Value Added Scoreboard - Definition and Calculation of Value Added Business Performance and Evaluation of Performance of BMW
Seminar paper from the year 2009 in the subject Business economics - Investment and Finance, grade: 2,3, Cologne University of Applied Sciences, course: International Management and Business Consulting, language: English, abstract: According to BIS ( Department for Business innovation and skills ), Value Added measures the amount of wealth created by a company and is of particular importance since it reflects the ability of companies to provide their customers with what they want and are prepared to pay for. As such, it provides a broader perspective on a company‟s economic contribution than operating profit. Mathematically, Value Added = Company Sales – Bought-in goods. Value added is regarded as one of the most important objective of a Firm or a company because it measures the amount of the wealth created by a company, from where we can analyze how a particular company is contributing to the economy of a certain country. Every year the „Value Added Scoreboard‟ measures the overall growth of a company and examines the efficiencies. The analysis will be in many different sectors, sometimes differentiated by a country or a region which we will talk in this paper later. The British Minister of State for Science and innovation Lord Paul Drayson mentioned in his ministerial foreword that innovation is essential to national competitiveness and to ensure that countries can respond to global challenges and opportunities. He also mentions the clear ambition of British government to make the UK the best place to do business. Chancellor of the Exchequer Mr. Alistair Darling mentioned his support to innovative businesses in the UK. Many people believe that the coming century will be an Asian century with Asia contributing one third of the global GDP. This is also a good reason to make the UK and Europe most welcoming place for businesses and especially innovative businesses. As Darling „There are many opportunities for the UK firms, we are helping them to meet that challenge targeting skills, supporting exporters through UK Trade and Investment and backing innovation with measures like the Technology Strategy and R&D tax credits. Helping companies turn the ideas of today into the goods and services of tomorrow‟. This shows that the British government is determined to help the government and to support them in every step.
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1http://www.innovation.gov.uk/value_added/downloads/2009_ValueAdded_Analysis.pdf Page 1http://www.innovation.gov.uk/value_added/downloads/2009_ValueAdded_Analysis.pdf Page 9 2.5 The Efficiency 2008 The Revenues A. J. Essentials Added Business Performance Added by E750 Amortisation & Impairment amortization schedule amount of wealth anti-lock brakes assets Biggest Value Added Bikal Dhungel BMW Group Revenues BMW Motorrad BMW produced bought in items Company’s value added cost of bought-in Daimler decreased depreciation E750 Companies EBIT Efficiency of Value Employee Costs engine European Union financial sector Firm’s France Gas producers Germany global gross value added largest sector market of BMW McGraw Hill Irwin million Oil & gas Oil and Gas oilhead Operating profit Page 9 1http://www.innovation.gov.uk/value_added/downloads/2009_ValueAdded_Analysis.pdf Pattern of Value payments Performance of BMW repayment model Report of BMW Research and Development Rolls-Royce service based economy sidecar tax of euro Top three sectors top value total number United Kingdom Value Added Creators Value Added Scoreboard value creation wealth created www.GRIN.com www.innovation.gov.uk www.wikipedia.org yearly report 2008