Page 20 - AMANGO MODEL ANSWER 1

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Team CharterCapital Advisory, The CharterQuest Institute
SWOT Analysis : APPENDIX 1

* Bold are derived from the 6 core issues affecting AMANGO

Strengths Weaknesses

1. World-wide operations and diversified 1. Precarious financial performance and viability
portfolio situation -2016 major loss
2. Global investor base 2. Sliding share price and market capitalisation

3. Brand and market leading position 3. Defective divisional performance
4. Strong collaboration with industry management system
bodies and in bargaining activities 4. Corporate re-organisation and
5. International acquisition and JV restructuring challenges (lack of clear
experience strategic direction, core versus none core)

6. Defined business model
7. Futures contracts regime
Opportunities Threats

1. Strategic joint venture decision in 1. The Boards risk appetite is either at the limit
Canada or outside the limit in 4 of the top 8 risks
2. Strategic disposals in Brazil 2. Plunging commodity price environment,
3. Sale of property portfolio could ratings downgrade and market capitalization

help de-lever balance sheet or collapse
implement share buy-back 3. Political risks -dividend repatriation laws
4. Commodity prices beginning to show in Brazil, ailing economy and hyper

some recovery inflationary environment. In South Africa -
5. US$ 1 trillion investment spending on mining law and charter threatens mining
infrastructure mooted in the Donald permits and BEE ownership structures
Trump manifesto/election promise 4. Brand damage from safety incidents,

could replace lost Chinese demand. fatalities around the world, pending
industrial action in Australia but
potentially across the group.
5. Declining growth in Chinese economy and

hence demand for commodities.

Developed by The CharterQuest Institute for 'The CFO Business Case Study Competition 2017'
www.charterquest.co.za | Email: thecfo@charterquest.co.za