BMW and Ford

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Analysis and evaluation: Bayerische Motoren Werke (BMW) is a Germany company that started the production of cars in 1928 and now become one of the ten largest car manufacturers in the world. Their revenue increase from €53,917 to €76,848 billion during 2008 to 2012. Their net incomes also strongly increase from €324 to €5096 billion during this time. BMW has a lot of strengths that help them increase their revenue such as their environment friendly vehicles, highly skilled workforce, corporate social responsibility and especially their quality products. One of the main competitors of BMW is Ford. Ford is the first American company that successful in automotive industries. Their revenue during 2008 – 2012 is more than BMW, however it’s decreasing. It decreases from €146.37 billion in 2008 to €134.25 billion. Especially in 2009, it went down to €118.37 billion. Ford is an American company so they have a strong position in US market. Both BMW and Ford have their Economic Value Added (EVA) equals to 0 during 2008 to 2012. Also their Market Value Added

Transcript of BMW and Ford

Analysis and evaluation:Bayerische Motoren Werke (BMW) is a Germany company that started the production of cars in 1928 and now become one of the ten largest car manufacturers in the world. Their revenue increase from 53,917 to 76,848 billion during 2008 to 2012. Their net incomes also strongly increase from 324 to 5096 billion during this time. BMW has a lot of strengths that help them increase their revenue such as their environment friendly vehicles, highly skilled workforce, corporate social responsibility and especially their quality products.One of the main competitors of BMW is Ford. Ford is the first American company that successful in automotive industries. Their revenue during 2008 2012 is more than BMW, however its decreasing. It decreases from 146.37 billion in 2008 to 134.25 billion. Especially in 2009, it went down to 118.37 billion. Ford is an American company so they have a strong position in US market. Both BMW and Ford have their Economic Value Added (EVA) equals to 0 during 2008 to 2012. Also their Market Value Added (MVA) equals to 0 during that period. Dupont analysis of BMW in 2008 is 0.015982 and 0.010244 in 2009; in 2010 is 0.134852 and 2011 is 0.180091. In 2012 its 0.167621. Dupont analysis of Ford from 2008 to 2012 are 1.851198, -0.6758, -16, 2.39739, 0.677419 respectively.Fords Net Operating Cash Flow going from negative 0.179 billion to positive 9.05 after 4 years while BMW spend much more their money on operating. It was 3797 in 2008 and increases to 4974 billion in 2012. Their net investing cash flow increase from - 18652 in 2008 to - 5433 in 2012 while Fords investing cash flow in 2012 is - 14.29 billion.