Strategies to enhance more business for Bata…..

1) The Appreciative Inquiry Model

David Cooperrider is often considered the pioneer of the Appreciative Inquiry Model.

Problem Solving Appreciative inquiry

1. "Felt Need," identification of 1. Appreciating & Valuing the Best of "What

Problem Is"

2. Analysis of Causes 2. Envisioning "What Might Be"

3. Analysis & Possible Solutions 3. Dialoguing "What Should Be"

4. Action Planning (Treatment) 4. Innovating "What Will Be"

The 4D model generally refers to a visual representation of the four steps of an

AI initiative:

 Discovery;
 Dream;
 Design;
  and Destiny.
 Example- AI Model taking Bata into consideration

Should Bata have a Better E-Commerce Channel?

CONSTRUCTIVE

No, but some other aspects can be Yes, it will help increase sales
checked to increase sale

NEGATIVEPOSITIVE
Yes, but it might not give much effect
No, there is already an existing channel

DESTRUCTIVE

2) Swiss Cheese Model

In the Swiss cheese model, an organisation's defense against failure are
modeled as a series of barriers, represented as slices of cheese. The holes in the
slices represent weaknesses in individual parts of the system and are
continually varying in size and position across the slices.

Reason hypothesized that most accidents can be traced to one or more of four
failure domains: organizational influences, supervision, preconditions, and
specific acts.
Mistakes can be classified into 3 parts :-

1)Blacking Out- when the same is forgotten

2)Slip ups- when the right process is carried out incorrectly

3)Activel Mistakes- when the process is carried out wrong

Example- Let’s assume Bata factory fails to check dispute in a product , instead packs the same
and sends it to stores

Active Problems-Instead of rechecking the output the order Bata factory packs and send the good
accidentally.

Black outs- Bata Stores accepts the consignment but doesn’t inform the higher authority about the
mishap.

Slip ups- Bata store now realises the mishap , contacts the higher management.

But instead returns extra consignments than the disputed consignments, creating a shortage.
3) SWOT Analysis of Bata Shoe Organization
4) BCG Growth sharing mix-
 High (Market Share) Low

Hig
Stars
The products which generate enough amount of
h
revenues for the firm to be deemed as profitable, yet
have the chances of expanding further are termed as
Stars. One of the reasons why stars have a chance of
growth in future is that the industry has scope for
growth, consequently supporting the increasing
market share of these products.
Brands that have created a strong presence in the
market such as Ambassador, Hush Puppies,
Market Weinbrenner and Comfit have been in high demand,
Growth and their market share is likely to increase in future.  making this product move out of the question mark
Rate
Question Marks
In the product portfolio being managed by an
organization, some products have lower profitability
as compared to cash cows and stars.
Products such as shoe care products have not been
able to create a significant position in the market as
compared to its shoe brands that have generated
high sales, making it a question mark.
The leather shoe cream, for instance targets the
customers who purchase leather shoes. This pairing
can help Bata in driving up the sales in this domain,
category.

Cash Cows Dogs

The cash cows are the main source of financial
stability for an organization. These products have
created a strong hold in the market and were able to
establish a high demand among the consumers.
Some items manufactured by Bata can be seen as
cash cow because they have been a major source of
revenue for the company and had sustained its
profitability over the years. The school shoes being
manufactured by the company are a cash cow for
Bata as the industry has matured over the years, and
Lo the demand for the school shoes has gradually
w increased. Apart from school shoes, Bubble
Gummers brand has become a cash cow owing to
the high sales it creates for the company in the
global market.
The products or business units that are continuously
underperforming despite the investment and
marketing initiatives taken by the company are
regarded as dogs. These products are not likely to
experience any significant improvement as the
market conditions are not favorable and the industry
doesn’t have any noticeable capacity for growth.
The category of accessories, socks and shoe laces
manufactured by Bata have achieved low sales. As a
result, the company had to reconsider its investment
decision in this category, by shifting the investment
to more profitable units and decreasing the focus on
socks and shoe laces.

5) The Rubber Band Model of Decision Making

This is a simple decision-making model, but it is still relevant in helping you to decide between two
options. Envision being stuck between two rubber bands, both stretched to their limits from either side
of the dilemma. One rubber band is pulling you away and the other rubber band is pulling you closer.
 Example- Should Bata focus on modern approach or should go around with traditional approach?

Holding Factor: Pulling Factor:

- Avoiding Unnecessary Risk -Cost benefit

-Traditional Rules -Benefits of Artificial Intelligence

-Increase in Profits

6) Morphological box and scamper

Morphological analysis  or General Morphological Analysis is a creative problem-solving technique  for
systematically structuring and exploring all the possible solutions to a multi-dimensional, complex
problem and a powerful tool for generating creative ideas and designing a new product and service.
1. Morphological analysis is used for consider and solving a complex, real-world problem and
finding  best solutions among a great variety of possibilities.
2. This method is most effective in solving applied problems and designing new products,
technologies and services.

Example- Bata’s new equipment procuring strategy

Parameters 1 2 3
price high medium Low
output high medium Low
time consumption less high High
efficiency most moderate Low
input high medium Low
quality best better good

Financial Analysis

BATA INDIA Income Statement Analysis

 Operating income during the year rose 11.3% on a year-on-year (YoY) basis.

 The company's operating profit increased by 35.8% YoY during the fiscal. Operating profit
margins witnessed a fall and down at 16.3% in FY19 as against 13.3% in FY18.

 Depreciation charges increased by 6.0% and finance costs decreased by 15.5% YoY,
respectively.

 Other income grew by 35.5% YoY.

 Net profit for the year grew by 49.2% YoY.

 Net profit margins during the year grew from 8.2% in FY18 to 11.0% in FY19.
BATA INDIA Balance Sheet Analysis
 The company's current liabilities during FY19 stood at Rs 6 billion as compared to Rs 6
billion in FY18, thereby witnessing an increase of 12.3%.

 Current assets rose 18% and stood at Rs 18 billion, while fixed assets rose 7% and stood
at Rs 3 billion in FY19.

 Overall, the total assets and liabilities for FY19 stood at Rs 25 billion as against Rs 21
billion during FY18, thereby witnessing a growth of 16%.
BATA INDIA Cash Flow Statement Analysis
 BATA INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion,
an improvement of 115.3% on a YoY basis.

 Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion, an
improvement of 148.1% on a YoY basis.

 Cash flow from financial activities (CFF) during FY19 stood at Rs -631 million on a YoY
basis.

 Overall, net cash flows for the company during FY19 stood at Rs 43 million from the Rs
-72 million net cash flows seen during FY18.