Macro Analysis

It is very important for an organisation to consider its environment before initiating a

marketing process. This must be a continuous process and should help in the
positioning the organisation in the market. The factors that are considered are Political,
Economical, Social and Technology.

POLITICAL FACTORS

 Rules and regulations for tannery wastes.

 Government stability.
 Fewer sports events apart from cricket to attract the customers.
 Merging of Adidas and Reebok
 Market pressure on sales.

ECONOMICAL FACTORS

 Seasonal Issues: Sports is more encouraged in summer.

 Increasing buyer power makes the customers to look at branded shoes.
 Lack in targeting the women and kid segments.
 Huge consumer market.

SOCIAL FACTORS

 Change in the lifestyle of the people (buyer).

 Increasing fashion trends.
 Advertising, publicity and media.
 Change in buyer behavior.

TECHNOLOGICAL FACTOR

 Increase in competing technology development.

 Up-ward shift in innovation and manufacturing maturity.

Micro Analysis
Customers – The products of Bata targets a wide range of customers which also
includes Army, Police Force and Mining industries in all locations. This is mainly due to
the wide range of products made available in market by the company. The company
has two types of customers they are the final users and the It offers good quality
products with best price in market, which means that the price-quality ratio is excellent
for the Bata products.

Competitors – The competitors for Bata India in the market are Puma, Nike, Reebok,
Adidas, Woodlands, Liberty and Action. The arrival of local and international brands in
the Indian market has created a highly competitive environment in the footwear industry
market. The products from the competitors serve as substitutes to the customers.
Suppliers – The raw materials for the company is PVC soles and the animal skin, the
people or organization which supplies these raw material are known as the suppliers.
Bata’s suppliers are Chinese raw material holders and the local cottage industries that
supplies raw materials to the company.

SWOT ANALYSIS
Strength

 Availability of raw materials and other inputs for the company’s operations.
 Manufacturing units in various places helps in distribution.
 Subsidiaries and Tax incentives on machineries.
 Established links with buyers from Europe and US.
 Friendly government policies for export.
 The brand name is immediately identified with footwear by the consumers.

Weakness

 Facing challenges to move to new production technology, because of its

existence for more than seven decades.
 High labour costs, as the company has large number of employees.

Opportunities

 There is a good scope for diversification into other products like leather wallets,
seat covers and other types of leather garments.
 Growing National and International market.
 Developing fashion consciousness globally.
 Being in a large developing market which offers a demand for footwear, the
company finds its potential in leveraging the Bata brand for marketing other
merchandise consumer products.

Threats

 Changing fashion trends is hard to adopt for the Indian Leather Industries.
 Entry of global competitors into National market brings heavy competition in the
market.

How Micro Environment Affect Business Decisions

Mostly, in the marketing environment, micro factors do not affect all the businesses in
the industry in the same manner. The reason is that every business is different in size,
capacity, financial resources, human resources and overall strategies.

For example, competitors affect the business decision-making process. MacBook Pro is
a well-known brand of Apple Inc. Dell XPS 13 and HP Spectre 13 Laptops are giving
Apple Inc. a tough time and certainly affect its decision making. Apple is already
introduced a functional keys touch bar. It is possible that Apple Inc. introduces MacBook
Pro with Intel Coffee Lake Processor in mid 2018 to compete with its rivals and sustain
the customer base.

Examples of Micro Environment Factors Affect Business

Customers
The customers are the central part of any business as they tend to attract and retain
most of the customers to generate revenue. Therefore, organizations must adopt a
marketing strategy that attracts the potential customers and retains the existing
customers by taking into consideration the wants and needs of customers and by
providing the after sales services and value-added services.

Competitors
The competitors of an organization can have a direct impact on business strategies.
The organization must know how to do a competitive analysis of competitors and have a
competitive advantage. An organization must understand, what value added services
their competitor is providing or the unique selling point of their competitors. How they
can differentiate from their competitors. What benefits a company can offer to the
customers which competitors does not offer.

In other words, understand competitors marketing mix strategy i.e. product, price,
placement, promotion, people, process and physical evidence. Other approaches for
market competitive analysis is PEST Analysis, PESTLE Analysis and SWOT Analysis as
well.
An organization must understand that unawareness of competitors can make it difficult
beat the competitors and lead the market. It must know how competitors react when
there is a change in environment such as political and legal changes, technological
change, change in consumers behaviours can impact their business. They should also
analysis how their competitors are responding to market changes and what tactics they
are using to come up with better planning to these changes.
Example
For Instance, Videocon, BPL, Onida and others are competitors of Philip Television in
Television Market. The other form of competition is “Product Form” in which customer
seeks different features and functions in a product. For example, a customer is willing to
purchase a two-wheeler car which can come with gears and without gear, automatic or
manual. These are the features of product and services which customer would be
considered during the purchase process.

Employees
Skilled employees can help an organization to achieve organizational goals and
objectives. As skilled and experienced employees has expertise to support organization
to get success. This begins with the hiring process and continues through regular and
timely training and development sessions. The training and development process helps
the employees to work effectively and efficiently in order to achieve the organizational
goals, specifically in service sector.
Example
To some extent employees affect business environment. If there is low motivation and
low skilled employees, business would suffer as the employees would be least
motivated towards sales.

Suppliers
Actions of a supplier can influence the business strategy, as they provide the materials
for production. For instance, if their services will not reasonable and timely that will
affect the production time and the sales due to delayed process of production.

Example
If the supplier increases the prices of raw material they provide to the company, it will
impact the marketing mix strategy of an organization, which will end-up with the
increase in price of finished goods. Therefore keeping a strong relation with supplier can
help a company in getting an edge over competitors.

Shareholders
Shareholders of an organization have an influence as the company want investors to
increase for this they might make a decision to increase money by buoyant on stock
market, i.e. shifting to public from private ownership. This change will pressure the
company as the public shareholders seek returns on their investment.

Example
The shareholders' demand for raise in profit can influence the business success in
longer-run. Therefore, it is important for top management to keep strong and better
relations with shareholders to have a successful business on long-term basis.

Media and Social Media

The way media acts can make or break an organization. Organization should manage
to keep a good relationship with media as whatever it shows will directly influence the
organization business. If media will show positive aspect, this will increase the business
of organization and vice-versa. In order to maintain good relations with media some
organization do maintain a public relation department who manage events and deal with
media on behalf of company

Organizations must understand the ways which they can reach their customers and
have positive company and brand image in their mind. For this, some organization
approaches newspapers to let people know about their business and some approach
consumer television programs to have the attention of a large number of direct
audience. These days social media applications are a good idea to reach customers in
a more appropriate way i.e. Facebook, Youtube, Twitter and Instagram etc.

Example
A story that has been done by the media on a one-off, could impact on a firms’ daily
operations thus becoming that firms micro environment. However, a firm could be
influenced to have long term operational decisions in a bid to avoid negative media
stories.

It is not necessary that business will control microenvironment factors all the time. Since
micro and macro environment affect marketing campaigns, companies should conduct
environmental analysis before developing marketing strategy.

Work culture and mission statement

Keywords
work culture; slogan "Service to the public"; the workshop autonomy system; Bata firm;
culture
Description
The paper deals with the Thomas Bata Company from its establishment until 1932. After
defining the concepts, methods and goals, the authors remind Bata’s trips to America, which
were crucial for changes in the company. The text then focuses on the Bata’s organization of
production based on the workshop autonomy system (Bata is often called the pioneer of self-
government in industry). Bata’s production method, even if entirely original, represents an
example of masterful adaptation of scientific knowledge in the field of production to the
specific local conditions of life in town of Zlín. This paper is also a reminder of the Bata’s tragic
death in 12th July 1932 – 80 years has passed since that date. Culture, work culture, Bata Shoe
Company, the workshop autonomy system, self-government in industry, slogan “Service to the
public”
Mission

We provide products and services of superior quality which improves and protects the health of
the feet of our customers. We are the innovator and driving the industry. We are the preferred
business partner for our customers.

Vision
Be, and be recognized, as the best product and service company in the safety footwear industry
in Europe.