DETERMINANT OF PROFITABILITY IN AUTOMOBILE INDUSTRY IN THE UINTED KINGDOM
DETERMINANT OF PROFITABILITY IN AUTOMOBILE INDUSTRY IN THE UINTED KINGDOM
May 2014
Table of Contents
Abstract iv
Acknowledgements vi
Chapter 1: Introduction 7
Chapter 2: Literature Review 2
2.1 History of automobile industry 2
2.2 What is profitability ratio? 5
2.2.1 ROCE: Return on capital employed 5
2.2.2 Current ratio 6
2.2.3 Asset turnover 6
2.2.4 Debt-to-Equity ratio 6
2.3 Factors effects to profit 7
2.3.1 Internal determinants 7
2.3.2 External determinants 12
Chapter 3 Overview of current automotive industry in the UK 17
3.1 Over view of 5 key players in Automobile industry in the UK 17
3.1.1 BMW 17
3.1.2 Daimler-Chrysler AG 19
3.1.3 Renault 20
3.1.4 Volkswagen Group 22
3.1.5 Peugeot 23
3.2 Overview UK economy and development of Automobile industry in the UK 25
3.2.1 UK GDP 25
3.2.2 Rate of unemployment 26
3.2.3 Actual and forecast Car sales in UK 26
3.2.4 Rate of Inflation in the UK 28
Chapter 4 Methodologies 29
4.1. Problem statement 29
4.2. Alternative styles of research 30
4.3. Research Questions 31
4.4. Methods of analysis 31
4.5. Sources of data 32
There are two types of sources of data: primary and secondary 32
4.6. Ethical issues 33
Chapter 5 Analysis and Finding 34
5.1 Data Description 34
5.2 Finding data 40
Chapter 6 Discussions 42
Chapter 7 Conclusions 44
7.1 Achievement of the objectives 44
7.2 Limitations of the research 44
7.3 Area for future researches 44
Reference 46
List of Figures:
Figure 3.1.1.1 - Logo of BMW 17
Figure 3.1.1.2 - Revenue of BMW from 2009 to 2013 18
Figure 3.1.1.3 - Profit before tax of BMW from 2009 to 2013 18
Figure 3.1.2.1 - Logo of Daimler-Chrysler AG 19
Figure 3.1.2.2 - Gross profit of Daimler Chrysler from 2009 to 2013 20
Figure 3.1.3.1 - Logo of Renault 20
Figure 3.1.3.2 - Gross profit of Renault from 2009 to 2013 21
Figure 3.1.4.1 - Logo of Volkswagen Group 22
Figure 3.1.4.2 - Gross profit of Volkswagen Group from 2009 to 2013 23
Figure 3.1.5.1 - Logo of Peugeot 24
Figure 3.1.5.2 - Gross profit of
May 2014
Table of Contents
Abstract iv
Acknowledgements vi
Chapter 1: Introduction 7
Chapter 2: Literature Review 2
2.1 History of automobile industry 2
2.2 What is profitability ratio? 5
2.2.1 ROCE: Return on capital employed 5
2.2.2 Current ratio 6
2.2.3 Asset turnover 6
2.2.4 Debt-to-Equity ratio 6
2.3 Factors effects to profit 7
2.3.1 Internal determinants 7
2.3.2 External determinants 12
Chapter 3 Overview of current automotive industry in the UK 17
3.1 Over view of 5 key players in Automobile industry in the UK 17
3.1.1 BMW 17
3.1.2 Daimler-Chrysler AG 19
3.1.3 Renault 20
3.1.4 Volkswagen Group 22
3.1.5 Peugeot 23
3.2 Overview UK economy and development of Automobile industry in the UK 25
3.2.1 UK GDP 25
3.2.2 Rate of unemployment 26
3.2.3 Actual and forecast Car sales in UK 26
3.2.4 Rate of Inflation in the UK 28
Chapter 4 Methodologies 29
4.1. Problem statement 29
4.2. Alternative styles of research 30
4.3. Research Questions 31
4.4. Methods of analysis 31
4.5. Sources of data 32
There are two types of sources of data: primary and secondary 32
4.6. Ethical issues 33
Chapter 5 Analysis and Finding 34
5.1 Data Description 34
5.2 Finding data 40
Chapter 6 Discussions 42
Chapter 7 Conclusions 44
7.1 Achievement of the objectives 44
7.2 Limitations of the research 44
7.3 Area for future researches 44
Reference 46
List of Figures:
Figure 3.1.1.1 - Logo of BMW 17
Figure 3.1.1.2 - Revenue of BMW from 2009 to 2013 18
Figure 3.1.1.3 - Profit before tax of BMW from 2009 to 2013 18
Figure 3.1.2.1 - Logo of Daimler-Chrysler AG 19
Figure 3.1.2.2 - Gross profit of Daimler Chrysler from 2009 to 2013 20
Figure 3.1.3.1 - Logo of Renault 20
Figure 3.1.3.2 - Gross profit of Renault from 2009 to 2013 21
Figure 3.1.4.1 - Logo of Volkswagen Group 22
Figure 3.1.4.2 - Gross profit of Volkswagen Group from 2009 to 2013 23
Figure 3.1.5.1 - Logo of Peugeot 24
Figure 3.1.5.2 - Gross profit of