ORGANIZATION AND BATA PAKISTAN LIMITED
BATA SHOE ORGANIZATION
The company that evolved into Bata shoe organization was first registered in the town of Zlin Czechoslovakia on August 24, 1894. It was innovative from the beginning in that its founders intended the company to be a ³shoe manufacturer´. This represented a significant departure from the centuries old tradition of the one-man workshop eking out a bare subsistence for his family on a Cobbler¶s bench at home. By 1905 Bata had grown too some 250-company employees. At 2200 pairs per day, the personal effectiveness of each Bata employee far outdistanced the few pairs per day produced by the their predecessors. The young company overcome many early difficulties .I n order to meet growing demand during the early years, new production machinery was found in other countries and innovative show making technique were devised by skillful and resourceful Bata employees. New kinds of shoes were introduced using new way to promote them. Bata¶s reputation as the innovative industry leader has been, maintained ever since. Despite the outbreak of the first world wart material shortages, manpower shortages, corbels and other challenges, sales increased to about two million pairs by 1917. The post war economy presented a difficult environment for Bata. Currency was devalued and consumer purchasing power was at an all time low. Tomas conceived a plan to adjust to post war economic difficulties by maintaining the focus on the customer and reducing the price of shoe significantly. A tight focus on the customer had again process itself as a sound strategy. Tomas Bata thinking inn terms of expansion into new markets even as a teenager, travelling to Vienna to sell his shoe to the city¶s merchants. While still a young company, Bata exported shoes to the USA, Europe and North Africa.
Cipera Bata convened the first congress of the international of young men .In the early 1920¶s Bata established new companies in Poland. Hungary. Canada deliberately designed to present the building from being expanded . Holland. the united kingdom and the USA.By 1918 the likelihood of the company¶s 6. Bata also create companies while provided the communities with rail services.000 pairs per year. been head office consistent with the policy of worldwide decentralization.In the early sixties the Bata international center was built in Toronto . This create event more challenges for the
. Remuneration was with complete control of their own economic destinies. building construction. J.
New companies were also established in Egypt. Bata with D. Luxembourg. In the early 1930¶s Bata and Czechoslovakia were the leading footwear exports in the entire world. Indonesia. Denmark. international expansion was over seen by Mr. publishing and new tannery. Italy.by the Bata employed 42. a temporary worlds headquarters was established in the UK to help rebuild the seriously depleted organization . Following the death of the founder Tomas Bata. To all Bata companies was applied the Bata system one of its most impotent and innovative elements was the arrangements of autonomous workshop through which all employees were provided with the opportunity to contribute ideas and to know in exact figures how this personal day to day achievements would directly affect profitability of their departments. Finland. Singapore and India before Tomas Bata died prematurely in an airplane crash in 1937. Belgium. It thus maintained an efficient.000 employees could only be guaranteed by aggressive marketing and future foreign expansion . A. Yugoslavia.He had already worked in several leadership positions with distinction and would soon spearhead the establishment of our Canadian company. Bata companies in Zlin and in many other countries were nationalize by the communist governments. Following world war II . Following the war. Insurance. This company was expected to become the new international home base of the beginning of World War II when it seemed likely the organization would lose Zlin .000 people and produced more than 100.
000 franchises more then 60. to the Pacific Rim and especially to China.An additional 40.
. T . hosiery factories and 6300 retail stores and 100. SHOE WORLD. producing shoe machinery and moulds. Now the Bata shoe organization is the largest manufacture and under of footwear operations span the globe through 75 companies in 60 countries which together buy.Now all these affairs are controlled by the foundries grandson. sell and produce shoes in almost every country on earth. Primarily for internal markets .reconstruction team . engineering plants.At first some of our companies were slow to react to the dramatic style shifts desired in most markets following the war.G. During the 70¶s. 90¶s the world-manufacturing base for footwear has shifted to developing countries. but then Bata invented the ladies pump during the fifties. 80¶s.000 people and their families depend on hobs in support services created by Bata operations . from Lahore with due entrepreneurial dynamism it expanded and grew by leaps and bounds presently claiming to be the largest shoe manufacturing unit in Pakistan .000 people are employed. He has also identified a success recipe which includes emphasis on international product brands such as power. quality control laboratories. tanneries. advanced retail technique including coordinated product groups non foot-wear products and participative retailing integration of retail know how3 and manufacturing capability. which became so popular that it was even incorporated into the company logo in some countries. bubble garments Bata industrial a variety of retail store concepts such as ATHLETES WORLD. BATA CITY STORE. product development studies.
BATA PAKISTAN LIMITED
Batapur came into being in 1942 at distance on 18 km. This reinforced the importance of the company¶s long time commitment to individual innovation and achievement. producing and selling approximately 270 million pairs of shoes each year. Bata totally utilizes the company¶s mission statement as a guideline for Bata Company operation .To be successful as a dynamic flexible and market responsive worldwide organization with footwear as its core business. Mr. These include shoe factories. and world wide implantation of state of the art production technologies.
product development department and engineering workshops. etc.has future plans of further expansion besides updating existing auxiliary operations like quality control laboratory . Personal department
2. Batapur has its own tannery where leather of high quality is produced and is being consumed ion the manufacture of footwear of all kinds of cater to various marketing segments and exports .In accordance with the expansion program a new modern unit at maraka .likewise the company .
DESCRIPTION OF VARIOUS DEPARTMENTS
There are many departments in BPL which are described under below :
1. Finance department
3. Multan road Lahore was established in 1984 which produces highly sophisticated leather shoes on the most modern machines . canvas and PVC Plastic footwear of high quality.Bata Pakistan comprises three divisions:
PRODUCTION. rubber.being leader in the market . Purchasing department
i) Local Purchase
. MARKETING AND ADMINISTRATION:
It annually produces more than 12 million pairs of leather.
i) Leather factory
ii) Plastic factory
iii) Rubber factory
8. Marketing department
7. Designing department
10. Other department
4. Costing department
. Merchandizing department
i) Seasonal planning
ii) 8 week forecast
iii) 4 week forecast
iv) 1 week forecast
rules and regulations.The department future organizes different courses throughout the year to train and develop the personal. Thereafter employees performances are also evaluated . Training department
. saving on materials. Moreover the company sends many of its personnel to attend local courses organized by the local institutes . hardworking. Bata Pakistan limited publishes a forthrightly bulletin to inform the employees about events took place. development.12. directed motivated and evaluated. semiskilled and unskilled persons after observing them from different angles. All these training .The department already has a tradition to offer on the job training to the personnel . For motivational purpose sometimes personnel department assigns a challenging project to a person. improvements in production and sales departments.it also sends every year some of its personnel to attend out side courses organized by the Bata limited . sales as well as some other items of interest. experienced. The personnel department of Bata shoe organization well aware of its responsibilities selects the qualified. happenings and educational instructions about discipline.Several lectures .Toronto and Bata shoe companies all over the world. Similarly some sort of other incentives and goals are given to the personnel for the purpose of motivation and performance evaluation . The company invites its employees to send their suggestions regarding improvements in work methods. Employees are encouraged developed and trained to become more capable and competent in their jobs so that they can confront to the forthcoming challenges and problems . Once the person selected he or she is motivated through several incentives . Distribution department
The organization¶s effectiveness depends not only on how it is structured but also on how well its personnel are selected.development programs . housekeeping and welfare are broadcast every week for the employees.and seminars are arranged for the employees in this respect. Some social. trained.A semi skilled or unskilled person while in learning process enjoys all the benefits offered by the company to all the skilled employees.developments and motivational practices ultimately contribute to the overall progress of the company.
As far as sub-budgets are concerned
each department of company is given the target of annual budget and if any department wants deviate from the finance department to do so .It also has a responsibility to handle the assets and liabilities released issues .it plays a vital role in the preparation of income Statements .Furthermore . Purchasing department acquires raw material through two channels. The company through local purchases on the one side. encourages
Purchasing department headed by Purchases Manager. income and expenses of the company .FINANCE
Finance .Balance Sheet and Tax documents.The finance department keeps records of receipts payments. That also places orders for instantly needed materials and keeps record of goods on way.That deals with the wages and salaries of the employees . That department every year prepares aggregate budget of the company and that budget is further broken-down into several sub-budgets. deals with the financial aspects of the company. i) Local Purchases ii) Imports
The company mostly acquires raw material form different business people dwelling in Pakistan. another crucial department of Bata Pakistan Limited. Actually that department not only maintains records of material essential to produce the products but also considers the average weekly consumption of one particular material in factory so that production process may not be hampered due to non-availability of material. deals with the purchases of raw material (excluding hides and skins) that is ultimately used to manufacture different stores of products.
Marketing programmes that identify and satisfy customers needs have always been a top priority in the B.O.
AS MENTIONED EARLIER THE COMPANY MAKES ALL OUT EFFORTS TO GET RAW MATERIAL WITHIN PAKISTAN. P. retains enough flexibility to encourage cultural diversity.
. They have helped to establish one of the most effect retail distribution systems in international trade. Guidelines have been written covering a wide range of subjects. rubber. As a result. PRICES.V. Generally. design standards. DEPARTMENT AND BEFORE MAKES
ASSOCIATED WITH THE PROSPECTIVE PURCHASES OF MATERIAL FROM ONE BUSINESSMAN RATES ARE TO ANOTHER BUSINESSMAN. entirely new types of selling systems have been created and standards developed that have influenced the shoe business world wide. lashes and chemicals that are used in production of leather. which although standardized. sometimes suffers due to preference given to the local purchases because the local businessmen don¶t possess the quality that can easily be assessed from imports. THEN NO OTHER OPTION LEFT EXCEPT THE IMPORT OF THAT REQUIRED MATERIAL FROM OTHER COUNTRIES. BSO while working for the progress of the country. Straps. endeavors to safe valuable foreign exchange. THE IMPORTS ARE DONE THROUGH LETTER OF CREDIT WHICH IS THE SAFEST WAY OF DOING AN INTERNATIONAL OF OF IMPORT.the local business people on the other side. YIELDING FINALLY BUSINESS IS WHOSE GIVEN
ORDER TO SHIP THAT SPECIFIC MERCHANDISE IN STIPULATED TIME. BUSINESS. These have resulted in marketing polices and guidelines being laid down to assist the companies in training personnel and introducing modern marketing techniques. including store locations and lay out. its local purchases are Buckles. Instead of having knowledge of all these aspects still the company prefers to buy from local business community.
The most important meeting of the year takes place each spring in Europe. operating stores were built to show the latest features in design and selling methods. stimulated and encouraged trade between regions and countries. marketing. it is the world meeting at Shoehorn. These purchased skins and hides are transferred to warehouse where application of
. as a result. and. In the lat4e ³Seventies. retailing and personnel attend Shoehorn of one week. standards and programmes are constantly being improved and updated through seminars and conferences. was instantaneous. If there is a single forum. The evolution of Shoehorn coincided with fundamental changes in world markets. As store standardization grew in importance. when more than 200 participants from product development. and today the symbol. it remained essentially a shoe conference. but gradually expanded to included satellite conferences in marketing and retailing. and offered to all the companies. The success of the programem which ran in newspapers all over the world at the same time. a complete marketing and advertising programme was developed under the slogan ³Bata understands Shoes´. Because of the importance placed on marketing. the quality and range of shoes steadily improved year after year. Exhibition areas were expanded to enable the companies to display their most creative work to each other. fully staffed. Product development and the introduction of brands is another aspect of marketing.merchandising. inventory control and staff training. which has led to cooperation between the companies and. competitive stimulus for the companies. And outside experts in a wide range of business areas were brought in to leaven the mix. at the same time.
OTHER MATERIAL ACQUISTION
Bata shoe organization acquires raw material (skins and hides) from different parts of the country. Judging the shoes provided a natural. Shoehorn was originally a shoe conference to which each company brought its best shoes: from these were selected the shoe lines the organization would sell in coming seasons. Fashions and tastes were becoming more universal: styles in Europe were on the streets of Bangkok or Sao Paulo within weeks sometimes sooner and customers were responding to the same marketing stimuli. an open fan of shoes. is common everywhere in the world. a point at which the Bata year is focused. As Shoehorn matured.
In this process skins and hides under-go splitting to reduce corpulence or thickness.
.several chemicals avoid the risk of erosion and enhances the storage life.
In this process several chemical are injected in hides whiz become slightly. These chemicals injected hides are also called wet blue leather. These limed and moisturized hides can be kept in stores for a long time.
That process is contrast to the liming process where injected chemicals in liming process are dejected from hides so that these can be utilized for shoe manufacturing purpose.
In tennery skins and hides undergo the follwing processes. i) ii) iii) iv) v) vi) Soaking Liming Deliming Splitting Drying Dying
That is a process where water and chemicals are applied and original position (when these were flay of from the animals) of these skins and hides is tried to brought lack. Whenever demand arises these skins and hides are transferred from warehouse to tannery.
Generally black. dark brown and light brown colors are given to the skins and hides. Another department is bewitched in finishing and removing toothed edges. similarly minor faults are not skipped.Here drying up process of skins or hides is done. straps. Finished leather is transferred to leather store wherefrom it is forwarded to leather factory according to the requirement of this unit. In one department different pieces are taken from leather sheet and in another department these pieces are tailored on the sewing machines. The latter case happens rarely because most of the time rubber sole is used in leather shoes. The process of upper attaching with the sole begins right from here. In one department different components of leather shoes. ties etc. Both the
. The point of notice is that whole process in done quite and sewing are skillful and well of experienced. Mostly two or three methods are used to dry up the skins and hides. i) ii) Rubber sole Leather sole
If the rubber sole is required to produce a leather shoe that sole is acquired from rubber factory. Another department places buckles straps etc. Although leather shoes are produced in leather factory yet two types of sales are used in manufacturing leather shoes. In prices these sorts of process are done in leather factory and ultimately these diversified components are collected together which makes the upper side of shoe attached buckles. The dying up process ends up with the finished from of leather.
Leather factory consists of several departments. is a crucial mechanized unit of Bata shoe organization where different components of the shoe are prepared and combinations of these components ultimately produce the shoes. On the other side if leather sole is required it is entirely produced in leather factory. The entire leather factory has been divided into several departments to prepare different components of leather shoes.
The needed pigment or color is given to the skins and hides in this process.
After checking and scrutinizing laboratory approves to transfer these shoes to packing department wherefrom these shoes are forwarded to distribution department. Although the whole shoe making process ends up here yet shoes are not supplied to packing department rather these are sent for quality control checking. consequently. Each new brand first checked in the laboratory and after the confirmation the production is start.000 pairs of shoes.
Bata Shoe Organization always keeps eyes on the changing circumstances.
Rubber factory¶s process are same as that are in leather factory the only differences are (i) In the rubber factory rubber shoes are manufactured whereas in the leather factory leather shoes are manufactured (ii) In the leather factory lasts of wood or iron metal are used whereas a aluminum lasts are used in the rubber factory. fashions.components (upper and sole) are placed on the conveyor and the labors are busy to glue the take both the components and attach these components to each other on the pressure machine. Therefore Bata Pakistan limited has poised designing department where the processionals re utilizing their inherent talent. However as changes take place in market. shoe take its ultimate fabrication. The daily production of rubber factory in about 31. The laboratory also conducts systematic research med at improving manufacturing process at Batapur. Bata is also required to cope with metamorphosis in market conditions with the changes in product line and changes in designs of the products. This gives the first hand opportunity to survey new trends in the word market and to distill the best of these in their own designing for the customers.
Bata Shoe Organization has its own laboratory where professionals busy to examine the quality of materials and ultimate products. trends as well as preferences of the customers. The professionals are also sent abroad for training every year to attend designing and other international seminars.
Thereafter no changing in production is possible.
4 WEEK FORECAST:
Again 4 weeks before the start of production the raw material production facilities.
8 WEEK FORECAST:
Eight weeks before the start of production management again get together if management anticipates any amendment is required they do it.
MAIN OBJECTS OF COSTING:
. Besides. Merchandising Department considering demands and order from different stores gives green signal to distribution department to fulfill the orders. Here production related issued are profoundly analyzed and discussed. i) ii) iii) iv) Seasonal Planning 8 Weeks Forecast 4 Weeks Forecast 1 Week Freeze
This sort of planning is done two times in one fiscal year. production related issues and difficulties are seen and discussed. factory management the store management also participates and determines what would be produced coming season.
1 WEEK FREEZE:
That is the last stage of planning where all the production related issues are finalized and production orders are issued one week before actual production.MERCHANDISING DEPARTMENT
Merchandising department occupies the back bone place in the entire production of Bata Shoe Organization. Furthermore. it is tried to pave the way for smoothes production. That department shoes whole planning for production.
3. deputies and price and profit. The retail sale price of our shoe comprises component for:a) b) c) Material Wages Expenses or (O/Heads).
.1. while maintaining or improving quality.
The total of these makes the retails sale price. article-wise. using the latter as measure of efficiency. which tells us the production. adrift. Gross Margin. The basis of all our costing is the seasonal production and sales estimates. To provide a forecast of the estimated result on:a) b) Any particular shoes the total factory half year production plan.
2. To provide a measure of control over all sections of business by comparing actual results with estimated result and taking corrective action where necessary. To reduce costs.