Audit of Automobile industry
AUTOMOBILE INDUSTRY IN UK
United Kingdom has been a colossal manufacturer of automobiles in last 10 years. Producing more that 8 million vehicles and engines and exporting more than 80% of these, UK automobile industry stands as a driving force of its economy. The automobile industry generates a yearly turnover of around 55 Billion Pounds and largest value from exports.
Nevertheless, the country that has automobile players like, Alexander Davis, Aston Martin, Bentley, BMW, Ford, Honda, Jaguar, etc., is still said to be under a vast influence of dwindling supply chain and its dependence on foreign market.
Let us scrutinize the situation of UK automobile industry by doing an internal and external environmental audit.
INTERNAL AUDIT
Internal environmental audit is performed to understand the position of industry with respect to its own environment. SWOT is one of the tools used to perform internal audit which is employed for studying the strengths, weaknesses, opportunities and threats of the subject.
STRENGTHS
The strengths of UK’s automobile industry:
1. Largest Revenue generating sector
UK’s auto industry yearly contributes around 12 Billion Pounds to the economy of UK by generating revenue of more than 55 Billion Pounds, annually.
2. Diversity in products
Products manufactured by UK automobile industry range from various premium and sports cars to commercial vehicles and engines. Around 80% of this is exported, yearly.
3. Chief employment generator
The automobile industry in UK is a major employment generating sector, offering wide range of employment opportunities in manufacturing and R&D.
WEAKNESSES
1. Disparity between manufacturers
UK’s automobile industry is known for having an austere disparity between its manufacturers, which stands out to be a major weakness of this industry.
2. Depleted Supply Chain
Supply chain of UK automobile industry is going through an appalling phase. A potent supply chain and its capacity is an
United Kingdom has been a colossal manufacturer of automobiles in last 10 years. Producing more that 8 million vehicles and engines and exporting more than 80% of these, UK automobile industry stands as a driving force of its economy. The automobile industry generates a yearly turnover of around 55 Billion Pounds and largest value from exports.
Nevertheless, the country that has automobile players like, Alexander Davis, Aston Martin, Bentley, BMW, Ford, Honda, Jaguar, etc., is still said to be under a vast influence of dwindling supply chain and its dependence on foreign market.
Let us scrutinize the situation of UK automobile industry by doing an internal and external environmental audit.
INTERNAL AUDIT
Internal environmental audit is performed to understand the position of industry with respect to its own environment. SWOT is one of the tools used to perform internal audit which is employed for studying the strengths, weaknesses, opportunities and threats of the subject.
STRENGTHS
The strengths of UK’s automobile industry:
1. Largest Revenue generating sector
UK’s auto industry yearly contributes around 12 Billion Pounds to the economy of UK by generating revenue of more than 55 Billion Pounds, annually.
2. Diversity in products
Products manufactured by UK automobile industry range from various premium and sports cars to commercial vehicles and engines. Around 80% of this is exported, yearly.
3. Chief employment generator
The automobile industry in UK is a major employment generating sector, offering wide range of employment opportunities in manufacturing and R&D.
WEAKNESSES
1. Disparity between manufacturers
UK’s automobile industry is known for having an austere disparity between its manufacturers, which stands out to be a major weakness of this industry.
2. Depleted Supply Chain
Supply chain of UK automobile industry is going through an appalling phase. A potent supply chain and its capacity is an