Bosch currently stands as the leader as one of the largest global suppliers of technology and services, showcasing a spectacular revenue of almost 70.6 billion Euros in 2015. Almost 5 billion Euro of the revenue was spent on its R & D department in 2014 and 6.4 billion Euro, which accounted for nearly 10.1% and 9% of the total revenue.
R&D Expenditure analysis:
It's main business operations have been characterized into 4 sectors :
- Mobility solutions,
- Industrial technology,
- Consumer goods and Energy and
- Building technology.
Recent developments have also begun to show improvements in the non-automotive business sector too, resulting in the formation of an independent group and consequently shift the focus to retail sales of home appliances. Last year saw a 100% stake from Bosch BSH JV, responsible for new innovations and development. The company plays a significant role in launching hybrid vehicles. Their success was only multiplied manifold by their innovative engine technology which led to fuel consumption being 15% lower in commercial vehicles.
There has been a considerable increase in the profit figures of the year 2014 as compared to the previous year, 2013. However, one trend that is observed is that capital expenditure has stayed in homeostasis from the year 2020.
On the other hand, R & D has undergone a major increase and being the backbone of this industry, it has exhibited excellent results with an increase from 4.2 to 6.4 billion Euro. Innovation is the key for the company.
Cost cutting solutions tailored towards attaining financial independence seems to Bosch's strong suit. Some Business practices undertaken in the Bosch Head office in Germany are listed as follows :
1. Employees are not permitted to make personal phone calls from the office phone, If so, the cost of the call will be deducted from the salary.
2. Employees are not allowed to print in high-quality papers unless the need necessitates the use of the same. The Economic paper is also widely available for use.
3. Many employees are students or work students, contributed as permanent employees result oriented.
4. Very stringent travel and hotel expenses.
5. Limited internet access.
6. Only the middle and top level management employees are provided laptop and other electronics.