Productivity and Financial Efficiency in UK Automobile Industry

This report provides a comprehensive analysis of the productivity and financial efficiency within the UK automobile industry. It begins with an abstract highlighting the importance of financial components in economic development and the role of productivity in business performance. The report is structured with an introduction, literature review, methodology, data analysis, and conclusion. The literature review explores the impact of foreign investment, technological advancements, and changing work styles on the UK automotive sector's competitiveness. The research investigates the industry's contribution to the UK economy, its revenue, employment, and export figures. The study aims to evaluate the profitability, strategic efficiency, and overall impact of the automotive sector on the UK economy, including the effects of Brexit and environmental sustainability. The methodology section describes the research approach, which includes a quantitative method for data collection. Overall, the report assesses the financial ratios and performance of the UK automobile sector.

A study of productivity
and financial efficiency

ABSTRACT
The financial component plays a key role in capital capacity management, economic
development and employment creation. Getting the powerful financial firm to improve and
support economic development is a necessity for all nations. Particularly throughout the last
generation, as the structural shifts in the economic sections of developed economies occurred, it
became more noticeable.Productivity is regarded as an essential aspect of performance for the
strategic and profitable activity of the enterprise and is expected to be the most important
organizational and functional testing fields point out that when the achievement of long-term
stability, cost effectiveness and sustainability will be generated by productivity improvement. So
the investigation into their effectiveness and profitability becomes even more essential due to the
vital role of financial institutions in business activities. Therefore, the amount of studies
performed in this in developing countries there was a rise in ground..This approach lets them
monitor the production that powers various divisions. Notwithstanding this, over profitability
often contributes to business development failing. On the other side, some research teams think
the president profit document is just not enough; it's only the last outcome, while the productivity
dictates whether in process and policy efficiency or efficacy. Regardless of this they claim
income and sales analysis will not predict person results and the business as a whole. The other
explanation is that the study will only be available to businesses which generate anticipated
performance.

Contents
ABSTRACT.....................................................................................................................................2
TITLE: “A study of productivity and financial efficiency of Automobile Industry UK”...............4
CHAPTER: 1 (INTRODUCTION).................................................................................................4
Chapter 2: Literature review............................................................................................................6
Chapter 3: Methodology of research................................................................................................9
CHAPERT 4: Data analysis...........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................17

TITLE: “A study of productivity and financial efficiency of Automobile
Industry UK”
CHAPTER: 1 (INTRODUCTION)
In several segments of the UK economy, within both comparison to the old century and
compared from the US, the 1980s witnessed a substantial growth in production per employee and
overall productivity improvements. Raising the size of international companies in the UK could
have played a part in rising output rates in the British economy, as faster growth is offset by
lower domestic productivity. Among other cases, the arrival of foreign companies may often
impact efficiency rates by introducing among innovative technologies or by growing the degree
of industry competitiveness.A broad theoretical literature that seeks to understand the predictors
and impact of international investment on production and development has grown. It may be in
the context of higher rates of efficiency, or from increased consumer control. Foreign investment
may occur either by building up a green depending on the configuration by a foreign company,
or by purchasing an established institution. This paper investigates how enterprises operated by
international firms by any of such pathways have higher rates of profitability than those operated
by natives.
Overview of research
Automotive industry plays an important role in country' growth, because as industry
generates economic value, leads to jobs, and undertakes technology innovation challenges. The
industry plays a leading position in economies as the industry delivers output variable again from
steel and iron, polyurethane-plastic, clothing, glass, wood, electrical and computer sectors and
produces a wide amount of company in businesses such as repair, servicing, advertisement,
replacement parts distribution, insurance and banking services.
Research problem
Global companies are spending increasingly in physical infrastructure, and are utilizing
increasingly intermediary commodities. They demand better salaries for their jobs too.
Problem statement
The automobile sector has numerous purposes, such as leading to technical growth,
generating jobs and increasing revenue, taking in foreign currencies through international
commerce.

Scope
Several theoretical and scientific alternate theories were given that shows that there has been
immense growth in car industry in UK. The era of efficiency development correlated with other
shifts in the British economy declining trade unions, accelerated business shake-outs throughout
the early 1980s slump, computerization, and improving work force output
Research Question
 To critically evaluate the profitability of Automobile industry in present time.
 To analyse the overall strategic efficiency of car sector in UK from last 20 years.
 To determine the impact of automotive sector over the UK economy
Research aim
“To actually define the profitability and efficiency of Automotive industry and impact
over UK economy”.
Research Objective
 What is the profit margin of Automobile industry?
 What is the strategic efficiency of car sector in UK?
 How does automotive sector influence the UK economy?

Chapter 2: Literature review
In the opinion of Zala, (2010) UK economy many industries witnessed strong productivity
development through the 1980s due to constant changes and development in technology,
working style and employees’ behaviour. That further combined with a rise in the foreign
investment traffic in the UK economy. This paper explores what has changed on a
microeconomic basis in one sector and questions if foreign-owned UK automotive business
institutions are more competitive than local products. There are still disparities in overall factor
productivity rates although they are fairly low.British car sector is a crucial part of the UK
community nearly £ 82 billion in revenue and contributing importance to the Global GDP in
£18.6 billion. At about 168,000 workers working directly in production and over 823,000 in the
broader automobile sector, it contributes for 14.4% of all British product exports, worth £44bn,
and spends £3.75bn annually in automobile science. More than 30 factories build upwards of 70
car types in the UK backed by 2,500 suppliers of parts including some of the most experienced
professionals in the country. In 2019, the United Kingdom produced over 1.3 million vehicles,
78,270 freight cars and 2.5 million generators. 8 out of ten UK-produced cars are transferred to
160 distinct world economies internationally.The extraordinary change, however, was not at the
cost of environmental sustainability. The UK automobile industry now ranks among Europe's
most productive, surpassing the EU standard for electricity, CO2 and water.The industry has
reduced dramatically the environmental effects, due to stringent performance standards and rapid
improvement and optimization of production methods. Carbon savings stack significantly
enough electricity for 9.5 billion individuals per year between 1999 and 2018, thus saving CO2
will occupy the Royal Albert Room 37 times.
According to Virambhai, (2010) productivity rise correlated with other shifts in the U.K
market however the spike in foreign investment is still one of special concern. Multinational
companies have long been recognised to be more competitive than local producers and focused
in knowledge-intensive sectors. It indicates that global companies in the British sector might
have played a part in rising output rates because higher efficiency from foreign-owned
investment offset lower domestic output. In the last 20 years, car production has developed into
one of the most valuable financial benefits and in UK, transforming in £ 82 billion in 2018, a 70
% rise after the first Conservation Study was issued in 1999.

Around the same time, employees have undergone a major pay increase, with overall
automotive salaries increasing by 85 per cent over the timeframe compared to 61 per cent in
broader production. With an annual wage of £ 41,800, 40 % greater than the national average,
car engineering employees are now some of the UK's top performers. In the meantime,
productivity increased significantly, increasing automotive outcome for every job by 208 per
cent from £32,000 to £100,900. The volume of exports has rose dramatically, with 81.5 % of
cars manufactured for foreign markets in 2018 opposed to 63.9 % in 1999.Composting is now
back on the list of business, with companies saving 693,969 tons of garbage from landfill,
equivalent to the average waste produced by households together in Bristol, Leeds and
Edinburgh. However, for everyone in the UK, the volume of water saved equals 813 liters of
water.Such substantial advances were driven by significant investment in new technologies and
facilities. Brexit is the biggest challenge to British car industry's potential profitability. The
future partnership between the nation and the EU will bring about seamless trade, ensure our
productivity and build an investment-ready climate.It is important not only for future prosperity
but also to further support healthier sustainability in the field.Composting is now back on the list
of business, with companies saving 693,969 tons of garbage from landfill, equivalent to the
average waste generated by households together in Bristol, Leeds as well as Edinburgh.
However, for everyone in the UK, the volume of water saved equals 813 liters of water.Such
substantial advances were driven by significant investment in new technologies and facilities.
Brexit is the biggest challenge to British car industry's potential profitability. The future
partnership between the nation and the EU will bring about seemless trade, ensure our
productivity and build an income stream-ready environment.It is important not only for future
prosperity but also to further support healthier sustainability in the field. It is sates by Bailey and
De Propris, (2014) to innovations in manufacturing processes, sector has started to spend resources
in the development of the updated low-emission system to enhance the ecosystem and air quality
problems. The efforts to produce ever more powerful vehicles have culminated in an annual
decrease in new car CO2 of 31.2 per cent since 1999, while levels of nitrogen oxides are being
lowered by 84 per cent since the turning of the millennium and combustion particulate matter has
effectively been removed.
In the opinion of Kumar and Kaur, (2016)United Kingdom manufactures about 1.5 million
vehicles and 3 million turbines, responsible for 9-11 per cent of all UK exports. The industry

produces yearly revenue of even more than £55 billion, employing approximately 700,000
workers and contributes capital worth injected into the economy of around £ 12 billion. There
really is no question that the UK appears to be a dominant strategic region in the international
automobile market, and also that the business is a major contributor to the British economy. So it
is encouraging to hear that perhaps the government efforts to revitalize this business appear to
yield dividends.This report from Industries Week shows that Britain is pulling away from its
European rivals with money pouring into the Renault and Jaguars Land Rover industries.It does
therefore underline the significance of the quality the sector plays in context of societal effects.
The sustainability study analyses the effect on society in relation to the number of employment
that rely on the industry. Although this is important of course, that's not the only impact the
sector has affected modern society. For business and strategy experience the automotive industry
has led the way. The car industry has a long tradition of changing our dominant mind-sets and
adjusting our thought. It sparked the lean revolution a trend that greatly influences industry,
governance, leadership and organizational practice. The automotive sector’s significance and
influence is wide-ranging and profound.It's indeed obvious with an economic perspective that the
car business matters. Yet it is still important from economic and social perspectives as well.
Based on data from 2012, the SMMT 2013 Automotive Sustainability Report has an impressive
job at demonstrating how car makers are performing with their effort to limit the environmental
effects at their processes and products.Therefore, each of these success metrics is major factors
of the financial system's productivity and profitability. Throughout this way, an analysis of such
outlets is essential to understanding industry's degree of competitiveness and can be helpful in
implementing effective steps for decision-making division at various rates to enhance
profitability and cost performance. So an effort has been made throughout the present analysis to
assess the efficiency of different types of banks viz. Groups of national, corporate, and
international banks. 12 Financial ratios were used to assess the results. Such ratios were further
divided into two groups viz. Efficiency and cost-effectiveness.

Chapter 3: Methodology of research
Work is being carried out in order to improve a person's learned expertise. It is a quantitative
approach to collecting knowledge on a particular subject or issue. Thus, to do this, the researcher
uses different techniques and approaches that take into account their expertise and
understanding. Study Approach is one direction which can come to a clear conclusion with the
implementation of this scholar. Research Methodology is one of the ways and with the
application of this scholar can come to a valid conclusion. It is determined as a systematic
technique which constitutes methods of how a research is being conducted. Furthermore, it can
be said that Research Methodology provides guidance to researcher for validating facts or to
develop new theories.
A Theory of Research:
Entire work is focused on inference, and consequently relevant hypothesis and findings
are produced using various techniques and methods. The theory of science is considered to be a
means whereby a researcher creates information based on inference (Pinder, 2014).
Interpretivism is regarded as a strategy by which investigator recognizes human behaviour as
well as the duties they execute. This assists in understanding an individual's social positions
within the set out viewpoints.
Positivism main variable is highly organized and offers quantitative metrics for more data
analysis. With the aid of this researcher may test a significant number of observations.Positivism
methodology has been used in relation to this work as it is focused on the social context and
assists in assessing acceptable outcomes.
Approach to research
Research approach is known as a study strategy and technique that enables a researcher
with a wider perspective to come up with a comprehensive method of gathering, evaluating, and
understanding data on the basis (Osabiya, 2015).
Deductive methodology allows confirm inference such that a reasonable result may be
inferred. When a researcher has developed a theory and needs to ask whether the hypothesis
developed must be used or discarded when doing analysis, the deductive method is ideally
applied to the same strategy.
Inductive methodology allows researcher identify novel hypotheses that had not yet been
tested.

In connection with this study, philosopher has been using descriptive research as it will
assist to generalize broad research questions into particular research topics.
Methods
Qualitative
This technique usually focuses on secularism and primary analysis, and therefore measurable
proposal appears to be based entirely on beliefs, experiences, as well as thought processes of
living things. Respecting the link between different factors is extremely useful, that is
because qualitative technique is considered primarily to become an imaginative exploratory
study (Jayaweera, 2015).
Quantitative
There would be some cases where even the scientific proof and understanding collected are in
descriptive way so quantitative method is now used to quantify the problems that can be
perceived in graph format after anyway.
To carry out this work, a quantitative analysis framework was adopted, as it basically
consists of various types of standardised questions that could then be transcribed into numerical
figures.
Strategy of research
Researcher has selected a questionnaire in order to perform this research because it may help
in collecting best information without wasting more time (Kanfer, Frese and Johnson, 2017).
Providing a questionnaire makes it possible to transform some information into qualitative data,
and also objective manner. Small amount of research is indeed an investigation into basic things
and the justifications to emerge for identifying relevant or method or phenomenon. Scientific
analysis is deemed this often referred to as technical research and analysis as well as anecdote on
a natural event, or useful to real research. Main task sometimes cannot make a contribution to the
instant use or application. This isn't about dealing with the important matters of important
priority. It provides a thorough and holistic overview into a matter and promotes science and
reasonable knowledge to retrieve as well as deduce upon this. It helps to develop new frontiers to
information and the main findings of the scientific disciplines form the basis of several other
practical training. Feasible-scientific Company will record comment of the research results of
basic study to explore their effectiveness. A research on creating a concept or a structure is often
called fundamental tasks. For example, that a theory needs to extend to a scheme since the

system follows certain specific requirements. It's indeed made a lot of efforts to modify the
principle of adapting it to a present form (Hunjra, 2018).
Design research
It is assessed as a sensory framework that encompasses aspects such as meeting, evaluating
and analysing the data and assessing all this inquiry. Furthermore one can see that the qualitative
research is very much like a master design again without being unable to conduct extensive
research. Research design is typically categories under three sections of exploration,
description and research project. In relation to research, qualitative methodology is being used,
because it can help in determining a links between two variables.
Sampling
In addition, if another researcher intended to obtain accurate and consistent predictions
about such a set of people then the succinct technique of designing the research paper is ample
(Banerjee, 2016). Even when doing anything except an inquiry, sample size was determined as
an essential feature though this gives an idea of individuals around what they think about this
particular subject. As regards its sampling of interpretations, it is defined as a means by which
data and understanding are acquired from a given number of community subsets. Thus, sample
size could be seen as a selection method for data compilation by participants. In the context of
the sample population, there will be 40 respondents, which really is sufficient to reach
appropriate data.
Investigative evidence
Different kinds are essentially main and secondary centre of study. Previous information can
be recorded through interviews, questionnaires, survey data, etc., published and not used by any
other researcher (Birasnav, 2014). While secondary resources have also been acquired from
books, newspapers, the internet, etc., many more could be used for knowledgeable
investigations. Researchers also can see some of these vary guess it depends on the report's
results.

CHAPERT 4: Data analysis
The sustainable forms are measured using a fresh batch of plant-level data panels with the
support of Questionnaire. Although foreign-owned enterprises have higher production and
perceived value per staff, the results indicate that these disparities tend to be primarily explained
by specific rates of factor use. This article discusses an analysis of the performance and
information from the report. The questionnaire survey was thoroughly considered to ensure that
tables, figures and charts have been used anywhere as possible to accurately represent the
information accumulated. An overview grid was conducted to gather the information needed to
achieve the project's objectives. Also the research portion provides a list of the methods used
(Huda and Abdullah, 2013). The predictions section is purely concise, and could be easily
grasped for all leaders of the author's target audience. The section of findings could be described
which will be therefore being fully adequate and concise for all the community to admire the
reported studies. Having checked also for research paper in the appropriate print version of
certain blogs as well as search rankings aspects of the project are two main approaches for
directing the structure of many pieces.
Finding
The UK automobile industry has become probably most famous for luxury car premium supercar
brands like Aston Martin, Caterham Vehicles, Bentley, Rolls-Royce, Daimler, Jaguar, Lotus,
Lagonda, Land Rover, McLaren, Lister Vehicles, MG, Morgan, Mini, etc. Volume automobile
manufactures with a strong following throughout the United kingdom involve Honda, Nissan,
Toyota and Vauxhall Motors (affiliate of Opel, affiliate of the French manufacturing business
Groupe PSA). Commercial car manufacturers based in the UK involve Alexander Dennis, Ford,
IBC Vehicles (operated by PSA Groups), Leyland Trucks (owned by Paccar) including London
Electric Vehicle Corporation (operated by Geely). The UK automobile industry had revenue of
approximately 82 billion in 2018, created £18.6 billion worth to the Uk market and manufactured
around 1.5 million daily users and 85,000 vehicles. During that year about 168,000 workers were
actually affected in UK automobile production, with an additional 823,000 staff operating in car
sales, retail and distribution. UK is a major hub for engine production and the nation
manufactured about 2.71 million engines in 2018. The UK has a strong presence in automotive
racing as well as the UK motorsport sector presently employs approximately 38,500 people,
includes approximately 4,500 businesses and has yearly revenue of about £ 6.