Value Added Scoreboard - Definition and Calculation of Value Added Business Performance and Evaluation of Performance of BMW

Term Paper , 2009 , 19 Pages , Grade: 2,3

Business economics - Investment and Finance

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.

Contents

2. Introduction
2.1 Importance of Value Added
2.2 Pattern of Value Added
2.3 Sectorial Distribution
2.4 Geographical Distribution of Value Added
Table 1: Breakdown of Value Added by E750 Companies
Table 2: Top three sectors in the E750
Table 3: The Biggest Value Added creators of Europe
2.5 The Efficiency of Value Added Creation

3. Definition, Calculation and the use of Value Added
3.1 How a company’s Value Added are calculated
i) Operating profit
ii) Employee Costs
iii) Depreciation
iv) Amortisation & Impairment
3.2 The uses of Value Added

4. Value Performance of BMW
4.1 Short History
4.2 Current Situation
4.3 Performance of BMW
4.4 BMW Group Revenues by region
4.5 BMW Value Added statement
4.6 Conclusion

5. Sources

• College: Cologne University of Applied Sciences
• Course: International Management and Business Consulting
• Grade: 2,3
• Author: Bikal Dhungel (Author)
• Publication Year: 2009
• Pages: 19
• Catalog Number: V170913
• ISBN (eBook): 9783640901258
• ISBN (Book): 9783640901791
• Language: English
• Tags: Value Added, value added scoreboard, performance of BMW