BP2 Research Summary

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  • Created on: 29-04-15 09:31
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`Bullet Point 2: Impact of increasing globalisation on businesses manufacturing in the UK (Automotive Industry)
Definitions: Key Theory:
Foreign Ownership : As the pace of globalisation has increased
complete or majority ownership/control of a business manufacturers have benefited from
or resource in a country by individuals who are not improvements in infrastructure such as
citizens of that country, or by companies whose transport and communication
headquarters are not in that country This has led businesses to manufacture
different product components in different
Globalisation: countries
The process by which businesses or other
organizations develop international influence or start UK manufacturers have faced competition
operating on an international scale. from traditional G7 countries and from
emerging markets e.g. China and India
This has led to outsourcing and offshoring but
the UK has seen an increase in re-shoring of
manufacturing back to the UK
Briefly explain how the UK car industry has changed over time and the importance of foreign ownership and
the UK are to the industry.
1970's ­ car industry was still mainly British-owned and most of the cars made were notorious for low-quality,
but parts for cars were made and sourced from the domestic market
1980's ­ foreign ownership ­ Nissan in Sunderland, and this foreign ownership has been associated with
improved management techniques, a higher level of efficiency and the sharing of global best practice. Also
opens up new sources of funds for investment
2012 ­ only 40% of the car components are now made in the UK, and the influence of foreign owned parts,
coming from places like Germany, Japan, USA, and France (the biggest and most efficient producers of car
parts, and the countries with a large domestically owned producer)
Opportunities/Benefits: Key Facts and Figures:
Exploiting new markets which will increase sales, JLR have succeeded in the Chinese market by
profit and profitability. supplying products that are distinctive, and even
though they are sold at much higher prices than rival
offerings, the growing middle class of China are still
anxious to buy them - as they are associated with the
affluence of the west and act as a status symbol.
British companies are able to manufacture and JCB has risen its market share from 9.6% to 10.4%
succeed in the global market British company in the top 3 of construction materials
in the world
Provides nearly 8000 employees world-wide,
including 2500 jobs in the UK
Threats/Problems: Key Facts and Figures:
Less British Manufacturers Collapse of MG Rover in 2005 left the British car
manufacturing sector dominated by foreign owned
firms. Fragmented nature of the British car sector has
made it harder for a large auto supplier to develop
1970's ­ 100% of industry used British made goods
2012 ­ 0nly 40% of the components made are
sourced domestically
Office of National Statistics ­ foreign owned
companies make up 2/3rds of the UK economy

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Britain itself is not making the money from this, but Just 1% of the companies in the UK are foreign
other countries are, meaning Britain are losing out on owned, but they contribute to 29% of the UK's gross
money value added
Rolls Royce and Bentley have been owned by BMW
Britain's best known brand names have been snapped and Volkswagen since 1998 - even the big British
up by foreign companies companies are no longer British even though they
have a very "British" image…read more

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Bullet Point 2: Impact of increasing globalisation on businesses manufacturing in the UK (Fashion/textiles industry)
Definitions: Key Theory:
Foreign Ownership : As the pace of globalisation has increased
complete or majority ownership/control of a business manufacturers have benefited from
or resource in a country by individuals who are not improvements in infrastructure such as
citizens of that country, or by companies whose transport and communication
headquarters are not in that country This has led businesses to manufacture
different product components in different
Globalisation: countries
The…read more

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Bullet Point 2: Impact of increasing globalisation on businesses manufacturing in the UK (Food Industry + General )
Definitions: Key Theory:
Foreign Ownership : As the pace of globalisation has increased
complete or majority ownership/control of a business manufacturers have benefited from
or resource in a country by individuals who are not improvements in infrastructure such as
citizens of that country, or by companies whose transport and communication
headquarters are not in that country This has led businesses to manufacture
different product components in different…read more

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