Term Project on-

Strategic Management

Course Code: MGT489

Section: 03

Semester: Spring 2021

Group Member details

Submitted by,

TEAM-

Name ID
 Umar Faiaz Moon 1721388030

Maksura Rahman 1731539030

Md. Omar Sani 1711963630

Minhazul Hoque Ayon 1722130030

Shafia Momotaj Nodi 1812245030

Samiha Nowrin 1812740630

Letter of Transmittal

Executive Summary

Bata Shoe is a multinational company. Their operations in Bangladesh began in 1962 with the
opening of a branch office. After that, in 1972, they became a fully-fledged corporation. In
our term paper, we covered Bata's goods and company operations. Bata is the most popular brand
in the footwear industry. Their product selection is extensive. They make shoes for a wide range
of customers. They are doing exceptionally well in the shoe industry. We’ve talked about the
plans and the company's overall business in Bangladesh. Bangladesh is poised to become the
global footwear industry's next manufacturing powerhouse. Top manufacturers are relocating
their factories to the country because of the low labor costs. The good news is that the leather and
footwear sector in Bangladesh has already piqued the interest of a number of foreign investors
and buyers. Bangladesh has a plethora of potential exports that could generate significant foreign
exchange. The main markets for Bangladeshi footwear are now Japan and Germany, but US
buyers are becoming more interested in sourcing from Bangladesh. People also want to purchase
shoes from brick and mortar shops, despite the fact that selling merchandise online is not a new
idea. It is normal for them to want to explore and feel something before purchasing it. However,
the habit is steadily changing, and online retailers have a great chance to capture the market. To
be more competitive, online marketers must not compromise on consistency and must win public
confidence. If they can have these together with exceptional customer support, they would be
able to compete in the industry. Other than that, segmentation and the integration of new ideas
into distributors based on customer profiles are needed by Bata's corporate strategy. The four
Bata store models are as follows: Urban markets, family shops, Bata Bazar, and clearance shops
are among the various types of stores. Bata is currently offering a range of product lines to
prospective buyers. Bata Shoe Corporation Ltd. has had one goal since its inception: customer
loyalty. To this day, Tomas Bata's legacy lives on in his vision of creating a multinational family
of satisfied customers and devoted workers.

Part A: Research and Analysis

History, Development and growth of the Company
In 2018, there are numerous MNC‟s working in our country. As a developing country,

Bangladesh is considered as a booming business sector. Around 50 MNC‟s currently working in

our country, but BATA Bangladesh is the first Multinational Company who entered into our

market. Before our liberation war, in 1962 Bata entered into Bangladesh. Our grandparents wore

high durable Bata „Naughty Boy‟ shoes in their childhood. Now Bata has more than 2000 lines

keeping in mind the customer’s comfort, durable, stylish design. Bata was founded in 1894 at

Zlin, Czechoslovakia. Tomáš Baťa is the founder of one of the world‟s biggest multinational

retailers, manufacturer and distributors of Footwear and accessories. And previously in Bermuda,

and currently the headquarters of Bata is in the city of Lausanne, Switzerland. There are 4

business units operating world wide – Bata Europe, Bata Emerging Market, Bata Branded

Business, Bata North America. Bata Bangladesh is included in Bata Emerging Market. In our

country it is operated as a European- Bangladeshi company.

Another major change in the Bata business policy is the segmentation of retail outlets according

to profiles of different market segments and the introduction of novel concepts such as Bata City

Stores. These selective outlets, in conjunction with other types of outlets such as Bata Family

Stores, are adding a new level of consumer satisfaction. Bata serves 1 million consumers a day in

5300 stores in 68 countries around the world. Bata Bangladesh has 260 stores operating in the

country. World‟s only shoe Museum owned by Bata in Canada. Basically, if you are roaming in

your area then you will be seeing a Bata outlet in your area. Currently Bata Shoe Company Ltd.

operates in two manufacturing industries- Tongi and Dhamrai. It has sold 14 billion pairs of

shoes in all these years, and in 2017 it sold 9.5 million pairs of shoes in our country. In 1985

Bata got enrolled in Dhaka Stock Exchange (DSE) which has 51-49% share with Bangladesh

Government. In 2017 the retail channel had almost a turnover of 5.94 billion taka which is 5%

growth against last year. In 2017 Bata opened 16 new stores, and renovated 35 potential stores.

And these stores created additional BDT 73.1 million turnover in the year end. And more than

800 new lines were introduced before the biggest festival Eid ul Fitr in 2017. Even in 2018 with

June, Bata opened 10 new stores in different places.

For over 13 decades, Bata has been on the leading edge of footwear design. Today, professionals

in Bata’s Shoe Innovation Centers around the world continue the tradition of innovation as they

dedicate themselves to discovering new shoe materials, developing modern shoe technologies,

and creating fresh footwear that marries style with comfort.

Internal Environment:
 A(2)

Vision:

· To make great shoes accessible to everyone.

Mission:

· To help people look and feel good.

· To be the customer's destination of choice.

· To attract and retain the best people.

· To remain the most respected footwear company.

Resources:

· Bata Bangladesh has over 260 retailer outlets over 63 cities.

· It has 13 deport in its non-retail sector.

· Bata operation 690 DSP (Dealer Support Program) stores.

· It has 2 manufacturing plants- in Tongi and another one is in Dhamrai

· Advance capacity planets in Dhamrai

· Well contracted web site and mobile app service.

· Bata has 322 employees and 1400 workers approx.

Financial Statement:

· Listed in Both Dhaka Stock Exchange and Chittagong Stock Exchange.

· Growth Rate 11.08%

· Stock Price 1160 Taka

Capabilities:

At the moment, Bata Bangladesh has two production plants in Tongi and Dhamrai with a daily

manufacturing volume of 160,000 pairs of shoes, it is one of the largest shoe manufacturers in

the world. The current annual shoe unit sales are about 30 million. (Bata BD/about us). The

processing units also have a high-tech effluent treatment plant, which ensures a pollution-free

atmosphere for both employees and the general public. Bata is a key player in the development

of the country's leather industry. It has a new Tannery with cutting-edge technology for

processing about 19,000 square feet of leather every day, which includes a variety of materials

and finishes. The brand offers over 1000 shoe styles and caters to all market categories.

Primary Departments:

· Finance

· Retail

· Human Resource

· Product Development

· Non Retail

· Supply Chain
· Merchandising

· Internal Audit

· Management Information System

· E-Commerce

Brands:

· Bata Comfi

· Bubblegummers

· Weinbrenner

· Power

· Marie-Claire

· Hush Puppies

· Nike

· North Star

· Naturalizer

· Sandak
 External Industry Analysis

Identify the industry that the Bata competes in:

Leather and footwear Industry was developed in Bangladesh on a large-scale mainly in the 1970s

as one of the largest industries of Bangladesh. The government considers ‘leather goods and

footwear’ as one of the main growth generators for the country. The Bangladesh leather industry

makes leather-based products such as garments, shoes, belts, bags, and jackets, suitcases, wallets,

and some fancy items. These products are sold both in the domestic and foreign markets. Leather

footwear is the fastest growing segment of the leather industry. Bangladesh meets the demand for

about 10% of the world’s total leather market. Leather Industry developed in Bangladesh on a

large-scale mainly in the 1970s. Bangladesh leather industry is well established and ranked

second in terms of export earnings, is moving ahead day by day though slow but with an

identical steady growth. The domestic market size of footwear is around TK 170 billion.

Domestic demand for the footwear industry is around 200 to 250 million pairs a year. Out of the

total domestic demand, approximately 24 million pairs were imported in FY’2016-17. In 2018-

19, Bangladesh had exported $607.88 million worth of leather footwear and $271.53 million

worth of non-leather footwear. Global footwear market was valued at $246 billion in 2017 and is

expected to reach a valuation of $320 billion by 2021. There are currently 220 tanneries, 2,500

manufacturing units and 90 larger firms operating in Bangladesh. The industry has huge potential

to grab the market both national and international market. In the early 80’s and 90’s only few

companies were produced and dominated the market, however because of consumer demand,

new design desire and technological advantage there are lots of companies that are computing in

this market. As global demand for leather footwear is increasing, this industry has a very high
opportunity to grab this market.

Porter’s five forces

Porter provided a five-factor model which is a conceptual framework for industry analysis. The

strength of the competitive forces within an industry is determined by the five key structural

features model. Analysis of footwear Industry of Bangladesh in respect to Bata footwears with

Porter's Model of Industry Competition has given below:

 ● Risk of new Entrants:

In Bangladeshi market, the risk of new footwear companies is very high because a lot of

acquaintances of both international and national companies are already successfully doing their

businesses and giving a tough competition to each other within the market. Although the risk of

new entrants is high in the industry still our assigned company Bata faces a lot of difficulty

because of the existing companies like Apex, Bay, Hamko, Jennys, Fortuna, Crescent, Vibrant,

Leatherex, STEP, Walkar, Orion etc.

● Bargaining power of Suppliers:

The bargaining power of suppliers is low because the number of suppliers is huge. Even though

suppliers have a huge number of potential raw material buyers because of many existing

companies in the industry. Still companies like Bata purchase a bulk amount of raw material at a

time. In Bangladesh Bata footwear company produces the highest amount of foot wears rather
than others. So even if the supplier needs to satisfy them by increasing quality but selling raw

material at a lower cost.

● Bargaining power of Buyers:

Bargaining power of buyers is increasing gradually and progressively. Nowadays buyers have so

many options of footwear that they don’t need to rely on one specific brand. Other footwear

companies with optimistic future plans and changing trends and quality consciousness are

increasing day by day as well. People want trendy and modern design fashionable shoes.

However Bata has more than 35 years of experience in Bangladeshi market. They are well aware

of peoples demand and their competitor’s growth. So Bata footwear company works and takes

steps accordingly.

● Threat of substitutes:
In the case of footwear products, the threat of substitute is none. Only we think of raw material

currently Bata is using if other competitors use comfortable, fashionable and cheaper raw

material than it can be a threat for Bata. Cost of production will decrease and because of that

competitors can offer products at a lower cost.

● Power of complement providers:

If footwear companies provide complementary products with shoes such as socks, insoles,
cleaning brushes etc. that will increase the value of their brand.

Industry life cycle

There are five stages in the industry life cycle which includes: embryonic, growth, shakeout,

mature and decline. As the condition in the market different products go through different stages

at different times. In the case of footwear industries Bangladesh , they are going through a

growth industry at this time. Bangladeshi people are more fashion conscious than in the past.

Many new customers enter the market every day because of the socioeconomic condition of the

country. Bata is already establish company in Bangladeshi footwear industry and as income level

goes up of the people their consciousness of fashion also goes up and number of shoe purchasing

is increasing within a year than past. So the footwear industry in Bangladesh is in the growth

stage right now.

PESTEL Analysis

Political: Bata is the first largest footwear company in Bangladesh. Bata Bangladesh is a public

limited company. It holds 51- 49% share with the government of Bangladesh. It operates their

business under the rules and regulations of the government.

Economic: Footwear sector plays a significant role in Bangladeshi economic growth. Bata as a

leading footwear brand also helps the economic growth of Bangladesh. In 260 retail outlets of

Bangladesh there are many people working and earning money. Also customers are increasingly

expanding.

Social: With various schemes Bata promoting primary and secondary education and producing

school footwear. The demand for Bata school footwear is very high because of the quality. On

the other hand, consumers' opinions are changing toward branded shoes. They prefer buying

branded shoes rather than non-branded shoes.

Technological: footwear companies are focusing on product innovation to ensure comfort,

agility and durability. For this they are investing more in their R&D and trying to meet the

customer expectation. Bata needs to focus on that too.

Environmental: For the leather shoe manufacturing process Bata created hazardous liquid

chemical waste. Those chemicals polluted groundwater. The company should take some

alternative steps to reduce environmental pollution.

Legal: Every business has to maintain some legal policies of a country. Since Bata is doing

business successfully for a longer period in Bangladesh they obviously maintain the legal

policies accordingly.
 Competitive Advantages of Bata:

The most valuable competitive advantage of BATA is their “Enhanced Efficiency”. Because of
its superior performance, it enables a company to gain a competitive advantage by reducing
costs. For all of these years, Bata has been a huge success, as evidenced by the following
sources:
● Because of their extensive distribution network, they have low delivery network
costs.
● Reduced advertising costs as a result of a positive brand image.
● Relatively low costs as a result of own tannery (in the house) which
results- processing leather, machineries & advanced shoe manufacturing technology.
● Size and practice advantages.
● High customer retention and low attrition rates
● Effective resource power as well as advocacy group
● Skilled worker
Most of the other companies/competitors do lack these parts.

But other than that, BATA also has these competitive advantages in Bangladesh.

❖ Higher quality and range of products:

Since its inception in Bangladesh, Bata Shoe Company has been the market leader in the
footwear industry. Bata has gained such a stronghold in the minds of consumers that once they
hear the word, they immediately think of high-quality footwear. Bata has been effectively
supplying its customers with a wide range of goods for nearly five decades. Without a well-
designed pair of shoes, fashion will be incomplete. Bata has responded to this marketing insight
by launching a series of designer collections for men, women, and children. a) Greater Product
Variety and Quality. Bata Comfit, Marie Claire, Hush Puppies, Scholl, Nike, Bubble gummers,
Sandak, Weinbrenner & B-first are just a few examples of internationally renowned brands that
have embraced branded shoe marketing in Bangladesh. The Power brand has been developed
with specialized shoe categories in mind, such as athletic shoes. Bata shoes are in a unique
position to cater to a wide range of customers thanks to their uncompromising consistency and
eye-catching designs.

❖ Absolutely stellar Innovation:

Innovation has been at the heart of their operations since the beginning of their journey. The
research and development (R&D) department focuses on creating new and innovative product
lines to meet customers' changing needs. Last year, more than 800 new lines were introduced
ahead of the country's biggest festivals, reflecting Bata Bangladesh's new product development
strategy.

❖ Superior Customer Service:

Bata Shoe Company Ltd. has began striving to achieve a single objective - the satisfaction of its
customers. The aim of building a worldwide family of happy customers and dedicated employees
is still the legacy today. Bata Bangladesh with approximately 1723 regular and productive
employees and staff who are dedicated to improving the company's efficiency through increased
productivity and sales while preserving quality. Bata Bangladesh has recently launched its online
sales program. Consumers can easily buy shoes or any other Bata products directly from their
home through their website (www.batabd.com). Free home delivery is also available.

Another example of their high consumer responsiveness and creative marketing strategy is "Bata
Club." Bata Club is the first loyalty program in Bangladesh's footwear industry, and it is offered
to Bata Bangladesh's loyal customers. The service is a customer loyalty program that provides
advanced access to goods, special coupons/vouchers, prizes, or free items to customers.
Customers give Bata Bangladesh their personal details and are given a unique identifier (mobile
number). On September 15, 2015, Bata Bangladesh ltd unveiled its "Bata club" loyalty program.
With over 450,000 members, the program is now operational in our top 200 stores throughout
Bangladesh.

Company's Distinctive Competencies:

 A(6)

Bata has created a structure which allows them to position itself in the market. Bata has two

distinctive competencies, one is Cost Leadership and another one is Product differentiation. Both

strategies enable Bata to build sustainable competitive advantages.

Cost Leadership:

Cost leadership refers to establishing a long-term cost advantage over competitors with the same

goods or services, which can be achieved by economies of scale, efficient manufacturing, lower

supply costs, lower delivery costs, and cost management mechanisms. Bata ensures those to gain

the low cost advantage over the market which lead them to more profitability.

Product differentiation:

The aim of a product differentiation strategy is to be exceptional in the market in certain areas

that are highly regarded by consumers. This entails identifying certain characteristics and

addressing them in a specific and cost-effective manner. Outstanding product quality, excellent

product range, superior customer support, brand value investment, R&D investment, and a

greater emphasis on imagination and innovation are all part of it.

In the current market, Bata delivers a large range of product lines to potential customers. Bata

has a wide product range of men's apparel, including shoes, sandals, trainers, shocks, women's

clothing, children's footwear, and many other accessories. Bata Bangladesh sells about ten

foreign designer shoes in its retail outlets by means of licensing and franchising (Tasmeri.M,

n,d). Bata Bangladesh has taken up a cost-effective approach to product differentiation at

industry level. The following segment examines the main sources behind Bata Bangladesh's clear
competitive edge in the country footwear industry for decades.

A(7)

References

About Us. batabd. (n.d.). https://www.batabd.com/pages/about-us#:~:text=In%20Bangladesh

%2C%20Bata%20started%20its,stands%20about%2030%20million%20pairs.

Aditi Salgaonkar. Follow. (n.d.). Bata BCG matrix, swot analysis and PEST analysis. SlideShare.

https://www.slideshare.net/aditisalgaonkar/bata-bcg-matrix-swot-analysis-and-pest-analysis.

Bata Industries Environmental Impact. Engineering Cases. (2015, June 11).

https://uwaterloo.ca/engineering-cases/content/bata-industries-environmental-impact.

Solution for Best Assignment Paper. Assignment Point. (n.d.).

https://www.assignmentpoint.com/business/marketing-business/bata-shoe-companys-marketing-

operations-in-bangladesh.html

Bata, (n,d). About us, [official website]. Retrieved from https://www.batabd.com/pages/about-us

Part B: Strategic Plan for 2021 – 2025

 Corporate Level Strategy

Corporate level strategy is a significant and long term strategy to sustain business among

competitors within a particular industry and lead the business to higher profitability. The Bata

footwear industry needs to focus on making corporate level strategies and implement those

strategies to make the business sustainable and achieve long term profitability. To generate

corporate level strategies for the next five years first it is important to look at present corporate

level strategies of Bata which are being implemented.

Present corporate level strategy

● Vertical integration:

There are two types of vertical integration. One is backward vertical integration and another is

forward vertical integration. Backward integration is when a company becomes its own supplier

and forward integration is when a company becomes its own distributor and retailer to reach the

customer. Bata Bangladesh is currently doing forward vertical integration. They have their own

distribution channel to supply their products all over the country and they have their own 260

retail outlets in over 63 cities across the country. As Bata is doing forward integration they are

able to cut the cost of the final product. Additionally they are able to insure the product quality
and minimize damage. Also they can maintain the delivery time schedule on their own.

● Strategic Outsourcing:

Bata purchases their raw materials from different suppliers. They purchase raw material from

China at a cheaper cost and also they purchase from local suppliers. By doing this they are not

dependable to one supplier which is efficient for their business and cost of production also

decreased. Additionally because of outsourcing of raw material they can focus on core business.

They get the time and money to invest in R&D and make efficient products.

● Also Bangladeshi Bata outlets are selling Adidas, Nike, Power, Hush puppies Etc.

footwear and bags in Bangladesh. They are using Bata outlets as their distribution

outsourcing.

Recommendation

● Horizontal Integration: Bata doesn’t need to go for acquisition and merger with their

competitor of the same industry. They already enjoy a large market share as they are the

first branded Footwear Company. But during pandemic time they are not able to do

business because of the lack of a good online service system. Therefore Bata can expand

their business within the industry through horizontal integration. They can merge with the

same industry competitor who has a better online servicing system and increase

efficiency to maximize profit.

● Cross selling: Bata is an established brand in Bangladesh and started operation in 1962.

Their footwear products' brand value is known to everyone. Besides they are also selling

socks, leather belts, bags Etc. as they are already famous as a brand they can increase

their product line by producing leather jackets. They can give offers like if customers buy

over four thousand taka worth of footwear product they will have a twenty percent

discount at the jacket in the initial stage of the new product line. They can maximize their

profit by increasing the product line.

● Strong E-commerce platform: during covid 19 pandemic Bata has started online selling

at a limited portion and before Eid they offered home delivery service in Dhaka for a few

days. However, they need to focus on the e-commerce sector and start online delivery

services all around the country during the pandemic. Also after pandemic in the future

because consumers' lifestyles are changing day by day. In Bangladesh, as consumers’

income level goes up, they also have short time to go for physical shopping. So they

prefer to do online shopping which is time-saving and convenient.

● Diversification : Bata footwear needs to diversify their product design to sustain in the

industry because many new international and local brands are already doing very well

with the trends. So Bata should make sure that their product is stylish, trendy,

comfortable and durable to fulfill or meet the customers expectation.

 Business Level Strategy

Business level strategy is important to maximize profits within an industry among competitors.

Business level strategy gives a detailed view of how the business is going to be operated in the

marketplace. Bata is already following some business level strategies which would be profitable

for their business. Considering those strategies few recommendations are given below to

maximize the profit margin. Bata incorporates a business level strategy that most resembles a

differentiation strategy. Through product innovation, technology development, and high quality

products, they are able to differentiate themselves from competitors and build their brand image.

Following are some business level strategies recommendations for Bata.

● Overall cost leadership is not something that Bata looks to utilize. Their products are

higher (compared to many other local companies) end prices that customers are willing to

pay for because they see value, legacy and unique qualities in them. Through Bata online

and other personalization procedures, such as university and office sponsorships, on

ground activations Bata enhances the perception that the product they provide is one of a

kind and specialized for the customer wants and needs.

● Bata does not utilize a focus strategy either, as they have a wide market segment, from

accessories, to shoes, merges with some premium production like Hush puppies and is

sold around the country. Rather, they look to be the best in the industry in all of these

areas. The non-price attributes that Bata attributes to their products, such as for Bata-I

love my shoes, Comfit-Caring for your feet, Hush Puppies-Feel the Hush motto are
 something that customers see value in and separate their products from competitors.

● They also have a number of high profile celebrities and endorsers that they sponsor and

use as brand images, which have a big impact on the buyer base. Models like Siam

Ahmed, Mehzabeen, Kriti sanon in India all have enhanced the value of Bata, Because

they have built up their reputation so much, and because their products are high quality

and viewed as valuable, they do not lose their buyers.

By focusing on a differentiation strategy, Bata takes on a lot of investment into research and

development, as well as technology innovation, in order to always have the upper hand on the

competition. In this way, they can patent a lot of their products and materials, helping to create

the sustainable competitive advantage that they want to achieve.

Technology strategy for the next five years

[2021-2026]

B(5)

It is an era for information technology systems. The Internet has become the new way to reach

the consumer. Bata Bangladesh has already established a state-of-the-art facility in Dhamrai,

recognizing the need and potential consumers. All of the leather goods produced in Bangladesh

are manufactured there. They provide latest technology advancements under which the MIS
department oversees the entire process. The POS system was the positive step towards advance

use of technology for wholesale depot which also ensured to be competitive in the market.

The corporate level strategy looks out for the MIS department wisely over the next five years. By

time they need to adopt the advancement in coordination and supervise data entry for the

accounting and payroll. Each year update product cost and product profitability with digital

invoice. Need to ensure they are providing necessary support and help to the IT sector in their

day to day function. For logistics they can come up with Advance Logistic Tracking AI, that

would be the fastest way to track raw materials and inventories. By doing that they easily can

track logistics and year to year needs. It can make the whole process faster. For the retailer and

the distribution center they can introduce some software that can give the day to day sales and

requirements. Through distributors can be aware about the daily requirement and act accordingly.

The business level strategy for the next five years. In those years they might set some integrated

set of actions which will help Bata Bangladesh to gain competitive advantage through advanced

technology of their produce in the market. They can come up with the smart shoes concept in

Bangladesh. Since Bangladesh is a developing country it is stepping forward to the advancement

of technology.

Smart Footwear: Bata can introduce smart footwear in the market. Intelligent shoes change the

way people live and how they feel when they wear a shoe. It might attract the youth but it would

be revolutionary for Bangladesh's future market. Smart Shoe is not an ordinary fabric and

materials, it is functional with depth run tracking, active tracing, and location monitoring with

the help of their smartphones.

Augmented and virtual Reality: It is another leaf of advancement for shopping experience. For

the next five years it would be very familiar in Bangladesh. Bata can adopt this for changing the
footwear experience of their customers. For example, in a shop finding the right shoe is hard but

with augmented and VR then one can shop for the right shoe without even trying it on. It would

boost the PR activity as well. Consumers are always looking for something new and different so

it would help to gain the market popularity of Bata Bangladesh.

Robotic system: Bata Bangladesh has a robot system in Dhamrai Plant, but it is of minimal use.

Bata can bring up in most fields for the next five years. Robots can work error less and restless

for a very long time. The robot permanently deals with the issue of the upper, the lateral and the

bottom molding and carding and bonding. It would increase the efficiency of Bata. Reduce the

cost of production.

Recommended Technology Strategy [2021-

2026]

Bata Bangladesh should bring some advancement in their MIS department. They should adopt

some AI systems in different departments. As a result, they can minimize the significant number

of working errors and the work process would be smooth and faster, and production waste would

be less. This system would provide a less hassle free working environment and reduce the cost of

production which would help to achieve the core competency. Their website interface should be

simple and user friendly and more interactive. Bringing smart shoes would give them a

competitive advantage and ensure the first mover advantages for Bata. So, they need to use this

technology so that it would not be easily copied by the competitor. They Should give more

importance to R & D for better opportunities for the next five years. They should use robotics in
their plants to better performance and cut costs and win low cost advantages.

Part C: Implementation of Strategic Plan

C1
Change the Company’s Governance

The term "company management" refers to the current management method and operational

mechanisms. If an organization undergoes a structural or organizational transition, its governance

direction can be changed (Shaner, 2018). Corporate governance can be defined as the system

used by many managers and other head office employees. It has an impact on many academic

writers and entrepreneurs who are looking for new ideas to help them with their work.

Yes, implementation of the strategies described in Part B requires a change in the administration

of the Bata Company.

Bata is governed by the company and the company is run in an autocratic manner. The goal of

corporate governance is to support effective, entrepreneurial and prudent management that can

contribute to the long-term success of the company. So strategically their corporate governance

changes need to be made clearly in the interest of the company. They also need to ignore the

negative impact on the environment and compete with other management systems.
 Strategic Control System for Bata

C(2)

Bata Bangladesh Strategic control system has a back down since their control management

system does not exact coordination with their strategy choosing and their organization structure.

They have a less effective control system to evaluate and monitor the progress if it is going

according to their planned strategies they made. They mainly face poor quality and equipment

failure and shortage on their parts and raw materials. (ukeassays, 2018, Para 4).

Bata Bangladesh should follow the leadership strategy control system. For this they need to

adopt the fore dimensions of the control system including cost, flexibility, quality, Speed.

Cost: Bata should gain more control over their cost. The managers should have developed a

lower cost structure and create more control over their cost. Gain lower cost on the production

and achieve lower cost advantages from the suppliers. By doing this Bata Bangladesh will gain

lower cost advantages over the competitors in the market. They can produce the product at a

lower amount of price. This will also attract the consumer since they get better quality shoes at a

lower amount of price.

Flexibility: they should adopt workplace flexibility. Acceleration of the processes in the

workplace. Improving the functioning of the workplace for the employee’s perspective. Bigger
self-education and development interests of workers. By controlling this the employee will find

great interest in the workplace. They will give more attention to the work. So ultimately the

production efficiency will increase.

Quality: They must create a team for extensive quality control monitoring. Materials are

carefully checked and transferred from section to section. Having a quality control section is not

enough; they get to involve workers to ensure higher quality process and product. For example,

if someone passes some defective productive product they must explain why they have passed

the product. Through this each product quality will be monitored and the worker will be

countable for the defect. So, through this processing time they must be very careful and the

production will have more control over the quality process system.

Speed: They must gain control over the speed of the production, speed of delivery, control over

the speed of reaching the raw materials from suppliers. Create a dependable way to reach

inventory to production in a fast way. Setting strategic working for continuing production in the

plants.

Therefore, the leadership strategy will enhance the Bata Bangladesh to become the dominant

player in this declining shoe industry. By adopting this strategy, they will have more control over

the suppliers, inventories, production plants, employees, and deliveries. So adopting this strategy

Bata can enjoy absolute control over the market and the competitors.
 Reference

Shaner, M. W. (2018). Interpreting Organizational Contracts and the Private Ordering of Public

Company Governance. Wm. & Mary L. Rev., 60, 985.

UKEssays. (November 2018). The operations of shoe manufacturer Bata. Retrieved from

https://www.ukessays.com/essays/management/the-operations-of-shoe-manufacturer-bata-

management-essay.php?vref=1

Mala. T, (n,d). Strategic Analysis of Bata Shoe, Bangladesh. Retrieved from

https://www.academia.edu/35410484/Strategic_Analysis_of_Bata_Shoe_Bangladesh