Ira Ppt Bmw & Ford Final Version

8/3/2019 Ira Ppt Bmw & Ford Final Version

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Economic AnalysisEconomic Analysis

Industry AnalysisIndustry Analysis

Environmental FactorsEnvironmental Factors

Adjustments & Ratio AnalysisAdjustments & Ratio Analysis

Concluding RemarksConcluding Remarks


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Industry AnalysisIndustry AnalysisIndustry AnalysisIndustry Analysis

Environmental FactorsEnvironmental FactorsEnvironmental FactorsEnvironmental Factors

Adjustments & Ratio AnalysisAdjustments & Ratio AnalysisAdjustments & Ratio AnalysisAdjustments & Ratio Analysis

Concluding RemarksConcluding RemarksConcluding RemarksConcluding Remarks


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Highly skilled workforce

Large capital

High innovation

Low corruption

EuropeanPowerhouse

Need for new workers to counteract labor shortages

Estimated 140,000 new foreign workers per yearImmigration

Shrink fiscal deficit

Reduced outputs and economic prospects

FiscalConsolidation

Industry AnalysisIndustry Analysis EnvironmentEnvironmentAnalysisAnalysis RatioRatioAnalysisAnalysis ConcludingConcludingRemarksRemarks


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Source: World Bank



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East-West Discrepancy

Unemployment

Political Tension

Greece bailoutLargest proportion of foreigners



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Core Industries

Automobile

Chemical Pharmaceutical

Heavy Metals

Inflation

1.14%

Rising energycosts

Exports

Relationship

with China High growth



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EconomicEconomic AnalysisAnalysisEconomicEconomic AnalysisAnalysis





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Low Threats of NewEntrants

Low BargainingPower of Buyers

Low BargainingPower of Suppliers

Medium SubstituteAvailability

Oligopoly Rivalrywith GlobalCompetitors

EnvironmentEnvironmentAnalysisAnalysis RatioRatioAnalysisAnalysis ConcludingConcludingRemarksRemarks


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Founded in 1903 by HenryFord

Stocks began trading in1956

Currently focuses on fuelefficient vehicles and

electric vehicles

Family controls 40%through class B shares

Established in 1916 asaircraft enginemanufacturer

Began automobileproduction in 1929

Quandt family controls 47%of common shares

Family members serve onboard of BMW



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Cars: 58%

Light CommercialVehicle: 37%

Heavy CommercialVehicle: 5%

Ford5th

Cars: 100%BMW14th



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78 Offices and Plants worldwide Largest plants are located in Spain,

Germany, Turkey, China and FranceEnvironmentEnvironment

AnalysisAnalysisRatioRatio

AnalysisAnalysisConcludingConcluding

RemarksRemarks


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17 Production Plants in 6 countries

External partnership for Assembly plants

in developing nations

EnvironmentEnvironmentAnalysisAnalysis

RatioRatioAnalysisAnalysis

ConcludingConcludingRemarksRemarks


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U.S.

Investor-oriented

Majority of funds fromdebt and equity

securities

Legislation gearedtoward arms length

financing

Germany

Creditor-oriented

Banks dominate ascapital provider

Legislation gearedtowards credit protection




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U.S.

Optimistictendency

Emphasis ontransparency

Germany

Conservativevaluationmethods

Use of reserves




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Interest income and dividends deducted from revenueRevenue

Conversion from average cost system to LIFOCOGS

Reversal of capitalization, increasing expensesR&D

Treated as gains/losses as opposed to equityPension

Deducted from net incomeExtraordinary items

Downward revaluation due to USGAAP requirement ofhistorical cost accountingPP&E

Reversal of reserves, yielding more volatile growth trendsReserves




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0.00 5.00 10.00 15.00

Inventory turnover

Profit margin on sales

Cash debt coverage ratio

BMW

Ford


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Economic AnalysisEconomic AnalysisEconomic AnalysisEconomic Analysis





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Ford is better positioned in developing countries

Ford better protected from economic swings

Reserve adjustments are very significant

Ford has higher inventory turnover

Ford has a higher profit margin

Ford has a higher cash debt coverage ratio


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BMW: Sheer Driving PleasureBMW: Sheer Driving Pleasure

Ford: Drive one.Ford: Drive one.

EnvironmentEnvironment

AnalysisAnalysis

RatioRatio

AnalysisAnalysis

ConcludingConcluding

RemarksRemarks


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2006 2007 2008 2008 2010

BMW Employees 106575 107539 100041 96230 95453

Ford Employee 300000 283000 246000 213000 198000

0

50000

100000

150000

200000

250000

300000

350000

Emp

loyees

Employees: BMW vs. Ford

EnvironmentEnvironment

AnalysisAnalysis

RatioRatio

AnalysisAnalysis

ConcludingConcluding

RemarksRemarks

Ira Ppt Bmw & Ford Final Version

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