• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

MG Rover. Latest news shows that the car company, MG Rover will be taken over by a Chinese car manufacturer. This may vastly affect the sales of car production for the MG Rover Company.

Extracts from this document...


Business Studies coursework Task 8 continued: Latest news shows that the car company, MG Rover will be taken over by a Chinese car manufacturer. This may vastly affect the sales of car production for the MG Rover Company. The company 'Shanghai Automotive' will own 70% of the company whilst MG Rover owning 30%, which means that the company may change names and affect customer's who already own a MG car, meaning they may feel unhappy with the change, as the company production maybe moving to China. This means sales and customer satisfaction may change dramatically for the business. As the company is taking over (Shanghai Automotive) this means that they are going to inject around �1 billion pounds aiming to make over 100 million cars a year. This means saving over 6000 jobs that would have been depleted if the Chinese car manufacturers had not come up with the money to save the business. This maybe recognised by the public, meaning that they like the new changes as they will be able to carry on with their job. However, the problems that have occurred are that they want to concentrate the main manufacturing of the car over in China, and bringing machines and technology over to Britain, but only are considering making around 200,000 cars. ...read more.


The changes perceived by the staff will swing both ways. This is because they will be motivated and glad that they have not lost their jobs, and feel that they want to make an impact and impression to make the business look good under, maybe a new company name. However, the SAIC may honour their jobs at first as they are making only a small number of cars over in Britain, but after a while they may want to move the whole production line back over to the main source in China. This means that the jobs will be lost, like they were in the first place. Due to the fact of further job losses, as the main production may be moved to China, this may affect the reputation of the company if the story is to get out. This will mean that the companies name will be in shame which may put customers off. Another disadvantage of this takeover, is that the main production of cars will be made in China and Chinese language, so the structure and build up of the engines/cars may not be the same, so the workers, will have to learn new structures and maybe languages of the car in able to manufacture it. ...read more.


Also by making the cars in China, the way they want to, with their large machines, the production cost will be less but still make the same cars. This means that by making the cars but at a faster and cheaper rate, we can still sell the cars at the same price, but we will be making a larger profit on the car models. The disadvantage and downside would be the new image and reputation the company receives the jobs of British workers at state, the fact that capital intensive in the business could be introduced and jobs will be lost. The lack of control/quality of the new vehicle will obviously be compared to the old MG Rover cars, to see if they meet the same or better quality, which could result in the number sales the car manufacturers make. Also the delivery problems again, that if the cars are concentrated and made over in China, the exporting of the cars into the UK and Europe may take a long time, which means that the customer maybe unhappy with the length and poor service they are receiving. All these points will be considered to whether the change is a good or bad decision to the future of the British car company, MG Rover. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Marked by a teacher

    Evaluate if a car manufacturer and a carpenter need ICT to succeed.

    3 star(s)

    process, wood would be wasted and so would time, also someone would have to be employed to watch the machine for these mistakes and programme it. In the long run however profits would increase due to an increased output. However in the short run the company would have to do

  2. Analysis of The Cadbury company.

    Computer aided manufacture (CAM) is also use to manufacture the products. Cadbury uses flow rap machines which wraps 800 bars a minute. Cadbury's employs 8,000 people in the UK. In the UK chocolate is manufactured at the Bournville site in Birmingham.

  1. Analysis of The Cadbury company.

    When the initial packaging is complete the marketing members need to decide if they are going to advertise and what the advert would include. Throughout this whole process the Administration and IT support department have been keeping things clean, taking orders, ensuring all machinery is of a good standard and

  2. Analysis of The Cadbury company.

    This is also, so that the other departments keep to their main objective and responsibilities and do not waste money. Managers see these targets and compare them with other past targets to find how successful the business is. The targets help the finance department to make plans for the future that will help the business to achieve its objectives.

  1. Develop my understanding regarding the production of accounts and their use for business decision ...

    Hire purchase is an alternative way of borrowing money. If a company bought a machine on hire purchase, it would pay a fixed number of instalments to buy the machine. Legally, each instalment is a rental payment and the finance house, a type of bank, which specialises in hire purchase deals, would own the machine until the last instalment is made.

  2. ICT & Sales

    All organisations use computers but different systems are used in companies. For example a large company will have lots of systems written specifically for them but a small company will buy software off the shelf. Income and Expenditure An important role of the finance department is to account for the

  1. Report on setting up of a coach company

    The starting point for all business is that the first and most important aim is to survive. In the first year the vast majority of businesses run at a loss and it is only through financial support that they can continue and start to break even before thinking about profit maximisation.

  2. Investigating the current system at a new car company.

    time consuming and yet again some answers may be inaccurate like in the questionnaire although it seems to be more effective than the questionnaire. Another method of investigation is taking part in a group discussion. This is where all members of staff sit together with me and we will discuss the current system.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work