Post on 30-May-2018
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ABC LEATHERS
The name of company is ABC LEATHERS. It was started in the year 1989 and goodDivision was started in the year 2004. Its 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.
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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
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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.
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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.
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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
STRENGTHS1 Easy availability of low cost of labour 0.10 3 0.3
2 Presence of qualified leather technologists 0.07 3 0.213 Comfortable availability of raw materials 0.08 4 0.324 Manpower development and marketing 0.05 3 0.155 Export friendly government policies 0.08 3 0.246 Tax incentive on machinery 0.08 3 0.247 Well establish linkage with EU n USA 0.07 3 0.218 Management with business background 0.08 3 0.24
WEAKNESS9 Low level of modernization n technology 0.06 3 0.1810 Low level of labour productivity 0.06 2 0.1211 Less number of organized product manufacture 0.05 2 0.112 Lack of modern finishing facilities 0.07 1 0.0713 Highly unhygienic environment 0.08 2 0.1614 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.
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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
OPPORTUNITIES1 Abundant scope to supply finished leather 0.15 3 0.452 Growing fashion globally 0.11 4 0.443 Use of information technology and software 0.07 3 0.214 Product diversification 0.08 3 0.245 Growing domestic and international market 0.09 3 0.276
THREATS7 Entry of multinational in domestic market 0.10 4 0.48 Stiff competition from other countries 0.12 3 0.369 Non tariff barriers 0.11 2 0.2210 Improving quality to adapt the stricter
international trade 0.09 1 0.0911 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.
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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 exportCritical success factors Weights Rating Weighted
scoreRating Weighted
scoreRating Weighted
scoreMarket share 0.06 1 0.06 2 0.12 1 0.06Financial position 0.09 2 0.18 3 0.27 4 0.36Product quality 0.13 4 0.52 4 0.52 3 0.39Distribution channels 0.12 4 0.48 4 0.48 3 0.36Global expansion 0.15 3 0.45 3 0.45 4 0.06Production capacity 0.10 4 0.4 3 0.3 3 0.3Price competitiveness 0.13 2 0.26 4 0.52 3 0.39
Customer loyalty 0.12 3 0.36 4 0.48 3 0.36Product diversity 0.10 3 0.3 4 0.4 3 0.3Totals 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.
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TOWS MATRIX
SO STRATEGIES
1. More number of qualified leathertechnologist in the field as thefashion growing globally.
2. Used more advanced technologiesand machineries for designing andcreativity.
3. Increase promotion in the marketsof USA and Europe as there arelarge numbers of buyers.
WO STRATEGIES
1.
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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 .
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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
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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
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Industry strength: 4.33
X coordinate: -2.33+4.3= 2
Therefore the company should pursue in Aggressive advantage.
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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
in foreign markets
Focus on specific us
customer
External 1 to 4 1 to 4
OPPORTUNITIES Abundant scope to supply
finished leather
0.05 3 0.15 4 0.2
Growing fashion globally 0.06 3 0.18 2
0.12
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Use of information
technology and software
0.05 3 0.15 3 0.15
Product diversification 0.04 4 0.16 4
0.16 Growing domestic and
international market0.06 3 0.18 4 0.24
THREATS
Entry of multinational indomestic market
0.06 1 0.06 2 0.12
Stiff competition from other countries 0.07 3 0.21 1 0.07
Non tariff barriers 0.04 1 0.04 2 0.08 Improving quality to adapt the
stricter international trade0.03 1 0.03 2 0.06
Faster changing fashiondifficult to adapt
0.04 3
0.12
1 0.04
0.5
Internal 1 to 4 1 to 4
STRENGTHS
Easy availability of low costof labour
0.05 2 0.1 3 0.15
Presence of qualified leather technologists
0.04 3 0.12 3 0.12
Comfortable availability of raw materials
0.04 1 0.04 4 0.16
Manpower development andmarketing
0.05 1 0.05 2 0.10
Export friendly government policies
0.03 2 0.06 1 0.03
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Tax incentive on machinery 0.04 2 0.08 2 0.08 Well establish linkage with
EU n USA0.03 4 0.12 1 0.03
Management with business background 0.04 3 0.12 3 0.12
WEAKNESS
Low level of modernization ntechnology
0.04 2 0.08 2 0.08
Low level of labour productivity
0.03 1 0.03 4 0.12
Less number of organized
product manufacture
0.04 1 0.04 3 0.12
Lack of modern finishingfacilities
0.02 2 0.04 1 0.02
Highly unhygienicenvironment
0.02 1 0.02 2 0.04
Difficult in accessingtechniques , designing
0.03 3
0.09
1
0.03
0.5 2.27 2.4
4
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