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Why is Ford more successful than Vauxhall?

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Why is Ford more successful than Vauxhall?

For my piece of coursework I will be looking at why the motor company Ford is more successful than Vauxhall? To find out if this is correct I will be using different information about each company to find out how much profit and how much annual turn over each company produces.

Both companies are private limited companies which means the public can buy shares but by only the permission of the other shareholders. The shareholders are involved in decisions about the company, (i.e. the opening of a new plant abroad).

Ford is a well-known company with 130 Ford plants worldwide where Vauxhall only has 20 worldwide plants. Both motor companies are involved in motor sport, Ford involved in Rally sport and Formula 1, and Vauxhall involved in NASCAR and Touring Cars.

Ford also owns a wide range of companies including Aston Martin, Volvo, Jaguar, Mazda, Lincoln, Mercury and Land Rover. Were Vauxhall are owned by GM motors who own other motor companies.


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Capital employed is the value of all the buildings, machinery and equipment used in producing the goods or services made by the business. I will also be using the profit change in percentage over a period of 2 years to see if any big improvements have been made to the companies. (I.e. a fall in car sales or a reduction in cost of the resources.) Also be using the vehicle sales over 2 years, which will determine how much popular each company has become with the public. Also I will include the share price, which reflects what investors think their prospect for the future. Share Price is the price at which the ordinary shares of a company are brought and sold.

Employees:        Ford employ over 200,000 people worldwide with an average annual wage of £30,000, were Vauxhall employ fewer than 150,000 with an average annual wage bill of £35,000, this can total up on the expenditure list and could put a huge pressure for car models to sell. If the Expenditure price exceeds the income price some employees may be made redundant.

Assets:         Fords have number assets, which are divided,

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Vauxhalls ROCE is:                

£48.9million     x 100

                                £81.9 million                        = 59.7%

With Ford, with a ROCE of  72.07%, and with Vauxhall with a ROCE of 59.7%, this shows that Ford have been more successful on spending their money on equipment and factories.

Profit change:         I will be using Net Profit after Taxes to work out the profit change over two years. Fords profit in 1998 was 65.8 million and their profit in 1997 was 43.85 million, so percentage change equals:  65.8 million x100

                                                       43.85 million      =150.05% increase.

Vauxhalls profit in 1998 was 48.9 million and their profit in 1997 was 24.2 million, so percentage change equals:     48.9 million x100

                                24.2 million           = 202.06% increase.

These results show that Vauxhall have either sold more cars over the two years (which I will be looking at next), or have found a cheaper ways of using materials.

Vehicle Sales:                Fords total vehicle sales for 1997 were 537,366, and for 1998 were 504,141. Vauxhalls total vehicle sales in 1997 were 475,035, and for 1998 were 444,099. Both results show a drop in cars sold which tells you that more people are buying cars from different companies, resulting in competition with different companies.


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