Question: Please answer the question above with the data provided A. CASE STUDY (20 Points) Answer the following questions. You may write your answer in points.









Please answer the question above with the data provided
A. CASE STUDY (20 Points) Answer the following questions. You may write your answer in points. It is essential to use terminology that you have studied during the course. The Egyptian Swiss chemical company: surviving the pandemic crisis (2) Abdel Rahman Atef Shorosh the managing director of the Egyptian Swiss chemical company (known commercially as "Swiss Chem") woke up early in the morning of second of July 2020 to prepare for the aspired meeting with the board of directors of Swiss Chem. He began with reminding himself with the competitive advantage of the company. The company is providing products with superior quality in comparison to other competitors, this is attributed to the usage of the best available raw materials whether from the international, or the local market. The after sales service provides the customers with excellent service. The portfolio of the company is diversified, and is addressing different needs of the customers. Abdel Rahman was also reflecting on the current macro environment in Egypt, the government is involved in mega projects related to housing, roads, transportation, which looks very promising for the companies working in the field of chemicals for building materials. Also the customs are 5% on the imported raw materials needed for the industry. However, there are some challenges which the company is facing mainly because of COVID 19 Pandemic, this included: relative fluctuation in exchange rate, some foreign suppliers stopped production, the demand for products especially from the private sector have also degreased. From the micro perspective Swiss Chem is selling most of its products in cash, or over 30 days at the utmost. The company know how provided its staff with superior capabilities in trouble shooting (solving technical problems) of any challenges faced by its customers, on the other hand the average age of the employees is relatively high which might hinder the new initiatives, due to resistance to change. Also the digital marketing as an important tool to increase sales needs further improvement. Abdel Rahman is thinking about the chemicals industry serving building materials, worldwide which has been suffering from decrease in demand due to the spreading of COVID 19, and what accompanied it with regards to national decrease in spending, as well dramatic challenges in supply chain. However, he knows that these times will eventually pass, and things indicators might be on the rise within maximum three years. So he decided to concentrate on analyzing the industry without taking into consideration the pandemic challenge. The company is always trying to diversify the suppliers from different parts of the world including mainly Switzerland, and Germany, followed by South Korea, Saudi Arabia, and other countries as long as the raw material is complying to Swiss Chem standards. The customers who are buying the products of Swiss Chem does not have a diversified portfolio of suppliers, and they cannot be involved in importing material from foreign companies due to the relatively higher prices. There are only eight companies each company is having an advantage in some products, accordingly the companies agreed to support each other in case of shortage in the portfolio of any company. Also there is no existing replacements for the products provided by the different companies working in the field of chemicals for building materials. The industry also requires high capital for establishing a manufacturing facility, as well thorough knowledge about the technicalities, and the market dynamics. 5 The company have a total workforce of employees Swiss Chem top management does not interfere in daily operation, they reserve their interference to strategic decisions only, the top management is using management by objectives, and middle managers are held accountable by the end of each fiscal year. It operates through several departments. The company premises are separated into the manufacturing plant at six of October city, and the commercial headquarters located at El Agouza neighborhood. For the factory, the total workforce is 50 employees, and it is divided into several departments, first the production with 30 workers, and 4 supervisors ,1 production manager,1 production planning, and 1 quality control, and administration department with 2 employees, also there are 6 employees responsible for security, and 2 employees responsible for the inventory,2 employees are working as gardeners. All of the workers are responsible for a specific job, and the production workers are divided into 4 subsections including heating, grinding, mixing, and grinding. For the commercial arm of the company, the total number of employees are 37 , it is divided into accounting department with four accountants, one head of accountants, one auditor, and the CFO. The sales department have 20 sales engineers responsible for 5 geographical areas, and supervised by 5 heads of sales, and all of the sales force is headed by senior sales manager. There are also two employees responsible for human resources, an office manager, and the CEO. After revising the current situation Abdel Rahman developed a vivid idea about which strategy should he propose to the board of directors'? Case Questions 1. You are required to develop the SWOT analysis for SWISS CHEM for chemicals using evidence from the case? (5 points) 2. Please describe the competitive forces, and its intensity (low, intermediate, high) of the chemicals for building materials industry according to the case? (5 points) 3. You are required to discuss the organizational design aspect using evidence from the case. (6 points) 4. If you were in 4.If you were in Abdel Rahman's position, which corporate strategy You are given information from the Foundation FastTrack F116900 - R6 pp.3-8 in a separate handout. Use the information given to answer the following questions. Always explain the reasons and justification for your answer, show in detail all calculations you made and walk me through your rationale so that you show me you understand. Answer as if you are explaining to a student who does not have background about what you are explaining. 1. Explain Digby's overall competitive strategy and that for each of its products? Justify your answer using information from the Foundation FastTrack provided on the functional decisions that Digby has adopted for each product for the following three functional departments (R\&D, marketing and production). Please feel free to criticize any functional decision that doesn't match the competitive strategy. After you have done this, please draw your final conclusion (15 points) 2. Compare the leverage ratio and the capital structure of the two companies ANDREWS and BALDWIN. Comment on the result and give recommendations for improvement (if needed) for both companies. Which one in your opinion is better and why? (5 points). 3. Which company is using its assets more efficiently to generate sales while which one is using its assets efficiently to generate profit? Justify your answers by calculating the appropriate ratios to measure both. Is it the same company or not? If not why do you think this happened. (10 Points) \begin{tabular}{|lrrrrrr|} \hline Income Statement Survey & Andrews & Baldwin & Chester & Digby & Erie & Ferris \\ Sales & $80,582 & $122,488 & $97,688 & $100,440 & $81,098 & $100,408 \\ Variable Costs(Labor,Material,Carry) & $49,853 & $90,032 & $59,667 & $65,049 & $47,011 & $58,591 \\ Contribution Margin & $30,729 & $32,456 & $38,021 & $35,391 & $34,087 & $41,817 \\ Depreciation & $4,820 & $3,608 & $5,007 & $5,420 & $5,280 & $5,740 \\ SGA(R\&D,Promo,Sales,Admin) & $13,154 & $15,389 & $14,922 & $14,214 & $14,168 & $14,689 \\ Other(Fees, Writeoffs,TQM,Bonuses) & $350 & $760 & $490 & $400 & $463 & $1,150 \\ EBIT & $12,405 & $12,698 & $17,602 & $15,357 & $14,177 & $20,238 \\ Interest(Short term,Long term) & $2,997 & $3,065 & $3,955 & $3,539 & $2,927 & $4,209 \\ Taxes & $3,293 & $3,372 & $4,776 & $4,136 & $3,937 & $5,610 \\ Profit Sharing & $122 & $125 & $177 & $154 & $146 & $208 \\ Net Profit & $5,993 & $6,136 & $8,693 & $7,528 & $7,166 & $10,210 \\ \hline FOUNDATION FAST TRACK & & & & & & Page 3 \\ \hline \end{tabular} Actual vs Potential Market Share 2026 F116900 Low TechStep by Step Solution
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