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Q3. Answer: In 1994 Bata incurred loss in both operational level and net level.

To recover the losses Bata restructured its product line and concentrated on the segments as much as possible. They also tried to reduce their inventory costs. They curtail losses to a minimum amount by selling its headquarters, which added a little force to its cash inflows. In addition with that they took loans from foreign banks, which added strength to its financial position. They changed their requirement process, by putting a freeze on it and give emphasis on it productivity. They filled up their vacancies with some expertise that came from Canada headquarters of BSO. All these changes brought huge progress to its performance which results a turnaround from the downward situation. Evaluation of the strategies: They formulated their strategy by focusing on all the segments in the market. They offered quality products at affordable cost. They reduce the production of premium products whereas give emphasis on value-for-money shoes. Which are good in terms of quality but the price is in between 200 to 800. Here they mix up the product concepts and production concepts. These are the strategies implemented by the management of Bata India Ltd, which results a big progress for them. They must focus on the growth, stability and sustainable customer value while formulating the strategy. These strategies are the part of their corporate strategy, which are determined by the director and deputy director of Bata India Ltd. According to these corporate strategies both the business division and operational division will make their own strategy where the goal must be to fulfill the corporate level strategy. The business division includes the departments like, administration, finance, human resources, retail and plants. The vice presidents of these departments will formulate the strategies for business division by considering the competitive advantages and opportunities for Bata India Ltd. The manager of these departments will formulate the strategies for the operational division by considering the marketing process, recruitment process, and distribution process for Bata India Ltd. On the basis of the situation Bata India Ltd. can use the prospector-type strategy, which is invented by the Miles and Snows in 1978. Generally the prospector type organizations continuously search for new market opportunities and regularly experiment with possible new trends and innovations. They emphasize on creativity over efficiency and maintaining flexibility. Bata can be categorized by the prospector type organization so they should give emphasis on change and creativity for their products. Q4. Answer: This is the age of competition, each and every time the competition for the business is increasing. So the future would be more competitive for Bata India Ltd. To address the new competition they must find out the competitive advantages and external opportunities. We can analyze the competitive environment for Bata India Ltd. by using Porters five forces of competition The existing competitors like, Nike, Reebok, Woodland, Lakhani, Liberty, etc. are the biggest threat for Bata India. To survive in the market with sustainable growth Bata must formulate such type of strategy by which they would be able o compete the existing competitors. Here Porter offers two types of strategies which are cost leadership and differentiation. They can take one of

them but I think they should take both of them at a time. They should offer differentiate products with comparatively lower price than the others. The buyer has the power to control the market, if the numbers of buyers are few but the purchase volume is very high and the switching costs are low. Here it is about shoe so the number of buyer is very high and number of volume purchaser is low but the switching costs are very low. so they should focus on the loyal customers and making brand image to the customers. The suppliers also have the power to control the market. They can increase the price of the raw materials and may deny supplying the materials. It happens if the numbers of suppliers are few and the switching costs are very high. Here we know the raw materials for shoe are available in everywhere and the switching costs are very low. So I think the suppliers would not be able to make any serious problem for Bata. The substitute products has very little affect for this products, because each and every persons need to wear the shoe. The new comers may create some threats for Bata India, because people always look for new design, style or brands while purchase the shoes. Here Bata can defeat this threat by making the loyal customers and offering various types of products ranges to every segment of the markets. In the coming years Bata India should use the differentiation strategy which will assure the quality of their products. It will also facilitate as competitive advantage. They can divide their segments to some sub-segments as part of the niche marketing strategy. Here they can develop some super premium products for the most upper level people of the society and some hawai for the very rural areas with very lower price.