Reference no: EM132385465
BUSN20019 - Professional Project Assessment
Field of Research:In last few decades, the significance of Research and Development (R&D) has increased and it has been playing an integral part for the sustainability and growth of many businesses and industries especially in manufacturing and high-tech industry. Influential and great organizations put resources into research and development. Businesses and industries those put investment and efforts in research and development (R&D) generally create greater benefits than those that don't invest in R&D. However, R&D is loaded with sketchy spending, unsure outcomes and adjustments that can be difficult to quantify. In this way, figuring the use R&D into gainfulness and offer valuation is no straightforward issue which why some companies enjoy the success by investing in R&D and someface losses in probability even after investing in the R&D yearly. Toyota is among the top companies in the world with highest R&D expenditure and I will use Toyota's example to explore how the link between the R&D expenditure and its probability.
Secondary Data:All data related to profitability (Revenue, Net Income)and R&D expenditure of the company are available on the company's website, it has all the company's annual reports from 2005 to 2017 in pdf format. Company's research and development expenses details from 2007 to 2019 are also accessible through the Statista website
RQ:The aim of this research is to explore the existing relationship between the R & D expenditure and the profitability of Toyota. Specific RQ:How does the investment in R&D effects the profitability of an organization (Toyota)?
Variables: R&D expenditure (Independent Variable), Revenue (Dependent Variable)
Search Terms: R&D, R&D expenditure, Profitability, R&D expenses, Automotive Industry, Sustainability, Revenue, Net income
Articles & Reference list:According toNakao, Takeo(1993) It is very critical to take note of that the relationship between R&D investment and company's financial performance is essential for company's directors whose point is to amplify the values of stakeholders. An intensive analysis in financial aspects, accounting and finance how investors consider Research and development endeavors as ventures that are anticipated to return future money related advantages (Shen, Yan, & Tzeng, 2017). Research and development could be viewed as a driving power for profitability, R&D leads to product developments which help firms to capture more market and add to the financial profitability (Bouaziz, 2016).