Case on Bata

This paper introduces the basic situation and feathers of current athletic and casual footwear industry and raises that active management of

world, while Asia-Pacific has the fastest growing shoe market at 7.9% CAGR. From 2007 to 2011,

Footwear International is a multinational manufacturer and marketer of footwear that has 83 companies in 70 different countries. One of these locations is

Nike started to open up manufacturing factories in countries like Indonesia, Pakistan and Vietnam. Due to the wants of Nike to increase their revenue they tried to outsource the labor of their products since labor work in the US is very high and expensive. This was a bad idea due to that Indonesia pays their workers extremely low wages. Pakistan doesn’t have an age limit for them to be able to legally to work so many children in Pakistan were making

12. In Year 11, footwear companies can expect to sell a.no less than 3.8 and no more than 5.3 million branded pairs and no less than 750,000 and no more than 1.1 million private-label pairs. b.between 7 and 8 million branded pairs and 250,000 and 500,000 private-label pairs. c.an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort. d.exactly 5.244 million branded pairs and 600,000 private-label pairs. e.exactly 4.844 million branded pairs and 800,000 private-label pairs

However, as a new member with a new product, electronic product in North American market, the reputation is also an important attribute. Especially, quick delivery time is a key attribute for this company, due to the demand of quick delivery in all markets. Moreover, the manufacturing process of the new product, electronic product, on which our company will definitely focus, has a lot demands. Such as, technology, innovation and quick delivery time even the ability to make the product be the first one appearing in the market (other company, which is developing the same product, may become our competitive opponents). Especially, technology is predicted to play the most important role in the manufacturing process. On the other hand, the traditional cost system has a lot of limitations. Traditional costing system focuses on the cost reduction and the efficiency, particular the products with relatively few standardized components; Clifton, however, produces a wide range of airplane components. In addition, nonfinancial aspects of

According to Marketline, the Footwear Industry is growing at a moderate rate, and the trend is expected to continue. In 2014 footwear, sportswear, and accessory retailers made up the largest proportion of US footwear sales (Marketline).

Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations.

Nike subcontracts the production process of its footwear to 900 contract factories located worldwide with Asian developing countries such as China, Indonesia and Vietnam accounting for the bulk of total world production. Production of the footwear is based on a vertically integrated model. In the primary stage, raw materials such as rubber, leather and plastic are extracted from places located in close proximity from the factories. In the secondary stage, the extracted resources are sent to the factories or “Sweatshops” for manufacturing. It should be noted that the whole production process of Nike footwear are being carried out by independent private contractors.

We are still losing money after the second year. However, my group realized that new tooling was an important cost. Therefore, we start thinking how to reduce it. We find out that if the demand stays between 300,000 to 345,000 units, the supplier will not need new tools. Then, it will bring the cost of new tooling to 0 for the coming years. Let’s take the worst case scenario and try to compute the savings for year 3, if the pistons are outsourced.

The athletic footwear industry includes all producers of shoes designed in an athletic style or for an athletic use. We define the active footwear industry as an industry that manufactures shoes for active lifestyles. The primary focus of this analysis is on the United States market as it represents roughly 32% of the overall footwear market (PRWeb,

The break up and the demise of BSC altered the dynamics of the UK footwear industry leaving Clarks as the largest vertically integrated UK shoe company. (Source: Clarks Web Site)2.3 The shoe market in the UK is dominated by imports, which mirrors the clothing industry. Manufacturing abroad has become the norm with almost all UK shoe companies. This is driven by lower costs, including labour, materials and general manufacturing costs. Clarks recently closed down its last factory in the UK (Ilminster, Somerset), with all manufacturing now being undertaken in Portugal and other low cost countries. (Source: Key Note Report)2.4 Clarks is recognised for making comfortable, durable and well fitting shoes. The product is not regarded as a fashion item. Clarks' target its products at infants/young children through to 15 year olds and adults in the age range 45 - 50. The company offers a wide range of products such as sports, smart, and casual shoes and boots.

The athletic footwear industry consists of shoes for a variety of uses. Running, walking, aerobic, hiking, biking, gym, and shoes for various sports are considered athletic footwear. The athletic footwear forecasted to grow at a CAGR of 2.1% between 2016 and 2022. The demand for athletic footwear will continue to increase over the next seven years. This demand is fueled by the change in populations around the world. The increase in urbanization will continue to increase the demand for athletic footwear.

Child labour in Pakistan may be common and arguably a necessary evil but it certainly does not give Nike the rights to break its own standards, practice child labour, and advertently break the law.

Moreover, Bata Company is engaged in building trust lies with the customer by implement the customer relationship management. If the customer is satisfied and loyal to their brand, the company will grow and give good returns to the investors which will further remunerate and motivate their employee. Customer relationship management also help the management level of Bata Company foresee the opportunities in the market growth and a rapidly expanding middle class. For this, they can systematically transform Bata into a completely customer centric organization to serve this new market.