Syngenta SWOT & PESTLE Analysis

Strength

1. Focus on R&D and innovation: Syngenta focuses on creating value for its customers and believes constant innovation is necessary to meet the growing needs of the farmers and address the ever-changing needs arising from situations like climate change, diseases etc. It has invested $1.3 billion in 2016 in research and development across 119 sites around the world.

2. A leading portfolio of products: Syngenta is a leader in innovations in biotechnology and a market leader in crop protection. It is the third largest seed company in the World with such scale and breadth of operations and a leading portfolio of products.

3. Strong and unique global footprint: With presence in over 90 countries and over 50 percent of group sales coming from emerging markets, it has strong and unique global footprint. The emerging markets are going to be the primary growth drivers for the next decade.

Weakness

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Opportunity

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Threat

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References

1. Why invest in Syngenta: https://www.syngenta.com/investors/why-invest-in-syngenta

2. Our industry 2016: https://www.syngenta.com/~/media/Files/S/Syngenta/documents/our-industry-syngenta.pdf

3. Syngenta Annual Review 2016: https://www.syngenta.com/~/media/Files/S/Syngenta/ar-2016/syngenta-annual-review-2016.pdf

4. Global Agrochemicals Market 2016-2022: https://globenewswire.com/news-release/2017/05/15/984745/0/en/Global-265-Billion-Agrochemicals-Market-2016-2022-Syngenta-Leads-the-Agro-Chemicals-Market-Followed-by-Bayer-Crop-Science-BASF-Dow-Monsanto-and-DuPont.html

5. GlobalAgrochemicalsMarket2017-2021TopDrivers in Industry: https://www.businesswire.com/news/home/20170724005603/en/Global-Agrochemicals-Market-2017-2021-Top-Drivers-Industry

Political

1. Adverse impact on sales due to Brexit: Brexit has negativity affected Debenhams sales as it has had substantial impact on the business conditions. This is primarily due to the dip in discrepancy purchases. The customers in UK region have reacted to the volatile business conditions by reducing their spending post UK's vote to exit from the European Union. Brexit has also weakened the sterling which affected the revenue for 2016 & 2017. The trade agreements, foreign access to different markets, freedom of goods and services flow, people and capital movements will be negatively affected due to competition from EU.

2. Positive impact of decrease in corporation tax: The effect of the decrease in corporation tax rate which was enacted in 2015 Act was reflected by the decrease in deferred tax liability by around £2.3 million in 2016. As a result of the Finance (No. 2) “the 2015 Act”, that was enacted on 18 November 2015 led to decrease of the main rate of corporation tax to 19.0% from 1 April 2017 and to 18.0% from 1 April 2020. The overall impact of these tax rate changes reduced the deferred tax liability to £0.9 million and the deferred taxation expense plunged in 2016 by £0.9 million. 2016's corporation tax liability fell by £0.3 million and for 2017 current taxation expense fell by £0.3 million. These reductions create more room for profit margins.

Economic

1. Hedging against Currency Fluctuations: 35% of the sourcing costs of material bought by Debenhams are in US dollar or linked to the dollar. Thus, to avoid negative impact of decrease in the value of sterling in the spring & summer of 2018, Debenhams has adopted a hedging strategy. They hedged for 12-18 months in 2016 to fully hedge for Financial Year 2017. They partially hedged for FY 2018 to avoid adverse impact on spring and summer sales of 2018. This would help in mitigating the additional costs associated with currency fluctuations. It also shields against cash & liquidity constraints that may adversely affect operations & financial health of the group.

The remaining section under "Economic" is available only in the 'Complete Report' on purchase.

Social

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Technological

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Legal

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Environmental

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