ASSESSING THE STRENGTH AND WEAKNESS OF FINISHED LEATHER PROJECT

● Table of Content

● Executive summary

This analysis mainly focus on Assess and Identify the Strength and Weakness of the Finished Leather
Project by looking at each of the feasibility analysis aspects adequately addressed in the proposal or not
and also analyze that the project feasibility analysis aspects are adequately addressed in the proposal or
not.

The main purpose of this review is to analyze authors of “finished leather industry project” was
described and examine the proposed production capacity, demand, and total investment required for
the project.

● Objectives
To make a Business Plan that can be used to launch a successful business in current
situation.
To identify the factors affecting the performance of the leather industry of Pakistan.

To provide solution for revitalization of the leather industry of Ethiopia

Has dentified an important, big-impact problem

Understands the problem and the prior work
Has an innovative approach for addressing the problem
To increase demand
 To assess the existing market of hides and skins in the study area.
 To investigate constraints of skin and hide marketing in the study area.
 To suggest possible solution to the existing problems in skin and hide market.

● Strength and Weakness of the proposal

Weakness
Researcher does not use any descriptive analysis to identifying the primary constraints and
threats to Ethiopian’s leather sector, as well as suggesting potential solutions to existing
challenges.
The researcher does not clearly identified that how the information would be gathered for the
status of leather industry in Ethiopia.
Business ownership is not described briefly (owner of business, is that business is sole
proprietorship, partnership or joint stock company.
Not clearly identified that the product distribution place and promotion(in what case….)
Generally marketing mix is not described briefly.
Proposed activities are described in insufficient detail or without clear plans.
SWOFT analysis not described

Have not objective

 High cost training is the annual cost of manpower including fringe benefits is
estimated at Birr 50,000
 The establishment of such factory will creates backward linkage with tanneries
that produce crust leather and a forward linkage with leather products manufacturers. 
The establishment of such factory will have a foreign earning effect to the country by
exporting its product to the world market.  Based on the projected profit and loss
statement, the project will generate a profit throughout its operation life  The amount of
raw materials and their respective cost is depicted 
 environmental air and water pollution is the weak side because Crust leather requires
mechanical and chemical treatments to obtain proper thickness, moisture, lubrication
and aesthetic appeal  Social risks. Include the chemical air and water pollution 
environmental pollution
 weak side is lack of hard working organization culture skin 

Strength
• Easy availability of low cost of labour.

• Comfortable availability of raw materials and other inputs.

 Finished leather is used for footwear (upper and sole), luggage, handbags, leather
goods and apparel, gloves, industrial belting, leather upholstery, etc.  An environmental
analysis look The plant will create employment opportunities for 57 persons  An
environmental analysis looks at the industry economic for the project and employees 
An environmental analysis looks at the industry technical issue the reaction of people
with new technology  An environmental analysis looks at the industry cultural because
ensuring hard work organization behavior 
 Finished leather production creates backward linkage with tanneries that produce
crust leather  a forward linkage with leather products manufacturers  The
establishment of such factory will have a foreign earning effect to the country by
exporting its product to the world market
 Highly organized structure of organization socially working behavior  the leather
project enables Source of finance 70 % loan Social that aims to identify the social
dimensions of projects, as well as analyze the different stakeholder perspectives and
priorities  the leather project Social relationship not only allows the Bank to understand
the opportunities and constraints, and the likely social impacts associated with a project,
but also provides spaces to incorporate stakeholders' views establish participatory
processes and inform the design of strategies for inclusion, cohesion and accountability
 Understanding the social implications of projects and policies is critical in ensuring that
the proposed project or policy contributes to equitable and sustainable development 
The analysis can provide insight into social diversity and gender, institutions, rules and
behavior, stakeholder dynamics, participation concerns and social risks.
● Body part where you discuss your detail evaluation regarding each aspect of project
feasibility analysis
A technical evaluation assesses the details of how you intend to deliver a product or
service to customers. Think materials, labor, transportation, where your business will be
located, and the technology that will be necessary to bring all this together. It's the
logistical or tactical plan of how your business will produce, store, deliver, and track its
products or services. A technical evaluation is an excellent tool for both troubleshooting
and long-term planning. It can serve as a flowchart of how your products and services
evolve and move through your business to physically reach your market. Technical
evaluation is a trading discipline employed to evaluate investments and identify trading
opportunities by analyzing statistical trends gathered from trading activity, such as price
movement and volume.
 The main raw materials for production of finished leather are crust leather which is
available locally
 The study will be important to smallholder farmers to enable them achieve
efficient market thereby better price.
 It is also vital to specify ideas about the flow of the market information about
hides and skins in the study area.
The study analyzes how hides and skins are functioning in the domestic
market.
 By identifying the major problems of quality and marketing system of hides and
skins in the study area, the study will help to inform policy makers to implement specific
and efficient institutional and other relevant options to develop efficient marketing
system and extension program that would benefit the smallholders in Addis Ababa and
around areas.
Finally, the research findings will inform and pinpoint about the major
constraints and solutions of the current marketing system of hides and skins so as to
develop efficient marketing system.

How to collect this raw materials like hides and skins is that directly from people or using
middle man it is not described neatly “hides and skins that can be collected in the City”8
How those products are marketed (is that directly to customers, online, wholesalers or
retailers) “Finished leather has a wide market both in the domestic as well as in the international
market while the major market for semi-processed leather is export only”6

Evaluate also whether the project proposal objective is SMART

2 specific ; the goals should be very precise with no room for misinterpretation
2 Measurable:- the goals should be quantifiable and progress should be easy to track 2
Achievable:- the goal should be attainable not outlandish or
unrealisti c 2 Relevant:- the goal should contribute to your broader overarching goals
2 Time bound.:- the goal should have a defined start and end date 
specific
Are the goals set by the Finished Leather Project specific enough. A lot of time goals are set
based on the vision statement of the organization, resulting in broad and vague goals. The
specific analysis of Finished Leather Project includes:

The demand is expected to reach at 248,101 pieces for hides and 268,054 pieces for sheep and goat skin
by the year 2025

Annual average growth rate of 5% is applied for the future demand, taking the present FEASIBILITY
STUDY ON FINISHED LEATHER PROJECT 9 demand/supply as a base.

The proposed capacity for the envisaged plant by considering the above factors is to process 50,000
hides, 50,000 sheep skins and 50,000 goats’ skins from the crust leather stage to finished leather.

50,000 liters of fuel oil, 60,000 kWh of electricity and 5,000 m3 of water is estimated to be utilized
annually by the project.
During the period of analyses, production of hides and skins has registered an average annual growth
rate of 34% and 15%, respectively. More over during the same period, export of hides and skins has
registered an average annual growth rate of 7.1%.

Measurable
Achievable
Relevant
Time bound

Overstepping the time limits often results in – increasing financial costs, impact on the
brand of the organization, employees demotivation, and decline in customer
confidence.

The goals set by Finished Leather Project should be clearly specified in minutely. For
example the project should have a specified end data, for example in months and days.
Secondly each activity within the project should also be clearly mapped both based on
the start time of the activity and duration of the activity.

● Conclusion
 Obtained desired effects in finishing of leather to meet the specific end-user by proper
formulation and combination of material and methods.
 Finished leather production creates backward linkage with tanneries that produce crust leather
and a forward linkage with leather products manufacturers. The establishment of such factory
will have a foreign earning effect to the country by exporting its product to the world market

● Your Recommendation

Taking in to consideration the above facts and evaluation, certain suggestions would be
made, so as to minimize the intensity of the problems and exploit the opportunities,
which would ultimately help! to boost, the exports of leather and leather products,
earning valuable foreign exchange » i) In order to make available leather for producing
finished leather products only exports of leather components and finished leather
products should be allowed for export. ii) There should be direct negotiations between
the finished leather project and the Government and its organizations for their purchase
of leather articles. Similarly, state Government and State Level Public.