Bata is a large shoe company that produces 110,000 pairs of shoes and sandals daily in two manufacturing facilities. It analyzes its business environment, which includes factors like competition, technology, laws, and economic trends. Bata has its own tannery that provides 20-30% of raw materials and follows just-in-time practices. It owns vehicles for logistics and can deliver products within 24 hours using a central distribution center. Bata also has robust human resources, procurement, and technology functions to support its operations.

3. Business Environment
The combination of internal and external
factors that influence a company’s operating
situation. The Business environment can
include factors such as: clients and suppliers;
its competition and owners; improvements in
technology; laws and government activities;
and market, social and economic trends.

4. Environment Analysis

5. Different Types of Business Environment
Internal Environment
External Environment

6. TWO TYPES OF EXTERNAL
ENVIRONMENT
Remote Environment
Industry Environment

7. SWOT Analysis

8. SWOT

9. Value Chain Analysis

10. Primary Activities
Inbound Logistics
 Operation of two manufacturing
facilities - produces 110,000 pairs
of shoes and sandals daily
 Raw materials come from modern
tannery facility located at
Hazaribag
 Raw materials must have to be
provided within 7 days
 Just-In-Time system
 Own leather tannery factory at
Dhamrai - 20% to 30% of raw
materials.
Value
 Follows Just-In Time
 The specified tannery factory
provides the raw materials
within specified period – Large
amount of discount
 Using own tannery factory for
collecting raw materials –
reduction in cost

11. Outbound Logistics
 The company has its own vehicles
– Truck, pick-up van and covered
van. Finished products are usually
dispatched form Central
Distribution Center (CDC).
 There are 300 outlets in whole
Bangladesh. Daily sales records
are posted at the end of
workday.
 CDC gets the daily update and the
last situation of retail stores.
Value
 Since the company owns vehicles
for logistic service, it does not
have to go for 3rd party for
vehicle operation. Thus it
reduces cost associated with
vehicle service.
 Product delivery can be ensured
within 24 hours with the help of
Central Distribution Center and
customer’s desired product can
be provided to customer less
than 24 hours by following
inter-transfer system.

12. Support Activities
Firm Infrastructure
 Tongi and Dhamrai factory is located
in eco-friendly area.
 Bata’s main retail office;
Management Information System,
Merchandise, Human Resource
department and 2 CDC are located in
Tongi.
 Both factories have proper disposal
system on air and underground. The
disposable system helps to eliminate
hazardous chemical dust. It ensures
hygienic environment around the
factory and outside the environment.
 Bata also follows occupational health
and safety standard. Bata has
safety and security department
which ensures cleanliness and fire
safety for the factory.
Value
Factories are located in eco-
friendly area. Having proper
disposable system and safety and
security department, Bata provides
sound and healthy environment to
its personnel.

13. Human Resource Management
 Bata’s Human Resource
department is monitors,
evaluates payroll and benefits
inside the factory.
 Employee relation manager looks
for retail, wholesale, finance
and merchandising department’s
employee.
 A proper training is conducted
every month and during the time
of recruitment:
Value
Proper training conducted by HRM
department is valuable to company
personnel. It augments the overall
efficiency of employees in
marketing and sales, operations
and logistics.

14. Technology
 Latest technology is used in
production department –
Assembling machines are for
assembling shoes and sandals,
cutting machines are for cutting
rubber and dice machines are for
shaping shoes and sandals.
 Quality control department
ensures higher quality product
before launching them to the
market.
Value
 The step counting machine
helps to identify the durability
and safety of their product. It
also ensures foot comfort.
 After getting the information
from retail outlet, the company
immediately measures how many
products should be produced
within short period in order to
meet customer demand.

15. Procurement
 Bata usually buy raw materials
from only one company. Bata has
its own tannery which supplies
20% to 30% raw materials.
 50% of payment is done after
the supply of the product and
the rest of 50% are paid 5 to 6
months later. As for tannery,
Bata makes an argument with
tannery factory that they will
fulfill the payment after 1 year.
Value
 The company saves procurement
cost by getting supply of raw
materials from its own tannery
factory.
 Late payment with other supplier
helps Bata to deposit money to
financial institute and bank as
fixed deposit which ensures a
profit gain over its suppliers.

16. Porter Five forces model

17. BARRIERS TO ENTRY
Access to inputs - Access to inputs is easy
Access to distribution opportunities is limited because of
the top brands which have already recognized in market
 Switching costs are low
Government policies –permitting
 And licenses are not that strict.

18. BUYER POWER
 Brand identity-High end brands and Large companies in the industry
set price points for their products.
 Substitutes Available- Except athletic,orthopedic,dancing shoes
all other types can be substituted by normal sandals.
 Product Differentiation –Low

19. SUPPLIER POWER
 Major firms can switch suppliers quickly without worry of a significant
decrease in quality.
 Threat of forward integration –Low due to high entry barriers
 Supplier concentration- Fragmented
 Any supplier that meets quality standards for the company will be able
to supply these commodity goods.

20. THREAT OF SUBSTITITES
 Can be substituted except
for athletic shoes by
normal sandals.
 Switching costs are low.

21. RIVALRY WITHIN INDUSTRY
More of an emphasis on non-price competition.
Firms instead try to increase their range of products to
capture more of the market.
Brand image and customer loyalty is huge in this industry,
which leads to the brands competing in advertising.

22. External Analysis

24.  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.

25. 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.

27. 4.2 References:
•www.bata.com
•www.goole.com
•www.wkipedia.com
•www.slideshare.com
•Bata related person
References