ANALYSIS OF THE ENVIRONMENT

PESTEL Analysis

Political and Legal factors – Obligation to honor agreements, alliances or joint ventures with

other teams.

Economic factors – A relatively stable inflation rate growing at an average of 2% each year. A

small fluctuation in the short term and long term interest rate between 3-4% each year.

Social factors – The market was divided by region and customer segments. With 3 regions and 3

segments in each region, there are 9 cross-cultural sets of preferences and behaviors.

Technological factors – The rate of technological change and the average pace of innovation in

the industry.

Environmental factors – Ecological sustainability in production process influenced the share

value of the company and its attractiveness for the customers.

SWOT Analysis

Strengths -- Cohesion among the team members, unanimous and democratic decision making,

synergy, quality of our products and focus on innovation.

Weaknesses – Lack of an exceptional level of expertise in marketing and financial matters.

Opportunities -- Access to financial resources, availability of technology and capital

infrastructure, access to new expanding markets and a stable economy.

Threats -- Presence of multiple competitors in the market and the direct competition thereof,

uncertainty regarding potential alliances among competitors and threat of possible lead by the

competitors in developing certain products.