Spring 2012
Assessment # 6
Final Report Management Information Information Systems (Sec -A) Group Number:
10
Group Members:
Muneeb Ahmad Rajpoot
09-
Muhammad Ans Shamas
09-4769 09-476 9
Qasim Bashir
09-4719
Lecturer:
Ms. Fatima Saman
Due Date 4/27/2012
Table of Contents BATA Shoe Organization (BSO): .................................................................................................................... 2 BATA PAKISTAN LIMITED .......................................................................................................................... 3 General Information (2011): ................................................................................................................. 4 Bata Pakistan comprises three divisions: .............................................................................................. 4 DESCRIPTION OF VARIOUS DEPARTMENTS .............................................................................................. 4 Vision Statement: ...................................................................................................................................... 5 Mission Statement: ................................................................................................................................... 5 Organizational structure: .......................................................................................................................... 6 Business Analysis: ......................................................................................................................................... 6 Business model: ........................................................................................................................................ 6 IT Systems: ................................................................................................................................................ 6 Point of Sales: ........................................................................................................................................ 7 RIMS: ..................................................................................................................................................... 7
BATA Shoe Organization (BSO): The company that evolved into Bata shoe organization was first registered in the town of Zlin Czechoslovakia on August 24, 1894. It was innovative from the beginning in that its founders intended the company to be a “shoe manufacturer”. This represented a significant departure from the centuries old tradition of the one-man workshop eking out a bare subsistence for his family on a Cobbler’s bench at home. By 1905 Bata had grown too some 250-company employees. At 2200 pairs per day, the personal effectiveness of each Bata employee far outdistanced the few pairs per day produced by their predecessors. The young company overcomes many early difficulties .In order to meet growing demand during the early years, new production machinery was found in other countries and innovative show making technique were devised by skillful and resourceful Bata employees. New kinds of shoes were introduced using new way to promote them. Bata’s reputation as the innovative industry leader has been, maintained ever since. Despite the outbreak of the first world wart material shortages, manpower shortages, corbels and other challenges, sales increased to about two million pairs by 1917. The post war economy presented a difficult environment for Bata. Currency was devalued and consumer purchasing power was at an all-time low. Tomas conceived a plan to adjust to post war economic difficulties by maintaining the focus on the customer and reducing the price of shoe significantly. A tight focus on the customer had again process itself as a sound strategy. Tomas Bata thinking in terms of expansion into new markets even as a teenager, travelling to Vienna to sell his shoe to the city’s merchants. While still a young company, Bata exported shoes to the USA, Europe and North Africa. By 1918 the likelihood of the company’s 6,000 employees could only be guaranteed by aggressive marketing and future foreign expansion .In the early 1920’s Bata established new companies in Poland, Yugoslavia, Holland, Denmark, the United Kingdom and the USA. In the early 1930’s Bata and Czechoslovakia were the leading footwear exports in the entire world. Bata also create companies while provided the communities with rail services, building construction, Insurance, publishing and new tannery. To all Bata companies was applied the Bata system one of its most impotent and innovative elements was the arrangements of autonomous workshop through which all employees were provided with the opportunity to contribute ideas and to know in exact figures how this personal day to day achievements would directly affect profitability of their departments. Remuneration was with complete control of their economic destinies. New companies were also established in Egypt, Belgium, Finland, Luxembourg, Hungary, Italy, Indonesia, Singapore and India before Tomas Bata died prematurely in an airplane crash in 1937. Following the death of the founder Tomas Bata, international expansion was over seen by Mr. J. A. Bata with D. Cipera Bata convened the first congress of the international of young men .He
had already worked in several leadership positions with distinction and would soon spearhead the establishment of our Canadian company. This company was expected to become the new international home base of the beginning of World War II when it seemed likely the organization would lose Zlin .by the Bata employed 42,000 people and produced more than 100,000 pairs per year. Following the war, a temporary worlds headquarters was established in the UK to help rebuild the seriously depleted organization .In the early sixties the Bata international center was built in Toronto , Canada deliberately designed to present the building from being expanded . It thus maintained an efficient, been head office consistent with the policy of worldwide decentralization. Following World War II, Bata companies in Zlin and in many other countries were nationalizing by the communist governments. This create event more challenges for the reconstruction team .At first some of our companies were slow to react to the dramatic style shifts desired in most markets following the war, but then Bata invented the ladies pump during the fifties, which became so popular that it was even incorporated into the company logo in some countries. This reinforced the importance of the company’s long time commitment to individual innovation and achievement. During the 70’s, 80’s, 90’s the world-manufacturing base for footwear has shifted to developing countries, to the Pacific Rim and especially to China. Mr. T .G. Bata totally utilizes the company’s mission statement as a guideline for Bata Company operation .To be successful as a dynamic flexible and market responsive worldwide organization with footwear as its core business. He has also identified a success recipe which includes emphasis on international product brands such as power, bubble garments Bata industrial a variety of retail store concepts such as ATHLETES WORLD, BATA CITY STORE, SHOE WORLD; advanced retail technique including coordinated product groups non foot-wear products and participative retailing integration of retail know how3 and manufacturing capability; and worldwide implantation of state of the art production technologies. Now the Bata shoe organization is the largest manufacture and under of footwear operations span the globe through 75 companies in 60 countries which together buy, sell and produce shoes in almost every country on earth. These include shoe factories, tanneries, engineering plants, producing shoe machinery and moulds, product development studies, quality control laboratories, hosiery factories and 6300 retail stores and 100,000 franchises more than 60,000 people are employed, producing and selling approximately 270 million pairs of shoes each year. Primarily for internal markets .An additional 40,000 people and their families depend on hobs in support services created by Bata operations .Now all these affairs are controlled by the foundries grandson.
BATA PAKISTAN LIMITED Batapur came into being in 1942 at distance on 18 km. from Lahore with due entrepreneurial dynamism it expanded and grew by leaps and bounds presently claiming to be the largest shoe manufacturing unit in Pakistan.
General Information (2011):
Permanent Employees = 2495 Retail Outlets = 396 Wholesale Depots = 13 Bata Pakistan comprises three divisions:
Production Marketing Administration
It annually produces more than 12 million pairs of leather, rubber, canvas and PVC Plastic footwear of high quality. Batapur has its own tannery where leather of high quality is produced and is being consumed in the manufacture of footwear of all kinds of cater to various marketing segments and exports .In accordance with the expansion program a new modern unit at Maraka , Multan road Lahore was established in 1984 which produces highly sophisticated leather shoes on the most modern machines .likewise the company ,being leader in the market ,has future plans of further expansion besides updating existing auxiliary operations like quality control laboratory ,product development department and engineering workshops, etc.
DESCRIPTION OF VARIOUS DEPARTMENTS There are many departments in BPL which are described under below:
Personal department Finance department Purchasing department
Local Purchase Imports
Marketing department Other department
Tannery Production department
Leather factory Plastic factory Rubber factory
Designing department Laboratory Merchandizing department
Seasonal planning
8 week forecast 4 week forecast 1 week forecast Costing department Training department Distribution department
Vision Statement: “To grow as dynamic, innovative and market driven domestic manufacturer and distributor, with footwear as a core business, while maintaining a commitment to the country, culture and environment in which we operate”
Mission Statement: “To be successful as the most dynamic, flexible and market responsive organization, with footw ear as its core business”
Organizational structure:
Bata management hierarchy Managing Director Director Finance Head of Human Resource Purchase Manager Retail Manager Manager Wholesale Product Development Officer Quality Assurance Manager Plant Manager Maraka Factory
Business Analysis: Business model: BATA Shoe Organization is currently operating on “Brick and Mortar” , they do not have e-commerce business operational but in their strategies it is one of the major one to cater their customers via using internet. The main problem or barrier which is on their way to start using this channel is the payment method, they are working on that and it will be operational in short time span.
IT Systems: They are using 2 key systems for data storing and processing, which are:
Point of Sales (POS)
Retail Information Management System (RIMS)
Point of Sales: POS is in place in each and every retail store, all the data regarding daily sales is stored in it and then it passes information to RIMS, POS only stores data that is current; it doesn’t deal in historical data. POS works as initiative for the integration, all the retail stores record their detailed sales in POS and then it is automatically passed on to RIMS on daily bases to keep record and to ensure the safe inventory level maintenance.
RIMS: RIMS is used for analysis and it has all the historical data. The main purpose for RIMS is to integrate all the data and provide the required information to both middle level and top management, so in that way it helps the top management to make decisions and thus can be categorized as Decision Support System. BSO (BATA shoe organization) has developed RIMS on their own, with the help of software engineers. They haven’t outsourced it; it is also used to check the minimum inventory level. BSO has an automated system in form of RIMS that information is automatically passed to the production department that these articles (designs) are less than minimum inventory level and hence the other departments work for that problem and distribute that article within the short time span. It also reduces their cost as they have not to bear the expenses to maintain large amount of stock in all the stores as well as it assures that the orders are fulfilled in time according to the upcoming demand from each area in which they are operating.
