Thomas

17/09/1914

to

/31/08/2008

Offering style, comfort

and quality at the best

price

Employs more than 40,000 people

Serves 1 million customers per day

Runs 33 production facilities in 22 countries

Background

1990- signed agreement with AIBSMU, which stipulated

that the management would fill up 248 vacancies in its

retail outlets

1995 - BSO restructured the entire board and sent in a

team headed by Weston

1996-Reported net profits of Rs 41.5 million on revenues

of Rs 5.9 billion

1997-Reported net profits of Rs 167 million on revenues

of Rs 6.7 billion

Background

1998- First time signed long-term bipartite agreement

with the unions without any disruption of work

1999- February 1999, a was declared

in Bata's Faridabad Unit

March 8, 2000- was declared at Bata's Peenya

factory in Bangalore, following a strike by its employee

union

July 2000- Lifted the at the Peenya factory

July 2000- Lifted the at the Peenya factory

Workers opposed the company's move to get an undertaking

from the factory employees to resume work.

Employees demanded revocation of suspension against 20 of

their fellow employees.

Demanded that conditions such as maintaining normal

production schedule, conforming to standing orders and the

settlement in force should not be insisted upon

Reasons for strike1. Downsizing

2. Change in management

3. Increase in working hours

4. Change in employment policy

5. Demand of union for workers participation in management.

6. Wage hike

Measures taken by 1995,96 &98:

Bipartite agreements to resolve labour concerns

1999:

Signing of three year wage agreement that included fiscal

benefits.

Payment of Rs 4000/employee.

Management agreed to include 10% of 400 contract labors

SWOT Analysis

•Found in all metros, mini-

metros, towns

•Present in 70 nations

•Excellent advertising

•Strong Brand presence

•Intense competition

•Limited scope for re-

invention of the products

•High cost of brand

protection

•Increased market size

•Global expansion in

premium footwear section

•Create separate division

for rural population

•Intense competition from

other famous brands

•Commoditization, if

premium products are not

differentiated well.

STRENGTHS

OPPORTUNITY

WEAKNESS

THREAT

Views

1. Bata should not give the charge to expatriate manager as it

brought the feeling of distrust with the management

2. Secondly, they shouldn't begin the downsizing exercise

instantaneously and rapidly. It should be a slow exercise.

3. Instead of outsourcing 23 million pairs per year from other

industries, they should have started manufacturing it in their

own unit.