Swot Analyss

Strengths Comar chemicals is regarded as a draw in the tyre and paint diligence. This phenomenon is ascribed to the side by side(p) strengths Contr executions in place with Goodyear, Continental, Plascon, Bridgest whiz, Dunlop, and Michelin. Product tonicity of the highest standard. Automated works pull wires systems in place, constant in- work part control tests controlled by chemical director, Vernon Redding. Compliant raw materials with specifications atomic number 18 existence utilised. Succession planning in place since the appointment of Stefan as usable manager. This person is ear marked to surrogate Vernon Redding, in the event of his departure.Buy and c on the whole over version obligation entered into by directors, Udo Eric Eichrodt and Dieter Roland. Management team is see and highly qualified. Udo Eric Eichrodt 30 long time BComm trade Management Dieter Roland 29 years Bcomm investment funds Management Vernon Redding 45 years PhD alchemy Stefan 12 yea rs BScHons Chemistry whitethorn Rossouw 24 years BCommHons (Management Accounting) Nicki de Villiers 15 years MComm (Transport Economics) Low staff matu orderover. The ships confederacy invests in staff morale as it understands it to be its biggest asset. BEE Status 20% b deficiency possess, Vernon Redding, Indian.Promotes transaction in conspiracy Africa and abroad. ISO 90012008 Certified (International make-up for Standardization. ) Little trouble has been encountered in the erstwhile(prenominal) to comply with minimum standards required by this certification. Unqualified annual audited financial statements. This is make up to good governance practiced. Low gearing, although non- genuine assets ar shown at R4m. Market value of plant and property exceeds R20m. Company is liquid, considering current assets to current liabilities ratio of 41. Comar chemicals exits from scorely owned premises. European Safety & Reli cleverness standstill (ESRA) certified. Toxic waste is dealt with in a responsible and reliable manner. Contamination of grunge is highly unlikely as the telephoner places a high premium on going green. Flexibility and research maturement hold backs ongoing sustainability. Product reliability. Order bring in procedure and commitment of staff ensures a good reputation of the political party. Absolute advantage, ability to produce specific crossroad much efficiently than any separate nation. Factors of mathematical product argon relatively cheaper than any other country. Zero tolerance for gracious error.The company has strict rules and procedures that sine qua non to be fol baseborned to ensure the mainstay of the condescension. Disciplinary actions are simulaten against culprits, which could mite to dismissal. Weaknesses The make uping weaknesses have been place Comar Chemicals is faced with multiple taxationes due to the bewilder that it is a multinational enterprise that runs in versatile varied contries. Operating in various different countries go forths to multiple tax jurisdictions. Multiple tax jurisdictions whitethorn surpass to the overlapping of taxes and the company may subvert up with a double taxation. (1) The frugal model introduces some weaknesses to the company. in that respect are various factors that affect the frugal natural action of Comar Chemicals. These embarrass the resource desexualiseations placed on the companys ability to obtain sealed chemicals or the availability of chemicals needed in the factors of cable line. Environmental or geographical constraints base increase their expenses due to extra exaltation apostrophizes for raw materials and finished goods. The manufacturing plant could be situated in an heavens which is prone to seasonal bad abide (Cape Town). This could slow down the process of lamentable materials and Comar Chemicals lead bear the economic trespass of a loss of potency revenue and increase be.Theirs leave behind likewise be certain institutional and legitimate requirements that Comar Chemicals entrust have to follow and they will take leave in the three different countries that they operate in, s placehbound Africa, Switzerland and Ger some. Comar Chemicals may have to stick by to different legal levels of Co2 yield that they create during their production process and will have to regulate these levels in respect with the legal levels set by the government. Comar Chemicals has no buy and sell arrangement support by life amends.A buy and sell agreement is a binding legal document that governs the conditions if a co-owner dies or is otherwise forced to leave the short letter. The fact that on that point is no buy and sell agreement supported by life cover means that if owner of the company passes modal value or is forced to leave the communication channel then all the debt or liabilities incurred by the job will be left over(p) to the c supportst relative of the owner. This coul d lead to a liquidation of the dividing line if on that point is no insurance cover. Therefore the line of reasoning is not completely safe in the sheath of a personal crisis within the business sector. 2) progression for staff is expressage due the low staff turnover that Comar Chemicals has. Comar Chemicals has a total of 38 lockees that let ins cardinal scientists, one restrainer and one logistics manager. This bottom of the inning also be seen as a strength withal the fact that there are so few employees, there are few promotions to employees. This shadower font employees to break down slight motivated towards their mull and company and in turn this could decrease the total production and the total efficiency of production. Employee empowerment is the act of giving more(prenominal) responsibility to workers in the work place. 3) The empowerment of staff quite a littler lead to a weakness within Comar Chemicals due to the fact that firstly, the business has a relatively minor(ip) number of employees. This brook lead to an increase in departure mingled with the employees as to why one employee has been empowered more than another. This passel cause bad interpersonal relationships among employees. say-so lav also be a weakness if the wrong employee has been empowered to take on a certain vomit upion or manage a project that he or she has not been specifically trained for. This could create problems within the managerial and operational sectors of Comar Chemicals.If empowerment of employees is going to be an on-going activity at Comar Chemicals then it has to be carried out in a vogue that makes sure that the right employees are being empowered for the right reasons. Comar Chemicals has no make out man insurance. This is precise similar to the absence seizure of a buy and sells agreement, supported by life cover that was previously mentioned. ob help oneself man insurance is an insurance constitution that is takes out by the business to cut with for financial losses that would arise from the demolition or extended incapacity of an classic member of the business.Key man insurance fuck cover many insurable losses that embarrass, losses related to the period when the break person was unable to work and insurance to protect profits, insurance to protect shareholders and partnership agreements. Without key man insurance, Comar Chemicals is vulnerable to the obtain that something happens to the owner and there is no trade protection or financial security for the business in the future. (4) Opportunities There are many opportunities for Comar Chemicals to utilise to maximise their business productiveness and advantageousness. There are two types of opportunities, external and internal.External opportunities affect the organisation due to individual factors. Internal opportunities exist within the libertine. Opportunities, when realised, corporation have enormous rewards for the business if the opportunities are exploited correctly. An opportunity is indication of supportive possible that can help a business increase its success. Possible sources of business opportunities in more or less industries and commercializes include latent Business Opportunities Technological innovation refreshful beg Market growth demographic change Social or modus vivendi change Government consumption programmesHigher economic growthTrade liberalisation EU enlargement variegation opportunity Deregulation of the mart The opportunities that Comar can use to their advantage are mo quotas, developing markets, revising line of descent definitions/digressions, up(a) rivalrous levels, forward exchange cover, solar power, life policies, association with universities and joint breeding with clients. An Import Quota is like a miscellanea of protection. It fixes the add of products a foreign producing firm is fall by the waysideed to bring into a country over a specific time period, whi ch is ordinarily a year.The objective of an import quota is to limit imports into a country therefrom supporting(a) the use of domestic helpated products and services, as the amount of the good being imported is limited the equipment casualty of the specific good increases thus domestic firms benefit. Comar, being situated in South Africa, Switzerland and Germany, can use this as an opportunity by increasing domestic employment. There will be a larger demand for Comar Chemicals because import quotas will make it more expensive to import these goods from international challengers.This will encourage Comar to employ more citizens that are qualified for the job because of the expanding demand of their product and the need for increased labour and skills in the organisation. Comar is a small business, with 38 employees including two scientists, an accountant and a logistics specialist. Comar is 14 years old, which is relatively two-year-old compared to it competitors therefore it can be considered an baby fabrication which is still developing and is not big enough to compete fairly.Import quotas allow Comar to mature onto a same competitive level as international organisations. South Africa is a developing country and the market for metal carboxylates is expanding with the increase of paint and coatings, print inks and chemical industry, polyester industry, grease and gear oils industry and PolyButadiene, Isoperene Butadine and Copolymers industry. With the increase of construction and manufacturing in South Africa, these industries are in higher demand than ever before. Comar can improve their competing levels by product quality.Quality relates to appropriate use how well a product does what it is intended to do. This can include a compliance of raw materials with specifications, particular manufacturing and quality control test procedures, in-production tests of utmost products, introduction of automated plant control systems. These quality control methods leave little room for error, positioning the product on a high level of quality which will lead to a insolent modern working milieu and a upbraiding of the quality of the business as a whole.Comars leading product is COMCAT, which inclueds a rare earth atom smasher which is apply in the synthetic refuge industry to manufacture advanced golosh tyres making tyres softer but more long-wearing which in turn lowers the level of carbon dioxide emissions from vehicles. This gives Comar a competitive advantage as their products are also helping the milieu and decreasing the level of harm through innovative products, which will draw the fondness of buyers.There can much be discrepancies closely the actual responsibilities, tasks and duties of a certain position within the organization this can be managed by revising job explanations. There must be an accurate reflection of the true functions and responsibilities for a job description to be tackive. A comprehensive jo b description can be used in management to measure employee performance and employees can use the job description as a guideline to cut across the expectations of the position. This can lead to improved productiveness and ohesiveness within the organization to help fix the organizations objectives and goals. Comar can use the opportunity to be observe involved with universities to further their research and translate university departments with their expertise of the product to evolve students into potential employees of their firm or for that specific industry. For example, Comar could give bursaries to deserved students to pay for their studies in a BSC, specializing in COMCAT (PolyButadiene, Isoperene Butadine and Copolymers industry).They could provide all the requisite tools (research, expertise, in shaping) in order to establish sensation of this specific product and market the need for this specific scientist in this field. Joint growing with nodes involves a good rel ationship between the manufacturer and the client. The manufacturer must be enthusiastic and prepared to open up its daily practices and activities to its customers, this will give the customer the opportunity to carefully scrutinize and measure out the ways in which the manufacturer ope evaluate, during the production process, and the quality of the finished products.An important furnish when transaction with joint development with customers is converse. When there is a healthy line of communication between the manufacturer and the customer, there can be am exchange of ideas between parties leading to effective production and customer satisfaction. Threats Threats are conditions in the business environment that are uncontrollable and have the potential to harm business profitability. One of the most common nemesiss is competitors. There are a number of affrights that Comar may face, including future trends in the specific field, social issues, the economy, funding, demographic s and the physical environment.When notice the potential threats that Comar may face, the following of necessity to be determined the obstacles Comar may face, competitors activity, quality standards and changing technology. Threats can be divided into two categories namely, industry threats, an increase in rivalry or a decrease in the market size, and macro threats, threats that affect all industries in Comars area. Possible sources of business threats include Potential Business Threats New market entrants Change in customer tastes or needs Demographic change consolidation among buyersNew regulationsEconomic downturn Rise of low greet production abroad Higher excitant prices New substitute products Competitive price pressure A potential threat Comar may face is the diversity. Diversity is often defined as a imperative term for a business, but it also comes with threats that have the potential to ruin productivity. Comar has a various(a) workforce, co-workers each have differ ent inhabits and perceptions as they have all come from different backgrounds. This could cause cultural clashes which can decrease productivity and cohesiveness of the business as a whole.Comar could also experience divisions in staff members due to the formation of cliques and other groups, this can create competition between employees rather than teamwork, a lack of respect amongst one another and this could lead to costly diversity training to reply diversity issues within the organisation. Comar has a diverse client base as their company is also situated in Switzerland and Germany. It is therefore crucial for Comar have a bi-lingual customer service, if they do not they will lose a grand amount of business concern as there needs to be effective communication between the two parties in order for the business to be successful.Social issues in the business environment may be a threat to Comar. A social system is a pooling of ideas, attitudes and demeanor which are involved in human relations and interactions. Comar is influenced by its customers attitudes and demeanour, if they are oppose relationships within the organisation this could dampen productivity and decrease business profitability and if there are social issues external to the organisation, such(prenominal) as political unrest, could affect consumer behaviour negatively and affect the success of the business.The political and legal system can also pose as a threat to Comar, as business have to follow the specific regulations as set out for them by the government, it creates a set of rules and guidelines that business are expected to adhere by, if a business does not there could be serious consequences that could lead to decreased profitability and even as far as a business being banned. The fiscal system facilitates business exchange. Monetary activity has distinct basic functions, namely saving, borrowing, expending and earning, which are all linked to business profitability.Comar has to pay careful attention to all these activities because each of these factors can easily turn into a threat for the business. There are many different parties involved when dealing with money, they are financial institutions, debtors, creditors, customers and suppliers. The interest rate is very important when Comar is dealing with its financial activities, when an interest rate is high, it increases Comars costs and will limit the amount of spending that Comar can participate in.Exchange rates are the value of one nations coin in comparison to another. It is very important when determining a businesss effectiveness and whether it will serve as an opportunity or a threat. Comar is a company that does business in South Africa and globally, therefore exchange rates will have an enormous effect on the profitability. When Comar exchanges its products over national borders causing another property to become involve, fluctuations in exchange rates can lead to profits or losses for Comar .Comar is at an advantage when the rand is relatively strong compared to the currency that the organisation is work with. When the rand is weak compared to the business it is doing the exchange with, Comar is at a discriminate as it will be more costly to exchange products across borders. A massive threat that Comar faces is import duty, which is a tax on goods imported into a country. This causes prices to be higher because of the tax cost involved. This cost is passed onto consumers at higher prices, which in turn can lead to consumer dissatisfaction and a loss in clients.Trade restrictions were introduced to restrict importation for many reasons, mainly to protect domestic industries. There are two types of restrictions, tariffs and non-tariffs. Non-tariffs include, methods such as embargo, import quota which is a confinement on the amount of goods a business is allowed to import, foreign exchange control and currency devaluation. These trade restrictions pose a massive threa t to Comar because the organisation is continuously trading over borders and having to deal with trade restrictions, which will inevitably hinder profitability.