Swot Analysis Of Tesu
MACROECONOMIC ANALYSIS: PESTE (POLITICAL, ECONOMIC, SOCIAL, TECHNOLOGICAL, & ENVIRONMENTAL)
From macroeconomic stance, the most influencing factors are political, economic, and technological. Although social, and environmental are important factors, these do not have any significance in Tesu’s case.
Political: Croatia is a country which went through a great deal of struggle throughout history – first to be recognized as a country, and then to be an independent country. It has been part of both of the world wars and finally the Croatian war of independence to break up from Yugoslavia in 1990. It is known to be one of the few war-torn Balkan countries to emerge from its bloody history. It has been working towards a membership in the European
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(STRENGTH, WEAKNESS, OPPORTUNITY, & THREAT) ANALYSIS
Strength: There are no apparent strengths of a small company from a small country like Croatia, however, it is an advantage that Tesu can cater to the needs of its client – EMT with the production of the specific products EMT needs such as the diesel engine welder.
Weakness: Macroeconomic analysis concludes that producing with old machinery and below capacity is one of the major drawbacks of Tesu. It increases cost and decreases productivity and revenues. Looking at microeconomic analysis it can be concluded that not having a global presence like its competitors is also a factor contributing to Tesu’s low success rate.
Opportunity: Microeconomic analysis suggests that there will be an increase in demand in the future years and also mentioned the need of fuel-efficient and cost efficient products in the shipbuilding industry. This is an opportunity for Tesu to improve its production to become the low cost producer of equipment used in the shipbuilding industry.
Threat: Political condition analysis shows that entering the European Union has more threats than opportunities since there are experienced and influential countries like Germany, which are already well established into the markets of various industries. This poses a threat of taking away customers or creating barriers to entry in the new EU
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