1 Acknowledgement

We wish to express our gratitude to Mr. Md. Faisal Haque, Shop Manager, Gulshan Branch, Bata Shoe Compan !Bangladesh" #td. $or extending his assistance in conducting this report.

Bata Shoe Company (Bangladesh) Ltd.

%
&he Bata Shoe Compan started its operation in Bangladesh in 1'(%. Currentl the compan operates two manu$acturing $acilities ) one in &ongi and the other in *hamrai. &he compan has a networ+ o$ %,% retail outlets located strategicall in di$$erent parts o$ the countr .

The Generic Value Chain o Bata Shoe Company (Bangladesh) Ltd.

!rimary Acti"ities
#n$ound Logistics% With the operation o$ two manu$acturing $acilities ) &ongi and *hamrai $actor , Bata produces 11-,--- pairs o$ shoes and sandals dail . Bata ensures its raw materials come $rom modern tanner $acilit located at Ha.ari/ag. 0s per compan 1s requirement, the raw materials $rom tanner $actor must ha2e to /e pro2ided within 3 da s. 4n this case, Bata $ollow 5ust64n6&ime s stem. 4$ the raw materials are not supplied within speci$ic period, the order is usuall cancelled / Bata Compan . 7a ment is done onl a$ter recei2ing raw materials per$ectl . &he compan also has its own leather tanner $actor at *hamrai, which produces %-8 to 9-8 o$ raw materials.

9
Value% Bata $ollows 5ust64n &ime $or getting raw materials. 4n order to /ecome a lo al supplier, the speci$ied tanner $actor pro2ides the raw materials within speci$ied period and pro2ides large amounts o$ discount to Bata Compan . &he compan collected entire lot o$ raw material $rom one tanner $actor . &he compan also reduces cost in raw material / using its own tanner $actor . &perations% &o get the $inished product, Bata has highl e$$icient machineries imported $rom Singapore and China. (-8 o$ its product is imported and ,-8 o$ its product manu$actured in Bata1s two $actor . &hongs and sanda+ !name o$ a sandal1s /rand made $rom e:ected 7ol 2in l chloride or 7;C, mainl protecti2e wear $or ladies, gents and children mar+et" are manu$actured in &ongi $actor . Bata imports arti$icial material such as ru//er, plastic and 7;C $rom China and &hailand on contractual /asis. 4n this case, Bata $ollows outsourcing process. #eather shoes are usuall manu$actured in *hamrai $actor . Bata used to $ollow manual operations in $unctional process. 0ll queries are usuall proceeded through paper wor+ and the are sent to operation department in order to /e e$$ecti2e. Since %--%, Bata has /een using <nterprise =esource 7lanning So$tware !<=7". &his so$tware colla/orate demands and queries $rom mar+eting, $inance, operation and merchandising department. 0ll departments can see <7= so$tware1s process on computer screen which ensures augmentation o$ manu$acturing process. With the help o$ <=7, mar+eting department puts its queries to production and merchandise department. &hen all the queries and demands are $ul$illed to meet the mar+et needs. Value% &he <nterprise =esource 7lanning So$tware !<=7" helps Bata to manu$acture its $inished products e$$icientl / esta/lishing well6organi.ed communication s stem within di$$erent departments. &hus, <=7 so$tware sa2es production time and ensures on time deli2er in the mar+et. &ut$ound Logistics &he compan has its own 2ehicles ) &ruc+, pic+6up 2an and co2ered 2an. Finished products are usuall dispatched $orm Central *istri/ution Center !C*C". &here are 9-outlets in whole Bangladesh. *ail sales records are posted at the end o$ wor+da . &hus, C*C gets the dail update and the last situation o$ retail stores. Special orders are placed on demanda/le products. 0n area manager ensures the a2aila/ilit o$ the products into the speci$ic stores through proper channel !telecommunication". For instance> 4$ products are needed within %, hours it is usuall in$ormed to area manager and /ased on the in$ormation, he in$orms distri/ution manager at C*C and then

,
it supplies the product lot to retail stores o2er the phone. 0nother wa is to $ollow inter6 trans$er s stem, which is getting the products $rom near/ store. Value% Since the compan owns 2ehicles $or logistic ser2ice, it does not ha2e to go $or 9 rd part $or 2ehicle operation. &hus it reduces cost associated with 2ehicle ser2ice. 7roduct deli2er can /e ensured within %, hours with the help o$ Central *istri/ution Center and customer1s desired product can /e pro2ided to customer less than %, hours / $ollowing inter6trans$er s stem. 'arketing and Sales% &he Bata Shoe Compan !Bangladesh" #td. arranges ?meet the press@ at =uposhi Bangla Hotel e2er quarter o$ the ear. &he also arrange $ashion show whene2er the new model o$ the product or new product is manu$actured. &; commercial and ad2ertisement on newspapers are pro2ided on e2er special occasion ) <id, 7u:a, ;alentine1s *a and Mother1s *a . 4n e2er retail outlet, Bata $ollows A steps customer polic > 1. Welcome e2er customer. %. 0s+ him or her a/out the need. 9. Show him or her three t pes o$ demanded product> Customer1s own choices Similar to that choice Highest pricing product ,. &r to add6on selling !Soc+s, shoe polish and leather made /ag". A. &han+ing to come again. Value% 0cti2ities li+e, ?meet the press@, ad2ertising on newspapers and &; commercial on special occasion attracts e2er le2el o$ customer. A steps customer polic also creates customer 2alue. Ser"ice% 4$ the customer has an complaint regarding the product, he B she can /ring cash in2oice within 9- da s whereas other shoe compan requires that customer would /ring the cash in2oice within 3 da s or less i$ the product has de$ect or gets damaged. 4n Bata, a customer gets replacement e2en the product gets minor damage. 4n this case, customer has to deal with reasona/le negotiation to repair the damaged product. 0s $or ma:or de$ect, the get $ull replacement. Value%

A
Bata pro2ides longer warrant co2erage periods which helps to create more customer 2alue.

Support Acti"ities
(irm #n rastructure% &ongi and *hamrai $actor is located in eco6$riendl area. &he $irm has eco6par+, where deer1s are a2aila/le. 0rti$icial products are made in &ongi. Bata1s main retail o$$iceC Management 4n$ormation S stem, Merchandise, Human =esource department and % C*C are located in &ongi. Both $actories ha2e proper disposal s stem on air and underground. &he disposa/le s stem helps to eliminate ha.ardous chemical dust. 4t ensures h gienic en2ironment around the $actor and outside the en2ironment. Bata also $ollows occupational health and sa$et standard. Bata has sa$et and securit department which ensures cleanliness and $ire sa$et $or the $actor . Value% Factories are located in eco6$riendl area. Ha2ing proper disposa/le s stem and sa$et and securit department, Bata pro2ides sound and health en2ironment to its personnel. )uman *esource 'anagement% Bata1s Human =esource department is located in &ongi. 4ts industrial relation manager monitors, e2aluates pa roll and /ene$its inside the $actor . <mplo ee relation manager loo+s $or retail, wholesale, $inance and merchandising department1s emplo ee. 0 proper training is conducted e2er month and during the time o$ recruitment. Bata conducts $ollowing training program> 1. 7roduct +nowledge %. ;isual merchandise !how to displa products in retail outlet" 9. Customer ser2ice training ,. &raining on logistics !How to collect raw materials $rom suppliers and how to send $inished product to retail houses." Value% 7roper training conducted / H=M department is 2alua/le to compan personnel. 4t augments the o2erall e$$icienc o$ emplo ees in mar+eting and sales, operations and logistics. Technology #atest technolog is used in production department ) 0ssem/ling machines are $or assem/ling shoes and sandals, cutting machines are $or cutting ru//er and dice machines are $or shaping shoes and sandals. Dualit control department ensures higher qualit product /e$ore launching them to the mar+et. Bata uses +Step Counting 'achines, to

(
chec+ the temper and a/sorption power o$ the sole. &his process gi2es the insight how com$orta/le it will $eel on customer $oot. So$tware named !oint o Sales !7ES" is used in e2er retail store. &his so$tware is used to +eep the records o$ selling and transaction and send detail to M4S department. Value% &he step counting machine helps to identi$ the dura/ilit and sa$et o$ their product. 4t also ensures $oot com$ort. 7ES so$tware helps to send selling records and transactions to Head o$$ice. 0$ter getting the in$ormation $rom retail outlet, the compan immediatel measures how man products should /e produced within short period in order to meet customer demand. !rocurement% Bata usuall /u raw materials $rom onl one compan . Bata has its own tanner which supplies %-8 to 9-8 raw materials. &he rest is usuall collected $rom one chosen tanner $actor . Furniture, displa materials are usuall /ought $rom Eto/i and =a.a plastic compan . A-8 o$ pa ment is done a$ter the suppl o$ the product and the rest o$ A-8 are paid A to ( months later. 0s $or tanner , Bata ma+es an argument with tanner $actor that the will $ul$ill the pa ment a$ter 1 ear. Value% &he compan sa2es procurement cost / getting suppl o$ raw materials $rom its own tanner $actor . #ate pa ment with other supplier helps Bata to deposit mone to $inancial institute and /an+ as $ixed deposit which ensures a pro$it gain o2er its suppliers. Conclusion% B appl ing Generic ;alue Chain, Bata Shoe Compan !Bangladesh" de2elops e$$icienc in its primar and support acti2ities that helps it to /ecome mar+et leader among shoe companies.