INCENTIVES:
Bata wanted to initiate a system of profit sharing with its employees, whereas he had 3 claims. first is the ability to measure and calculate profit and loss in shortest possible time, second on was simplicity of system so that everyone can understand and the last one was that the system should adopt the concept of company as each one was supposed to run its self administration. so Bata initiated the system of profit sharing with its employees for the better work outputs.
ECONOMIES OF SCOPE:
Bata production house did not concern only shoes. since the company was operating with different kinds of materials, it took it as an advantage and started to process other products like tires, tights, rubber toys, gas masks etc. in Bata, everything is perfectly organized and work flows smoothly.
INCOME AND SUBSTITUTION EFFECT:
the company successfully launched Adidas collection of hi-tech footwear for upper middle class customers.
CAPACITY OPTIMIZATION :
The company undertook to expand and modernize its existing plants and it undertook expansion and up gradation of its retail store with the changing market condition to match the taste and preference of customer to maintain profit.
A promotional brand Tigre was launched to keep the factories full at all the times and thereby reduce losses due to under recovery of overheads/
so, theses are few of the economic concepts applied by Bata over the period of time to sustain in market and maximize its profit.
Bata wanted to initiate a system of profit sharing with its employees, whereas he had 3 claims. first is the ability to measure and calculate profit and loss in shortest possible time, second on was simplicity of system so that everyone can understand and the last one was that the system should adopt the concept of company as each one was supposed to run its self administration. so Bata initiated the system of profit sharing with its employees for the better work outputs.
ECONOMIES OF SCOPE:
Bata production house did not concern only shoes. since the company was operating with different kinds of materials, it took it as an advantage and started to process other products like tires, tights, rubber toys, gas masks etc. in Bata, everything is perfectly organized and work flows smoothly.
INCOME AND SUBSTITUTION EFFECT:
the company successfully launched Adidas collection of hi-tech footwear for upper middle class customers.
CAPACITY OPTIMIZATION :
The company undertook to expand and modernize its existing plants and it undertook expansion and up gradation of its retail store with the changing market condition to match the taste and preference of customer to maintain profit.
A promotional brand Tigre was launched to keep the factories full at all the times and thereby reduce losses due to under recovery of overheads/
so, theses are few of the economic concepts applied by Bata over the period of time to sustain in market and maximize its profit.
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