Make a report of the study case Essay Example | Topics and Well Written Essays - 2500 words

Make a report of the study case - leaven ExampleTo evaluate and analyse this aspect of the attach tos position, certain financial balances have in any case been used in the report.The greatest internal guess faced by the company is the declining of profit over the last financial year, if this trends continue to take place, the company will be generating no more money for investment and even there would be left nothing in the company to be transferred to the shareholders in the form of dividends or earnings per share.The company also confronts with the risk of losing all its business line because of the costs incurred during the output signal and distribution of goods, and also the opposite operating expenses incurred during the year.According to Wells and Nieuwenhuis (2001), the automotive industry in UK has been super saturated and the companies need to face great competition from other companies in the same industry. Hence, there is a high risk of increasing competition. Wells and Nieuwenhuis (2001) further specify that the competition is not the only risk a company has to confront with, there are certain other factors that increase the risk of doing business in UK automotive industry. These factors are globalisation, consolidation, and continuous innovations in the technology.Bordenave and Lung (1996) says that the most important risk a company faces in the automotive industry in UK is due to the increasing outsourcing activities on the part of the manufacturers. Therefore, a geographic risk arises in such a situation where supplier and manufacturer are from geographically unlike and different places.Analysing the profitability of Buzzard Ltd lies in assessing the companys profit with respect to various other items from income statement and balance sheet. This can be done with the help of the following ratiosThe Gross Profit ratio analyses the companys profit margin before accounting for various operating costs (Mcmenamin Jim,