ABC LEATHERS

The name of company is “ABC LEATHERS”. It was started in the year 1989 and good
Division was started in the year 2004. It’s a Leather Export enterprise known for its commitment
to quality and good values. Leather was the first clothing fabric over the past few decades.
Leather is emerging as a hip look on the streets and in the office covering men or women, young
or old from top to bottom.

MISSION

To become a leading transportation, clearing and export company in the

India. To be the recognized industry leader, through total commitment to
customer service, by maintaining our uncompromising integrity, in the
support and development of our People, Communications and Systems in
sustained growth and profitability.

VISSION

To set the standard for excellence in global export through total

commitment to quality in people and customer service, with superior
financial results. To solve reliable export services to the needs of the
business community. Reliable services means on-time delivery, undamaged
goods, and correct documentation in case of deviations. To perform
continuous business improvement in order to meet and exceed customer
expectation, To create sustainable business growth in order to enhance the
prosperity of employee and benefit shareholders. Decisions can impact the
success of the company as much as the performance of the export.
Quality :-By maintaining high standards of quality in the work culture and
products that is in manufacture /exports and the services that its provides.

Cost:-By always remaining competitive by world standards and maintaining

production levels

Delivery:- By always delivering goods on time with excellent planning and by

cutting down the production lead time.

Development:-By developing cost effective and innovative products without

compromising on quality.

Safety:-By providing a world class,safe and hazard free work environment to

its employees.

Moral :-By always keeping its moral standards high and conducting its
business with dignity according to the established rules and regulations.

OBJECTIVES
SWOT ANALYSIS

STRENGTHS

➢ Easy availability of low cost of labour.

➢ Presence of qualified leather technologists in the field.

➢ Comfortable availability of raw materials and other inputs.

➢ Massive institutional support for technical services, designing,

manpower development and marketing.

➢ Exporter-friendly government policies.

➢ Tax incentives on machinery by Government.

➢ Well-established linkages with buyers in EU and USA.

➢ Managements with business background become quality and

environment conscious.

WEAKNESSES

➢ Low level of modernization and up gradation of technology and the

integration of developed technology is very slow.

➢ Low level of labour productivity due to inadequate formal training /

unskilled labour.
 ➢ Less number of organized product manufacturers.

➢ Lack of modern finishing facilities for leather.

➢ Highly unhygienic environment.

➢ Difficulties in accessing to testing, designing and technical services.

OPPORTUNITIES

➢ Abundant scope to supply finished leather to multinationals setting up

shop in India.

➢ Growing fashion consciousness globally.

➢ Use of information technology and decision support software to help eliminate the length
of the production cycle for different products

➢ Product diversification - There is lot of scope for diversification into

other products, namely, leather garments, goods etc.

➢ Growing international and domestic markets.

THREATS

➢ Entry of multinationals in domestic market.

➢ Stiff competition from other countries. (The performance of global

competitors in leather and leather products indicates that there are at

least 5 countries via, China, Indonesia, Thailand, Vietnam and Brazil,
which are more competitive than India.

➢ Non- tariff barriers - Developing countries are resorting to more and

more non – tariff barriers indirectly.
 ➢ Improving quality to adapt the stricter international standards.

➢ Fast changing fashion trends are difficult to adapt for this leather firm.

INTERNAL FACTOR EVALUATION MATRIX

IFE matrix means Internal Factor Evaluation Matrix; is a popular strategic management tool
for auditing or evaluating major internal strengths and internal weaknesses in functional areas of
an organization or a business.

IFE MATRIX OF ABC LEATHERS

Sno Key Internal Factors Weight Rating Weighted Score

.
STRENGTHS
1 Easy availability of low cost of labour 0.10 3 0.3

2 Presence of qualified leather technologists 0.07 3 0.21

3 Comfortable availability of raw materials 0.08 4 0.32
4 Manpower development and marketing 0.05 3 0.15
5 Export friendly government policies 0.08 3 0.24
6 Tax incentive on machinery 0.08 3 0.24
7 Well establish linkage with EU n USA 0.07 3 0.21
8 Management with business background 0.08 3 0.24
WEAKNESS
9 Low level of modernization n technology 0.06 3 0.18
10 Low level of labour productivity 0.06 2 0.12
11 Less number of organized product manufacture 0.05 2 0.1
12 Lack of modern finishing facilities 0.07 1 0.07
13 Highly unhygienic environment 0.08 2 0.16
14 Difficult in accessing techniques , designing 0.07 1 0.07

Total 1.00 2.61

The total weighted score for the organization is 2.61 which is just above average, so the
organization is just above the average score.
EXTERNAL FACTOR EVALUATION MATRIX

The EFE matrix is similar to IFE matrix the only difference is that IFE matrix evaluate the
internal factors of the company and EFE matrix evaluate the external factor.

EFE MATRIX OF

Sno Key external factors Weight Rating Weighted Score

.
OPPORTUNITIES
1 Abundant scope to supply finished leather 0.15 3 0.45
2 Growing fashion globally 0.11 4 0.44
3 Use of information technology and software 0.07 3 0.21
4 Product diversification 0.08 3 0.24
5 Growing domestic and international market 0.09 3 0.27
6
THREATS
7 Entry of multinational in domestic market 0.10 4 0.4
8 Stiff competition from other countries 0.12 3 0.36
9 Non tariff barriers 0.11 2 0.22
10 Improving quality to adapt the stricter
international trade 0.09 1 0.09
11 Faster changing fashion difficult to adapt 0.08 2 0.16
TOTAL 1.00 2.84

The total weighted score is 2.84 which is above average that indicates the organization is
responding in a steady manner to existing opportunities and threats in its industry.
COMPETITIVE PROFILE MATRIX

Competitive profile matrix is an essential strategic management tool to compare the firm with the
major players of the industry. Competitive profile matrix show the clear picture to the firm about
their strong points and weak points relative to their competitors.

CPM FOR ABC LEATHERS

ABC Leathers Supreme leathers Vision export

Critical success factors Weights Rating Weighted Rating Weighted Rating Weighted
score score score
Market share 0.06 1 0.06 2 0.12 1 0.06
Financial position 0.09 2 0.18 3 0.27 4 0.36
Product quality 0.13 4 0.52 4 0.52 3 0.39
Distribution channels 0.12 4 0.48 4 0.48 3 0.36
Global expansion 0.15 3 0.45 3 0.45 4 0.06
Production capacity 0.10 4 0.4 3 0.3 3 0.3
Price competitiveness 0.13 2 0.26 4 0.52 3 0.39
Customer loyalty 0.12 3 0.36 4 0.48 3 0.36
Product diversity 0.10 3 0.3 4 0.4 3 0.3
Totals 1.00 3.01 3.54 2.58

The total weighted score of the three organizations are calculated above, by using the numbers
above we can interpret that Supreme leathers is relatively stronger internally and externally as
compared to other two firms.
TOWS MATRIX

SO STRATEGIES WO STRATEGIES

1. More number of qualified leather 1.

technologist in the field as the
fashion growing globally.

2. Used more advanced technologies

and machineries for designing and
creativity.

3. Increase promotion in the markets

of USA and Europe as there are
large numbers of buyers.
SPACE MATRIX

The SPACE matrix is a management tool used to analyze a company. It is used to determine
what type of a strategy a company should undertake. The Strategic Position & Action
Evaluation matrix or short a space matrix is a strategic management tool that focuses on
strategy formulation especially as related to the competitive position of an organization.
 To explain how the SPACE matrix works, it is best to reverse-engineer it. The SPACE matrix is
broken down to four quadrants where each quadrant suggests a different type or a nature of a
strategy:

○ Aggressive
○ Conservative
○ Defensive
○ Competitive

Internal strategic position

Financial strength Rating

Return on investment 5.0

The company primary capital ratio is 7.02 percent 3.0

The company revenues increased 4% 3.0

Average 3.66

Competitive advantage(CA) RATING

Market share increases 1% -4.0

Technological know how -2.0

Product quality and life cycle -1.0

Average -2.33
External strategic position

Environment stabilities (ES) RATING

Technological changes -2.0

Price range of competitive products -4.0

Competitive pressure -4.0

Average -3.33

Industry strength (IS) RATING

Growth potential 5.0

Maximum resource utilization 4.0

Financial stability 4.0

Average 4.33

Conclusion

Y axis: - financial strength: 3.66

Environmental stability: -3.33

Y coordinate: 3.66+ (-3.33) = 0.33

X axis: - competitive advantage: -2.33

 Industry strength: 4.33

X coordinate: -2.33+4.3= 2

Therefore the company should pursue in Aggressive advantage.

QSPM
Quantitative Strategic Planning Matrix (QSPM) is a high-level strategic management
approach for evaluating possible strategies. Quantitative Strategic Planning Matrix or a QSPM
provides an analytical method for comparing feasible alternative actions. The QSPM
method falls within so-called stage 3 of the strategy formulation analytical framework.

Key factors Weight Keep expanding Focus on specific us

in foreign markets customer

External 1 to 4 1 to 4

OPPORTUNITIES

• Abundant scope to supply 0.05 3 0.15 4 0.2

finished leather

• Growing fashion globally 0.06 3 0.18 2

0.12
 • Use of information 0.05 3 0.15 3 0.15
technology and software
• Product diversification 0.04 4 0.16 4
0.16
• Growing domestic and 0.06 3 0.18 4 0.24
international market

THREATS

• Entry of multinational in 0.06 1 0.06 2 0.12

domestic market
• Stiff competition from other 0.07 3 0.21 1 0.07
countries
• Non tariff barriers 0.04 1 0.04 2 0.08
• Improving quality to adapt the 0.03 1 0.03 2 0.06
stricter international trade
• Faster changing fashion 0.04 3 1 0.04
difficult to adapt
0.12

0.5

Internal 1 to 4 1 to 4
STRENGTHS

• Easy availability of low cost 0.05 2 0.1 3 0.15

of labour
• Presence of qualified leather 0.04 3 0.12 3 0.12
technologists
• Comfortable availability of 0.04 1 0.04 4 0.16
raw materials
• Manpower development and 0.05 1 0.05 2 0.10
marketing
• Export friendly government 0.03 2 0.06 1 0.03
policies
 • Tax incentive on machinery 0.04 2 0.08 2 0.08
• Well establish linkage with 0.03 4 0.12 1 0.03
EU n USA
• Management with business 0.04 3 0.12 3 0.12
background
WEAKNESS

• Low level of modernization n 0.04 2 0.08 2 0.08

technology
• Low level of labour 0.03 1 0.03 4 0.12
productivity
• Less number of organized 0.04 1 0.04 3 0.12
product manufacture
• Lack of modern finishing 0.02 2 0.04 1 0.02
facilities
• Highly unhygienic 0.02 1 0.02 2 0.04
environment
• Difficult in accessing 0.03 3 1
techniques , designing
0.09 0.03

0.5 2.27 2.4

4