Individual Project

BUS251.2 Course Instructor: Ms. Afnaan Ahmed


Done By Rubaiyat Khaled (1010766630)

which helped me to get a clear idea about the Bata Company. It would be my pleasure to assist you. In conducting this report. Afnaan Here is the report on “Bata Shoe Company (Bangladesh) Limited” you asked me to do.Dear Ms. please feel free to contact me. I hope you would consider my mistakes in preparing this report. I have found some interesting information Bata’s hiring practices. If you need any further assistance regarding my report. I sincerely hope this report will generate a clear understanding about “Bata Shoe Company” . principal activities by searching from different websites. their market profile.

Table of Contents Company Introduction History – Major Milestones Financial Information Products and Services Organizational Mission and Vision Management of the Company Organizational Structure Human Resource Management Global Operations – Structure and Employee Selection Global Research and Development Strategic Plans Tactical Plans Two Problems Faced by the Company in the Past SWOT Analysis Bibliography 12 12 13 14 10 11 6 6 8 8 9 2 4 4 1 .

Bata Branded Business and Bata North America. operating four business units worldwide – Bata Europe. This is report is about Bata Shoe Company (Bangladesh) Limited and how their business operates. In its history the company has sold more than 14 billion pairs of shoes. I have talked about their financial information. the products and services they offer. family owned shoe company based in Bermuda but currently headquartered in Lausanne. major milestones. Switzerland. organization structure and their strategic and tactical plans in this report for you to have a clear idea of how the business operates and what they have done in order to sell 14 billion pairs of shoes in 26 countries in 48 years. It has a retail presence in over 50 countries and production facilities in 26 countries. .Executive Summary Bata Shoes is a large. Bata Emerging Markets.

It has a modern tannery with the latest technological facilities to process 5 million square feet of leather yearly. While Apex tannery is almost exclusively in leather. The company produces approximately 110. The shares in the company are mostly held by Bafin (Nederland) B. Market Profile: The footwear market in Bangladesh is estimated to be around BDT 18bn growing at approximately 18% to 20% each year with branded shoes among the fastest growing segments. Company’s Slogan: “NO ONE IN THE WORLD KNOWS SHOES LIKE WE DO” Address of the Company: Bata Shoe Company (Bangladesh) Limited Tongi. The demographics of the country present obvious potential for sustained long term growth for footwear manufacturers. Bata Bangladesh operates 2 manufacturing plant Tongi and Dhamrai.Company Introduction: Legal Status: Bata Shoe Company (Bangladesh) Limited is affiliated to the Bata Shoe Organization. the single largest player in the sector has a market share of approximately 25. Apex Adelchi and a few other Indian brands also compete in the same space for share in both branded footwear as well as basic functional footwear. The company’s largest organized competitor operating at the upper end of the market is Apex Tannery.000 pairs of shoes daily. Bata started its operation in Bangladesh in 1962. Bata Shoe Company (Bangladesh) Limited is one of the operating companies of worldwide Bata Shoe Organization (BSO).000 pairs of shoes per day and also has a modern Tannery processing 5 million square feet of leather each year. the world's largest footwear manufacturing and marketing organization based on Canada. Bata Shoe Company (Bangladesh) Ltd. Principal Activities: Currently. Bata Bangladesh is producing around 110. The company continues to be backed by sound management sourced from an experienced pool of professionals within Bata Shoe Company’s global network. Gazipur Bangladesh Phone: Tel: +880 2 9800501-5 Fax: +880 2 9800511 1 .3% in terms of value.V. a listed local manufacturer with 75 stores producing high quality footwear exported to Italy with 25% of its output sold locally. The Tannery is equipped with a high-tech effluent treatment plant ensuring a pollution free environment for both workers and locality where it operates.

his sister Anna follows shortly after to get married. Czechoslovakia by the siblings Tomáš. 1897 Tomas introduces the ”Batovka”. The Bata School of Work founded. 1895 Antonin leaves the Company to join the army. Innovative from the beginning it departs from century old traditions of the oneman cobblers’ Website: www. Advanced production equipment is imported. 1922 Following the first world war currencies are devalued and consumer purchasing power is at an all time low. 1917 Sales reach 2 million pairs per year produced by 5000 employees. in the Balkans and in the Middle East. Bata Shoe Company is registered in Zlin. Each one in the company is an History . As the Company prospers so do the communities where it operates. It provides rigorous education and practical training to future Bata managers. 2 . T. the first fabric shoe and with it production mechanization.batabd.Major Milestones: 1894 The T. Tomas Bata takes over the company leadership alone. produced by 250 employees. builds housing. Bata creates stores. Demand grows rapidly. schools and hospitals near factories.Bata’s motto is “Our customer is our Master” 1909 First export sales and first sales agencies in Germany. Constant innovation of footwear to meet customers’ needs. Anna and Antonín Bata.200 pairs per day. 1905 Production reaches 2. Bata cuts shoe prices by 50%. stores are flooded with customers forcing the industry to follow the lead. Bata shoes are of excellent quality and are available in more styles than had ever been offered before. 1925 The “Bata system” organizes operations in autonomous workshops with employee profit sharing introduced since 1923.&A.Email: contact@batabd.

France. marketing and distribution. convenes the 1st international congress of young Bata people. 1960s The Company’s headquarters are officially relocated in Toronto under the leadership of Thomas J Bata. is son. 1939 Bata operates 63 companies in various industries but footwear remains the core business with 60 million pairs sold per year in more than 30 countries. the USA and India. Canada. 1932 At the time of Tomas Bata’s tragic death in a plane crash the company intensifies diversification into the production of tires.1929 Introduction of customs tariffs. 1990s Creativity. Bata responds by building factories in Swiss. Bata starts to operate from Ottawa. 2001 3 . Bata stores reopen in Russia. Holland. Poland. 1945 All Bata companies in Eastern European countries are nationalized by communist governments. 1995 Partnerships develop in Eastern Europe. Bata is the world’s leading footwear exporter. Still a young man. 1999 To adjust to the market evolution Bata undertakes a major reorientation from manufacturing to designing. 1970s Private labels are created to be marketed to new customer segments: Bubblegummers. England. Yugoslavia. The result is the international high standard Bata Premium collection. North Star. Thomas J Bata. Germany. By the early 1930s. Poland. The Company expands its international reach through new factories serving local markets. Slovenia. near Toronto. aircrafts. Croatia. Marie Claire. Power. 1989 Following the political changes the Bata Company is invited to return to the Czech Republic where the Company remains a symbol of national pride and achievement. product innovation and research for higher quality levels lie at the core of Bata product development policy. bicycles. machineries. The Company starts rebuilding itself from the remaining entities located outside Eastern Europe. 1940 Part of the Company management under the leadership of Thomas J.

Bata Shoe innovation Centres open around the world to focus on the development of shoes with exclusive comfort technology features and designs. Financial Information: During the last few years Bata Bangladesh shows a tremendous operational performance in terms of shoes sales and export. through a countywide distribution network comprising retail stores. Company’s financial results in terms of growth for the last few years were as follows: Table 1: Growth Area Export sales Net profit before tax Profit After Tax Interim Dividend Final Dividend Table 2: 2008 30% 26% 38% -21% 0% 2007 18% 21% 17% 11% 430% 2006 11% 27% 34% 30% 0% Products and Services: Bata Bangladesh sells all kinds of footwear which are classified in alignment with market sectors as follows: Domestic Market: Under the trademarks of “Bata”. DSPs and independent dealers. especially in sourcing and product development. 2004 New steps in China with the opening of the Bata procurement centre in Guanzhou and a distribution partnership for the opening of Bata retail stores. “Weinbrenner”. A new international structure is implemented around 4 meaningful business units (MBUs) to give more focus to the business and gain synergies within each region. 2002 As part of re-inventing its core competencies. founder’s grandson becomes the Group’s chairman. and also markets its own brands to sister companies and the Middle East. 4 . “Bubblegummers”. “Power”. Overseas Market: Under the trademarks of its customers. and “Marie Claire”.Thomas G Bata.

Bata produced numerous lines of products e. shoes. women and children under the brand names like: Bata Sandak Marie Claire Hush Puppies Weinbrenner Power Bubblegummers Sun drops B First North Star Dr.g. dress shoes. and casual tie ups for men. Scholls 5 . slippers.

R. Before joining Bata Bangladesh he was in Bata Thiland. the socioeconomic field (location. Beg: Head of Manufacturing Department (Plant Manager) Mr. Beg has participated in various workshop and seminars in internationally and locally. climate. Abdul Kader is serving the Company as head of Merchandising and Retail Marketing since last 30 years. 6 . Mission To run independent shoe stores with the know-how of the biggest worldwide shoe company and with shoe lines styled and created in Italy.Organizational Mission and Vision: Vision To enter the new foreign markets and expand on an international level the Bata brand. Mr. competitors. • Export the Bata Retail system though the strong and well defined three concepts: BATA City Store. Beg is working as head of Manufacturing Department of Bata Bangladesh since decade. specific needs. 3. He is also a well-known TV actor. Strategy • Analyze the local markets. Gopalakrishnan has more than 20 years of work experience with Bata Shoe Organization in various capacity. Goals • Combine opportunity and local markets knowledge with reliable partners who have a long term vision. • Give the maximum attention to the different local needs (fashion trends. • Utilize all synergies with the Italy Retail structure. Rajeev Gopalakrishnan: Managing Director Mr. • Share with the new partner our know-how in the shoe business. Rajeev Gopalakrishnan is newly appointed Managing Director of Bata Bangladesh. Prior to join Bata Bangladesh Mr. costs structure. usages and customs). seasonal trends. Mr. Mr. 2. • Average income and spending power) to point out strengths and weaknesses. He has work experience in the field of Manufacturing and product development. Md. Mr. Management of the Company and their short profile: Management Committee of the Company and profile of the top management is delineated as below: 1. BATA Superstore and BATA shop in shop. Abdul Kader: Head of Merchandising & Retail Marketing Mr. B. He has vast knowledge on retail marketing.

Mr. Mr. Hossain Imam: Head of Internal Audit Mr. He is in Bata since 1980s with different capacity. Habibur Rahman: Head of Human Resource Mr. He is responsible for internal audit and regulatory compliance of all relevant local and BSO rules of Bata. 6. Yee Siew NG: Chief Financial Officer Mr. Mr. Mr. He is in Bata since 1980s with different capacity. 5. Mujibur Rahman: Head of Export Mr.4. Habibur Rahman is working as head of Human Resource of the Company. Yee Siew NG is newly appointed Chief Financial Officer (CFO) of Bata Bangladesh. Before joining Bata Bangladesh he was working in Bata Malyasia as CFO. Hashim Reza is acting as head of Finance & Accounts and also as Company Secretary of the Company. 7 . He has over 15 years of work experience with Bata Shoe Organization globally. Hossain Imam is working as Head of Internal Audit of the Company. Md. Mr. 8. Hashim Reza: Head of Finance & Company Secretary Most experienced person Mr. 7. He has work experience in the field of Internal Audit in various local and Multi-national Companies. He has vast experience on export sale. He has work experience with Bata Shoe Organization globally. He is with Bata Bangladesh since last decade. Mujibur Rahman is working as head of Export of the Company.

Company’s working culture is characterized by open and informal dialogue between employees and management.Organizational Structure: Managing Director Secretary Manufacturing Department Merchandising Department Export Department Human Resource Department Finance & Accounts Department Internal Audit Department Tongi Dhaka Retail Wholesale Accounts MIS Internal Audit Compliance Human Resource Management: Employees: The Company is committed all times to ensuring that its people developed up to their utmost potential and to equip them to face the future challenges effectively and efficiently. creativity. As such the Company’s human resources initiatives are designed to encourage open communication. Bata has a truly international team whose diversity of ideas and exchange of expertise creates an environment that stimulates people to think beyond their immediate national markets. to promote on merit and to provide employees with ongoing training opportunities to build new skills. innovation and initiatives. Assignments in different operational areas or abroad are also common within the Group to enable promising individuals to gather an unusually broad set of experiences. Teamwork plays an important role and mutual respect is the key ingredient. It is Bata culture to provide equality of opportunity. 8 .

387 2004 8 61 99 1.134 1. and can quickly adapt to changes in the market place and seize potential growth opportunities. A skilled manpower resource base is also being developed in the country.Manners between colleagues are informal and relaxed.495 2006 11 68 108 1. Global Operations . 9 . Career probation for each employee is based on result oriented performance. Best. North America. Hiring Practices: Bata is always seeking for entrepreneurial. the employees were also sent on courses in and outside the country to enhance their knowledge. Bata Emerging Markets. Training and development of Human Resources is continuous process. and committed people to join our team. With opportunities across the world.519 2007 11 68 119 1.207 1. Europe.297 1. Human Resource Strength Employee class Key & Senior Management Middle Management Junior Management Non-Management Total 2008 27 72 126 1. enthusiastic. sourcing or marketing support. The MBU approach provides quality resources and support in key areas to the companies operating in similar markets such as product development.302 Training and Development It is the People of an enterprise that make the machine move. exposure and processional capabilities. Singapore. Bata Europe. and a sense of belonging plays an important role in everyday life. Bata ensures each employee’s success through a culture of knowledge sharing and community spirit. Africa and are managed by 3 regional meaningful business units (MBUs). Company and the employees have benefited from these training programs.Structure and Employee Selection: Bata is one of the world's leading footwear retailers and manufacturers with operations across 5 continents. Bata Branded Business.294 1. Besides arranging various in-house training courses. Asia pacific.241 1. Switzerland.428 2005 9 68 103 1. improve processes and enhances efficiency to increase the return to the shareholders. The Company gives high priority to the training and development of Human Resources. Lausanne. Each MBU is entrepreneurial in nature. Latin America. Holland.

North Star. Each S.C). Although Bata operates in a wide variety of markets. By investing in multi-talented human resources and the latest technology design equipment. SICE is in a position to realize shoe prototypes. Bata companies share the same leadership points. new ideas and strict attention to production standards. Global Research and Development: Bata operates 6 Shoe Innovation Centres (S. materials and designs for shoe comfort features. Two important ones are product concept development and constant improvement of business processes in order to offer customers great value and the best possible service.000 people Operates 5. Bata Premium Collection The Shoe Innovation Centre Europe (SICE) creates new collections for our house brands such as Weinbrenner. (Cad cam). They are the ideal reference point for style and design in the fashion industry and also provide better value–added services. Power. 10 .I. product innovations and sourcing. Sourcing Bata International Franchising is a formula managed from Italy to run independent shoe stores with the know-how of the biggest worldwide shoe company and with shoe lines styled and created in Italy.• • • • • Bata Globally Serves 1 million customers per day Employs more than 40. Retail concepts Bata International Franchising is a formula managed from Italy to run independent shoe stores with the know-how of the biggest worldwide shoe company and with shoe lines styled and created in Italy. SICE offers a wide and qualified range of fashion shoes thanks to market trend research. Research is conducted into the application of new technologies. SICE works with all Bata SICs worldwide to obtain the best quality/price ratio for productive sourcing.000 retail stores Manages a retail presence in over 70 countries Runs 33 production facilities across 22 countries Bata's strength lies in its worldwide presence. each one benefits from its link to the international organization for back-office systems.I. While local companies are self-governing.C has a product focus to supply complete packages of services for the manufacturing and marketing of innovative shoes. Bubblegummers and uses innovative technologies for the Premium collection. from the early stages of design thanks to a functional product development centre.

the company took a decision to separate its export wing and made a new separate Company for export of lather and shoes. Bata knows what people need in their work environment. designs. cutting. materials. production processes. Introducing royalty based product “Hush Puppies”: Merchandising department introduces new concept to market royalty based product named “Hush Puppies” as high-end article. By the decision. originates. from concept and design through to manufacturing and. Two Strategic Plans and Two Tactical Plans the Company has Undertaken: Strategic Plans: 1. stitching. control. the SICE will be a strategic focal point for European and worldwide BSO Companies for industry experience and skills and for improvements in the manufacturing process from production planning. This co-operation results in a unique combination of shoes and socks for every professional in every situation. and where most athletic footwear specialization. By continuously investing in new materials and technologies. Affordable high-value footwear for mainly tropical climates The Shoe Innovation Center in Indonesia works with a variety of frameworks including technologies. such as internationally renowned universities. Nobody understands human anatomy in quite the way we do. Their training has been focused on process. Bata can keep reacting to market developments and to changing working conditions in an appropriate and innovative manner. the SIC in Indonesia supplies creative services for the manufacturing and marketing of footwear. Our knowledgeable and experienced R&D team is complemented by a group of outside knowledge centres. Power Footwear Power Athletics Limited (PAL) operations are based in North America. 11 .Finally. methods. where the majority of reputable athletic shoe companies are located. economic oriented product development and it all helps Bata to be a leader in footwear for both domestic and international markets. trend lifestyle research. By investing in multi-talented human resources and the latest technology design equipment. ultimately. most up-to-date product and designs. as well as technical features and technologies. It is a knowledge enterprise with a progressive Research & Development department and extremely advanced test facilities. assembly and finishing. material consumption. concentrating all of their expertise on creating the best. Separation of export wing For gaining tax shield. There are 5 retail stores in the Dhaka city solely for market “Hush Puppies” brand. 2. the Company as a whole made greater profit than that of previous. The first-class designers on our team are fully dedicated to Power. Research forms the basis of the powerful Bata Industrials brand. Industrial Footwear Bata Industrials is more than just a manufacturer. the everyday use of the product. Most of them are graduates of the highly respected Industrial Design Program at Carleton University.

This. 2. Two Problems Faced by the Company in the Past: It is evident that. and market low quality goods in local market with much lower price.Tactical Plans: 1. By introducing this automated system. the Company changed its old line of machineries with new one. Implementation of POS in all sales outlet: The Company introduces automation named Point of Sales (POS) system in all sales outlet retail or wholesale. Change in old line of machinery: Keeping in mind the change in consumer behavior and their tests. Some local Companies use the Brand of “Bata” or other similar names like Rata etc. The challenge came after penetration of Apex in the local and foreign market. in turn. This practice affects seriously the sales and also the market reputation of Bata. Bata is not exceptional from that. Here are some problems faced by the Company in the recent past: Loss of Market Share: It is now an enormous challenge for Bata Bangladesh to exist in the immense competition. Fake Logo: The issue has come severely during last few years. increased turnover and hits positively on net earnings. Lots of hindrance will come in every footstep. cash collection and treasury management system become efficient. doing business is not an easy job. 12 .

Although Bata operates in a wide variety of markets. • Emergence of new entrants like some small companies with low price. • While local companies are self-governing. • Product mix.SWOT Analysis: Strengths • Bata’s strength lies in its worldwide presence. • Product concept development and constant improvement of business processes in order to offer customers great value and the best possible service. Bata companies share the same leadership points. • Product innovations and sourcing. Bangladesh. 13 . • Lack of product differentiation. • Strong brand value. • Marketize royalty based High-end products • Emergence of Grameen-Adidas in in local market. Opportunities Threats • Bata has every opportunity to capture export • Growth of Apex can cause barriers to market. each one benefits from its link to the international. Weaknesses • High cost. growth of Bata.

[ONLINE] Available at: http://www. 2010. 2004-2009. Bata Shoe Company (BD) Ltd. [ONLINE] Available at: http://www. 2010. [Accessed 12 August 10].php. Mr. Noone in the world knows shoes like we do. “An LBSL/JKSB Research Publication”.Bibliography: Bangladesh equities. 14 .com/news/all_news.batabd. [Questionnaire/Interview] (Personal communication. Rezaul Karim.bata. [Accessed 12 August 10] Bata Shoe Company Bangladesh Limited. 10 August 2010). tactical and strategic plans of Bata Shoes. [Accessed 12 August 10]. [ONLINE] Available at: http://www. Bata Shoes. Manager. Bangladesh Ltd. [Accessed 12 August 10]. Franchising and licesing opportunities. Bata shoes list of companies. [ONLINE] Available http://www. Annual Report. [Accessed 12 August 10].org/Details/10059216/Bangladesh/Bata_Shoe_Co_Bangladesh_Ltd.list-ofcompanies. Company Overview.bata. All the news. [ONLINE] Available at: http://www. 2010.datamonitor. Gave information on hiring practices of Bata Shoes. at: Bata Shoes.php. Bata productid=B1968E6B-18EA-448C-A2D8-5C9DE019CD22. March 2009. Bata Shoe Company Bangladesh Limited. Datamonitor Reasearch Store. Bata Shoe Co. their management profile. 2010.

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