Bata case study – 1894-2020

Minutes of Meeting – 25th July 2020

Members:

 Tanmay
 Aditya
 Akshay
 Anushri
 Tanya

Points-

1. Mass production
2. Family owned
3. Largest manufacturer and retailer of footwear
4. Problems due to world war > Canada shift
5. 1st network – Labour intensive and huge store network
6. Non independency from family view (Issue)
7. Competition from Market driven company – Nike and Reebok (issue)
8. Had fully owned as well as in collaboration with the local government, Bata provide
licensing, consulting and technical assistance to companies in which it has no equity interest.
9. Production and sale in that particular country only, achieving economies of scale, tries to get
maximum raw material from local area and thereby lesser focus on exports. (positive)
10. Why less exports? To reduce global risks of trade policies (opportunity)
11. Plant closure effects Developing economy much more than what it does to a developed
nation in terms of labour survival, jobs, standard of living. Therefore, leveraging this as an
opportunity to set up plants in developing country (opportunity)
12. Minority issue/totalitarian issue in chile and south Africa (negative)
13. Came into the political purview, didn’t focus much and went on as shoes
14. Preferred democratic for freedom of change in procedures and voice opinion
15. Multiple impact on economies where they operate- affordable shoes at low prices, job
creation, local management trainees, raw material sourced locally (positive)
16. South Africa – posed unique challenges – high population, good place to invest, largest GNP
in Africa, High ROR, low labour cost therefore economies of scale
Situation changed in 1980s
 Blacks issue of apartheid
 Pressure on govt for civil reforms
 Canadian attitude towards south Africans
 Canada conservative investment policies for south Africa
17. Issue in Slovakia for compensation of factories with government, ownership claims of the
factory