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Better in M&a

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Submitted By ladykays
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This is an essay on the automotive industry. The writer is the Chief Executive of one of the car companies in the world and she will be looking at the car manufacturing industry to see how well the other companies are doing. She is going to be looking at things like their revenue, how much profit and losses they have made in the past years. Also the Chief Executive will be looking at the number of workers employed under the companies. The number of cars they produce and sell in a year will be analysed as well. She will also be looking at how much of the market share dose each company own. The Chief Executive will also be paying particular attention to how the concentration ratio has evolved over the years. All the information will then be put together so that the Chief Executive is able to propose a merger or takeover of one of the car companies to the company’s Executive Board in the upcoming meeting.

Volkswagen Group is the third largest car manufacturing company in the world. It had a market share of 23.3 percent in Europe by the end of the year 2011. Its market share for the year 2010 in Europe was 21.3 percent. Volkswagen also controls about 20% of the Chinese market. The Volkswagen Group sold 3,167,068 cars in the year 2011 in Europe alone. They sold 2,938,515 in the year 2010 in Europe (European Traveller 2012). They sold over 8 million vehicles worldwide in the year 2011. The company experienced a 25.6 percent increase in sales revenue. Their sales revenue came up to159.3 billion. The operating profit of the company was valued at 11.3 billion Euros. The company has about 329,000 workers worldwide over 48 manufacturing facilities which are in 19 different countries and their products are marketed in 154 countries.

BMW is one of the preeminent luxury car manufacturers in Europe, North America and the world today. By the end of 2011 BMW had

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