StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Performance Management for Hydrogen Car Project - Essay Example

Cite this document
Summary
The paper "Performance Management for Hydrogen Car Project" asserts opportunity cost of capital is measured by returns of the other asset in the same risk class. In our case, the returns on capital employed based on risk involve are 15%. The capital required for this venture is 1000 million…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.8% of users find it useful
Performance Management for Hydrogen Car Project
Read Text Preview

Extract of sample "Performance Management for Hydrogen Car Project"

In order for H.C.P to achieve a 15% annual minimum return on capital employed the need to attain gross profit of £450 million. The maximum production capacity is 90,000 cars per year. Assuming H.C.P reaches the maximum production level, they will have to sell each car at £15,666 to attain a 15% minimum return on capital employed but according to the demand and supply curve that volume of sales can only be attained when the price per is £9,000 which is below production cost. This leaves H.C.P in a paradox. Looking at the competitor's price range the minimum and maximum price per car is £10,400 and £11600 respectively. Using these parameters we can determine what are optimal production, sales volume, and selling price.

How H.C.P can Attain 15% minimum return on capital employed:

We know it’s difficult to attain a maximum production capacity of 90,000 per annum; therefore we need to set up optimal production capacity based on percentage. Based on prevailing circumstances we let 80% of maximum production be the optimal production capacity that is 72,000 cars per annum. Looking at our demand curve the selling price per car should be £9,600.

           10,800.00

           11,000.00

 

                53,720

                44,880

 

  580,176,000.00

  493,680,000.00

       

 

 

 

       121,729,520

       101,698,080

 

    21,488,000.00

    17,952,000.00

 

       143,217,520

       119,650,080

 

         17,942,480

         14,989,920

 

         53,720,000

         44,880,000

 

       214,880,000

       179,520,000

 

       572,977,520

       478,690,080

       

      7,198,480.00

    14,989,920.00

 

 

 

 

  300,000,000.00

  300,000,000.00

       

  300,000,000.00

  300,000,000.00

 

 

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Performance management assignment 3 Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Performance management assignment 3 Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/management/1470214-performance-management-assignment
(Performance Management Assignment 3 Essay Example | Topics and Well Written Essays - 1000 Words)
Performance Management Assignment 3 Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/management/1470214-performance-management-assignment.
“Performance Management Assignment 3 Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1470214-performance-management-assignment.
  • Cited: 0 times

CHECK THESE SAMPLES OF Performance Management for Hydrogen Car Project

Performance within Community by BMW Group

In 1923 the company first produced motorcycle and in 1928 with the acquisition of 'Eisenach car Production', they developed a new market.... The company was involved in the production of airplane engine along with other car activities during the Second World War.... After realizing the great potential in the car manufacturing industry, BMW solely focused on manufacturing cars in different innovative designs.... In spite of these two aspects, BMW is also known for its car with high performance as it is built based on production vehicles....
7 Pages (1750 words) Research Paper

Social Performance of BMW AG

With this concern the company implies the concept of environmental management system in its operations.... Adhering to its objective and the environment management approach the company concentrates on recycling the resources, such as unused cars, engines and other required materials to produce new cars.... Communications in Business - Social performance of BMW AG Table of Contents Corporate Environmental Obligation: An Examination of the performance of BMW AG 3 The Case against BMW AG 4 The Case for BMW AG 6 Conclusion 8 References 9 11 Corporate Environmental Obligation: An Examination of the performance of BMW AG The growing concern of the common people is forcing companies such as BMW AG to focus on their corporate social responsibilities with greater significance....
6 Pages (1500 words) Essay

Trends in the Car Industry

car industry is not only capital intensive but labor also plays important.... Advertising and market research now also make a big part of the cost of the car manufacturers as the companies now try to understand and woo the consumers to their brand because main source of revenues for automobile companies is consumer sales.... Financing is another new dimension to the whole situation as car companies are trying to make a profit on financing by offering lower financial rates than financial institutions....
14 Pages (3500 words) Assignment

Benchmark Progress towards Sustainability

hevron Corporation has alternative energy sources which include geothermal, wind solar, biofuel and hydrogen.... In the paper 'Benchmark Progress towards Sustainability,' the author looks at two competitors and their strategies towards sustainability.... These are two major energy production companies in America....
10 Pages (2500 words) Assignment

Supporting Development of British Petroleum

When the organization takes any project overseas, it involves lots of human resources, finances, and technologies.... The company gives significant focuses on NGL services like Fractionation Storage, Transportation, Marketing, Trading, and Risk management.... The paper 'Supporting Development of British Petroleum' looks at British Petroleum, a London based organization....
8 Pages (2000 words) Case Study

Critique of BMW's Performance

In 1923 the company first produced a motorcycle and in 1928 with the acquisition of 'Eisenach car Production', they developed a new market.... The company was involved in the production of airplane engines along with other car activities during the Second World War.... After realizing the great potential in the car manufacturing industry, BMW solely focused on manufacturing cars in different innovative designs.... In spite of these two aspects, BMW is also known for its car with high performance as it is built based on production vehicles....
7 Pages (1750 words) Term Paper

The Effects of Humidity on Performance of Electric Vehicles

In a typical electric car, the inverter and the electric motor are packed up as a single unit along with the heat sink that is set in the middle (Ciprian & Lehman 2009).... lectric vehicles (EV) provide a platform that allows for advanced energy management which gives rise to advantages such as low running cost and simplicity of use (Khayyam et al 2008).... This report "The Effects of Humidity on performance of Electric Vehicles" discusses key components that are highly sensitive to environmental conditions such as humidity....
8 Pages (2000 words) Report

The Hazards and Risks Associated with Sour Gas

The paper "The Hazards and Risks Associated with Sour Gas" tells that Due to the lack of awareness of the occurrence of hydrogen sulfide, there was lack of preparedness to deal with the release of the gas.... Lack of suitable alarms and protective equipment led to fatal hydrogen sulfide exposure.... This caused a safety valve to open and release approximately 40m3 of hydrogen sulfide.... This process works with an acid gas removal system that removes the sour gas stream's hydrogen sulfide....
10 Pages (2500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us