2 minutes
Editorial Invest in Slovakia
During the disintegration of the Austro-Hungarian Empire, Bata's enterprise reached its peak. There are various rumours about his wealth acquired during the war. But the truth is that he came damned close to falling.
Tomas Bata and his business grew during the war. He supplied shoes for the state war machine and in massive quantities. On the other hand, the state for which Tomas was manufacturing was slowly disintegrating. As we know, it completely disappeared in 1918.
Graft and corruption have replaced both the economy and the absent state.
Getting access to the material was almost impossible. The war production completely exhausted Bata's factories. Machines were worn out, warehouses were half empty and banks were hungry. The newly formed state needed money, so taxes were high. The only asset Bata had at the time was people.
⚖️ Stabilisation of the Czechoslovak Crown.
The koruna initially went through a big inflation (depreciation), then started to appreciate drastically. However, not under the influence of healthy economic growth, but because of a political decision. In fact, the strong krona caused exports to suffer another blow in the already difficult post-war conditions. No one could buy Bata shoes with the expensive crowns.
Price reduction on 50%.
Thomas stood at a crossroads - either fromproduction and lay off employees or adapt to the new conditions. He made a drastic decision and slashed prices by half. He sold off warehouses, freed up capital, which he then reinvested. His decision completely shut out the competition.
Good housekeeping has 3 components.
The first is the ability to earn. Second is the proper allocation of resources and third is saving.
Moral principles are the foundation of good business.
He considered moral values to be fundamental in all aspects of life and business. When he saw a job badly done on his shoes, he did not ask where the fault lay in the production process, but where the fault lay in the character of the person who did the work and moved it forward.
He divided the workshops into separate accounting units.
He motivated his employees to perform better. Everyone on the team could see the impact of their efforts on the performance of the whole. In addition, the employee had to rely on the honesty of the employer and his accountant. At Bata, each employee could easily calculate his salary based on the economic results of his workshop.
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