ira ppt bmw & ford final version
TRANSCRIPT
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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
Industry AnalysisIndustry Analysis EnvironmentEnvironmentAnalysisAnalysis RatioRatioAnalysisAnalysis ConcludingConcludingRemarksRemarks
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East-West Discrepancy
Unemployment
Political Tension
Greece bailoutLargest proportion of foreigners
Industry AnalysisIndustry Analysis EnvironmentEnvironmentAnalysisAnalysis RatioRatioAnalysisAnalysis ConcludingConcludingRemarksRemarks
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Core Industries
Automobile
Chemical Pharmaceutical
Heavy Metals
Inflation
1.14%
Rising energycosts
Exports
Relationship
with China High growth
Industry AnalysisIndustry Analysis EnvironmentEnvironmentAnalysisAnalysis RatioRatioAnalysisAnalysis ConcludingConcludingRemarksRemarks
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EconomicEconomic AnalysisAnalysisEconomicEconomic AnalysisAnalysis
Environmental FactorsEnvironmental FactorsEnvironmental FactorsEnvironmental Factors
Adjustments & Ratio AnalysisAdjustments & Ratio AnalysisAdjustments & Ratio AnalysisAdjustments & Ratio Analysis
Concluding RemarksConcluding RemarksConcluding RemarksConcluding Remarks
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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
EnvironmentEnvironmentAnalysisAnalysis RatioRatioAnalysisAnalysis ConcludingConcludingRemarksRemarks
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Cars: 58%
Light CommercialVehicle: 37%
Heavy CommercialVehicle: 5%
Ford5th
Cars: 100%BMW14th
EnvironmentEnvironmentAnalysisAnalysis RatioRatioAnalysisAnalysis ConcludingConcludingRemarksRemarks
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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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EconomicEconomic AnalysisAnalysisEconomicEconomic AnalysisAnalysis
Industry AnalysisIndustry AnalysisIndustry AnalysisIndustry Analysis
Adjustments & Ratio AnalysisAdjustments & Ratio AnalysisAdjustments & Ratio AnalysisAdjustments & Ratio Analysis
Concluding RemarksConcluding RemarksConcluding RemarksConcluding Remarks
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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
RatioRatioAnalysisAnalysis
ConcludingConcludingRemarksRemarks
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RatioRatioAnalysisAnalysis
ConcludingConcludingRemarksRemarks
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RatioRatioAnalysisAnalysis
ConcludingConcludingRemarksRemarks
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U.S.
Optimistictendency
Emphasis ontransparency
Germany
Conservativevaluationmethods
Use of reserves
RatioRatioAnalysisAnalysis
ConcludingConcludingRemarksRemarks
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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
RatioRatioAnalysisAnalysis
ConcludingConcludingRemarksRemarks
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EconomicEconomic AnalysisAnalysisEconomicEconomic AnalysisAnalysis
Industry AnalysisIndustry AnalysisIndustry AnalysisIndustry Analysis
Environmental FactorsEnvironmental FactorsEnvironmental FactorsEnvironmental Factors
Concluding RemarksConcluding RemarksConcluding RemarksConcluding Remarks
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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
Industry AnalysisIndustry AnalysisIndustry AnalysisIndustry Analysis
Environmental FactorsEnvironmental FactorsEnvironmental FactorsEnvironmental Factors
Adjustments & Ratio AnalysisAdjustments & Ratio AnalysisAdjustments & Ratio AnalysisAdjustments & Ratio 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