An Overview Of Volkswagen Group Automobile Industry Marketing Essay

An Overview Of Volkswagen Group Automobile Industry Marketing Essay The main aim from this project is to analyze manufacturing company in term of ratios analysis and common size analysis. We took Volkswagen Group as a manufacturing company and we try to know what are the line business, major competitors, and the goals of Volkswagen Group. Then we start to make common size analysis (vertical and horizontal analysis) for both income statement and balance sheet from year 2005 to 2009 to see the financial performance of the company over the time. Moreover we make ratios analysis to check the liquidity, solvency, profitability, efficiency, and cash flow of the Volkswagen Group.  Finally, the report is going to discuss the data that we found on common size analysis and ratios analysis. Also the report will include all the annual report from 2005 to 2009. Company profile a)  Ã‚  Ã‚  Ã‚  Ã‚   What is the company’s principal line of business and major competitors? Volkswagen Group majorly known as the VW group is a German originated automobile man ufacturing group that is ranked third largest in world as a motor vehicle manufacturer. The core business of the group includes developing vehicles and components for all marques and manufacturing complete vehicles for the Volkswagen Passenger Cars and Volkswagen Commercial Vehicles marques. The group has world-wide working of operations but its primary focus is Europe market. Major competitors of Volkswagen are Toyotta, General Motors, Ford and Hyundai. b)  Ã‚  Ã‚  Ã‚  Ã‚   On what day does the company’s fiscal year end? The company Fiscal year ends on Dec, 31st c)  Ã‚  Ã‚  Ã‚  Ã‚   What is the largest source of cash from financing activities? For the year ended Dec 31, 2009 it’s â€Å"Proceeds from issue of Bonds† d)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What is the largest use of cash from investing activities? For the year ended Dec 31, 2009 it’s â€Å"Disposal of Equity Investments† e)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What is the average income tax rate for the fiscal year reported? Income tax rate for 2005 is : 35.2%, 2006: 9.1%, 2007:37.0 %, 2008: 29.1%, 2009: 27.7%. The average tax rate is 27.62%. f)  Ã‚  Ã‚  Ã‚  Ã‚   What is the average issue (sale) price per share of common stock issued as of the end of the fiscal year reported? The average issue (sale) price per share à ¢Ã¢â‚¬Å¡Ã‚ ¬ 149.42 Company goals and achievements Descriptive information, Compare goals provided in annual reports with achievements in the following periods, seek for any possible predetermined standards and find out whether the company achieved them in the following periods. There are numerous objectives and goals set by the Management of Volkswagen with the motive of enabling the company to expand the scope of its business and generate sustainable success by focusing on its customers and environment. As part of business operations management, the Board has focused on introducing measures to improve cost structures through process optimization overall a nd modular strategy implementation. The implementation of these goals can be seen through the financial performance of Volkswagen where in terms of sales, the related costs are kept in controlled and balanced trend with no irregular hikes. Volkswagen goal of servicing its customers with most innovative and fascinating vehicles is met with its ability to generate increased world-wide sales and improved cost position. In 2007, the company earned a sales record of 6.2 million vehicles.