Bata Shoes Ltd Case study

how has Bata interacted with foreign semipolitical ashess

Question 1

Following the First world War the Austro-Hungarian pudding st unrivaled was fragmented into Austria, Czechoslovakia, Hungary, Romania and Yugoslavia. During this period the Czechoslovakian state was conceived as a parliamentary democracy, with the constitution of 1920 giving the central government a high degree of control over local government. Czechoslovakia, in particular, saw rapid economic growth during the 1920 brought about by foreign investment and advances in manufacturing technology. The country proved particularly tempting for foreign investors such as the British, French, Belgian and Dutch due to low labour costs and readily uncommitted natural resources.

Only in the shoe industry the foreign chief city played no important role. Thanks to a monopoly survey of Bata Works Czechoslovakia held the first place among the worlds leading shoe exporters in 1930s after overtaking Great Britain and the USA. In 1938 interference by Hitler resulted in the old Slovak and Ruthenian demands for autonomy finally been granted. Czechoslovakia was deprived of one third of its territory containing some of its most important industrial centres and most fertile farm-land, leaving the country economically crippled.

Following this Bata earn his business did not have good future prospects if it were to sojourn in Czechoslovakia.



He sought to continue operations and go on the business by moving to Canada as the country was viewed as a safer operating environment, both economically and politically.

Bata move to Canada, along with one hundred of his staff and families, would see the phoner and its workers having to adjust to operations in a different political system to Czechoslovakia, the first of many adaptations they would have to make as the company expanded across the globe.

The relocation in Canada was a hulky change for Bata, as the government there gives significant political power to...

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