The Bata Shoe Organization free essay sample

1. Based on the economic freedom scales, what kind of differences do you think Bata might face in the Czech Republic and Slovakia? The Czech Republic is clearly further along in its progress to economic freedom than is Slovakia. In the Czech Republic, Bata is likely to face considerably less government intervention in its business than in Slovakia. Private property ownership and protection, property rights, and economic competition are likely to be more common in the Czech Republic. In Slovakia, Bata is likely to face greater political risks.Since economic freedom and political freedom usually go hand in hand (though China and a few other countries serve as exceptions to this â€Å"rule†), there is likely to be more political instability in Slovakia. It also appears from the case that Slovakia may not have a very positive attitude toward foreign investment (despite Bata’s roots in the region). Bata’s battle for restitution in Slovak courts may be a long and expensive process. We will write a custom essay sample on The Bata Shoe Organization or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 2. What are the advantages and disadvantages to both Bata and the Republic of Slovakia of having Bata take over his former operations?Why do you think the Czech Republic allowed Bata to reenter the market, but Slovakia had not? * From a nostalgic point of view, Bata will be able to return to the home country. * Bata will gain access to large facilities and a huge market in Eastern Europe and the former Soviet Union. * The Czech Republic will gain access to Bata’s global design, production, and marketing expertise. They will be able to design better, more fashionable, and more reasonably priced shoes. * The Czech Republic might be able to get Bata to invest significant capital into the plant to get it up to world-class standards. Bata will create new jobs for Czech workers. Bata reentered the Czech Republic and not Slovakia because the two countries have very different economic environments. The Czech Republic is moving more quickly than Slovakia toward a free market system. 3. Given the countries that Bata is operating in, what challenges does Tom Bata face in trying to establish an effective political strategy for the company? Bata’s presence in dozens of countries complicates its political strategy. By and large Bata’s operations are independent units established in each country where the firm does business. As such, Bata is able to decentralize control of its political strategy—giving subsidiaries significant autonomy in managing relations with their respective government. Since important issues will vary from country to country, Bata must allow subsidiaries to identify the appropriate issues (step one of political strategy formulation) themselves. The strategies that are formulated to deal with those issues are likely to be subsidiary specific as well. 4. Why do you think Tom Bata, Sr. has joined the list of entrepreneurs who cannot bear to loosen their grip on businesses they started?What is the risk to the Bata Shoe Organization if Thomas J. Bata cannot find a way to retire? Having â€Å"grown† a business, it is often hard to turn it over to others who may have different ideas about how the firm should be managed. However, a mature, established business requires a different set of leadership and administrative skills than are needed by a young, growing firm. Thomas J. Bata led his firm through a period of great turbulence and growth—but both the world and the company are now very different than they were in the 40s, 50s, 60s, and 70s.The biggest danger facing Bata Shoes is the lack of a clear succession plan for the time when Thomas J. Bata either retires or dies. He needs to be laying the framework to provide as smooth a transition to another chief executive as possible. If a successor were being groomed the timing of Thomas J. Bata’s departure would not be as important, since there would already be someone in place making increasingly important decisions and ready to step in effectively when the time came.