CHAPTER-ONE

Introduction.
1.1. The proposed topic is FUTURE OF BATA SHOE COMPANY (BANGLADESH) LTD IN
PRESENT COMPETITI E MAR!ET.

1.2.

Bata Shoe Co. (BD) is a leading manufacturer of footwear in Bangladesh. t produces

dail! around 1" 1#"### pairs of shoes of $arious description. t is one of the largest contri%utors of T&1''(.)( million in 2#11 in the form of corporate ta*" +,T" custom duties and other ta*es to the countr!-s .ational /*che0uer. 1.1. n the process of preparing this term paper on Bata Shoe Co. (BD) 2td a thorough stud!

is done to ac0uire practical &nowledge on present condition and performance e$aluation of the compan!. Throughout this report we ha$e tried to present the condition and performance report using ndustr! anal!sis" 3atio ,nal!sis 4uestionnaires anal!sis and %asing on those anal!ses we ha$e tried to find out the future of the compan! in Bangladesh. 1.5 O"#$cti%$& o' t($ Stud). Broad Objective: 1.5.1 The o$erall o%6ecti$e of the research is to e$aluate 7erformance of Bata Shoe Compan! o$er the last nine !ears (2##1 8 2#11) and to find out the compan! future in Bangladesh in present competiti$e mar&et. 1.4.2 Specific objectives: The specific o%6ecti$es of the stud! are as follows9 a. %. c. 1.< Carr!ing out industr! and compan! anal!sis ,nal!:e the financial performance and customar! performance (4uestionnaires) anal!sis. ;ind out the future of the compan! in Bangladesh in present competiti$e mar&et.

METHODOLOGY

1.5.1 Research Design: =e will use the D$&cri*ti%$ R$&$+rc(, techni0ues for collecting rele$ant data mainl! from two sources9 1. Secondar! data 2. Sur$e!.

1.<.2 Sourc$& o' d+t+- The rele$ant data for the stud! will %e collected from two sources. 1.<.1 Fir&t.)/ *ri0+r) d+t+ will %e collected from the user > customers. Data ha$e %een presented in ta%ular form followed %! statistical anal!sis and>or numerical interpretation. 1.<.5 T($ S$cond+r) d+t+ is collected from annual report of Bata Bangladesh 2td" pu%lications" 6ournals and internet we%site. ;inancial conditions and their trend anal!sis ha$e %een done in the financial anal!sis part. t has ser$ed the purpose of descripti$e research as well. 12323 S+0*.$ D$&i4n1232321 S+0*.$ Si5$, simple random sample will show at '#? (p@ #.'" 0@#.5) estimated proportion of success" we selected to estimate with A<? confidence inter$al (B C.1.@ 1.A') that allowance for sampling error not greater than A.'#2 percent (/). Su%tracting the $alues in the formula we got the sample si:e 9 n @ (BC.1)2p0> /2 @ (1.A')2(#.') (#.5)> (#.#A'#2)2 @ 1## 1232326 S+0*.$ 'r+0$Due to time and resource constrains" it is not possi%le for us to

select a larger sample to minimi:e the sampling error of our findings. Cowe$er" ma*imum efforts will %e gi$en in reducing non8sampling error. =e targeted the Do$t users" in stitches and domestic customers for the collection of respondents and retailer. 1232327 S+0*.$ &$.$ction *roc$dur$9 =e will use cluster sampling method for

selecting the sample. =e will select our sample 'ro0 83 ('i%$) di''$r$nt .oc+tion& (r$&id$nti+. +r$+& o' $+c( o' t($ 4rou* 0$0"$r&) "+&$d on *ro"+"i.it) &+0*.in4 9(ic( 9i.. con&id$r$d +& Ar$+ S+0*.in4 . The target group will %e comprised of %oth male and female and the age limit would %e 1# and a%o$e indi$iduals who either user of Bata in$ol$ed in %usiness of Bata.

123232: S+0*.$ di&tri"ution 9 =e will distri%ute our 1## sample %ased on two stage cluster sampling. =e will distri%ute out our sample into following categories of respondents9 1. The user of 1# to 2# Eear 2. The user of 21 to 1# Eear 1. The user of 11 to 5# Eear 5. The user of 51 to <# Eear <. The retail outlet %usiness man 1232; D+t+ co..$ctin4 in&tru0$nt&@ @ @ @ @ 1# 1# 2# 1# 1#

=e will de$elop a short %ut thorough <u$&tionn+ir$

for the Bata users>customs for our sur$e!. =e will concentrate to ma&e closed ended 0uestions for ma&ing it eas! to answer for the respondents. =e will prepare 2# 0uestionnaires for the users>customs and the 0uestionnaires will %e comprised of #< 0uestions. t will %e a composition of %ac&ground stud! of the respondents and their feed%ac& regarding the issue. =e will tr! to pretest the 0uestionnaire using a group that not too di$ergent from the actual respondents to testif! the am%iguit!" consistenc! and timing. =e used Si0*.$ Attitud$ Sc+.$ +nd 3 *oint Li=$rt Sc+.$ for the answers %ased on opinion. Foreo$er" we will also conduct some un&tructur$d *$r&on+. int$r%i$9 for collecting the data from few e*perts. 1232> D+t+ Co..$ctionThe research-s primar! data will %e collected through field sur$e! on the a%o$e descri%ed samples %! < of our group mem%ers in the following ratio 1. The Student of school" colleges and uni$ersit! 2. The Defense personnel 1. The Ci$il Ser$ice personnel 5. The Business man <. The Gutlet retailer @ nos. 1# @ nos. #< @ nos. #2 @ nos. #2 @ nos. #1

Since the sur$e!s will %e conducted oursel$es" there is no need to chec& 0ualit! control and editing. n order to control the sampling control pro%lem" we will select our group leader and he or she will %e responsi%le to cross chec& num%er of completed inter$iews each of us. n order to minimi:e cheating" our team leader will as& the inter$iewers some tric&! 0uestions so that cheating can %e identified.

1232? Bud4$t +nd Ti0$ Sc($du.$ - =ith !our appro$al the following schedule has %een arranged for the research9 3esearch 7roposal De$elopment and appro$al 4uestionnaire and de$elopment ;inali:ing the sample design phase Data collection Data 7rocessing Completion of final report Bud4$tIt$0 7hotocop! of the 4uestionnaire 7ro6ect printing cost 2aminating Co$er page 7rint Spiral Binding Transportation Tot+. <##I1 <#I1# <#I1 <#I1 <#I1 2#I5## T+=+ <## <## <# <# <# )### @138 %! 2nd wee& of Septem%er %! 1rd wee& of Septem%er %! 5th wee& of Septem%er %! 1st H 2nd wee& of Gcto%er %! 1rd H 5th wee& of Gcto%er 1st wee& of .o$em%er

1.'

LIMITATIONS

Time constraints of the semester ha$e gi$en us less time than ma! %e ideal for an ethnographic stud!. Gur sample si:e too limited to get the real outcome of our pro%lem statement. Foreo$er since we are using the general people as our sur$e! sample" the! might %e reluctant to answer properl!. The limitations are as follows9 a. %. c. d. 2ac& of e*perience in anal!:ing data and financial performance. ;ailed to spend sufficient time and man! for preparation of the report. The report is prepared %ased on stud! of secondar! data9 annual audit reports" pu%lication and 4uestionnaires anal!sis. Could not follow the correct procedures.

CHAPTER- TAO

AN O ER IEA OF BATA BATA SHOE ORGANIBATION (BSO).

621 The Bata Shoe Grgani:ation was founded in 1)A5 %! C:ech %usinessman Tomas Bata

in the cit! of Blin" what was the 8 then C:echoslo$a&ia. Coming from a famil! of shoema&ers with a long heritage of eight generations and o$er three hundred !ears" Tomas Bata capitali:ed on &nowledge" e*pertise and s&ills to propel his newl! founded compan! forward. The introduction of factor! automation" long distance retailing and moderni:ed shoe ma&ing ensured the profita%ilit! of the compan! from the $er! %eginning. t is now the world-s largest manufacturer and mar&eter of footwear operating across the glo%e. ts glo%al %usiness comprises of shoe factories" tanneries" product de$elopment and research centers. BSG is head0uartered in Toronto" Canada. 626 Toda! the Bata Shoe Grgani:ation is a sprawling geo8centric compan! encompassing

operations in more than (# countries around the world and is managed %! 5 regional commercial %usiness units (CBJs) across fi$e continents. t ser$es 1 million customers per da!" emplo!s more than <#"### people" operates <"### retail outlets" manages a retail presence in o$er (# countries and runs 2( production facilities across 2# countries.

BATA BANGLADESH.
627 n Bangladesh" Bata started its operation in 1A'2. The compan! is one of the largest

ta*Kpa!ing corporate %odies contri%uting T&. 11'1million (!ear 2#1#) which represents appro*imatel! (#? of ta* paid %! the entire footwear sector of Bangladesh. Currentl! Bata Shoe Compan! (Bangladesh) 2imited operates two manufacturing facilities K one in Tongi and the other in Dhamrai. =ith a production capacit! of 11#"### pairs of shoes dail!" the compan! also has a modern tanner! facilit! with an output of < million s0uare feet of leather annuall!. ,nnual shoe sales currentl! stands at slightl! more than 1# million pairs with a turno$er of T& <.'' %illion for the !ear 2#1# ha$ing a net profit of t& <51.A( million and pro$ided 2<#? di$ident to its shareholder.

62:

Bata is pla!ing a pi$otal role in de$eloping the leather industr! of the countr!. Bata has

a firm commitment to eco8friendl! %usiness and a state of the art /ffluent Treatment 7lant (/T7) has %een set up to pro$ide a pollution free en$ironment for %oth wor&ers and the localit!. 623 ;ashion would ne$er %e complete without a well designed pair of shoes. This mar&eting

insight has prompted Bata to introduce a num%er of designers- collections for men" women and children. nternationall! renowned %rands such as Bata Comfit" Farie Claire" Cush 7uppies" Scholl" .i&e" Bu%%legummers" Sanda&" =ein%renner and B-first are a few names that testif! to the momentous change towards %randed shoe mar&eting in Bangladesh. Speciali:ed shoe categories such as athletic shoes ha$e %een targeted through de$elopment of the 7ower %rand. Jncompromising 0ualit! with stri&ing designs ha$e put Bata shoes in a &e! position to appeal to different segments of consumers.

PRODUCT CATEGORYFACTORY TYPE OF PRODUCT PLASTIC HITEX SPORTEX THONGS TOTAL LEATHER SHOE POWER MEN'S/LADIES SUMMER INFANT CHILDREN TOTAL FI NI SHED LEATHER (Squar F !) PRODUCTI ON PER DAY (PAI R) 10,000 14,000 1,000 42,000 54,400 4,400 1,000 15,000 1,200 1,800 23,400 2,200

TONGI

DHAMRAI

TANNERY

ISION/ MISSION C STRATEGY2

62; COMPANY ISION2 Faintain competiti$eness and leadership in the shoe mar&et

with their aesthetic functional standard and cost effecti$eness with increased mar&et participation %! ensuring regular return to B,T,-s shareholders. Bata Bangladesh has alread! de$eloped its $ision up to 2#11 showing significant %usiness growth as well as increased mar&et share. =ith the $ision of %uilding a worldwide famil! of satisfied customers and dedicated wor&ers the legac! of Tomas Bata continues strong and una%ated to this da! K the tradition is safe. Since its inception" Bata Shoe Compan! (Bangladesh) 2td. has stri$ed towards one goal K customer satisfaction.

62>

COMPANY MISSION2

To strengthen leadership position in the footwear

mar&et and to increase the mar&et share from 22.#<? in 2##< to 1#? in 2#12 through. a. %. c. d. ntroduction of inno$ati$e product .ew technolog! in manufacturing /*pansion of retail Ba:ar>Cit! concepts ncrease num%er of DS7>=holesalers

62?

CORPORATE STRATEGY.
a. 7enetration to new H targeted mar&et segments through introduction of SCG/2 ./S as per life st!les with supporti$e promotion acti$ities %. Defined num%er of lines" assortment H 0uantit! for each store according to merchandise classification H store profile in order to increase efficienc! in distri%ution. c. d. ntroduction Gf Commercial ;ashion 2adies ;ootwear H related product. mporting of $alue added fashion footwear from other countries for cit! and

selected up mar&et stores to generate additional turno$er. e. mplement 7GS in 2# $olume8selling stores for correct information and impro$ed

replenishment of merchandise. f. g. image. 62@ Do0$&tic9 1. 2. 1. 5. <. '. (. Bangladesh ,rm! Bangladesh .a$! Bangladesh ,ir ;orce Bangladesh 3ifles Bangladesh ,nsar H +D7 Selected institutions and industries. Gther domestic customers. MADOR CUSTOMERS ntroduce and promote range of ,ccessories H ,pparels. ,ggressi$e focus on social and corporate acti$ities to maintain B,T,-s corporate

6218

EE*ort9 a. S(o$&9 a. %. c. %. Fessrs 3a&hi Traders (Saudi ,ra%ia) Shoes ;i6i 2imited (;i6i slands) Bala&a nternational (J,/)

L$+t($r9 a. %. c. Cosmo Cross Co. 2td. (Lapan) 2almai ;ootwear 2td. (Bangladesh) Bangladesh /*ports 2td. (Bangladesh)

6211

M+#or Co0*$titor&2

Competitor ,pe* footwear 7egasus Far& Comeland Masim 3ider /psi B; ;lash Deshco

Categor! 2eather closed and Summer Sports 2eather closed and Summer 2eather closed and Summer 2eather closed and Summer Sports 2eather closed and Summer 2eather closed and Summer 2eather closed and Summer 2eather closed and Summer

PRODUCT AT A GLANCE. 6216 B,T, has an integrated manufacturing and mar&eting s!stem thus its main sources of

products are its own factories at Tongi and Dhamrai.

a.

St+t$0$nt o' Production2 production capacit!9 (in ###- pairs) 2#1# Tongi plant 2<"251 Dhamrai '"5A' plant 11"(1( 1#"#'( 2A"A<5 2)"'#5 2##A 21")A' '"1(1 ,ctual production capacit!9 2#1# 21"(12 '"252 (in ###- pairs) 2##A 22"5(1 '"111

En%iron0$nt+. E''$ct on B+t+ Acti%iti$&. 6217 Po.itic+. En%iron0$nt. a. %. c. ;ollowings are the effect of political condition in Bangladesh9

7olitical insta%ilities. 7olitical programme li&e hortal>stic& hamper the production target and si:ed the normal acti$ities of the compan!. Camper the distri%ution and suppl! s!stem. ;ollowings are the effect on compan!-s economical

621: Econo0ic+. En%iron0$nt. condition in Bangladesh9 a. %. c. d. e. 6213

;re0uent de$aluation of ta&a. Cigh +,T and import duties. Selling of low price production from China. Shift of consumer preference due to high cost. nsufficient power suppl! effect the production capa%ilities ;ollowings are the effect of legal condition in Bangladesh9

L$4+. En%iron0$nt. a. %. c.

The compan! 2aw in Bangladesh is pro$ided and go$erned %! the Companies ,ct 1AA5. t pro$ides all legal support to Bata li&e other companies. There are less counterfeit protection in this field. ;ollowings are the effect of cultural condition in Bangladesh9 Bangladesh. including our religious feelings. materials used" 0ualit! and

621;

Cu.tur+. En%iron0$nt. a. %. c.

Bata is $er! popular to the people of

Bata matches with our culture and tradition There is no anti8cultural sentiment a%out the

product of Bata in the countr!.

CHAPTER- THREE

Indu&tr) An+.)&i&
Foot9$+r Indu&tr) in G$n$r+.2 721 n Bangladesh ;ootwear ndustr! has grown since the colonial era although its

moderni:ation too& place onl! in the late 1A)#s. Due to a$aila%ilit! of raw materials and re0uirement of minimum technical &now how" a large num%er of small scale footwear manufacturer were emerged. Bata Shoe Compan! esta%lished its manufacturing plant at Tongi in 1A'2" it was the first manufacturing plant to produce shoes on a large scale in the then /ast 7a&istan. 726 The industr! suffered a ma6or set%ac& during the =ar of 2i%eration %ut was reha%ilitated

after independence. Fan! new footwear manufacturing units ha$e %een esta%lished recentl!. .ota%le among them are ,pe* ;ootwear" /*celsior Shoes" and 7aragon 2eather and ;ootwear ndustries. 727 n Bangladesh" the footwear industr! can %e categori:ed under two head9 a. %. Small and medium scale footwear industr! with minimum technical &now how. 2arge scale footwear industr! with mechani:ed and semi8mechani:ed production

technolog!. 72: Currentl! there are 2### small and medium and 21 large footwear manufacturing unit

operating in the industr!. These units $ar! in product line" production capacit! and e*posure to domestic and foreign mar&ets. The relati$el! large ones manufacture multiple items such as leather shoes" sports and trainer shoes" can$as and leather sandals" 6ute shoes" chap pals (slippers) and shoe uppers. These units constitute the largest share of the e*port mar&et. T($ Indu&tr) o' BATA. 723 The fist e$er large scale manufacturing unit of footwear was esta%lished %! Bata Shoe

Compan! in 1A'2 at Tongi. The production capacit! of Bata is a%out 1#"###"### pairs !earl!. n the last !ear Bata focused on local production facilities. To impro$e and increase factor! products the! ha$e purchased man! machineries for ru%%er" plastic and leather factories to meet high demand.

10

72;

The compan! recei$es support and assistance from the Bata Shoe Grgani:ation (BSG)

which pro$ides $alua%le technical ad$ice and inno$ation in manufacturing" mar&eting" shop designing" as well as other ad$isor! ser$ices" which contri%ute to the compan!-s progress. 72> The Compan! has contri%uted T& 1.2 %illion to the countr!-s .ational /*che0uer for the

!ear 2##A which is 25? more than pre$ious !ear. Bata is the highest ta* pa!er in leather and footwear sector in the countr!. 72? During 2#1#" the increase in the retail channel %usiness was 5.<1? in sale pairs and

2#? in turno$er compared to 2##A. The total compan!-s net sales in 2#1# is <'11.)<' million with a net profit of <#A.#(5 million which was 55A.51 million in 2##A. Drowth rate is 11.2)?. Compan! pro$ides a ta* of T& 15((.A' million" the cost of sales was '5?" gross profit 1'?" e*pense 21?" ta* 1.<? and net profit was A.<?. 72@ During 2#11" the increase in the retail channel %usiness was <.1(? in sale pairs and

22.)2? in turno$er compared to 2#1#. The total compan!-s turno$er in 2#11 is '111.'#1 million with a net profit of <(5.5)) million which was <#A.#(5 million in 2#1#. Drowth rate is 2#.(1?. Compan! pro$ides a ta* of T& 1''(.)( million" the cost of sales was '<.51?" gross profit 15.<(?" e*pense 22.'<?" ta* 1.<? and net profit was A.#?.

Indu&tr) An+.)&i& on t($ "+&i& o' Port$rF& Fi%$ Forc$&2

Threat of new competitors entering the industry

Bargaining power of the industrys suppliers

Rivalry among current competitors in the industry

Bargaining power of the industrys customers

Threat of substitutes produced by other industries

11

RI ALRY AMONG CURRENT COMPETITORS IN THE INDUSTRY 7218 Competiti$e 3i$alr! refers to the competiti$e struggle %etween companies in the same industr! to gain mar&et share from each other. The competiti$e struggle can %e fought using price product design" ad$ertising and promotion spending" direct selling efforts" and after sale ser$ice and supports. Fore intensif! ri$alr! implies lower prices. function of9 7211 Indu&tr) Co0*$titi%$ Structur$2 a. %. 7216 .um%er and si:e distri%ution of companies Consolidated $ersus fragmented industries ntensit! of ri$alr! is a

Bata falls in the categor! of the largest and fragmented industr!. Being the largest

industr!" it can minimi:e threat %! price cut etc. ;ragmented industr! is characteri:ed %! low entr! %arriers and commodit! t!pe products that are hard to differentiate. But most %ooms are short li$ed. Bata is countering the threat %! %rand $alue" 0ualit!" stri&ing design" product di$ersification" low price etc. 7217 D$0+nd Condition&. a. %. 721: Drowing demand K tends to moderate competition and reduce ri$alr! Declining demand K encourages ri$alr! for mar&et share and re$enue

n Bangladesh" the demand of footwear is high. Cere low price customers are

su%stantial in num%er. Bata e!es on %oth classic and low price customers re0uirements. Thus threat is reduced. 7213 Co&t Condition&. a. %. c. Cigh fi*ed costs K profita%ilit! le$eraged %! sales $olume Slow demand and growth K can result in intense ri$alr! and lower profits Bata reduces threat %! producing e*cess $olume and raising promotion

spending to dri$e sales $olume" cutting prices etc. 721; EEit B+rri$r&2 t pre$ents companies from lea$ing industr!. Common e*it

%arriers are in$estment in specific machine" high fi*ed cost of e*it" emotional attachments to an industr!" economic dependence on industr!N need to maintain an e*pensi$e collection of assets at minimum le$el. f e*it %arriers are low" this reduces ri$alr! and ma&es the industr! attracti$e. n case of footwear industr! e*it %arriers for large industr! is high due to huge capital in$estment %ut as there is scope of con$erting operations to other lather products it can %e said that e*ist %arriers is moderate.

12

721>

Str+t$4i$& 'or D$t$rrin4 Entr) o' Ri%+.&.

721?

Bata is successfull! doing the a%o$e. ;or e*ample" product proliferation" where the

product spaces ha$e %een filled" it is difficult for a new compan! to gain a foothold in the mar&et and differentiate itself. ;rom the a%o$e discussion we can sa! that" ri$alr! among the e*isting firms of the industr! is moderate. THREAT OF NEA COMPETITORS ENTERING THE INDUSTRY 721@ 7otential Competitors are companies that are not currentl! competing in an industr! %ut

ha$e the capa%ilit! to do so if the! choose. Barriers to new entrants include9 a. Econo0i$& o' Sc+.$ G +& 'ir0& $E*+nd out*ut unit co&t& '+.. %i+ 9 (1). (2). (1)" 7268 Cost reductions K through mass production Discounts on %ul& purchases K of raw material and standard parts Cost ad$antages K of spreading fi*ed and mar&eting costs o$er large $olume n Shoe industr! there are presences of all small" medium H large industries. n case of the small and medium categor!" economies of scale is low as fi*ed cost in$ol$ement is low. /conom! of scale is high in the large categor!. 7261 Br+nd Lo)+.t) a. %. c. ,chie$ed %! creating well8esta%lished customer preferences. Difficult for new entrants to ta&e mar&et share from esta%lished %rands. Bata en6o!s %rand lo!alt!. The threat of new entr! is not remar&a%le.

13

7266 a. %. c. 7267

,%solute Cost ,d$antages K relati$e to new entrants. ,ccumulated e*perience K in production and &e! %usiness processes Control of particular inputs re0uired for production 2ower financial ris&s K access to cheaper funds Cu&to0$r S9itc(in4 Co&t&. Customer switching cost is low in a product of mass

B+t+ (+&--

consumption. Considering this factor Bata is now %ringing low cost material from China to reach low price customer. 726: Go%$rn0$nt R$4u.+tion2 Fa! %e a %arrier to %oth new and e*isting industries.

Though it is too eas! to enter into the small and medium categor! %ut entr! in the large categor! of footwear industr! is difficult. THREAT OF SUBSTITUTES PRODUCED BY OTHER INDUSTRIES 7263 Su%stitute 7roducts are the products from different %usinesses or industries that can

satisf! similar customer needs. The e*istence of close su%stitutes is a strong competiti$e threat. Su%stitutes limit the price that companies can charge for their product. 726; China is producing artificial leather which is a su%stitute of natural leather. The price of

artificial leather is cheap. But performance is not as that of leather. But it has alread! o%tained mar&et niches due to low cost. Bata is assem%ling a su%stantial portion of footwear %ringing from China. Though footwear of artificial lather is cheaper than original lather-s %ut the %u!ers are more interested for lather products.

Co00$nt&-

;rom all the a%o$e we can sa! that threat of su%stitutes is low.

ANALYSIS ABOUT THE INDUSTRYFS SUPPLIERS 726> Suppliers are the organi:ations that pro$ide inputs such as material and la%or into the a. %. The product supplied is $ital to the industr! and has few su%stitutes. The industr! is not an important customer to suppliers.

industr!. These suppliers are most powerful when9

14

c. d. e. 726?

Switching costs for companies in the industr! are significant. Suppliers can threaten to enter their customers- industr!. Companies in the industr! cannot threaten to enter suppliers- industr!.

Su**.i$rF& Conc$ntr+tion. The main raw materials are leather" shoal" ru%%er" lining"

gum" plastic" etc. Though price has spiraled up in recent !ears" the raw materials are a$aila%le in the local and foreign mar&et and suppliers are not concentrated. Fore so there is large num%er of small and cottage industries wor&ing in this field and B,T, has made long term contact with some of them for suppl!ing semi finished products. 726@ For9+rd +nd B+c=9+rd int$4r+tion 9 .o indication of $ertical integration is found in

this sector. But there is indication of %ac&ward integration to capture margins" which gi$es firms in the industr! power o$er suppliers. 7278 Acc$&& to L+"or9 ;ootwear industr! is %asicall! a la%or8oriented industr!" i.e. la%or is

one of the main inputs of this industr!. So a$aila%ilit! of s&illed la%or is also important for the industr!. ,s B,T, has e*cellent pa! pac&age for its emplo!ee" so it is e*pected that B,T, will not face an! ma6or pro%lem to get additional la%or if it goes for e*pansion. Co00$nt&suppliers is low. ANALYSIS OF INDUSTRYFS CUSTOMERS 7271 ndustr! Bu!ers ma! %e the consumers or end8users who ultimatel! use the product or ;rom all the a%o$e we can sa! that %argaining power of the industr!-s

intermediaries that distri%ute or retail the products. These %u!ers are most powerful when9 Bu!ers are dominant. a. Bu)$r conc$ntr+tion9 Denerall! mass people %u! the footwear and the! are

not concentrated. Cowe$er" %ul& purchase is made %! some authorities li&e Department of Defense in case of Bata. %. Bu)$r &9itc(in4 co&t9 Bu!ers switching cost in case of footwear is not significant. So it is a threat. 7eople of Bangladesh are generall! low price %u!er. Bata" ta&ing this into consideration" is producing $ariet! of products in which gen customers can ha$e access. c. d. Product di''$r$nti+tion9 B+c=9+rd int$4r+tion9 Some differentiations are o%ser$ed in respect of Bac&ward integration is the process of pro$iding for Bata-s design" pro$iding warrant!" %rand image etc. themsel$es the means to produce the input. This can occur to guarantee a dependa%le source of the input or to capture the margins normall! paid to the suppliers. n case of

15

footwear industr! in Bangladesh %ac&ward integration is o%ser$ed in case of large industries. Bata produces tanned leather in Dhamrai factor! for finished products onward. e. Br+nd id$ntit) o' "u)$r&9 Bata is integrating world class %rand li&e O.i&e" Farie Claire" Cush 7uppies" Scholl" Bu%%le gummers" Sandal" =ein%renner" sland and B-first -. These would gi$e the industr! power o$er the %u!er. ;or creation of %rand identit! B,T, has is sponsoring Cand%all Tournament and ta&en other acti$ities li&e pro$ided school shoe to the Street Children etc. Co00$nt&;rom all the a%o$e we can sa! that %argaining power of the

industr!-s customers is low. PREDICTION OF POTENTIAL PROFITABILITY 9 7276 7orter-s fi$e factors anal!sis a%out footwear industr! in Bangladesh shows us that the

industr! is currentl! profita%le and there is hopeful for profit retention in the future. n summar! it can %e concluded that there are still ha$e some mar&et opportunities for manufacturing units with inno$ati$e idea H design" modern technolog! and willingness to ser$e the customers %etter. 7orter-s ;i$e ;orces model at a glance9

.ew /ntr! E+&)

Bargaining 7ower of Suppliers Lo9

3i$alr! among e*isting firms Moderate

Bargaining 7ower of Bu!ers Lo9

Threat of su%stitutes produced %! other industries Mod$r+t$

16

SAOT ANALYSIS9 7277 S=GT anal!sis means finding out the strength" wea&ness" opportunit! and threat of an

organi:ation. S=GT anal!ses help to identif! strategies that align" fit or match a compan!-s resources and capa%ilities to the demand of its en$ironment in which it operates. Fanagers compare and contrast the $arious alternati$e strategies against each other and identif! set of strategies that will create and sustain a competiti$e ad$antage.
Str$n4t( /*pert Fanagement Team .ational Distri%ution .etwor& S!nergies with sister BSG companies. Dood la%or relation /*cellent Bata %rand image Dood production facilities ,fter sales ser$ice Faintenance of 4ualit!. Technical &now how. Fanpower.
O**ortuniti$&-

A$+=n$&& Cigh cost of own production Cigh import duties.

7roduct range should %e more di$ersified.

Fa6or opportunities in ladies fashion footwear Drowing mar&et for upgraded men-s closed shoes ;ast growth in Bata Ba:ar stores De$elopment of %randed shoes ncrease of e*port %usiness

T(r$+t ncreased competition of low8cost products. 7olitical insta%ilit! nsufficient power suppl! Counterfeit of Bata products 2ow price products of China. ;re0uent de$aluation of Ta&a Shifts in consumer preference.

727:

Str+t$4) I0*.$0$nt+tion. ;rom the a%o$e S=GT anal!sis it can %e concluded that"

B,T, alread! ha$e a large mar&et share in the footwear industr! of Bangladesh and the! ha$e ta&en different strategies through which the! will %e a%le to sustain their mar&et share. The different strategies of the compan! are follows9 a. ntroduce and 7romote range of ,ccessories H ,pparels.

17

%. c. d. e. f. g. h. 6.

.ew technolog! in manufacturing /*pansion of retail Ba:ar > Cit! concepts ncrease num%er of =holesalers (Bata is ha$ing 52# 3egistered =holesale Dealer) 3ecruit educated H efficient store manager to ensure impro$ed ser$ice le$el. 7ro$iding training to the personnel home and a%road 7ro$ing special reward to the %est emplo!ee.( /mplo!ee of the Eear) ,ggressi$e focus on social and corporate acti$ities to maintain their corporate mage. Bata Shoe (Bangladesh) ha$e introduced their international %rands li&e .i&e"

Bu%%le gummers" Farie Claire" .orth Star" 7ower" S,.D,M" =ein%erger etc. which attracts the customers of different segment. &. The! are ta&ing different promotional acti$ities" li&e sponsor of games"

participating in fairs" highlighting in store promotions in different ma6or seasonal and festi$al promotions through press and Fedias. l. ,nother ma6or change in the Bata %usiness polic! is the segmentation of retail

outlets according to profiles of different mar&et segments and the introduction of no$el concepts such as Bata Cit! Stores. These selecti$e outlets" in con6unction with other t!pes of outlets such as Bata Ba:ar and Bata ;amil! Stores" are adding a new le$el of consumer satisfaction. The Cit! Stores incorporate spacious floor space allowing a comforta%le shopping e*perience" modern interior dPcor enriched with no$el shel$ing s!stems" fittings" fi*tures and lighting that can %e found in the large retail shops in the ;ar /ast and /urope. Bata has a networ& of 252 retail outlets located strategicall! in different parts of the countr!. These retail outlets are an integral part of our %rand mar&eting. This e*tensi$e retail networ& is supplemented %! an e0uall! e*tensi$e networ& of depots and dealers. Bata has 11 =holesale depots co$ering Bangladesh. Jnder these depots 1A# 3=D (3egistered =holesale Dealers) and <<1 DS7 (Dealer Support 7rogram) stores are operating. 7273 Co00$nt&n our anal!sis we found that e*isting strateg! will wor& for

retaining the e*isting mar&et and gaining accessing new mar&et. Cowe$er" concentration on cost leadership ma! enhance the profita%ilit! resulting more mar&et access.

18

CC,7T/39 ;GJ3

PERFORMANCE ANALYSIS Introduction9

:21 The goal of financial anal!sis is to asses the performance of a firm in the conte*t of its

stated goals and strateg!. There are two principal tools of financial anal!sis" 3atio anal!sis and Cash flow anal!sis. 3atio anal!sis in$ol$es how $arious line items in a firm-s financial statement relate to one another. Cash flow anal!sis allows the anal!st to e*amine the firm-s li0uidit! and how the firm is managing its operating" in$estment and financing cash flows. 3atio anal!sis of a compan!-s present and past performance pro$ides the foundation for ma&ing forecast of future performance. ;inancial forecast is useful in compan! $aluation" financial distress prediction etc" which is $er! important. 3atio anal!sis helps to measure management performance in three areas. a. %. c. :26 7rofita%ilit! /fficienc! 3is&

R+tio& c+n "$ c.+&&i'i$d in 'i%$ "ro+d c+t$4ori$& . a. %. c. d. e. 2i0uidit! 3atio. Gperating performance ratio. 3is& anal!sis. Drowth anal!sis. /*ternal li0uidit!.

T+".$ :21- P$rc$nt+4$ di&tri"ution o' Li<uidit) R+tio (BATA)Y$+r 12 Curr$nt R+tio 62 Huic= R+tio 72 C+&( R+tio :2 A%$r+4$ Co..$ction P$riod Sourc$ B+t+ Annu+. R$*ort (6887-6811) An+.)&i& ") EMBA &tud$nt in 68162 6887 12:@ 82>6 826> :72@? 688: 12:6 82:: 8211 7>233 6883 123: 82;6 8271 66276 688; 123: 82;6 8277 182>@ 688> 12:6 82:8 267 721; 688? 12:3 823: 827: 728@ 688@ 12:> 82;: 827@ 728> 6818 12:3 2;1 8273 62@; 6811 12:3 82:1 826> 62@?

19

COMMENTS9 :27 The current H 0uic& ratio measures short8term li0uidit! of the firms. ;rom a firms point

of $iew health! current ratio indicates li0uidities" %ut it ma! also indicate an inefficient use of cash H other short8term assets. n an! other circumstances a firm should ha$e a current ratio of at least 1 (one). , current ratio less than 1 (one) would mean that net wor&ing capital is negati$e i.e. the firm will not %e a%le to pa! the current lia%ilit! from its current assets. ;rom 2##1 to 2##5 the Current ratio of Bata Shoe Co (Bangladesh) 2td. had gone down from 1.5A to 1.52 H had gone up in 2##< and 2##' and again down to 1.52 %ut still a%o$e 1" which indicate that the firmQs current asset co$ers the current lia%ilit!. The ratio impro$ed in 2##< and remains same in 2##'. ;rom 2##( to 2#11 it is consistence which is a $er! good sign for Bata. :2: The Current ratio" 4uic& ratio H Cash ratio has more or less impro$ing trend and the!

are fluctuating moderatel!. The 4uic& H Cash ratio after 2##1 decreases and then again increases after 2##5. ;rom the o$erall position it is o%ser$ed that the compan! is a%le to utili:e the cash H other li0uid current assets efficientl!. :23 ,$erage collection period is calculated as the in$erse of recei$a%les turno$er times 1'#

da!s. 3ecei$a%les turno$er is calculated as sales di$ided %! account recei$a%les. This ratio measures how man! da!s it ta&es to collect a proceeds from a credit sales. ,$erage collection period of Bata shoe co (Bangladesh) 2td is decreased from 51.A)8da!s in 2##1 to 2.A)8da!s in 2#11 which is a positi$e side of the compan!.

C(+rt :21- Di&tri"ution o' Li<uidit) R+tio o' B+t+2

Li<uidit) R+tio (BATA)

6 123 1 823 8
6887 688: 6883 688; 688> 688? 688@ 6818 6811
12 Curr$nt R+tio 62 Huic= R+tio 72 C+&( R+tio

20

OPERATING PERFORMANCE RATIO:2; 3atios that measures how well management is operating a %usiness. Gperating a. %. Gperating efficienc! ratios K /*amine how the management uses its assets and capital. Gperating profita%ilit! ratios K ,nal!:e profits as a percentage of sales and as a percentage of the assets and capital emplo!ed.

performance ratio is two t!pes.

T+".$ :26- P$rc$nt+4$ di&tri"ution o' O*$r+tin4 E''ici$nc)Y$+r 12 FiE$d A&&$t Turno%$r 62 Tot+. A&&$t Turno%$r 72 In%$ntor) Turno%$r Sourc$ :2> B+t+ Annu+. R$*ort (6887-6811) An+.)&i& ") EMBA &tud$nt in 68162 6887
>2?@ 123; 6213

688:
>271 1277 12:8

6883
?2@; 12;: 6211

688;
182:@ 12?@ 627:

688>
182?3 6286 6287

688?
@2>3 62: 628?

688@
182?6 6287 62@;

6818
11286 623: 62:3

6811 ?21? 126; 621@

COMMENTS9 ;i*ed asset turno$er means how much sales is generated for e$er!

single ta&a of fi*ed asset. Total asset turno$er means how much sales is generated for e$er! single ta&a of total asset. ,sset turno$er was falling down in 2##5 due to lower growth in sales %ut su%stantiall! impro$ed in 2##< and onward. The n$entor! Turno$er ratio shows the sales management efficienc! of the compan!. The standard c!cle is 5 times. The calculated $alue is 2 times at a$erage. So the management efficienc! is e*pecta%l! good.

C(+rt :26- Di&tri"ution o' O*$r+tin4 E''ici$nc) O*$r+tin4 E''ici$nc)

16 18 ? ; : 6 8
6887 688: 6883 688; 688> 688? 688@ 6818
FiE$d A&&$t Turno%$r Tot+. A&&$t Turno%$r

6811

In%$ntor) A&&$t Turno%$r

T+".$ :27- P$rc$nt+4$ di&tri"ution o' O*$r+tin4 *ro'it+"i.it)21

Y$+r 12 Gro&& Pro'it M+r4in 62 o*$r+tin4 Pro'it M+r4in 72 N$t Pro'it M+r4in

6887
:62;?I

688:
:828@I

6883
7>26@I

688;
7@2?6I

688>
:12:@I

688?
:62>?I

688@
:82;>I

6818
:728@I

6811
73I

1;211I

11288I

1121@I

182>>I

182?8I

112>:I

1823;I

112?@I

16I

182>@I

;2;3I

;2@3I

>21?I

;2@8I

>28@I

;2?>I

;2;>I

@I

Sourc$ :2?

B+t+ Annu+. R$*ort (6887-6811) An+.)&i& ") EMBA &tud$nt in 68162

COMMENTS9 7rofita%ilit! ratios show that Dross 7rofit Fargin" operating 7rofit Fargin

and .et 7rofit Fargin do not fluctuate much indicating an impro$ed operating profita%ilit!. Compan! earned '? and a%o$e the net profit against net sales. The standard is <? 8 1#?. So it can %e assumed that it performed well.

C(+rt :27- Di&tri"ution o' O*$r+tin4 *ro'it+"i.it) -

O*$r+tin4 Pro'it+"i.it)
38288I :8288I 78288I 68288I 18288I 88288I

6887

688:

6883

688;

688>

688?

688@

6818

6811

Gro&& Pro'it M+r4in

O*$r+tin4 Pro'it M+r4in

72 N$t Pro'it M+r4in

22

FINANCIAL RISK: :2@ 3is& anal!sis9 3is& anal!sis e*amines the uncertaint! of income flows for the total firms

and for the indi$idual sources of capital.

T+".$ :27- P$rc$nt+4$ di&tri"ution o' Fin+nci+. Ri&=Y$+r D$"t R+tio D$"t-to-E<uit) Int$r$&t Co%$r+4$ R+tio Sourc$ :218 6887 82;8 821; 3;2;: 688: 82;: 821@ 612>; 6883 82;8 821@ 662;1 688; 82;8 821? 3:2?3 688> 2;7 21> 3@2@1 688? 82;6 821? 3?2>? 688@ 82;> 821? 3@2?; 6818 82;7 821@ 3>27: 6811 82;1 821@ 3?271

B+t+ Annu+. R$*ort (6887-6811) An+.)&i& ") EMBA &tud$nt in 68162

COMMENTS9 The Compan! does not use de%t from an! financial organi:ation. But a

su%stantial amount of current assets is financed from supplier-s credit. ,s the compan! does not use de%t from financial institution" the nterest Co$erage 3atio of the compan! is $er! good. Cence we can sa! that the compan! has low financial ris&. FINANCIAL GROATH ANALYSIS2 :211 Drowth anal!sis9 3atios that indicates the growth potential of a firm. +alue of a firm

depends on its future growth in earnings and di$idends. :216 /arning per share9 This calculation shows how much earned per share. t is calculated %! di$iding net profit %! num%er of shares. That is9 .et profit after ta* .um%er of shares

T+".$ :23- P$rc$nt+4$ di&tri"ution o' EPS-B+t+6887 T=2662:; Sourc$ 688: T=2162;: 6883 T=21323> 688; T=268276 688> T=2662@; 688? 762?3 688@ 762?3 6818 7@2>; 6811 :12@@

B+t+ Annu+. R$*ort (6887-6811) An+.)&i& ") EMBA &tud$nt in 68162

R$0+r=&9 The calculation shows that earning per share got reduced in 2##5. But it is good in recent !ears

23

:217

DUPONT ANALYSIS9 3G/ @ .et ncome > Share holders /0uit!" factors) @ 3G, * ;inancial le$erage (3G, can %e decomposed as a product of two factors) 3G, @ .et profit margin * ,ssets turno$er" Therefore" 3G/ @ .et profit margin * Total assets turno$er * ;inancial le$erage. (3G/ is affected %! the following two

:21:

3G/ is a comprehensi$e indicator of a firms performance %ecause it pro$ides an

indication of how well managers are emplo!ing the compan! funds to generate return. , compan! 3G/ is affected %! two factors9 3G, H ;inancial 2e$erage. 3G, tells us how much profits a compan! is a%le to generate for each dollar of assets in$ested. ;inancial le$erage indicates how man! dollars of assets the firm is a%le to deplo! for each dollar in$ested %! its shareholders.

:213

3G, can %e decomposed as a product of two factors9 .et profit margin H Total assets

turno$er. .et profit margin ratio indicates how much the compan! is a%le to &eep as profits for each dollar of sales it ma&es and ,ssets turno$er ratio indicates how man! sales dollars the firm is a%le to generate for each dollar of its assets.

:21;

Dupont identit! tells us that 3G/ is affected %! three things9 a. %. c" 7rofit margin. Total asset turno$er. /0uit! multiplier.

:21>

Cigher rate of 3G/ does not alwa!s reflect the actual picture of profita%ilit!. =hen 3G/

increases due to increase of profit margin or total asset turno$er then it is good for the firm. But when 3G/ increase due to increase of de%t financing" then it is not good for the firm. Gn the other hand" lower rate of 3G/ does not alwa!s reflect the actual picture of profita%ilit!. =hen 3G/ decreases due to increase in de%t financing H all other remain same" it is good for the firm.

24

T+".$ :2;- P$rc$nt+4$ di&tri"ution o' R+tio& r$.+t$d 9it( ROE-

Y$+r
N$t Pro'it ATJS+.$& S+.$&J Tot+. A&&$t& ROA Tot+. A&&$t& J SE ROE

688:
;2;3I 17721@I ?2?;I 6??2:6I 6323;I

6883
;2@3I 1;32;>I 11231I 63>28?I 6@23@I

688;
>21?I 1?@21@I 1723@I 6:@2@?I 772@;I

688>
;2@8I 686286I 172@3I 6>72?1I 7?21?I

688?
>26?I 1@?2>?I 172;;I 6?>2@?I 73216I

688@
;2@?I 68123;I 1:2:>I 6?;2:7I 7;28@I

6818
>27:I 6872::I 172?@I 6@:267I 7@2;3I

6811
@28>I 1@62;1I 1?I 63:2;8I :?I

Sourc$ -

B+t+ Annu+. R$*ort (6887-6811) An+.)&i& ") EMBA &tud$nt in 68162

C(+rt :2:- Di&tri"ution o' Du*oint An+.)&i& -

DuPoint An+.)&i&
38288I :8288I 78288I 68288I 18288I 88288I

6887

688:

6883

688;

688>

688?

688@

6818

6811

ROA
:21?

ROE

COMMENTS9 ;rom the a%o$e ta%le we find that 3G/ had decreasing trend till 2##5

and then in 2##( it increased graduall! and significantl!. This happened in 2##5 due to decrease in Sales as well as .et 7rofit margin. The same has %een increased slightl! after that in 2##< H 2##' though the Total ,ssets to Stoc&holders- /0uit! ratio decreases. This happened due to increase in Sales as well as .et 7rofit margin %ut it impro$e in 2##) to 2#11. ;rom all these it can %e concluded that the compan! fall in pro%lem in 2##5 %ut the position is impro$ing now.

CHAPTER-FI E
25

Hu$&tionn+ir$& An+.)&i&
<.1 =e ha$e ta&en sample si:e 1##. ,nd we ha$e distri%uted this sample si:e among No o' P$o*.$ 1# 1# 2# 1# 1# 1## Our &ourc$& +r$1. Student of College>Jni$ersit!. 2. Defense person. 1. Ci$il Ser$ices. 5. Business 7erson <. Gutlet relationship officer. T+".$ -321 Di&tri"ution o' Cu&to0$r c(oic$ A"out B+t+ 2 different age group. ;ollowing is the distri%ution of age9 A4$ 4rou* 1#.2# 2181# 1185# 518<# 3etail outlet Business Total 326

R$+&on 'or Li=in4

Comforta%le /as! to wear Cheep ,$aila%le Dura%le Total ,$erage Sourc$ Co00$nt it-s o$er all 0ualities. T+".$ -326 1( 1# 1 <# 2# 1## 2#

Nu0"$r

P$rc$nt+4$
1(? 1#? 1? <#? 2#? 1##?

Sur%$) in t($ 'i$.d ") EMBA &tud$nt in No%$0"$r 68162 ;or general customers>users and to attract more people Bata should

lower its price. Side %! side Bata should increase its dura%ilit! and comfort le$el %! impro$ing

Di&tri"ution o' Cu&to0$r&JU&$r& Attr+ction A"out B+t+ 2

R$+&on& 'or Attr+ction

26

Nu0"$r

P$rc$nt+4$

B+tt$r <u+.it)2 Co0*$titi%$ *ric$ (*ric$ cuttin4)2 Mor$ +ttr+cti%$ +rit) 9it( i0*ro%i&+tion (Product *ro.i'$r+tion) 2 T+r4$tin4 t($ 0idd.$ inco0$ 4rou*2 D$%$.o*in4 "$tt$r &u**.) c(+in2

73 18 13 78 18 188 68

73I 18I 13I 78I 18I 188I

Tot+. A%$r+4$
Sourc$ Co00$nt -

Sur%$) in t($ 'i$.d ") EMBA &tud$nt in No%$0"$r 68162

Fost of the customers>users li&e Bata for its 0ualit! and still it is a%le to attract middle income group. Though it needs to produce more $arieties %! inno$ati$e impro$isation for %etter future. To %e more competiti$e it needs to reduce its price to attract the potential customers. T+".$ - 327 Di&tri"ution o' Cu&to0$r S+ti&'+ction .$%$. A"out B+t+ 2

D$4r$$ o' S+ti&'+ction L$%$.J Di&&+ti&'+ction L$%$.

Hi4(.) S+ti&'i$d S+ti&'i$d N$utr+. Di&&+ti&'i$d Hi4(.) di&&+ti&'i$d 6 :8 78 68 ? 188 68

Nu0"$r

P$rc$nt+4$
6I :8I 78I 68I ?I 188I

Tot+. A%$r+4$
Sourc$ Co00$nt -

Sur%$) in t($ 'i$.d ") EMBA &tud$nt in No%$0"$r 68162 Mo&t o' t($ cu&to0$r&Ju&$r& +r$ &+ti&'i$d "ut + 4ood nu0"$r o'

cu&to0$r&Ju&$r& +r$ in n$utr+. .$%$.2 A4+in 68I +r$ di&&+ti&'i$d +nd ?I +r$ (i4(.) di&&+ti&'i$d2 So B+t+ n$$d& to i0*ro%$ in t(o&$ 'i$.d 'or "$tt$r 'utur$2

A$i4(t$d A%$r+4$ Scor$ 2et us consider the weights are as follows 9 a. %. c. Cighl! Satisfied Satisfied .eutral @< @5 @1

27

d. e.

Dissatisfied Cishl! dissatisfied

@2 @1

=eighted ,$erage @

<R2S 5R5# S 1R1# S 2R2# S 1R)T 1##

@ Scor$T+".$ -32:

1.#)

2ocation of Satisfaction 2e$el of Bata is in8%etween Satisfied and .eutral.

Di&tri"ution o' Cu&to0$r&J U&$r& Li=in4 +"out An) Foot9$+r 2

D$4r$$ o' Li=in4& o' %+riou& Foot9$+r

B+t+ A*$E D+ni& P$4+&u& E*&i Rid$r :8 6: 18 1; : ; 188 1;2;;

Nu0"$r

P$rc$nt+4$
:8I 6:I 18I 1;I :I ;I 188I

Tot+. A%$r+4$
Sourc$ Co00$nt-

Sur%$) in t($ 'i$.d ") EMBA &tud$nt in No%$0"$r 68162 Mo&t o' t($ cu&to0$r&Ju&$r& .i=$ B+t+ +nd A*$E i& t($ n$+r$&t

co0*$titor o' B+t+ in 'utur$2

T+".$ -323

Di&tri"ution o' Co0*$tition .$%$. o' B+t+ 9it( +riou& Foot9$+r Br+nd 2

Co0*$tition L$%$. o' B+t+ Ait( Ot($r Br+nd o' Foot9$+r

A*$E D+ni& P$4+&u& E*&i R+d$r ;1 18 61 3 7

Nu0"$r

P$rc$nt+4$
;1I 18I 61I 3I 7I

28

!+&i0

Tot+. A%$r+4$
Sourc$ -

8 188

8I 188I

Sur%$) in t($ 'i$.d ") EMBA &tud$nt in No%$0"$r 68162

Co00$nt-

Pr$&$nt.) A*$E i& t($ 0o&t n$+r$&t co0*$titor o' B+t+ +nd P$4+&u&

0+) co0$ u* in 'utur$ +.&o2 So 9$ c+n co0*+r$ ") +n+.)&i& t($ co00on 5on$ o' 'in+nci+. c(+r+ct$ri&tic& .i=$ co&t o' &+.$&/ 4ro&& *ro'it/ $E*$n&$/ t+EF& +nd *ro'it o' A*$E 9it( B+t+ to 'ind out t($ir 'in+nci+. condition2

29

327

COMMON-BONE ANALYSIS

T+".$ 321- P$rc$nt+4$ di&tri"ution An+.)&i& 'or Co00on-&i5$ Inco0$ St+t$0$nt (BATA) E%$nt& S+.$& Co&t o' S+.$& Gro&& Pro'it EE*$n&$& T+E$& Pro'it Sourc$ 6887 188I 3>I :7I 6;I 3I 182>I 688: 188I ;8I :8I 6@I 72?I ;2?I 6883 188I ;7I 7>I 6>I 72>I ;2>;I 688; 188I ;8I :8I 6@I 72:I >21>I 688> 188I 3?I :1I 71I 72>I >I 688? 188I ;323I 7:23I 682;I 72>I @2>I 688@ 188I ;7I 7>I 6:I 72;I ?2@I 6818 188I ;:I 7;I 67I 723I @2;I 6811 188I ;32:7I 7:23>I 662;:I 62@6I @21I

Fin+nci+. An+.)&i& o' B+t+ ") EMBA &tud$nt in No%$0"$r 68162

T+".$ 326- P$rc$nt+4$ di&tri"ution An+.)&i& 'or Co00on-&i5$ Inco0$ St+t$0$nt (APEK) E%$nt& S+.$& Co&t o' S+.$& Gro&& Pro'it EE*$n&$& T+E$& Pro'it Sourc$Co00$nt&6887 188I ?;I 1:I 16I 6I 271I 688: 188I ?@I 11I ?I 2:@I 623I 6883 188I @8I 18I >27I 27@I 261I 688; 188I @1I @I >I 27:I 12>6I 688> 188I ??I 11I >I 2>7I 72?I 688? 188I ??I 16I ?I 2;8 72:I 688@ 188I ?3I 13I 18I 2;6 72;I 6818 188I ?:I 1;I 16I 2;3 727I 6811 188I @12;;I ?27:I 72>7I 1281I 72;I

Fin+nci+. An+.)&i& o' A*$E ") EMBA &tud$nt in No%$0"$r 68162 ;rom the a%o$e" it is seen that Bata-s profit is %etter than that of ,pe*.

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Cor*or+t$ Soci+. R$&*on&i"i.iti$&2

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32:212

Gne of the critical areas associated with e*ternal shareholders and the

communit! at large is the Corporate Social 3esponsi%ilit! 7rogram of the compan!. ;ollowings are their part of CS3 of Bata9 a. %. c. Supporting nationwide sports sponsorships. Celping disa%led persons. ,ddressing en$ironmental concerns %! esta%lishing /ffluent Treatment 7lant (/T7) to pro$ide a pollution free en$ironment for %oth wor&ers and localit!. d. Scholarship programs" e. Charit! contri%utions K Bata has alwa!s supported indi$iduals and communities in need. f. g. 7artnerships with other $oluntar! and charita%le organi:ations are another prominent feature of Bata-s corporate social responsi%ilit!. Bata" in partnership with C,3/" e*tends assistance to o$er two thousand rural women in order to %ecome independent entrepreneurs in the 3a6shahi" Comilla and Chittagong di$ision selling shoes from door to door under its 3ural Sales 7rogramme. h. 7ro$ides school shoe to the street children. i. Selecting emplo!ee of the !ear for %etter participation.

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R$co00$nd+tion&a. Cost of sales needs to %e reduced %! %etter management and mar&eting efficienc!. t needs to de$elop %etter suppl! chain s!stem to reach the customers>users door. %. ,s closer competitors ,pe*" is imposing considera%le threat which needs to %e negotiated %! %etter %usiness strateg! with more product proliferation and price cutting. c. .um%er of Turno$er for fi*ed asset" total asset and in$entor! needs to %e increased more for %etter utili:ation of asset and sales management capacit!. d. .eed to address the threat of su%stitutes product produced %! other industries and cheep foreign product imported from neigh%oring countries. e. /n$ironmental effect of political" economic" legal and cultural for Bata needs to %e considered with due importance. f. Fore aggressi$e focus on corporate" social responsi%ilit! (CS3) acti$ities of Bata to %e maintained for Bata-s corporate image.

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g. ;inall! Bata should stri$e towards one goal" customers Satisfaction with afforda%ilit!.

32;2 32;212

CONCLUSIONS. The Bata Shoe Grgani:ation is the largest manufacturer of footwear in the world.

ts %usiness comprises of shoe factories. Tanneries" engineering plants" 0ualit! control la%oratories and 3HD centers. So far" we ha$e highlighted a%out Bata Shoe Compan! (Bangladesh) 2td which is the leading compan! of the industr!. =e ha$e prepared ratio anal!sis of the firm to show its performance. This report shows a comprehensi$e re$iew and anal!sis on the current state Bata Shoe Compan! (Bangladesh) 2td. ;or %etter assimilation" we ha$e compared it with ,pe* which is another competent footwear industr! in Bangladesh. , common si:e income statement we ha$e seen that Bata-s profit is %etter than that of ,pe*. 182 =hile preparing this paper it has %een found that Bata now 8a 8da!s assem%les a

su%stantial portion of Chinese materials product %ut is la%eled with %rand Bata. Sometimes the 0ualit! seemed to %e deteriorated %ut price seemed to %e high. This might ha$e negati$e impact on customers. Bata should ta&e care to &eep up its long earned image while di$ersif!ing its product. ;inall! Bata should stri$e towards one goal" customers Satisfaction with afforda%ilit!.

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BIBLIOGRAPHY

BOO!SJ REFERENCES1. Mrishna D.7alepu" 7aul F. Ceal! and +ictor 2 Bernard 8 Business anal!sis H +aluation" 2nd /dition. 2. 1. 5. <. '. (. ). A. 1#. ;redric& C. Scherr8 Fodern =or&ing Capital Fanagement. Charles =. 2. Cill"Dareth 3. Lones 8 Strategic Fanagement" Se$enth /dition. ,nnual 3eports" Bata (2##182##5). ,nnual 3eports" Bata (2##<82##'). ,nnual 3eports" Bata (2##(82##)). ,nnual 3eports" Bata (2##A). ,nnual 3eports" Bata (2#1#). ,nnual 3eports" Bata (2#11). nternet9 o ,pe* K annual report 2#1# dt 1(8#5811. o http9>>www.%ata%d.com o Bata contractU%ata.com o http9>>www.dse%d.org o http9>>www.%ata%d.com>a%out8us.html

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