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Report On

Over All Performance of Bata Shoe Company

Report on
Over All Performance of Bata Shoe Company
Course Title: Introduction to Business Course number: BUS-101

GROUP NAME: Eclipse GROUP MEMBERS


NAME ID NO:

Prepared By:

Syela Islam Homayara chowdhury Samanta Afrin Ramis Faria Md.Toufiqur Rahman

1121 1101 1102 1125 1135

24th Intake
Sharmin Sultana
Lecturer in Management

Section: 03

Submitted To:
Faculty of Business Administration

Bangladesh University of Business & Technology (BUBT) Mirpur, Dhaka-1216

Date of Submission: 07.05.2011

Letter of transmittal

7th

, December, 2011

The Course Advisor Sharmin Sultana Lecturer in Management Bangladesh University of Business and Technology Subject: Submission of a report on Bata Shoe Company Dear Sir, We would like to thank you for assigning us this subject to prepare analysis. This task has been given us the opportunity to explore one of the most important analysis which is very important in our practical life. Our assignment was to analyze over all performance of Bata Shoe Company for the course Introduction to Business. It was a great pleasure for us to have such type of opportunity to work on this topic. Finally we would like to thank you for valuable guidance & supportive in preparing this report. We will be grateful for any clarification when required. We will be highly obliged if you are kind enough to approve this report and provide your valuable judgment on it.

Sincerely yours On Be Half of the Group ECLIPSE

Acknowledgement
First of all we give our heartfelt thanks to Almighty Allah to give us the ability for preparing this report successfully.
We wish to express our deep sense of gratitude and sincere thanks to our Course Teacher Sharmin Sultana for giving us this opportunity to prepare this paper and also for his guidance, sustained interest, constant encouragement and his confidence in our ability to do the work and finally motivating inspiration, kind of directions, valuable suggestions & advices.

We also deeply wish to express our gratitude to our friends and well-wishers for helping us in making this paper with a grand success.

Finally we wish to extend our heartfelt thanks to the Faculty Members of the BUBT for their encouragement and valuable suggestions. . Thanks to all those persons, who have

assisted us, with co- operation, books and articles & the other important materials.

Table of contents

Chapter

Subject

Page no:

Executive Summery

01 02-04

01.

Introduction:

1.1 Report Background 1.2 Significance 1.3 1.4 1.5 1.6


Scope of report Objective of report Methodology Limitation of the study 05-21

02.

Over view of Bata Shoe Company: 2.1 Company History: 2.2 Vision, Mission, Goal, Culture. 2.3 Customer Service: 2.4 SWOT Analysis: 2.5 Marketing mix analysis: 2.6 Other activities: 2.7 HR Development: 2.8 Current Market Position: 2.9 Income Statement: 2.10 Balance sheet:

03. 04.

Findings & Recommendation:


3.1 Findings: 3.2 Recommendation:

22-23

Conclusion:

24

Executive Summery
This report is prepared as a requirement of BBA program on the course of Introduction To Business. Our report objective is trying to know about the overall performance of Bata Shoe Company that will help us how to be a successful marketer, leader, organizer etc. This report focus on overall performance of Bata shoe company. Its Vision is to become the front ranking multiple shoes company in the world. It mission are To protect our people, Customers and communities. To protect our natural environment in order to help sustain human development. International guidelines have been developed in the areas of environment, health and safety. We also discuses about the SOWT and Marketing mix analysis of this company then we find out some problems of this company and try to provide some suggestions for this problem.

Chapter 01 Introduction

1.1 Report Background:


As a student of BBA it is very important to know about the marketing system of an organization. So we visit to The Bata shoe company web side & try to know about the over all performance of Bata shoe company. Our report is based upon the over all

performance of Bata shoe company. The report will definitely benefit us to increase the knowledge about the organisational activities of a shoe company.

1.2 Significance:
This report is the result of all of our group members did the individual enquiry of the process of it. And we have completed this Ratio analysis successfully. This report contains all the Information that we gather at the time of our enquiry in the Bata shoe company. In the short time of making this report we worked together to complete it day to day. We worked hard and soul. All these information will help the management to identify various scopes and limitations Of the Institution and Project department. Besides, it would be a great opportunity for us to get familiar with this system. So this study is very significant for both the company and for all of us.

1.3 Scope of report:


As we are preparing the report on Bata shoe company, so it is very easy to collect all the related information, which will be required for preparing a report. That will help us develop our future career.

1.4 Objective of report:


Try to know about the overall performance of Bata Shoe Company that will help us how to be a successful marketer, leader, organizer etc.

1.5 Methodology:
Research design:

Exploratory research means to gather Preliminary information that will help to define the problem and suggest hypotheses. In our report we give a lot of information about Bata Shoe Company. Then we find out its problems and try to give hypotheses. So our report design is exploratory research.

Sources of data:
To gather company information we use secondary data.

Secondary data
Secondary data consist of information that already exists somewhere, having been collected for another purpose. Secondary data provided a good starting point for research & often help to define research problem & objectives. This is available more quickly & at a lower cost then primary data. We collect secondary data from http://www.bata.com

Data collection process:


We collect the secondary data through the internet.

1.6 Limitation of the study:


Every organization has some own secrecy, which cannot be & should not be disclosing to an outsider. So we had some limitations to enter in to the affairs of the company in depth. The limitations are-

Lack of information
Information on which is so important for prepare a report. The main limitation of our making report is lack of information. The limited sources of secondary information & the controlled accessibility caused difficulty in getting the confidential information.

Lack of time
Our course duration is in limit time. In this short time we can not prepare our report properly because we can not visit the branches of Bata Shoe Company.

Lack of professional knowledge


As a student we are not professional about such type of task. For lack of professional knowledge we can not make our report properly.

Chapter 02
Over view of Bata Shoe company

2.1 Company History:


Bata Ltd. is a privately owned global shoe manufacturer and retailer headquartered in Ontario, Canada. The company is led by a third generation of the Bata family. With operations in 68 countries, Bata is organized into four business units. Bata Canada, based

in Toronto, serves the Canadian market with 250 stores. Based in Paris, Bata Europe serves the European market with 500 stores. With supervision located in Singapore, Bata International boasts 3,000 stores to serve markets in Africa, the Pacific, and Asia, Finally, Bata Latin America, operating out of Mexico City, sells footwear throughout Latin America. All told, Bata owns more than 4,700 retail stores and 46 production facilities. Total employment for the company exceeds 50,000. Bata Bangladesh is affiliated to the Bata Shoe Organization, the world's largest footwear manufacturing and marketing organization. Started operation in Bangladesh in 1962, Incorporation in Bangladesh in 1972. Currently, Bata Bangladesh operates 2 manufacturing plant Tongi and Dhamrai, Bata Bangladesh is producing around 110,000 pairs of shoes daily. It has a modern tannery with the latest technological facilities to process 5 million square feet of leather yearly.

Address:
Bata Shoe Company (Bangladesh) Ltd. Tongi, Gazipur. Bangladesh. Tel: +880 2 9800501-5 Fax: +880 2 9800511

Key Dates:
1894: The Bata family establishes a company in Zlin, located in what is now the Czech Republic. 1932: Founder Tomas Bata dies in an airplane accident. 1939: The Company relocates to Canada after the movement of German military forces into Eastern Europe. 1945: Czechoslovakia business operations are nationalized by the new communist government following World War II. 1991: Bata returns to the Czech Republic following fall of the communist regime. 1994: Thomas J. Bata, the son of the company's founder, retires. 1962: Started in Bangladesh. 2001: Thomas J. Bata, Jr., becomes chairman and CEO.

2.2 Vision, Mission, Goal, Culture. Vision:

The vision of this company is to become the front ranking multiple shoes company in the world.

Mission:
The Bata Environmental Mission Statement is: To protect our people, Customers and communities. To protect our natural environment in order to help sustain human development. International guidelines have been developed in the areas of environment, health and safety.

Goal:
The goals of this Company are: Provide right products to the consumer, Provide high quality consumer service Input high quality product

Culture:
Bata companies have a tradition of being good corporate citizens and seek to contribute to the well-being of the countries and communities where they operate. Bata strives to develop long-term partnership with its suppliers and business associates. Each Bata company around the world is committed to ensuring that operations are conducted ethically

2.3 Customer Service:

Batas commitment to service continues to this day, from the designers sketchbook through to the performance of our shoes on a customers foot. Bata companies strive to supply the right products, at the right time, at the right price, and in a manner that fulfils our service commitments to both retail and wholesale customers.

2.4 SWOT Analysis:


Managing the marketing function begins with a complete analysis of the organizations situation. The market should conduct a SWOT analysis. The swot analysis is the observation over an organization of its Strength, Weakness, Opportunities, and Threat. We can see it in this way-

Strengt h

Weakne ss

Opportu nities

Threat

The SWOT analysis of Bata Shoe Company is given below:

Strength:

1. Intention of sale environment: Bata Shoe Company has an intention


of creating a profitable sale environment in them.

2. Service motive: Bata Shoe Company has the motive of better service giving
to the consumer.

3. Flexibility: Bata Shoe Company is a flexible departmental store. It can


perform its business activities both in much or less space.

4. Market research: The authority does a research over the market position,
ups and downs of prices, needs and wants of the customer to take important marketing decision.

5. Supply of goods according to new fashion: It serves the


products to the consumer according to the new style and fashion.

Weakness:
1. Delay in decision making: The authority has to take decision by
consulting with other members. Sometime long term discussion and arguing make the decision time consuming.

2. Lack of advertising: Advertisement provided by Bata Shoe Company is


not sufficient. The net information does not meet to our need.

Opportunities:
1. Good will: Bata Shoe Company has created a good will among the consumer
by providing better service.

2. Direct communication: It maintains a direct communication with the


consumer

3. Creating relationship: Bata Shoe Company creates direct relationship


with consumer.

Threat:
1. Competitors: Powerful multiple stores like Apex, Afjal are competitors of Bata shoe company.

2. Price rate: According to the changes to the demand authority has to less the
price rate of commodity. It causes loss for the company.

2.5 Marketing mix analysis:

At first we need to know what marketing mix is. Marketing mix is the set of controllable tactical marketing look- product, price, place and promotion. The firm blends to produce the response it wants in the target market. So 4ps is the set of controllable tactical marketing toolsProduct price place promotion

In the terms of Bata shoe Company the 4ps can be describe as:

Product

Promotion

Bata Shoe Company

Price

Place

Products:
The Bata Company produces three types of products. These are:

1. Male product 2. Female product 3. Children product

1. Male product

2. Female product

3. Children product:

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Price;
As we know that Bata is a multiple shoe company. So price of the products are fixed. They generally sales shoes for three levels of people in society.

High level price Mid level price Lower level price

2000 to 12000 500 to 2000 100 to 500

Place:
The Head office of Bata Company is situated at Tongi(gazipur). They have their own agents in following places:
o o o o o o o o o o o o o Dhaka Gazipur Sylhet Dinajpur Rangpur Rajshahi Mymensin g Jessore Narayang ong Comilla Khulna Barisa Chittagon g

Promotion:
Bata Shoe Company uses their promotion skill in some tacts that persuade their customer to buy the product. They do advertising for their new or developing product in the newspaper and television. They do personal selling which turn their possible consumer in real consumer. Bata Shoe Company uses their sales promotion tact by giving discount. Bata Shoe Company maintains a direct communication to the customer.

2.6 Other activities:


o Long service award Ceremony held in Bangladesh:

Recipients of Long Service Awards-2008 with Mr. Jorge Carbajal and Mr. Fernando Garcia. A Long Service Award ceremony for the employees of Bata Bangladesh was held earlier this year. A total of 62 employees who have completed 25 years of continuous service in the Company received the awards including Company Manager, Mr. Douglas Hearns.

o Bangladesh Cricket bags three year shirt sponsor:

Bangladesh cricket bags three-year shirt sponsor The Bangladesh Cricket Board (BCB) has agreed a shirt sponsorship deal with multi-national footwear retailer Bata from January 2009 to December 2011. The deal was announced at a ceremony at the Mirpur Sher-e-Bangla National Stadium in Dhaka last week. Negotiated by UK-based agency Nijjar Sports Management, the sponsorship is worth $225,000.

2.7 HR Development:
Method of Employee Selection in Bata:
Bata company follows some steps to appoint new employee. They generally appoint employees from the external source .They follows some steps to select an employee. The steps are given bellow-

Steps prior to selection: 1. Collecting departmental requisition: In the beginning of this stage .Bata
company generally determine from where .how many employees they should be appointed. They also inform that in how many days it will take to collect employee. After getting requisition from different departments. They take the primary decision of taking employee.

2. Determine of source: After getting the requisition they determine from which
source they will collect employee.

Source of Recruitment of Bata: Bata Company has lots of sources to take


employee. They generally takes employee in 2 ways 1) Internal sources 2) External sources

1. Internal sources: Bata Company sometimes collects employees from those


employees who are still active in the organigation. A) Promotion: Bata Company gives promotion to the experienced employees in higher position. By promoting they take new employee. B) Recommendation of employed person: Bata Company sometimes take employees from the organization. C) Recommendation of trade union: Bata Company sometimes takes trade union from the organization.

2. External sources:

Searcher of employment: Invested workers gives appointed liters in


organigation .They also collect employees from the applicants.

Advertisement: Bata company generally collect employees by advertising.They


advertises in different journals to collect employee.

Vocational training institute: There are lots of Government and private institutions
where training is provided. Bata Company collects necessary employees from institions. Advertising: As we know Bata Company generally collects employees from the external resources so they give advertises in many journels. They also mention their regulations and requirements in the advertise.

Steps involve in employee selection: Obtaining letter of applications and soiting out: The interested people responses to the advertisement in the given time .After getting the appointment letter they select the appointment letter and issue a card for the written test.
Conducting Test: As we know Bata is a multi- national company in world .So they generally take written test to take any employee .To evaluate the quality of the employee they take to these steps Efficiency test Intelligence test Aptitude test Personality test

Taking Interview: Bata company takes interview of these candidates who has passed
the test .Somtime they also take voice viva .

Primary selection: After passing test and viva test a candidate is selected in primary
level. Medical test: After primary selection they take medical test of the candidate .Because the ability to work depends on the physical fitness of an employee.

Final selection: Bata Company selects those candidates who has passed all the stages.
Sometimes they makes a waiting list for the candidates.

Training methods of Bata: Bata Company develops the skills of an employee


indifferent ways:

Internship Coaching Seminars Conference

Bata Company has created a huge reliable market by using better technology. They use Original leather, equipments that provide modern quality, quality measuring scale, trained workers, modern transportation system, and better chemical quantity to make better shoes that stays within the durability of more than one year.

Motivational process: Bata Company uses two type of Motivational process to


influence workers to work more attentively. Motivational process Positive Motivation Negative Motivation

Positive Motivation:
1. 2. 3. 4. 5. 6. Salary: Bata Company give the workers remuneration which works as a positive motivation. Bonus: The company gives the workers occasional bonus by which the workers are influenced. Loan facilities: There is an opportunity of taking loan form the company for the worker. Promotion: The Company gives the workers promotion which helps the workers to work with more sincere ness. Financial security: Bata Company provides provident fund, group insurance, pension facility also. Attractive work: The Company often takes attractive and challenging works Which make the work more interesting to the workers.

7 Appreciation: The company authority gives the workers rewords for their Better performance.

NEGATIVE MOTIVATION:

1. Demotion: The Company authority gives demotion to the workers who are not sincere in their works. 2. Punishment: The company has punishment system if any worker dose not attend office without any pre-permission or come late in the office. 3. Discharge: If any worker proves as an insincere person then the authority also has a system of discharging workers from the job. 4. Lay-off: If any possibility of miss-understanding or time passing habit arises among the workers then the authority announce for the Lay-off.

2.8 Current Market Position:


Now-a-days Bata is one of the most leading companies in Bangladesh. It takes a huge amount of market share in current Bangladeshi Economic market. Following figure shows its current market share.

Afjal 6% Paggasas 15%

Others 4% Bata 45%

Bata Appex Paggasas Afjal Others

Appex 30%

2.9 Income Statement:

PERIOD ENDING

31-Aug-09 11,724,000 4,962,000

31-Aug-08 11,365,000 5,188,000

31-Aug-07 8,563,000 4,277,000

Total Revenue Cost of Revenue

Gross Profit

6,762,000

6,177,000

4,286,000

Operating Expenses Research Development Selling General and Administrative Non Recurring Others 1,098,000 2,037,000 524,000 980,000 2,312,000 164,000 780,000 1,895,000 193,000 -

Total Operating Expenses

Operating Income or Loss

3,103,000

2,721,000

1,418,000

Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest (7,000) 3,096,000 129,000 2,967,000 845,000 (24,000) 315,000 3,036,000 110,000 2,926,000 899,000 (20,000) 57,000 1,475,000 139,000 1,336,000 402,000 (12,000)

Net Income From Continuing Ops

2,098,000

2,007,000

922,000

Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items 11,000 17,000 71,000 -

Net Income Preferred Stock And Other Adjustments

2,109,000 -

2,024,000 -

993,000 -

Net Income Applicable To Common Shares

$2,109,000

$2,024,000

$993,000

2.10 Balance sheet:


PERIOD ENDING

31-Aug-09

31-Aug-08

31-Aug-07

Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets 1,956,000 108,000 2,851,000 2,934,000 34,000 1,613,000 3,147,000 2,453,000 396,000 866,000 2,355,000 1,719,000 144,000

Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges

7,883,000 677,000 3,609,000 3,218,000 1,371,000 376,000 743,000

7,609,000 636,000 3,323,000 3,132,000 1,531,000 760,000 1,000,000

5,084,000 2,656,000 2,625,000 1,415,000 473,000 730,000

Total Assets

17,877,000

17,991,000

12,983,000

Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities 3,116,000 135,000 505,000 3,522,000 24,000 893,000 2,545,000 270,000 260,000

Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill

3,756,000 1,736,000 1,688,000 641,000 -

4,439,000 1,792,000 1,616,000 770,000 -

3,075,000 1,150,000 1,255,000 -

Total Liabilities

7,821,000

8,617,000

5,480,000

Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity 6,000 2,682,000 (1,577,000) 9,695,000 (750,000) 6,000 1,138,000 (1,177,000) 9,495,000 (88,000) 6,000 (405,000) (814,000) 9,106,000 (390,000)

Total Stockholder Equity

10,056,000

9,374,000

7,503,000

Net Tangible Assets

$5,467,000

$4,711,000

$3,463,000

Chapter 03
Findings & Recommendatio n

3.1 Findings:
After preparing this report we come to know about various important issues. We have also got the following findings; Is a multiple shoe company. Usually they sale all kinds of shoes We have come to know this Bata Company produce three kinds of products; for male, for female and for children. They also sell those shoes which are attracted by the teenagers. Exp: Gladiator shoes. We have also known that in different occasion Bata Company sells some new shoes. They also give discounts to the customers in different occasion and decorate the market nicely. The shoes price of Bata Company is fixed price. All shoes of Bata Company are displayed for the customer. The customer takes products of their own hands then they paid the price in the cash counter. All branches of Bata Company are not same decorated. The casher is very careful for calculating the price of products.

3.2 Recommendation:
.We have sited different Web site of. Bata Company. After visiting these branches and analyses it we would like to give some recommendations. These are as follows: It should be more wide and specious. The parking system of this market should be in that way, where buyers can easily park their cars. If they imports foreign shoes. Directly then they sells it at less price so the consumer get more satisfaction. They should launch more improved shoes for consumers. Their technology should be improved. They should use more modern machines to produce high quality shoes.

Chapter 04

Conclusions

Conclusion:
Bata company is one of the largest multiple shoe company in Bangladesh as well as in the world. Their products quality is very high and marketing Process is also well .After all they faces some problems, we indicate these problems in our report, and gave some recommendation. We wish if they follow the recommendation they will able to remove their problems and they will also able to achieve their vision, mission, and goal.

Best of luck for Bata shoe company.

References:
o www.bata.com o www.goole.com o www.wkipedia.com o Bata related person

Than k you.

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