Research And Development And Financial Performance Of Uk Manufacturing Firms

1168 words - 5 pages

Research and Development and Financial Performance of UK Manufacturing Firms

UK manufacturing firms have many factors which influence their
financial performance. Research and Development could be a key factor
in determining a firms success, however it does not assure financial
improvement in all businesses due to the extensive variety of business
types. Research and Development can be defined as the scientific
investigation necessary to discover new products and the process of
bringing these products onto the market. A manufacturing firm, which
generally refers to a business that makes or processes raw or semi
processed materials into either a finished product or further
processed materials, by using large-scale mass production by means of
automation and production lines. Manufacturing firms tend to rely on
economies of scale to lower costs and allow bulk-buying benefits, from
this firms produce large volumes of products using specialised
machinery, which can then be sold at low prices to finance the
business.

Research and Development can take many forms, for example, large
international pharmaceutical companies spend huge amounts of money on
Research and Development, this is because pharmaceutical companies
rely heavily on new products which can be patented, and then used as a
competitive advantage that allows premium pricing and increased
profits. It is estimated that only about one product in the
pharmaceutical industry is commercialised for every ten which are
developed and test-marketed. Therefore, the company will have massive
Research and Development costs to recover when it actually launches a
new product, and it will probably take several years before it will
have broken-even and covered all the Research and development costs.
However, Research and Development can also be used by small shops and
retailers, by means of questionnaires, staff suggestion boxes,
feedback forms and market research etc.. This low amount of Research
and Development is typically normal, as small shops rely more on
customer service, niche markets, and reasonable quality and price
products.

Research and Development can often be a very risky process, since much
money can be spent on ideas that will never be commercialised. In
product oriented firms, such as manufacturing companies have many
factors which affect their financial performance. Research and
Development is a useful way of improving profits, if there is
significant funding, to employ scientists and researchers to produce
and develop the most technically advanced products to date, which can
then be marketed and turned into cash cows or stars. Also Research and
Development could develop new methods to produce existing products, to
lower average costs. However this depends on the skill of the
scientists and researchers, because...

Find Another Essay On Research and Development and Financial Performance of UK Manufacturing Firms

An Investigation into the Relationship between Corporate Diversification and the Performance of Firms

5896 words - 24 pages and Financial Performance, doctoral dissertation, Indian Institute of Management Ahmedabad, 1984,Ramanujam, Vasudevan and Varadarajan, P. (1989), Diversification and performance: a reexamination using a new two-dimensional conceptualization of diversity of firms, Academy of Management Journal, Vol.30, pp380-393.Ramanujam, Vasudevan and Varadarajan, P. (1989), Research on corporate diversification: A synthesis. Strategic Management Journal, Vol.10

Managing Financial Resources and Performance Essay

4004 words - 16 pages ;………………………………………………………………..….14-15IntroductionThis assignment is to understand the impact of the financial resources of an organization and evaluate different performance measurement methods with in an organization. The different appraisal method such as Net Present Value and

Training and Development at Toyota Motor Manufacturing of Indiana

4260 words - 17 pages Training and Development at Toyota Motor Manufacturing of Indiana (TMMI) The main problem that Toyota Motor Manufacturing of Indiana, commonly known as TMMI, faces in the training and development of its employees is getting their group leaders trained. This program is structured so the group leaders can learn decision-making, leadership, communicating, problem-solving, and analytical skills to bridge the gap between the upper management and

The Financial Performance of Kraft and General Mills

1295 words - 5 pages INTRODUCTION TO ACCOUNTING & FINANCE In this report, we will analyze the financial performance of two companies: Kraft and General Mills. They are global consumer foods companies that develop different packaged food products. The main goals of these companies are to meet consumers’ needs and preferences while generating superior returns by delivering consistent growth in sales and earnings, coupled with an attractive dividend yield

Somerfield plc Company's performance and financial position.

2022 words - 8 pages COVENTRY UNIVERSITYSCHOOL OF ENGINEERINGPostgraduate Engineering ProgramsFinancial Statement AnalysisReport on Somerfield plc's performanceand financial positionMODULE LEADER: Mr. GRAHAM SARASTUDENT'S NAME: AMIN SAADAIESession date: 2004/05TABLE OF CONTENTSI- INTRODUCTION 牋牋牋牋3II- PERFORMANCE 牋牋牋牋4RETURN ON CAPITAL EMPLOYED (ROCE) 牋牋牋牋4RETURN ON SALES (ROS) AND

Outsourcing Research and Development

3563 words - 14 pages technical leadership, and the loss of the technical expertise that is needed not just for effective implementation, even for selecting technologies and projects in the first place. These and related limitations have meant that advanced development and research tend to be done internally. Even when U.S. firms do use programmers in India and Russia, they tend to employ them directly, to avoid such difficulties.Outsourcing of R&D is providing new

Research and Development

1314 words - 5 pages Introduction: What is R&D? R&D stands for research and development (known is Spain as I+D). This concept encompasses all the activities which objective is to discover and/or create new knowledge and understanding about science and technology in order to develop new products or services. An example of R&D is the research of new vaccines and medicines. R&D can be found in different areas as construction, engineering, industry…, but especially

Financial performance of Islamic banking and conventional banking in United Kingdom- A Comparative Study

1423 words - 6 pages the financial performance of European Islamic Investment Bank (UK) with Allied Irish bank (UK) and Northern Bank (UK), In Terms of their Profitability, Liquidity, Risk & solvency & Efficiency Ratios which will give an insight comparison of overall financial performances of European Islamic Investment Bank with Allied Irish bank And Northern Bank. 1.4- Research Objective Research Objectives are set of goals which researchers intends to make

The Research and Development Process

5062 words - 20 pages The Research and Development Process Manufacturing companies' Research and Development (R & D) groups significantly contribute to United States' fast-paced industrial technology development. They promote industrial growth, and enhance the social well-being of the people. Normally, companies, especially those with enough resources, accept research contracts from the government and the private-sector to undertake the

Methods of Technology Forecasting and Analysis for Firms

2892 words - 12 pages their relative merits and use. The attention will then turn to the nature of use within the firm of both techniques in a technological forecasting context. Delphi The Delphi method can be traced back to 1944 when the US military prepared a forecast of future technological capabilities that might be of interest. In 1946, Project RAND (an acronym for Research and Development) was established with a brief to study the "broad subject of inter

Comparing the financial performance of Qantas and Woolworths. Discuss the aspects of the financial information that may be insufficient or misleading.

1509 words - 6 pages for the shareholders.There is a large contrast between the financial performance of Qantas and Woolworths. According to the annual report, all key performance measures, such as EPS before goodwill, dividend and free cash flow of Woolworths improved substantially. Their strong performance in the year was supported by excellent progress in managing the key variables of their balance sheet. A significant reduction in inventory of 3.2 days compared

Similar Essays

Manufacturing Strategy, Competitiveness And Management In African Firms: The Role Of Globalisation, Technology And Capital.

9649 words - 39 pages TFP development during the inter-firm diffusion of knowledge.If we analyze then we come to know that efforts have also been made to recognize patterns in the manufacturing plus management procedure which seem to account for discrepancy performance and aggressive gaps and to assume how the result has been influenced by the histories of the firms plus how they have been developing over time. A regionally and/or globally competitive firm is not

Manufacturing Strategy, Competitiveness And Management In African Firms: The Role Of Globalisation, Technology And Capital.

8344 words - 33 pages Untitled UNIVERSITY OF [INSERT] SCHOOL OF [INSERT], DEPARTMENT OF [INSERT] Manufacturing Strategy, Competitiveness and Management in African Firms: The Role of Globalisation, Technology and Capital. by [INSERT NAME] A dissertation submitted in fulfilment of the requirements for the award of the Degree of [INSERT] by Research

Impact Of Lean Manufacturing And Environmental Management On Business Performance

1339 words - 6 pages Introduction:  In this report we tried to explain the relationship between lean manufacturing practices environmental management practices and environmental performance, business performance outcomes (e.g., market and financial performance).  The hypothesized relationships of this model are tested with data collected from 309 international manufacturing firms (IMSSIV) by using AMOS.  There is an increasing social demand for environmental

The Negative Relationship Between The Debt Ratio And Performance Of Firms In China

1674 words - 7 pages enterprises have negative attitudes toward pay off cost and interest. These factors all contribute to slow development of securities market in China. The environment of financing impacts means of financing of listed firms, which affects financing preference of listed enterprises. Conclusion To sum up, this research was a positivism research using quantitative approach. 34 listed real estate companies were selected and the data were collected