Principles Of Managerial economics

The objectives and strategy of a firm in shoe industry.

Presented to: Prof. Amna Majeed Punjab college of Commerce MCOM

Presented by:
Aima Masood Tahira bashir

Introduction: What is shoe making? Shoe making process

Shoe industry in Pakistan

History
During 1950s some well-equipped vendors set up at Karachi, Gujrat and Lahore During 60s and 70s more units were established at Hyderabad Kasur, Sialkot, Multan, Sahiwal and Gujranwala. Pakistans footwear industry manufactures around 120 million pair annually for local consumption and it exports 2 million pair per annum roughly.

Shoe Firms in Pakistan

Some of shoe firms in Pakistan: Bata. Service Hush Puppies Starlet Stylo local and foreign companies

Bata
Background:
Bata Pakistan limited is one of the 65 companies working all over the world as shoe manufacturer. It started its operation at Batapur in 1942. Bata Pakistan limited having60:40% foreign and local shareholdings respectively. Bata equips with sophisticated technological and business skills, provides direct employment to about 2,792 people. Bata Pakistan is producing more than 14.0 million pairs of Rubber& Canvas, Leather and Plastic footwear annually in two production units at Batapur and Maraka. Bata is selling more than 17.0 million pairs of Rubber, Leather and plastic footwear annually.

Bata
Bata is a name that needs no introduction, no doubt best Pakistani shoes brand, providing a huge designs. currently operates in 60 countries across the world

Today, it has over 370 outlets in Pakistan

Popular Brands of Bata Shoes:

Bata Industrials Bubble gummers Baby Bubbles Comfit Eco Fit Marie Claire North star Patapata Power Sandak Sundrops Weinbrenner

Objectives of Bata:
Marketing objectives Overall Objectives

Strategic Objectives for Every Primary Objective

Strategies of Bata:
Sale strategy
Diversification strategy

Marketing strategy

SWOT Analysis
Strength:
Brand Image For the entire family Financially Strong Conveniently accessible Targeting all income segments Nationwide retail network

Weaknesses
In 2001, 5% decrease in net sales No proper planning regarding Advertisement No variety in Fashionable shoes

SWOT Analysis
Opportunities E-Commerce Entering new segments of Markets Capturing Market where no other potential competitor exists Innovative Products New mediums for advertisements Threats Customer Dissatisfaction Price wars with competitors Competitors Political Instability Changing in consumer preferences

Recommendation
Focus on Product Development, Market Development and Strategies Footwear industry is highly fashionable industry; hence Bata must improve the efficiency of product development in order to bring new design and style. Should provide consistent quality service to its customers Bata debt to equity ratio is 3.51, which means almost 75% are debts. Management should reduce its debts to reduce the financial charges Internet is a broad medium so they should also improve e-business