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Taurus Case Study

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Company Background

Christopher Columbus was probably the first European to handle rubber. Rubber has been used by the Haitian for centuries. In 1819 Thomas Hancock discovered that latex rubber can be masticated, but unfortunately mastication deprived rubber of its elastic qualities.

Charles Goodyear has discovered vulcanization in 1839, which solved the problem and also kept rubber products from becoming tacky. Hence the commercial uses of rubber multiplied greatly. Shortly thereafter, the rise of the automobile industry at the century’s turn resulted in a tremendous increase in the demand for rubber and its principal application in the manufacture of automobile and truck tires. The production of natural rubber entails …show more content…

As a result, we come out with the problem statement mention about how the company restructuring the business line and revitalize growth.

Thus, SWOT analysis was being used to identify the strength, weaknesses, opportunity, and threats of the company’s operation. By using this analysis, we get to identify how the company’s operation runs and what strategies would be the best to be suggested in the alternatives. The strength for Taurus is well established background, reputation for quality, strong division and strategic internal development. The weakness is inefficiencies productivity, weak competitive position and not incorporated division. The threat and opportunity is from the external environment. The opportunity is highly attractive market, awareness of joint venture and merging, high demand of rubbers and tires, opportunity to privatise and the competitiveness of Hungary 's exports. Lastly, the threat is high threat of new entrants, maturity of tires, occurrence of new private law and crisis in Hungarian industry.

Based on the problem statement and the SWOT analysis we suggest four alternatives. First alternative is strategic alliances by creating new strategic business units (SBUs). They can joint the automobile industries, truck and bus industries and construction and building industries. They can privatize when government set the law. This is a threat and

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