Swot Analyss

Strengths Comar chemical substances is regarded as a leader in the tyre and headstone industry. This phenomenon is ascribed to the following readinesss Contracts in place with Goodyear, Continental, Plascon, Bridgestone, Dunlop, and Michelin. Product quality of the broad(prenominal)est standard. Automated flora subordination systems in place, constant in- harvestion quality control tests controlled by chemical director, Vernon Redding. Compliant raw materials with specialations atomic number 18 being utilised. Succession planning in place since the appointment of Stefan as ope rational manager. This person is ear mark to substitute Vernon Redding, in the event of his departure.Buy and sell agreement entered into by directors, Udo Eric Eichrodt and Dieter Roland. everywheresight team is experienced and highly qualified. Udo Eric Eichrodt 30 years BComm marketing counsel Dieter Roland 29 years Bcomm Investment Management Vernon Redding 45 years PhD inter private chemistr y Stefan 12 years BScHons Chemistry May Rossouw 24 years BCommHons (Management Accounting) Nicki de Villiers 15 years MComm (Transport Economics) Low provide 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 transaction in South Africa and abroad. ISO 90012008 Certified (International Organization for Standardization. ) Little trouble has been encountered in the historical to comply with minimum standards required by this certification. Unqualified annual audited monetary statements. This is testament to severe governance practiced. Low gearing, although non-current assets atomic number 18 shown at R4m. Market value of typeset and property exceeds R20m. Company is liquid, considering current assets to current liabilities ratio of 41. Comar chemicals ope judge from tot entirelyy owned premises. European Safety & Reliability connectedness (ESRA) certified. Toxic waste is dealt with in a responsible and reliable manner. befoulment of ground is highly unlikely as the company places a high premium on going green. Flexibility and research schooling en convinced(predicate)s ongoing sustainability. Product reliability. Order tracking procedure and commitment of staff ensures a good reputation of the company. Absolute avail, ability to produce specific w are more efficiently than any other nation. Factors of exertion ar comparatively cheaper than any other country. Zero tolerance for human error.The company has exact rules and procedures that need to be followed to ensure the mainstay of the commerce. Disciplinary actions are taken against culprits, which could lead to dismissal. Weaknesses The following debilitatednesses have been identified Comar Chemicals is human faced with multiple taxes collect to the fact that it is a multinational enterprise that runs in various diverse contries. Operating in various diametrical countries leads to mu ltiple tax jurisdictions. triple-fold tax jurisdictions may lead to the overlapping of taxes and the company may land up up with a double taxation. (1) The economic model introduces some weaknesses to the company. at that place are various factors that affect the economic activity of Comar Chemicals. These include the resource limitations placed on the companys ability to obtain certain chemicals or the availability of chemicals needed in the factors of increaseion. Environmental or geographical constraints outho single-valued function increase their expenses due to extra transportation approachs for raw materials and ideal 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 pull up stakes bear the economic impact of a loss of potential revenue enhancement and increased cost.Theirs bequeath too be certain institutional and lawful requirements that Comar Chemicals testament have to follow and they lead vary in the three different countries that they operate in, South Africa, Switzerland and Germany. Comar Chemicals may have to adhere to different legal levels of Co2 ingatheringion that they create during their production process and will have to regulate these levels in compliance with the legal levels set by the government. Comar Chemicals has no buy and sell agreement back up by action-time insurance policy.A buy and sell agreement is a binding legal document that governs the conditions if a co-owner dies or is otherwise oblige to leave the line. The fact that thither is no buy and sell agreement supported by life cover means that if owner of the company passes way or is forced to leave the caper then tout ensemble the debt or liabilities incurred by the backing will be left to the closest relative of the owner. This could lead to a liquidation of the business if at that place is no insurance cover. on that p ointfore the business is not completely safe in the case of a personal crisis at heart the business. 2) Promotion for staff is limited due the low staff turnover that Comar Chemicals has. Comar Chemicals has a total of 38 employees that includes two scientists, one restrainer and one logistics manager. This bless the axe also be seen as a strength however the fact that there are so few employees, there are few promotions to employees. This rump cause employees to become less cause towards their job 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 indebtedness to workers in the work place. 3) The empowerment of staff git lead to a weakness at bottom Comar Chemicals due to the fact that firstly, the business has a relatively sm all(prenominal) number of employees. This give the gate lead to an increase in contravene between the employees as to why one employee has been em powered more than other. This can cause bad interpersonal relationships between employees. Empowerment can also be a weakness if the wrong employee has been empowered to take on a certain task or manage a parturiency 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 way that makes sure that the right employees are being empowered for the right reasons. Comar Chemicals has no line man insurance. This is actually similar to the absence of a buy and sells agreement, supported by life cover that was previously mentioned. Key man insurance is an insurance policy that is takes out by the business to compensate for financial losses that would arise from the death or extended incapacity of an outstanding member of the business.Key man insurance can cover many insurable losse s that include, losses related to the period when the let out person was inefficient to work and insurance to protect profits, insurance to protect shareholders and partnership agreements. Without key man insurance, Comar Chemicals is vulnerable to the chance that something happens to the owner and there is no guard or financial security for the business in the future. (4) Opportunities There are many opportunities for Comar Chemicals to utilise to maximise their business productivity and profitability. There are two types of opportunities, external and internal.External opportunities affect the establishment due to independent factors. native opportunities exist within the firm. Opportunities, when realised, can have enormous rewards for the business if the opportunities are exploited correctly. An opportunity is indication of positive potential that can service of process a business increase its success. Possible sources of business opportunities in close to industries and markets include Potential melodic line Opportunities Technological innovation New look at Market growth Demographic change Social or life-style change Government spending programmesHigher economic growthTrade liberalisation EU effusion Diversification opportunity Deregulation of the market The opportunities that Comar can use to their advantage are import quotas, growth markets, revising job definitions/digressions, improving militant levels, forward switch cover, Solar power, life policies, association with universities and joint development with clients. An Import Quota is like a form of protection. It fixes the standard of products a irrelevant producing firm is allowed to bring into a country over a specific time period, which is usually a year.The objective of an import quota is to limit imports into a country therefore encouraging the use of domestic products and services, as the do of the good being imported is limited the price of the specific good increases there fore 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 competitors.This will progress 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 organic law. 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 juvenile compared to it competitors therefore it can be considered an infant industry 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 expa nding with the increase of paint and coatings, mental picture 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 high demand than ever before. Comar can improve their competing levels through 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, fine manufacturing and quality control test procedures, in-production tests of final products, introduction of automated plant control systems. These quality control methods leave little room for error, situation the product on a high level of quality which will lead to a smart modern working environment and a reflection of the quality of the business as a whole.Comars tether product is COMCAT, which inclueds a rare earth catalyst which is use d in the synthetic rubber industry to manufacture advanced rubber tyres devising tyres softer but more durable which in turn lowers the level of carbonic acid gas emissions from vehicles. This conk outs Comar a competitive advantage as their products are also circumstances the environment and decreasing the level of detriment through innovative products, which will draw the attraction of buyers.There can often be discrepancies about the true responsibilities, tasks and duties of a certain position within the organization this can be managed by revising job descriptions. There must be an immaculate reflection of the true functions and responsibilities for a job description to be effective. A comprehensive job description can be used in management to measure employee performance and employees can use the job description as a guideline to comprehend the expectations of the position. This can lead to amend productivity and ohesiveness within the organization to help realize the organizations objectives and goals. Comar can use the opportunity to become involved with universities to further their research and provide 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 necessary tools (research, expertise, information) in order to establish awareness of this specific product and market the need for this specific scientist in this field. Joint development with customers involves a good relationship between the manufacturer and the customer. 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 evaluate the ways in which the manufac turer operates, during the production process, and the quality of the finished products.An important issue when traffic with joint development with customers is converse. When there is a healthy line of conference between the manufacturer and the customer, there can be am transfer 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 threats is competitors. There are a number of threats that Comar may face, including future trends in the specific field, social issues, the economy, funding, demographics and the material environment.When observing the potential threats that Comar may face, the following of necessity to be situated 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 contestation 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 cost production abroad Higher input prices New substitute products emulous price pressure A potential threat Comar may face is the diversity. Diversity is often defined as a positive limit for a business, but it also comes with threats that have the potential to ruin productivity. Comar has a diverse workforce, co-workers each have different experiences 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 ca n create competition between employees rather than teamwork, a lack of respect amongst one another and this could lead to costly diversity training to resolve 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 wide amount of clientele 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 deportment which are involved in human relations and interactions. Comar is influenced by its customers attitudes and behaviour, if they are negative relationships within the organisation this could dampen productivity and decrease business profitability and if there are social issues external to the organisation, such 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 monetary system facilitates business sub. Monetary activity has perspicuous basic functions, namely saving, borrowing, spending 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 considerably 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 Co mar is dealing with its monetary 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 currency 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 currency 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 trading with. When the rand is weak compared to the business it is doing the exchange with, Comar is at a disadvantage as it will be more costly to exchange products across borders. A massive threat tha t 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 importing 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 limitation on the amount of goods a business is allowed to import, foreign exchange control and currency devaluation. These trade restrictions pose a massive threat to Comar because the organisation is continuously trading over borders and having to deal with trade restrictions, which will inescapably hinder profitability.