SWOT ANALYSIS OF

BATA SHOE COMPANY

Master of Commerce
(Banking & Finance)
Semester I
(2012-2013)

Submitted
In Partial Fulfillment of the requirement for the Award of
Degree of Master of Commerce (Banking &Finance).

Submitted By
SATISH SURESH TIWARI
Roll No.2057

Under the Guidance of

Prof. Dr. Anuja P

MAHARSHI DAYANAND COLLEGE

OF ARTS, SCIENCE & COMMERCE
Parel, Mumbai – 4000 012.
 CERTIFICATE
This is to certify that Satish suresh tiwari of M.Com. (Banking
& Finance) Semester I (2012-2013) has successfully completed the
project on SWOT ANALYSIS OF BATA SHOE COMPANY under
the guidance of Prof.

Course Co-ordinator Principal

Project Guide / Internal Examiner

External Examiner
 DECLARTION
I am Satish suresh tiwari. The student of M. com (Banking &
Finance) Semester I (2012-2013) hereby declare that have
completed the Project on SWOT ANALYSIS OF BATA SHOE
COMPANY. The information submitted is true and original to the
best of my knowledge.

Signature of Student
_______________

Name of Student
Satish suresh tiwari
Roll No.
2057
 ACKNOLEDGEMENT
We take opportunity to express our gratefulness to all who have
guided us and have been our support in the making of this project especially
by the faculty of MAHARSHI DAYANAND COLLEGE.

To begin with we firstly thank our guide Prof. who have rendered as
unconditional support and guidance. They have been very helpful to us
during difficult times, which contributed to the progress of our project.

We would also thank our principal. Dr T.P. GHULE, who provided us

with the necessary facilities, Prof.S. Phatak, vice principle of our college
has very supportive & gave constant encouragement with whose help this
project became a success.

Prof. N. N. Jani, co-ordinate for banking & Finance was always

available for immediate advice and guidance

Lastly we would like of express my sincere grateful to our parent & all
those people who have helped me directly or indirectly for our completion of
this work. Thanks to all those persons, who have assisted me, with co-
operation, books and articles & the other important materials.
 Table of contents
Chapter Subject Page no:
Executive Summery 01

01. Introduction: 02-04

1.1 Report Background
1.2 Significance

1.3 Scope of report

1.4 Objective of report
1.5 Methodology
1.6 Limitation of the study

02. Over view of Bata Shoe Company: 05-21

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. Findings & Recommendation: 22-23

3.1 Findings:
3.2 Recommendation:

04. Conclusion: 24
4.1 Conclusion:
4.2 References
 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 NO.1
 Introduction:
1.1 Report Background:

As a student of M.com(B & F) 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 NO.2
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:

Bata’s commitment to service continues to this day, from the designer’s

sketchbook through to the performance of our shoes on a customer’s 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

organization’s 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
Weakne
h
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 4p’s is the set of controllable tactical marketing tools-

 Product
 price
 place
 promotion

In the terms of Bata shoe Company the 4p’s can be describe as:

Product

Bata Shoe
Promotion Company Price

Place
Products:

The Bata Company produces three types of products.

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

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 • 2000 to 12000

• Mid level price • 500 to 2000

• Lower level price • 100 to 500
Place:

The Head office of Bata Company is situated at Tongi(gazipur). They have

their own agents in following places:

o Dhaka
o Gazipur
o Sylhet
o Dinajpu
r
o Rangpu
r
o Rajshah
i
o Mymen
sing
o Jessore
o Naraya
ngong
o Comilla
o Khulna
o Barisa
o Chittag
ong
Promotion:

Bata Shoe Company uses their promotion skill in some tact’s 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:

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.

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. Salary: Bata Company give the workers remuneration which

works as a positive motivation.
2. Bonus: The company gives the workers occasional bonus by
which the workers are influenced.
3. Loan facilities: There is an opportunity of taking loan form the
company for the worker.
 4. Promotion: The Company gives the workers promotion which
helps the workers to work with more sincere ness.
5. Financial security: Bata Company provides provident fund,
group insurance, pension facility also.
6. 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.

Others
Afjal 4%
6%
Bata
Paggasas
45%
15% Bata
Appex
Paggasas
Afjal
Others

Appex
30%
 2.9 Income Statement:

PERIOD ENDING 31-Aug-09 31-Aug-08 31-Aug-07

Total Revenue 11,724,000 11,365,000 8,563,000
Cost of Revenue 4,962,000 5,188,000 4,277,000

Gross Profit 6,762,000 6,177,000 4,286,000

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

Total Operating Expenses - - -

Operating Income or Loss 3,103,000 2,721,000 1,418,000

Income from Continuing Operations

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

Net Income From Continuing

2,098,000 2,007,000 922,000
Ops
 Non-recurring Events
Discontinued Operations 11,000 17,000 71,000
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -

Net Income 2,109,000 2,024,000 993,000

Preferred Stock And Other
- - -
Adjustments

Net Income Applicable To Common

$2,109,000 $2,024,000 $993,000
Shares
 2.10 Balance sheet:

PERIOD ENDING 31-Aug-09 31-Aug-08 31-Aug-07

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

Total Current Assets 7,883,000 7,609,000 5,084,000

Long Term Investments 677,000 636,000 -
Property Plant and Equipment 3,609,000 3,323,000 2,656,000
Goodwill 3,218,000 3,132,000 2,625,000
Intangible Assets 1,371,000 1,531,000 1,415,000
Accumulated Amortization - - -
Other Assets 376,000 760,000 473,000
Deferred Long Term Asset Charges 743,000 1,000,000 730,000

Total Assets 17,877,000 17,991,000 12,983,000

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

Total Current Liabilities 3,756,000 4,439,000 3,075,000

Long Term Debt 1,736,000 1,792,000 1,150,000
Other Liabilities 1,688,000 1,616,000 1,255,000
Deferred Long Term Liability
641,000 770,000 -
Charges
Minority Interest - - -
Negative Goodwill - - -

Total Liabilities 7,821,000 8,617,000 5,480,000

Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 6,000 6,000 6,000
Retained Earnings 2,682,000 1,138,000 (405,000)
Treasury Stock (1,577,000) (1,177,000) (814,000)
Capital Surplus 9,695,000 9,495,000 9,106,000
Other Stockholder Equity (750,000) (88,000) (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 NO.3
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 NO.4

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.

 4.2 References:

o www.bata.com

o www.goole.com

o www.wkipedia.com

o Bata related person