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.