Bata Versus Relaxo-Analyzing Performance
Set in 2016, Bata India versus Relaxo-Analyzing Performance compares the strategies and financial performance of two Indian footwear companies. Bata India had long been the market leader in footwear in India, but its leading market position was being challenged by Relaxo, a relatively young, upstart company. The case is framed from the perspective of an emerging markets financial analyst presented with the financial statements and operational data for both companies. The analyst has to compare and contrast the performance of the two companies based on financial ratios. Students can apply the traditional DuPont decomposition framework to drill down into the business model of the two companies. The case then allows students to use the modified (also known as additive or alternate) DuPont approach with the goal of systematically understanding the differences that arise from operating performance, leverage, and the effect of large cash holdings (in Bata). In doing so, students learn the components of the traditional and modified DuPont frameworks and how to analyze financial statements to better understand how firm performance can arise from operating and financing decisions. The traditional DuPont framework provides for a methodical evaluation of performance for each business, but it has its limits: it does not separate operating assets and liabilities from financing assets and liabilities. When the financing components are separated and reclassified using the modified DuPont framework, students can clearly observe the crucial role that financing activities vis- -vis operating activities can have in amplifying performance.
- 2018 HBS
- Book Quality:
- Harvard Business Publishing
- Date of Addition:
- Business and Finance, Nonfiction,
- Usage Restrictions:
- This is a copyrighted book.
Choosing a Book Format
EPUB is the standard publishing format used by many e-book readers including iBooks, Easy Reader, VoiceDream Reader, etc. This is the most popular and widely used format.
DAISY format is used by GoRead, Read2Go and most Kurzweil devices.
Audio (MP3) format is used by audio only devices, such as iPod.
Braille format is used by Braille output devices.
DAISY Audio format works on DAISY compatible players such as Victor Reader Stream.
Accessible Word format can be unzipped and opened in any tool that supports .docx files.