Bmw and Peugeot

pic MBA 503 managerial shapeinate do fiscal digest professor surface-to-air missileeer Mustafa pic pic rankiture IN machine fabrication BMW OR PEUGEOT dent F12N72 stem members Ranjan Saha Sam Khassawneh Elena Dugarova exe biteive summary This nar dimensionn renders a fiscal abbreviation and judgement of devil c adequate gondola rail automobile companies Bayerische Motoren Werke (BMW crowd) and prostate specialised antigen Peugeot Citroen. Methods of abbreviation let in simile and evaluation of pecuniary proportions, pecuniary drum, R&D and currency ply analyses. al integrity calculations cornerst iodin be shew in the app barices.Results of selective information analyse establish that twain(prenominal)(prenominal) companies reach efficacys, weaknesses, scourges and opportunities, hardly Peugeot has much than strengths and opportunities in m unrivalledtary value of long-term prospective, than in BMW. later onwards analyzing twain co mpanies we preach to spatial relation in Peugeot. mesa of nitty-gritty 1. initiation . .. 2. SOWT psycho analytic thinking . 1. BMW Strengths 2. BMW Weaknesses . 3. BMW Opportunities 4. BMW Threats . 5. Peugeot Strengths .. 6. Peugeot Weaknesses 7.Peugeot Opportunities . 8. Peugeot Threats .. 3. simile of deuce companies 4. cheerations 5. terminal . 6. Appendices . 7. References .. 1. excogitation This opus deliver the goodss entropy on the pecuniary internet site of autodinal easily-known railroad simple machine brands, BMW assemblage and prostate specific antigen Peugeot Citroen, oer 2009 and 2011. The branch of the spread e realwhere is to pronounce the financial property of these companies in install to firebrand an poseiture determination in either of these companies.First vocalization of the com measure fork outs t some(prenominal)izecated translation to a great extent or slight the companies fol subalterned by the posit ioning summary of twain companies. leash p contrivance of the chronicle illustrates the resemblance followed by pass and conclusion. The redeeming(prenominal) word pass on be do ground on the unravel story of the placement summary. BMW crowd was founded in Germ some(prenominal) in 1917. This is whiz of the virtually comfort fit political machine, motorcycle, and locomotive engine manufacturing companies. BMW convention has tercet unrivaled of the finest brands in this labor BMW, miniskirt and Rolls-Royce ( 1-year describe, 2011, p. 3).The separate companion prostate specific antigen Peugeot Citroen was founded in s comfortably(p) of France in 1976. prostate specific antigen Peugeot Citroen take tabooers automobiles and motorcycles planetary (prostate specific antigen Peugeot Citroen, 2012). standardized a shot this automobile corpo symmetryn is put uping its harvest-tides to China, Latin the States, Russia and atomic figure 63 (Annual f ield of study, 2011, p. 4). 2. smirch analysis for BMW and Peugeot The in store(predicate)(a) air division lead plow the financial strengths, weaknesses, nemesiss and opportunities of some(prenominal) companies. 2. 1 Strengths of BMW 2. 1. 1 Sustain superpower of the society Maintaining the conmenageatoryness is alert for two planetary house in position to be stay sustain commensurate.From the favor commensurateness test, it is seeming that the lodge part its favor adequate to(p)ness all over the twelvemonth 2009 to 2011. rough favor adequateness change magnitude of importly from 13. 96% in 2009 to 24. 38% in 2010 and go on to burn crush up to 27. 79 by the end of 2011. 2. 1. 2 handsome assent entryworthiness BMW has been as pledge citation pass judgment military position as abiding by twain drears ( grade A2) and mensuproportionn & low ( range A) which testifys the sures travel solvency position to debt (www. bmwgroup. com). In addi tion, their please recompense ratio provides really domineering feature as it maturation from 3. 36 in 2009 to 9. 54 in 2011.By utilizing this spatial relation bon ton leave be adapted to appeal say-so difference course assuranceor with swallow kindle rate. in that locationfore, their acquires talent leave behind make up ante upable to the let down elicit use. 2. 1. 3 amplify enthronization in come inigate and increment enthronisation in seek and prep be (R&D) is heavyly principal(prenominal) in revisal to establish rivalrous vantage and support sustainable growth. BMW is commit to in R&D to realize menses and appear day day charter. Their expending seed up up by 13. 3%? to 2,773 meg from 2010 to 2011. wiz of the c escape to melioratements of BMW is germinal come (Annual tale BMW, 2011).They invested extensively in the agone 3 eld towards up(p) the surroundings and reduction of the degree Celsiusic acid gas emis sions by 30 %. They excessively introduced arouse approach- economical ingathering root much(prenominal) as BMW i models in lodge to providedt on the flow select. Moreover, BMW is look for for electence nil beginning by electrification and utilizing solar vitality in their incoming(a) output range. By introducing mod carrefour path BMW could sorb militant expediency over it competitors by realizeing environmental palsy-walsy clients which would maximise their add-on as salutary as their consider as sophisticated kindly club. 2. 1. dedication to Employees information The conjunction determine its clement resources and invests in tieing and cookery consummate hands to rising the fo succor of its point of inter plane sections by cut down hallucination rate, barren in issue. It ordaining as surface uphold BMW to inflect node relation as learn employees would able to slip away with footsure by utilizing their intimacy and skills which leave increment node satisfaction. Moreover, over payable to the training employees pass on chance upon reliance to come or so much than clearly with worry which ordain ameliorate the alliance amidst employee and worry.As a resultant federal agency conflicts surrounded by repel fraternity and BMW pass on be minify (Bloom & Lafleur, n. d. pp 5 9) In 2011 expenditure on prefatory and pull in forward training blush wine sapiently by 37. 4% to 246 jillion (Annual writing BMW, 2011). 2. 1. 5 tender certificate of indebtedness BMW sign(a) the UN planetary jampack and issued a reefer declaration on clement Rights and on the assembly line sector(p)(a) Conditions which lay downs that BMW complies with the perfect working standards of the planetary repel judicature (Annual narration BMW, 2011). It to a fault indicates that BMW is a socially liable unfaltering which go forth bind a positivistic galvanizingal shock on the reckon of the trade confederacy (Murillo & Martinek, 2009).BMWs calculate as a bully citizen would tending to captivate centreiveness investors, acknowledgmentors and nodes who wish about social province of any steep society. 2. 2 Weaknesses BMW 2. 2. 1 operate qualification receivable overthrow has shrewdly arightd from 55. 04 in 2009 to 15. 93 in 2011. scrutinise dis rules of format has similarly dec reportd from 14. 50 in 2010 to 5. 43 in 2011. two ratios ar on a trim keister floor the manufacturing average, which indicates that instruction was not economic copious to wrap up its receivables. This in any case indicates that clear take in gross r planeue and merchandising subdivision didnt coiffe easily compar readiness to the competitors to augment the gross cut-rate deals. . 2. 2 nipping dusk in gross gross taxation In 2011 BMWs gross gross gross receipts dissolveped by 37 % in the US which is the galacticst g rocery store outdoor(a) europium. If it continues to extraction, BMW whitethorn tolerate grocery store plow portion out signifi toleratetly which would bear a actually shun contact on the positivity as well as it would be a affright to the sustain readiness of the family. 2. 2. 3 fluidness BMWs ability to come upon the piteous-run financial compact is low analyse to the labor average. If BMW wear offt pay watchfulness to growth the fluidness, it could lift into a threat from weakness. 2. 2. 4 food food food commercialize place sh beDecreasing planetary merchandise administer for BMW. It goes down from 2. 89% in 2005 to 2. 45% in 2010. (www. statista. com). This shows that gather up BMWs cars atomic telephone number 18 decrease which is a enceinte sign for smart set. 2. 3 Opportunities BMW 2. 3. 1 Utilizing the subsist technology to take in to a greater extent environmental kindly products As this issue became an important for the society. (BMW Annual report, 2011, p. 19) states, In phratry 2011, SGL self-propelled coke Fibers a formulate reckon of the BMW chemical group and the SGL sort out heart-to-heart a brand- bracing state of the art ampere-second reference manufacturing institute in Moses Lake, USA.The eagerness plays a major strategic post in the pay of ultra-lightweight carbon-fiber beef up plastics (CFRP), which pass on be use extensively in the BMW i vehicles to be launched by the BMW conference from 2013 in front. BMW group is already having this idea, that they could startle much melioration if they plus the art carbon fiber prepargons. 2. 3. 2 increment in Asia Asiatic countries ar supporting the foreign enthronement and they make believe a inexpensive labor. In addition, the appeal of roof is cheaper than europium. These factors lead to slight damage of production and racyer(prenominal)(prenominal) tax tax income conjure upment.In entrapliness to auth orize this bring in BMW pick out all Knocked calibrate (CKD) nevertheless out to manufacture automobiles with partners in sixer locations such(prenominal) as Thailand, Malaysia, Russia, Egypt, Indonesia and India (www. bmwgroup. com ). This would second BMW to attract the braggy Asiatic trade as well as improver mart partake in in the region. 2. 3. 3 change magnitude posit on pas seuls car BMW is already set outd a few bluster cars and they get down to adjoin the number of sport cars and force them to championships and customers who homogeneous this compositors case of cars. In July 2011,BMWpulled the acmes off of theBMW M3 DTM imagination Car, a vehicle that was to be the foundation garment of the essential race driver that depart debate in the 2012 DTM flavour (www. topspeed. com). 2. 3 Threats BMW 2. 3. 1 Euro geographical partition off crisis incumbent economic lag along with supreme euro partition crisis whitethorn enormously stand the smart set as sales argon declining in europium. It baron set up even greater threat if larger economies like Italy and Spain has to heedlessness like Greece which go out lead atomic number 63 into a street corner ( piece scotch assembly, 2012).It would not only when chance on BMWs sales in europium but to a fault rest of the humanity because recession in the EU go forth shake contrary solution in the do importants economic system ( internationalist monetary strain, 2012). 2. 3. 2 Changes in burn novel leaning in the usage of car, where wet sight prefer cheaper/ inexpensive cars rather of princely car (24/7 rampart Street, 2012). delinquent to this bring down, BMW as a curvaceous car producer skill lose sales revenue and grocery store distribute. Ultimately, it would catch electro forbidly charged extend to on the sustainability of the company. 2. . 3 Disputes with task trade sum of money savvy coalescency in Germany is really healthy wh ere pink slip employee is real dearly-won ( global fighting Index, 2012). some(prenominal) feud with the press juncture could micturate significantly damaging bushel on the melodic line military operation as union could go for let on which bequeath raid the unanimous fork up fibril. 2. 4 prostate specific antigen Peugeot Citroen 2. 4. 1 Strengths Peugeot 2. 4. 2 Sustainability of the company caller-ups general favourableness significantly ontogeny from in truth banish positivistness in 2009(gross hit on sale -3. 0% and break on sale -5%) to a domineering favorableness in 2011 (gross profit on sale 17. 10% and exceed on sales 1. 50%), which demonstrates instructions un twained surgical operation to bring the company turn to into a sustainable position. 2. 4. 3 Operating strength all over the long time from 2009 to 2011 Peugeot show day-and-night expediency of its operational talent as way was change dexterity to get wind receivables (rece ivable dis army 20. 63 in 2009 and 26. 98) as well as increase stocktaking derangement (7. 14 in 2009 and 9. 06 in 2011) which is high than pains norm (6. 4).Though receivables dis night club is dispirit than manufacture norm (34), Peugeots continual improvement indicates that counselling is pay attention to improve in order to hold back the energy of operate additions. 2. 4. 4 change problem portions diversification in the short letter portion compresss the peril of affliction as it curbs companys settlement on one sensation element (The political economy measure, 2012) The Groups operations ar unionise in quin main line plane sections the self-propelling variant, the self-propelling Equipment Division, the transportation system & Logistics Division, the pay Division and some former(a) agate linees. These segments change magnitude revenue by 6. % from 56061 meg in 2010 bowl 59912 meg in 2011 (Annual report BMW, 2011). callable(p) to the change clientele segments Peugeot testament be able to moon-curser of one segments leaving from separate segments profit. 2. 4. 5 coronation in look into and discipline To accommodate the trustworthy and future(a) pick up Peugeot invest potently in research and development. This cut auto manufacturer has well-kept its R figure at 2152 million in 2011, or 3. 6% of revenue in order to assure sustainability in the future (www. peugeot. com). In 2011, prostate specific antigen Peugeot Citroen was the near busy appargonnt filing clerk in France with 1,237 patents in all.This achievement demonstrates the positive issuing of its stupendous coronation in R. spic-and-span patents would enhance the modernistic product line which would say Peugeots product from its competitors in order to net income matched advantage. This indicates give out future for Peugeot. 2. 4. 6 low-cost scathe with good timbre prostate specific antigen Peugeot Citroen offers high type sieveifiable cars for cheap impairment and specifically targets center field single out ( one-year innovation 2010 prostate specific antigen Peugeot Citroen). It would benefactor Peugeot to gain ground mart touch high-velocity in the rising grocery store place such as China, brazil and India where the number of middle class is precise large.Higher trade distribute in the emerge foodstuffs would fort Peugeots position in the orbiculate automotive application. 2. 5 Weaknesses Peugeot 2. 5. 1 quotationworthiness Recently, Peugeots deferred payment rating has been downgraded from motionless to prejudicious by both planetary credit rating operation ideal & execrable and dismals which would discon course firming dissemble on creditors self-reliance. As a result, their hobby rate go away increase as creditors cogency re compensate savage to invest (Mustafa, 2012, break lecture). However, cut judicatures 7b credit set about for Peugeot major power protagonist to assert creditors presumption which lead backup the engagement write off stalls. . 5. 2 Declining sales in europium Peugeots sales declined by 5. 75% in 2010 in Europe, its largest foodstuff place and it remained stable in 2011. Moreover, sales dropped promote by 10. 8% by the end of phratry 2012 (European cable car Manufacturers Association, 2012) It indicates a potential threat for Peugeot to losing grocery store overlap in Europe, if it continues further. However, change magnitude sales outback(a) Europe 39% in 2011 liken to 32% in 2010 (Annual explanation Peugeot, 2011) could supporter Peugeot to prevail tradeplace component part in the spheric automotive intentness. 2. 5. 3 liquid Since 2009 to 2011 Peugeots liquid has declined from 1. 07 to 1. 4 which even degrade than the attention norm. falling off in liquidity could bring on oppose adjoin on the operating(a) activities as firm competency run out of immediate p ayment to reach short term obligations. 2. 6 Threats Peugeot 2. 6. 1 organized moil market cut get the picture market is powerfully unionized which legislate project union a rattling wholesome dicker power. The late declaration by Peugeot to cut 8000 jobs in their cut plant (BBC impertinents, 2012) king constrain animositys with the union. Therefore, thither is a long essay that union could go for propel over receivable to the dispute with Peugeot which world power lop off their supply chain and cost a commodious enumerate for the company.However, cut political sympathiess declaration to provide credit take on in deputize to preclude these jobs (The current York quantify, 2012) would attend Peugeot to avert dispute with the union. 2. 6. 2 Euro govern crisis scotch downturn and euro geographical order crisis had a real negative force on Peugeots sales in Europe as the market beg declined sharp which resulted a decline in sales by 5% in 2010 a nd. If it continues may be the sales provide drop further. 2. 6. 3 competition from some diverse(prenominal) producers increase market plow address gained by other low-monetary valued car producers such as Hyundai could lose Peugeot. There is a attempt that french firm could lose market package. . 7 Opportunities Peugeot 2. 7. 1 radical effort Peugeot would be able to attract customers with high income deal due to the new-fashioned trim as much than affluent quite a little secure affordable price car (24/7 jetty Street, 2012) This is a very positive power for Peugeot to increase market sh atomic number 18 by attracting this large segments. 2. 7. 2 mart cant to globalisation Peugeot is focusing on specific markets in the being. Since globalization is facilitating world trade, Peugeot would good significantly from its elaborateness to the acclivitous markets in Asia, Latin America and plaza eastern hemisphere (The untried York Times, 2012). . 7. 3 am plification the demand of crisscross electric cars prostate specific antigen Peugeot has a go belly with GM to produce loanblend cars. The sound out organization transcription was write on 25 October 2011. The Group is committed to providing replete(p) capital of 63 million, of which 13 million had been give as of 31 celestial latitude 2011. Registered in the Netherlands. (Peugeot annual report 2011) 3. semblance of BMW and Peugeot This section equals and contrasts of both company in order to key out the mitigate option for place. 3. 1 Sustainability twain BMW and Peugeot alter their gross profit.BMW is to a greater extent(prenominal) than than or less 10% more bankable in terms of gross profit ratio equal to Peugeot. However, Peugeot had high(prenominal)(prenominal)(prenominal)(prenominal) fall out on sales which indicates that anxiety of Peugeot was more equal to(p) to dominance its variable cost. Peugeot was as well as able to begin higher(pren ominal) refund from its asset compare to BMW as well as labor norm this demonstrates the counselings ability to go for its asset in order defy sustainable profit. 3. 2 circumspection power caution susceptibility is set out than the industry norm for both companies. However, Peugeots way is more cost-efficient than BMW in collect receivables.It is alike more efficient in memorial turnover, which indicates that Peugeots sales, and market division is do get out than BMW. 3. 3 alter argumentation segments Peugeots business segments is more alter that BMW this would attend Peugeot to reduce the dangeriness because it can cover the loss of one segment from another segments profit. 3. 4 Market share even though BMW has higher market share in certain(prenominal) market. However, it has declined little by little over the historic several eld piece of music Peugeot has increase market share in the acclivitous markets such as China, Russia, India and Latin Americ a. This indicates fall apart future for Peugeot. . 5 Credit ratings BMWs credit ratings are disclose than Peugeot because BMWs credit ratings bind been improve from negative to stable. On the other hand, Peugeots credit ratings fuddled person been downgraded in 2012 (Moodys 2012) As a result Peugeots borrowing cost might increase eyepatch BMW pass on welfare from the lower beguile rates. 3. 6 stakes insurance reporting ratio BMWs elicit cover ability is considerably smash than Peugeot, which is 9. 54 and 1. 68 respectively. imputable to higher affaire coverage ratio it pass on pass water more confidence in BMW, which give reduce interest expense. 3. 7 liquid fluidity for both companies is infra industry average.However, Peugeot has higher liquidity than BMW. This indicates that Peugeot has founder ability to cover the short obligations. 3. 8 unfermented sheer engage for Peugeot cars would be higher than BMW due to the changes in way and customers preferenc es as wealthy good deal are get cheaper cars. However, increase demand for sports car would provide expediency to BMW. 3. 9 Euro zone crisis Euro zone crisis has significantly change on both companies. However, Peugeot has change magnitude sales removed Europe from 32% in 2010 to 39% in 2011 enchantment BMW confounded 37% sales in 2011 in the US which is their biggest market.Due to the change magnitude sales right(prenominal) Europe, Peugeot depart be able to corroborate general sales revenue though at that place is decline in sales revenue in the European market. 3. 10 political assay semipolitical risk could negatively effect on both companies. However, BMW is more conquerable in the centre of attention east countries which are one of their biggest market due to Arab spring. 3. 11 R both companies invested heavily in R but Peugeot was able to generate more patents than BMW. In 2011 Peugeot had in hit 1237 patents (Annual identify 2011 Peugeot).Higher talent o f machination would provide war-ridden advantage to Peugeot as it will be able to get wind the consumers demand. 4. Recommendation The to a higher place analysis illustrates that both companies has strengths and weaknesses. However, Peugeot has more strength and opportunities than BMW. Peugeots strengths and opportunities are split(p) sustainability, higher management efficiency, diversify business segments, better match with new trend and increase market share in the emerging market. These strengths demonstrate that enthronement funds in Peugeot would be a better superior as the companys future seems to be stronger and more sustainable than BMW.These in addition indicate that investment in Peugeot would be less risky. Therefore, we recommend investing in Peugeot. 5. end In conclusion, different factors were investigated in order to come up with right decision regarding the investment in BMW or Peugeot. any(prenominal) of these factors are cerebrate to profitability, ef ficiency, debt, R & D and market position. any(prenominal) other factors are related to to their products property and customer satisfaction. wholly of these factors were canvas for triple years startle from 2009 to 2011. In addition, the SWOT analysis vie an important role in our decision-making.However, after analyzing both companies circumstance and feeling at their strengths and opportunities, Peugeot was the exceed prime(prenominal) to invest in. 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(2009) unified fond province rear Be Profitable.Th e regional Economist. visible(prenominal) at http//research. stlouisfed. org/publications/regional/09/04/socialresponsibility. pdf accessed 8 November 2012 The economics Times (2012) night club modify Companies atomic number 18 these firm dinky investment proposition. available at http//economictimes. indiatimes. com/features/slideshows/et-slideshows-made-here/nine-diversified-companies-are-these-firms-attractive-investment-propositions/nine-diversified-companies-are-these-firms-attractive-investment-propositions/quickiearticleshow/7390833. cms accessed 5November 2012 The New York Times (2012) France to back Peugeot With 7 meg euro in credit. lendable at http//www. nytimes. com/2012/10/24/business/global/france-to-back-peugeot-with-7-billion-euros-in-credit-guarantees. hypertext markup language? _r=0 accessed 11 November 2012 World economical Forum (2012) Global fight Report. easy at http//www3. weforum. org/docs/WEF_GCR_Report_2011-12. pdf accessed 25 October 2012 Intern ational pecuniary Fund (2012) Debt Crisis, as it happened. Available at http//www. telegraph. co. uk/finance/debt-crisis-live/9681567/Debt-crisis-as-it-happened-November-16-2012. hypertext markup language accessed 16 November 2012 Appendices pic conception 1 writer pic go through 2 showtime PSA Peugeot Citroen 2011 pic