Bata India limited (A): Bankruptcy or turnaround
Bata India Ltd, the largest footwear retailer and manufacturer in India, was one of the most successful multinational companies in the country with a 70-year long legacy. With liberalization and opening up of the Indian economy, the company faced multiple challenges – in terms of brand image, product portfolio, manufacturing costs, industrial relations, retail presence, and customer preferences – which was further aggravated by stiff competition from new domestic and international competitors entering the domestic retail footwear business. Bata India started losing its grip on the market and reported consecutive losses from 2002 to 2004. Case A is set in 2005, when Marcelo Villagran takes charge as the new Managing Director of Bata India with the urgent mandate to turnaround the company. The case requires participants to develop an action plan for managing the business turnaround and organizational change at Bata India.
1) Understanding organizational performance in the context of an emerging market (India); 2) Developing skills in diagnostic analysis and action plan formulation for organizational turnaround; 3) Understanding the underlying reasons behind the poor industrial relations and consumer orientation of firms in emerging markets; 4) Building change plans for improving labor productivity and consumer orientation in poorly performing firms.
Bata Shoes, Consumer Services, Retail, Consumer Goods, Footwear
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications