Audit of Automobile industry

Powerful Essays
AUTOMOBILE INDUSTRY IN UK
United Kingdom has been a colossal manufacturer of automobiles in last 10 years. Producing more that 8 million vehicles and engines and exporting more than 80% of these, UK automobile industry stands as a driving force of its economy. The automobile industry generates a yearly turnover of around 55 Billion Pounds and largest value from exports.
Nevertheless, the country that has automobile players like, Alexander Davis, Aston Martin, Bentley, BMW, Ford, Honda, Jaguar, etc., is still said to be under a vast influence of dwindling supply chain and its dependence on foreign market.
Let us scrutinize the situation of UK automobile industry by doing an internal and external environmental audit.
INTERNAL AUDIT
Internal environmental audit is performed to understand the position of industry with respect to its own environment. SWOT is one of the tools used to perform internal audit which is employed for studying the strengths, weaknesses, opportunities and threats of the subject.
STRENGTHS
The strengths of UK’s automobile industry:
1. Largest Revenue generating sector
UK’s auto industry yearly contributes around 12 Billion Pounds to the economy of UK by generating revenue of more than 55 Billion Pounds, annually.

2. Diversity in products
Products manufactured by UK automobile industry range from various premium and sports cars to commercial vehicles and engines. Around 80% of this is exported, yearly.

3. Chief employment generator
The automobile industry in UK is a major employment generating sector, offering wide range of employment opportunities in manufacturing and R&D.

WEAKNESSES
1. Disparity between manufacturers
UK’s automobile industry is known for having an austere disparity between its manufacturers, which stands out to be a major weakness of this industry.

2. Depleted Supply Chain
Supply chain of UK automobile industry is going through an appalling phase. A potent supply chain and its capacity is an

You May Also Find These Documents Helpful

  • Good Essays

    Automobile Industry, India Automobile Industry Following India's growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first…

    • 770 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    automobile industry

    • 3958 Words
    • 16 Pages

    overall study reveals that It was found that the customer are mostly satisfied with price , design, safety, mileage, interior space, status brand name, comfort level, spares part and after sale service. Keywords: Customer, Customer satisfaction, Automobile company, passenger vehicles, Tata motors. *Research scholar, Deptt of commerce, M.D.University Vol. 2 | No. 4 | April 2013 www.garph.co.uk IJARMSS | 68 International Journal of Advanced Research in Management and Social Sciences…

    • 3958 Words
    • 16 Pages
    Satisfactory Essays
  • Powerful Essays

    Automobile Industry

    • 20263 Words
    • 82 Pages

    objective of this project is to analyze the Indian Automobile Industry for investment purpose by monitoring the growth rate and performance on the basis of historical data. The main objectives of the Project study are: * Detailed analysis of Automobile industry which is gearing towards international standards. * Analysis of the impact of qualitative factors on industry’s and company’s prospects. * Comparison of the Global automobile scene with its Indian counterpart. * Study of…

    • 20263 Words
    • 82 Pages
    Powerful Essays
  • Powerful Essays

    Automobile Industry

    • 22348 Words
    • 90 Pages

    HIGH PERFORMANCE LEADERSHIP AUTOMOBILE INDUSTRY CHAPTER 1 INTRODUCTION TO AUTOMOBILE INDUSTRY One of the greatest creations of man, the "Automotive Car" or popularly known as "Car" is a result of man's consistent efforts and perseverance. Over the years, the automobile industry has evolved as one of the main revenue generators, provider of employment and has progressed immensely. Automobile can be basically defined as a self-propelled vehicle used primarily on public roads but adaptable…

    • 22348 Words
    • 90 Pages
    Powerful Essays
  • Satisfactory Essays

    Automobile Industry

    • 1786 Words
    • 8 Pages

    Automotives AUGUST 2012 For updated information, please visit www.ibef.org 1 Automotives AUGUST 2012 Contents  Advantage India  Market overview and trends  Growth drivers  Success stories: Maruti, Tata Motors  Opportunities  Useful information For updated information, please visit www.ibef.org 2 Automotives Advantage India AUGUST 2012 Growing demand • Innovation opportunities • FY16E Market size: USD145 billion Strong demand growth…

    • 1786 Words
    • 8 Pages
    Satisfactory Essays
  • Good Essays

    automobile industry

    • 3022 Words
    • 13 Pages

    Indian Auto industry Finance Availability Poor public transport system Improved Infrastructure Low car penetration Rising Family Income Exchange of Cars Favorable duty structure Changing lifestyle Pestel AUTO POLICY VISION TO ESTABLISH A GLOBALLY COMPETITIVE AUTOMOTIVE INDUSTRY IN INDIA AND TO DOUBLE ITS CONTRIBUTION TO THE ECONOMY BY 2010 1. POLICY OBJECTIVES This policy aims to promote integrated, phased, enduring and self-sustained growth of the Indian automotive industry. The objectives…

    • 3022 Words
    • 13 Pages
    Good Essays
  • Powerful Essays

    INTRODUCTION TO AUTOMOBILE INDUSTRY The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, towed vehicles, motorcycles and mopeds as defined in ISO 3833, and is one of the world's most important economic sectors by revenue. Automobiles changed the world during the 20thcentury, particularly in the United States and other industrialized nations. From the growth of suburb to the development of elaborate road and highway systems, the so called horseless carriage has forever altered the modern landscape…

    • 2474 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Indian Automobile Industry

    • 2026 Words
    • 9 Pages

    1. INTRODUCTION : Indian automobile industry embarked on a new journey in 1991 with delicensing of the sector and subsequent opening up for 100 percent FDI through automatic route. In view of this, the study attempts to estimate the economic performance of Indian automobile industry in terms of capacity utilization at an aggregate level. It estimates econometrically rate of capacity utilization in the industry at aggregate level and analyses its trend during the post liberalization period from…

    • 2026 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    globalized automotive industry Abstract This review was carried out to give an overview of the vast automotive industry. The automobile industry in the 21st century is filled with competition, innovations and new strategies (operational strategies, functional strategies, manufacturing strategies etc) which differentiate it from all other leading industries. The collaborations and joint ventures have played an important role in the development of the automobile industry which is further…

    • 2375 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Automobile industry in Germany The automobile industry in Germany is one of the largest employers in the country, with a strong labour force of over 866,000 (2005) workers in the industry. In addition, Germany has the largest share of passenger car production in Europe with over 29% market share, followed by France (18%), Spain (13%) and the United Kingdom (9%). Germany is considered to be the birthplace of the automobile since Karl Benz and Nikolaus Otto independently developed four-stroke…

    • 670 Words
    • 3 Pages
    Good Essays