RR engines is the topic of much debate in the aviation sector.  Essentially, the market is dominated by a duopoly – GE and RR, and this latest order by Emirates has created much interest in these two major suppliers. You have been commissioned to conduct a financial analysis of the two main engine providers, GE and RR and to report your findings in a formal written report. Required   A professionally produced report which should include a detailed analysis of the following areas:- (a)  Profitability (b)  Efficiency (c)  Liquidity (d)  Gearing (e)  Horizontal common size analysis (using 2011 as a base) (f)   Vertical common size analysis (using total assets as a base) (g)  The evaluation of performance of business units in either GE OR RR using financial and non-financial measures  (h)   Conclusions and Recommendations You should state any assumptions made and you are not required to comment on the investment performance of neither GE nor RR. Please make sure you are aware of the rules regarding plagiarism. Whilst we encourage you to discuss ideas and issues with your colleagues, the final piece of work must be entirely your own.   A sample of students may be selected to come and present their work in a 15 minute question and answer session with one or more members of the postgraduate council Assessment Criteria (marking scheme is attached for your reference)