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.

Environment Analysis

Different Types of Business Environment

Internal Environment

External Environment

TWO TYPES OF EXTERNAL ENVIRONMENT

Remote Environment

Industry Environment

SWOT Analysis

S W O T

SWOT

Value Chain Analysis

Primary ActivitiesInbound 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

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.

Support ActivitiesFirm 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.

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.

TechnologyLatest 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.

ProcurementBata 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.

ValueThe 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.

Porter Five forces model

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 lowGovernment policies –permitting And licenses are not that strict.

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

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.

THREAT OF SUBSTITITES

Can be substituted except for athletic shoes by normal sandals.

Switching costs are low.

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.

External Analysis

FINDING

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.

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.

Thank you…!!!

4.2 References:•www.bata.com•www.goole.com

•www.wkipedia.com •www.slideshare.com •Bata related person

References