Swot Analyss

Topics: Free trade, Quality control, Import quota Pages: 8 (2854 words) Published: March 25, 2013
Comar chemicals is regarded as a leader in the tyre and paint industry. This phenomenon is ascribed to the following strengths: •Contracts in place with Goodyear, Continental, Plascon, Bridgestone, Dunlop, and Michelin. •Product quality of the highest standard. Automated plant control systems in place, constant in-production quality control tests controlled by chemical director, Vernon Redding. Compliant raw materials with specifications are being utilised. •Succession planning in place since the appointment of Stefan as operational manager. This person is ear marked to substitute Vernon Redding, in the event of his departure. Buy and sell agreement entered into by directors, Udo Eric Eichrodt and Dieter Roland. •Management team is experienced and highly qualified.

Udo Eric Eichrodt: 30 years - BComm Marketing Management •Dieter Roland: 29 years - Bcomm Investment Management
Vernon Redding: 45 years - PhD Chemistry
Stefan: 12 years - BScHons Chemistry
May Rossouw: 24 years - BCommHons (Management Accounting) •Nicki de Villiers: 15 years - MComm (Transport Economics) •Low staff turnover. The company invests in staff morale as it understands it to be its biggest asset. •BEE Status 20% black owned, Vernon Redding, Indian. Promotes business in South Africa and abroad. •ISO 9001:2008 Certified (International Organization for Standardization.) Little trouble has been encountered in the past to comply with minimum standards required by this certification. •Unqualified annual audited financial statements. This is testament to good governance practiced. Low gearing, although non-current assets are shown at R4m. Market value of plant and property exceeds R20m. Company is liquid, considering current assets to current liabilities ratio of 4:1. •Comar chemicals operates from totally owned premises.

European Safety & Reliability Association (ESRA) certified. Toxic waste is dealt with in a responsible and reliable manner. Contamination of ground is highly unlikely as the company places a high premium on “going green.” •Flexibility and research development ensures ongoing sustainability. •Product reliability. Order tracking procedure and commitment of staff ensures a good reputation of the company. •Absolute advantage, ability to produce specific product more efficiently than any other nation. Factors of production are relatively cheaper than any other country. •Zero tolerance for human error. The company has strict rules and procedures that need to be followed to ensure the mainstay of the business. Disciplinary actions are taken against culprits, which could lead to dismissal.

The following weaknesses have been identified:
Comar Chemicals is faced with multiple taxes due to the fact that it is a multinational enterprise that runs in various different contries. Operating in various different countries leads to multiple tax jurisdictions. Multiple tax jurisdictions may lead to the overlapping of taxes and the company may end up with a double taxation.(1) •The economic model introduces some weaknesses to the company. There are various factors that affect the economic activity of Comar Chemicals. These include the resource limitations placed on the company’s ability to obtain certain chemicals or the availability of chemicals needed in the factors of production. Environmental or geographical constraints can increase their expenses due to extra transportation costs for raw materials and finished goods. The factory could be situated in an area which is prone to seasonal bad weather (Cape Town). This could slow down the process of moving materials and Comar Chemicals will bear the economic impact of a loss of potential revenue and increased costs. Theirs will also be certain institutional and legal requirements that Comar Chemicals will have to follow and they will vary in the three different countries that they...
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