SWOT Analysis
SWOT Analysis is an important tool which can be used to give an analysis of the company’s strengths, weaknesses, opportunities and threat. Through these factors company can analyze its position in the market and hence, it can take measures to improve it and take actions accordingly.
Strengths
It is very important for the company to analyze its strengths, as the strengths are the key drivers of the organization towards success. Through strengths company can eliminate the problems which are proving to be a road block in the success of the company.Likewise, the strengths ofAlmond Chemical were that the brand image of the company was very high as it was German based company.
It alsocontrolled 70% of the stocks in one of the local company in China with whom it had joint venture.The company was also listed on the New York Stock Exchange and also on the Frankfurt Stock Exchange, which were the world’s best stock exchanges and shows the stability of the company.Similarly, one of the major strength of the company was that it had global experience, as it was working in different parts of the world and also it was having an experience in a totally different country than Germany. The standards and policies of Almond Chemicals reflected the German corporate culture and it was the strength of the company.Through the joint venture with Chongqing was a startup, but still the financial position of Almond Chemical was quite stronger.
Weaknesses
Every company has its weaknesses, especially when it is targeting the market abroad. The weaknesses should be analyzed and should be worked upon in order to overcome the weaknesses and taking the weaknesses as a challenge.Similarly, Almond Chemical also had few weaknesses. One of the weaknessesof the organization was that Almond Chemical was not having an uneasy relationship with the employees of Chongqing, with which it had a joint venture. Since the culture of Almond Chemical was European therefore, it was having problems in adjusting to the Chinese culture. Moreover, one of the weaknesses of Almond Chemical was that it was not having control over its expenses. The measures it was taking for the success of the joint venture were though in favor of the organization, but they proved to be quite expensive for the venture. Since, Almond Chemical just started up the venture with the Chongqing, but it was not considering the delicacy of the situation, in fact it was just focusing on following European standards.
Opportunities
The opportunities should be considered by the company as they are very important for achieving the targets of the company.Almond Chemical was aiming for the expansion in the chemical industry in China. There were many companies which Almond Chemical wanted to acquire so that it could penetrate in the industrialization of China. Moreover, it also had opportunities of having a joint venture with the local companies. The labor cost was low in the middle size cities, so it would have been a great opportunity to target the middle cities for conducting its operations.
Threat
The threat to Almond Chemical was that the government of China could have imposed different laws and legislation which were not in favor of the company. It was expected that China will be increasing promotion of its local industries so that could have been a threat to the company. Growing corruption, widening inequalities and environmental degradation would have been a threat to Almond Chemical.
Stakeholder’s Rights
The stakeholders are the people, group, or organization which is dependent on the performance of the organization. There are a number of stakeholders in a company. Some of the stakeholders of the company are government, employees, investors, labor unions, shareholders and suppliers.Many issues were arising in a joint venture between Almond Chemical and Chongqing. The problems were due to the cultural differences between both the companies. Due to these problems the performance of the company was declining continuously and hence, it resulted in less targets being achieved by the company in the quarter.
Thus, it was affecting the rights and interests of the shareholders of the company. The stakeholders such as employees of the company were directly affected by the current situation of the venture. This was due to the fact that the venture was not proving to be successful in terms of performance and profits. There were many cultural clashes in the venture between Almond Chemical and Chongqing. Due to this situation, the employees of the company would have been demotivated by all these factors and would have been feeling insecure about their jobs. The feeling would have been developed in their minds that the venture was not proving to be successful and this would result in failure of the venture which would have been resulted ultimately in losing their jobs.................................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Transformational Gaming: Zyngas Social Strategy
Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy
Snow Brand Milk Products (B): Reform and Revitalization Efforts
The Credit Suisse Christian Values Fund
Lonestar
Becton Dickinson: Ethics and Business Practices (A) Supplement 2
Beauforts Drop and Swap (A)
ABC and Food Lion: Case Study
Jonah Creighton (A)
Quantum Semiconductor Inc.
