Section A - Dyson Flashcards
Which bullet points can Dyson be used for?
Government Policy - BP3 - (Patent Box)
Location - BP4 - (off-shoring)
What does the patent box allow companies to do?
Appeal for reductions in corporation tax if they are using a patented product in the market
Where is the patent box applicable?
Companies in the UK and a few European countries (except France)
Why did Dyson leave the UK?
to save hundreds of millions in tax and to benefit from low wage prices in the Far East
What were the repercussions of their off-shoring? And what could it mean if they re-shored?
They axed 800 jobs
They could create much more than 800 jobs, as they are a much larger company now
What 2 other factors could encourage Dyson to re-shore?
Decreasing Corporation tax
Increasing wages in the Far East
When did Dyson move abroad and how much was the company worth at the time?
2002
£1.5bn
What was the main non-financial reason he decided to off-shore?
Less engineers coming out of UK universities
What were the 2 financial benefits that Dyson gained from from moving to Malaysia?
Wage cost - £9/h UK, £3/h M
Office Rent - £114/sq m UK, £38/ sq m M
What did the move to Malaysia bring Dyson closer to?
New markets
Best-selling vacuum in Australia and New Zealand, high sales in Japan and planned move to the US
What happened to Dyson’s profits in 2002?
Increased by £27.1m to £40m
What profits were Dyson reporting in 2005?
exceeding £100m
What were their profits in 2013?
£328m (+5%) with turnover of £1.3bn
