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Sadg Final Project Submitted to: Sir Amjad Ali GROUP “F” MEMBERS Muhammad Afzal (Group Leader) Farhan Naeem
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Page 1: Bata Project

Sadg

Final Project

Submitted to: Sir Amjad Ali

GROUP “F” MEMBERS

Muhammad Afzal (Group Leader)Farhan NaeemKhalid SafdarAmir

Page 2: Bata Project

THE EXORDIUM

Nothing is deserving worship Almighty Allah, the most Merciful,

Compassionate and Gracious. All praises for Him because He is the

creator of this mysterious universe and guides us through the Holy

Prophet Mohammed (Peace be upon him) and the Holy Quran to

explore it. We supplicate that Allah grant us serenity to accept the

things we cannot change, courage to change that we can, and wisdom

to differentiate.

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Page 3: Bata Project

ACKNOWLEDGEMENT

All the praise is for Almighty Allah Who gave us the strength, mental and physical capabilities to accomplish this project.

We would love to express our gratitude and sincere appreciation to Prof. AMJAD ALI for his encouragement, constructive teaching approach and maintaining a healthy and competitive atmosphere in the class that helped us to embrace this formidable challenge.

We would also like to acknowledge endeavor of Bata team for their support and extremely friendly attitude without which the accomplishment of this project would not have been possible.

We would also like to extend our thanks to everybody who helped us to make this project a brilliant success.

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Page 4: Bata Project

Summary / Frame Work

As a Group Leader, I hold a meeting on 2nd Jun, 10 Wednesday in which I discuss the Project with my group members. Our mission/goal is not to complete the Project but to learn a practical experience.

We decided Bata Company after mutual consent with all group members. All group members agree on Bata and we decided to visit Bata on 9 th June, 10 for an interview with Manager.

After Interview, I split the Project into 4 parts & allow my group members to choose any part of their choice.

As a group leader, I encourage/help my group members in all aspects whenever they need my help. I send text msgs/emails to keep them up to date.

Finally I assign my group members their tasks that each group member email me his part of soft copy & powerpoint slides, so that I finally assembled the Project.

At the end, I print & finalize the slides.

The tasks are divided as follows:

1. Afzal

(Introduction + Culture, Problems, Decision Making, Environment)

2. Khalid Safdar

SWOT Analysis

3. Farhan Naeem

BCG Matrix

4. Amir

Functions

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Page 5: Bata Project

RESEARCH PROJECT

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Page 6: Bata Project

Introduction About ManagerWe met MR. Umer Farooq, Manager Bata Shoes Johar Town Branch. He is working as a Manager since last 10 years. He is Middle line Manager. He has done his MBA.

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Page 7: Bata Project

’s Mission

“No one in the world know shoes like we do”

’s Vision

“Our Customer is our Master”

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Page 8: Bata Project

Bata is one of the world's leading footwear retailers and manufacturers with operations across 5 continents managed by 3 regional meaningful business units (MBUs). The MBU approach provides quality resources and support in key areas to the companies operating in similar markets such as product development, sourcing or marketing support. Each MBU is entrepreneurial in nature, and can quickly adapt to changes in the market place and seize potential growth opportunities.

Bata's strength lies in its worldwide presence. While local companies are self-governing, each one benefits from its link to the international organization for back-office systems, product innovations and sourcing.

Although Bata operates in a wide variety of markets, Bata companies share the same leadership points. Two important ones are product concept development and constant improvement of business processes in order to offer customers great value and the best possible service

‘s 3 Business Units

Bata Europe, Lausanne, Switzerland Bata Emerging Markets, Singapore Bata Branded Business, Best, Holland

Serves 1 million customers per day Employs more than 40,000 people Operates 5000 retail stores Manages a retail presence in over 70 countries Runs 33 production facilities across 22 countries

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Page 9: Bata Project

IMPORTANT DETAILYEAR OF ESTABLISHMENT 1894 by Tomas Bata

Customers 1 million customers per day

Operates 5000 retail stores

NUMBER OF EMPLOYEES More than 40,000 people

COUNTRY OF ORIGIN Zlin Czechoslovakia

Retail Stores Manages a retail presence in over 70 countries

COMPETITORS Service, Hush Puppies, Urban Sole

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Page 10: Bata Project

A Visit to Bata, a Slight Glimpse during an Interview

Pixs During an Interview

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FIVE BUSINESS SEGMENTS

Marie ClaireBubble GummersWeinbrennerPowerComfit

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Page 13: Bata Project

Goals of BataMR. Umer Farooq told us that these are the main goals of the company

INNOVATIONMARKET LEADERCONSUMER COVERAGEMARKET CAPTUREINCREASE SALES

(in terms of profit)

EXPANSION

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Page 14: Bata Project

PLANTS

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’S POLICY

Customer is our Master

We are committed to:

1. Meet the requirement of all relevant legislation and regulation related to consumer satisfaction & safety, environment and other applicable laws etc.

2. To prevent pollution through controlling levels of harmful emission, effluents and other wastes.

3. Contribute to safe and healthy environment for our country.

4. Promote mutual trust with customers, suppliers, employees, shareholders and community.

5. Provide all the necessary resources for the continual improvement in quality, safety of our products, processes and environment.

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ORGANIZATION CULTURE

The shared values principles, traditions and ways of doing things that influence the way organizational members act.

STRONG CULTURE IN BATAWe asked from the manager that which culture they have in their organization. The manager said that there is a strong culture in Bata. He told us that values are clearly defined and shared; each employee is familiar with the background of Bata and also knows the history of Bata as well as objectives and missions of Bata. The senior employees plays very important role to promote the strong culture. They change the techniques and use new technology to increase the quality of their products. And all that process increase customer demands and ultimately it has a positive effect on culture.

Managers are diretly responsible for an organizations success and failure

Awards, Cash Prizes on achieving highest sales, Performance Awards etc

Welcoming the customer & Customer is always rite Properly Formal Dress Code Special Shoe Language to communicate Articles Numbers

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Problem“Problem is an obstacle that makes achieving a desired goal or purpose difficult.”

Or

“An unwelcome or harmful matter needing to be dealt with and overcome”

Or

“A thing that is difficult to achieve”

TYPES OF PROBLEM

Structure Problem Unstructured Problem

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PROBLEM

STRUCTURED PROBLEM

POLICY

RULES

PROCEDURE

UNSTRUCTURED PROBLEM

NONPROGRAMMED DECISIONS

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Structure Problem

“A straight forward, familiar, and easily defined problem is called as Structure Problem.”

Solutions for structured problems

Following are the three solutions which can be implemented for resolving a structured problem.

1. Procedure2. Rule 3. Policy

ProcedureA series of sequential steps used to respond a well structured problem.

Example 1Giving a receipt to customers so that customer can claim within one month from purchase

Example 2Manager should check the stock weekly and orders the sold items to the company.

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Rules “An Explicit statement that tells manager what can or cannot be done.”

Example 1There is a rule of Company that no claim shall be made without purchase slip. Customer must produce receipt in order to get claim.

Example 2There is another rule of company that Claim must be produced if any within 30 days from purchase. No claim shall be made after 30 days from the date of purchase.

PolicyA guideline for making decisions is called as policy.

Example There is a policy of company to accept or reject the claim depending on shoes condition. A new pair of shoes shall be gives if claim is reasonable.

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Unstructured problems

The problems that are new or unusual and for which the information is ambiguous and incomplete are called unstructured problems.

Nonprogrammed Decisions

When the problems are unstructured managers must rely on nonprogrammed decision making in order to develop unique solutions.

“Nonprogrammed decisions are unique and nonrecurring and involve custom-made solutions

Example

Mr.Umer told us that unstructured problems are mainly handled by head office. He told us that he reports to the head office immediately whenever he faces unstructured problem.

He usually faces unstructured problem of cash or misplacement of shoe pairs.

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Page 21: Bata Project

ENVIRONMENT

MR. Umer told us that there are two different environments in Bata Company

SPECIFIC ENVIRONMENT

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THE ORGANIZATION

SUPPIERS

CUSTOMERS

COMPITETORS

PUBLIC PRESSURE

GROUP

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SPECFIC ENVIRONMENTThe specific environment includes those external forces that have a direct impact on manager s’ decisions and actions, and are directly relevant to the achievement of the organizational goals.

CUSTOMERSCustomers are very important for the organization because customers are the main source of organizations profit. Organization exists to meet the need of customers. The consumer demand of Bata shoe is also very high. Customer obviously represents potential uncertainty to an organization. If customers become dissatisfied with the organization products it will really affect the organization.

SUPPLIERS

Suppliers are very important for any organization. In Bata, suppliers play very important role because they supply leather, soles etc to the factory. A supplier relationship is one way of ensuring competitive and quality products for an organization.

COMPETITORS

Every organization has one or more competitors. Competitor’s analysis and monitoring is crucial if an organization is to maintain its position within the market. Bata also have many competitors in the market but the main competitors of Bata are Servis, Hushpuppies, & Urban Sole.

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GENERAL ENVIRONMENT

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THE ORGANIZATION

ECONOMIC

GLOBAL

POLITICAL/LEGAL

SOCIALCULTURAL

TECHNOLOGICAL

DEMOGRAPHIC

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GENERAL ENVIRONMENTIn general environment there is broad external conditions that may affect the organization.

ECONOMIC CONDITION

The manager told us that inflation, interest rates, stock market fluctuation etc these are some factors which can affect management practices in their organization. But Bata is leading company among footwear and its sale increases 4 times than in 2005.

POLITICAL CONDOTION

He told us that political condition has a great affect in their organization because when government changes it really affects on the organization and when government changes the tax rate every year it had a big affect on Bata. Management has to know about the political change in the country because these conditions influence the decisions and actions.

DEMOGRAPHIC CONDITIONS

Demographic condition are physical characteristics of population like age, gender, level of education, income, family composition etc .These demographic conditions also effect organization. Changes in these characteristics have a great impact on manager’s job. (Manager’s job like planning, leading, controlling etc) Manager should be aware the liking and dislikings of people according to their ages.

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Page 25: Bata Project

TECHNOLOGICAL

The technology has a great affect on organization. We live in the time of technological changes. MR. Umer told us that Bata has latest Plants and Technology.

GLOBAL

The globalization is one of the major factor affecting managers and organizations. Organizations are challenged by an increasing number of competitors in whole world. Bata also have to face different competitors in the countries. The international competitors of Bata are Hushpuppies, Nike, and Urban Sole.

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Page 26: Bata Project

Managerial Functions Performed By Mr.Umer Farooq

PlanningA management functions that involves defining goals, establishing strategies for achieving those goals and developing plans to integrate & coordinate activities.

Mr.Umer told us that he plans according to the sales target set by Head office. His goal is basically to achieve the target sale.

He gives an example that if sales target is Rs.10 lakh of the month, then he build up strategy accordingly

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OrganizingDetermining what needs to be done, how it will be done and who is to do it.

As the sale target is Rs. 10 Lakh, he checks that the stocks available is of 10 Lakh or not. He orders the stock if it is of not 10 Lakh or if there is a shortage.

LeadingMotivating, Lading and any other actions involved in dealing with people

He leads his sales man by motivating them. He told us that motivating is a key to success. Moreover company offers rewards for outstanding sales man in the form of commission, Bonus amount after the end of quarter. Company also make workshops for their employees.

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Managerial Skills used By Mr.Umer Farooq

Human SkillsThe ability to work well with other people individually and in a group

Mr Umer told us that he uses human skills. Customer related, product communication with staff and customers as well.

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SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats and is a simple and powerful way to analyze your company's present marketing situation.

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Page 30: Bata Project

SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats and is a simple and powerful way to analyze your company's present marketing situation.

STRENTHS

Quality product. Friendly environment. Two plant in the factory. Bata enjoy strong brand image and

market pull. Innovative and constantly growing product line. Nationwide coverage. Major shareholder in the Shoe industry of Pakistan A company with growing sales and profits over the year. Bata has a high capacity to produced millions of shoe pair per day. Bata has qualified work force.

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Page 31: Bata Project

WEAKNESSES

Fix Price No credit sales. Low sales margin due to highly value added products. Low promotional activities.

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OPPORTUNITIES

Credit policy can be adopted to increase sale. Prices shall be reduced.

THREATS

Competition with

Servis,

Hushpuppies, Urban Sole Price sensitive people.

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Page 33: Bata Project

THE BOSTON CONSULTING GROUP

BOX ("BCG BOX")

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Page 34: Bata Project

BOSTON CONSULTING GROUP MATRIX

ON THE HORIZONTAL AXIS: RELATIVE MARKET SHARE - this serves as a measure of SBU strength in the market

ON THE VERTICAL AXIS: MARKET GROWTH RATE - this provides a measure of market attractiveness. By dividing the matrix into four areas, four types of SBU can be distinguished.

In accordance with the BCG matrix, we would recommend and MR. Umer also told us that Bata products are in Cash Cows.

REASONS FOR CASH COW:

Cash cows are high growth businesses or products competing in markets where they are relatively strong as compared with the competitors such as HushPuppies, Servis and Urban sole.

With reference to an interview with MR.Umer, we came to know that Bata is a market leader.

Total tapped market is 40% to 60% whereas 40% approx. is still dependent upon private shoes due to low price. Thus, there is still room for Bata to grow.

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PROBLEMSWe found there four major problems in Bata’s marketing strategy so far.

1. High Price2. Only Target Upper Class3. Low Credit Risk4. Insufficient Promotion of Products

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Page 36: Bata Project

MANAGEMENT STYLE

The manager told us that they adopt SCIENTIFIC MANAGEMENT in their organization. They practices scientific management because it is beneficial for the organization. He told us that we develop a science for each element of an individual’s which will replace the old rule of management method. They use the scientific techniques to determine the individuals work. They set a specific way in their organization so that the work has to be done according to the way. They select and train the workers, they select only those employees which are fulfil the requirement of the organization like workers who gives the maximum output during the training. He told us that they corporate with the workers to ensure that the work is done according to the principles that the organization setup. Division of work is the key factor in scientific management which Bata also practices in their organization like each employee have a specific job and responsibility to perform so that his work may completed effectively and efficiently.

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Page 37: Bata Project

CONCLUSION

Bata is a private limited company established in 1894. Bata is one of the world's leading footwear retailers and manufacturers with operations across 5 continents managed by 3 regional meaningful business units (MBUs). The main compitetors of Bata are Servis, Hush Puppies & Urban Sole. Its plant is based on latest technology. Bata's strength lies in its worldwide presence.

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Page 38: Bata Project

We like to dedicate this project to all business students who

want to become great business professionals and want to be on the

height of the “BUSINESS WORLD “. We hope that they would be

satisfied from our task and that would help them in their future life.

We at this point shall not forget the fruitful efforts of our teacher

Prof. Amjad Ali without whom we would have been unable to

accomplish this.

At the End, We again thanks to our Respected Teacher Sir Amjad

Ali for his efforts and hard work throughout the semester. Due to his

hard work, we are able to complete this project.

Thank You

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Page 39: Bata Project

Summary / Frame Work

As a Group Leader, I hold a meeting on 2nd Jun, 10 Wednesday in which I discuss the Project with my group members. Our mission/goal is not to complete the Project but to learn a practical experience.

We decided Bata Company after mutual consent with all group members. All group members agree on Bata and we decided to visit Bata on 9 th June, 10 for an interview with Manager.

After Interview, I split the Project into 4 parts & allow my group members to choose any part of their choice.

As a group leader, I encourage/help my group members in all aspects whenever they need my help. I send text msgs/emails to keep them up to date.

Finally I assign my group members their tasks that each group member email me his part of soft copy & powerpoint slides, so that I finally assembled the Project.

At the end, I print & finalize the slides.

The tasks are divided as follows:

5. Afzal

(Introduction + Culture, Problems, Decision Making, Environment)

6. Khalid Safdar

SWOT Analysis

7. Farhan Naeem

BCG Matrix

8. Amir

Functions

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