Swot Analysis Of Otto Marine

Macro Environment Analysis for Otto Marine

Otto Marine’s performance in the recent past draws a lot from the developments within its macro environment. For instance, there have been increasing uncertainties in the context of the global economic environment as well as changes in the offshore oil and gas industry which is the major market Otto Marine’s business strategy is based on. Macro environment analysis has always been a core activity in strategic planning since its provides the management of a company or even competitors with a detailed and reliable overview of the possible opportunities or threats that the business is currently experiencing or is likely to exercise as a result of the macro environment. As one of the key factors influencing

The most recent global financial crisis and its aftermath have continued to affect Otto Marine’s business quite severely. Further, the uncertainties in the global economic outlook coupled by uncertainties about natural calamities largely associated with the changing climatic patterns due to global warming such as tsunamis and unfavorable weather have been a big issue for Otto marine’s business in this recent past. Worsening economic performance has had great implications on the global order book for the last few years and this has in turn been impacting negatively Otto Marine’s business especially in regards to its shipyard, offshore chartering, geophysical and leasing segments (Hellenic Shipping, 2009). Following the increasing global financial and economic uncertainties chartered by events such as the 2008 financial crisis and the recent Euro crisis among others, there has been an unwarranted growth in the overcapacity of shipyards including an excessively huge supply of fleet than the market demand. This is because the decline in economic performance during these events affected the global demand of ships and boats as well use of shipyards, a decline in offshore chattering activities and offshore explorations, all of which have been an important source for Otto Marines profitability over

There have been international conventions, known as protocols aimed at finding a consensus regarding national and international efforts to reduce consumption of oil and gas as well as other products that are energy intensive. Each participating nation is required meet certain minimum requirements on carbon footprints or compensate for extra carbon foot print it generates above the set limit. Country’s therefore have laws governing the extent of carbon emissions related to a given industry or organization (World Bank, 2012). Further, there is mandate for every nation to play part in greening efforts by committing certain portion of resources to research and development in cleaner, environmental friendly and green energy sources. Otto Marine is usually involved in the building of specialized offshore support vessels and specialized offshore services operations which majorly support operations in the oil and gas industry. Specifically, Otto Marine serves several major dealers in international oil and gas markets in many offshore endeavors and who as a result of the growing focus on alternative sources of energy, have seen a sharp decline in their operations in oil and gas exploration and