The Bata Shoe Organization Essay Example

Nevertheless, the controlled economy, communist regime, and lack of government support posed significant challenges for Bata's operations in the country. The company had to navigate considerable government pressure, which could potentially impact its sales adversely.

Bata's acquisition of Slovakia's former operations would lead to increased employment and economic growth in the country. Industrial growth is always advantageous for a nation's economy. However, as a foreign company, there is a potential that Slovakia may not fully reap the benefits of Bata's profits. Additionally, domestic companies may voice concerns that the arrival of a foreign company would intensify competition for them. Unlike Slovakia, the Czech Republic prioritized economic freedom, emphasizing a free market and private ownership of property.

The country recognized that Bata had the potential to generate revenue and promote economic growth. Bata had relocated its operations from Czechoslovakia following the invasion by the Nazis. As a result, Bata was permitted to operate its factory in the Czech Republic. In contrast, Slovakia faced economic restrictions and its government played a dual role as both a policy maker and implementer, exerting significant control over company operations. Moreover, the country was heavily influenced by communism and was not supportive of international companies. They held a more cautious stance.