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

Project Guide / Internal Examiner

External Examiner

Principal

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 cooperation, books and articles & the other important materials.

Table of contents

Chapter

Subject

Executive Summery

01.

Introduction:

01
02-04

1.1 Report Background

1.2 Significance
1.3
1.4
1.5
1.6

02.

Page no:

Scope of report
Objective of report
Methodology
Limitation of the study

Over view of Bata Shoe Company:

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:

05-21

03.

Findings & Recommendation:

04.

Conclusion:
4.1 Conclusion:

22-23

3.1 Findings:
3.2 Recommendation:

24

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:

Batas commitment to service continues to this day, from the designers
sketchbook through to the performance of our shoes on a customers 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
organizations 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
h

Weakne
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 4ps is the set of controllable tactical marketing tools

Product
price
place
promotion

In the terms of Bata shoe Company the 4ps can be describe as:

Product

Promotion

Bata Shoe
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

Mid level price
Lower level price

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
o
o
o
o
o
o
o
o
o
o

Sylhet
Dinajpur
Rangpur
Rajshahi
Mymensing
Jessore
Narayangong
Comilla
Khulna
Barisa
Chittagong

Promotion:
Bata Shoe Company uses their promotion skill in some tacts 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-eBangla National Stadium in Dhaka last week. Negotiated by UKbased 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:
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.
1.

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.

2.9 Income Statement:

PERIOD ENDING
Total Revenue
Cost of Revenue

31-Aug-09 31-Aug-08 31-Aug-07

11,724,000 11,365,000 8,563,000
4,962,000 5,188,000 4,277,000

Gross Profit
Operating Expenses
Research Development
Selling General and
Administrative
Non Recurring
Others
Total Operating Expenses

Operating Income or Loss

6,762,000

1,098,000
2,037,000

6,177,000 4,286,000

980,000

780,000

2,312,000 1,895,000

524,000
-

164,000
-

193,000
-

3,103,000

2,721,000 1,418,000

Income from Continuing Operations

Total Other Income/Expenses Net
(7,000) 315,000
57,000
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
Ops
Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items

Net Income

2,098,000

2,007,000

922,000

11,000
-

17,000
-

71,000
-

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
Short Term Investments

1,956,000
108,000

1,613,000
-

866,000
-

Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges
Total Assets
Liabilities
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities

2,851,000
2,934,000
34,000

3,147,000
2,453,000
396,000

2,355,000
1,719,000
144,000

7,883,000
677,000
3,609,000
3,218,000
1,371,000
376,000
743,000

7,609,000
636,000
3,323,000
3,132,000
1,531,000
760,000
1,000,000

5,084,000
2,656,000
2,625,000
1,415,000
473,000
730,000

17,877,000 17,991,000 12,983,000

3,116,000
135,000
505,000

3,522,000
24,000
893,000

2,545,000
270,000
260,000

Total Current Liabilities

Long Term Debt
Other Liabilities
Deferred Long Term Liability
Charges
Minority Interest
Negative Goodwill

3,756,000
1,736,000
1,688,000

4,439,000
1,792,000
1,616,000

3,075,000
1,150,000
1,255,000

641,000

770,000

Total Liabilities

7,821,000

8,617,000

5,480,000

Stockholders' Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock

Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity

6,000
6,000
6,000
2,682,000 1,138,000
(405,000)
(1,577,000) (1,177,000) (814,000)
9,695,000 9,495,000 9,106,000
(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