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Section 1 Introduction Multinational enterprises MNEs like Bata must operate in countries with different political and legal conditions so the political impact on the foreign investments is very important This paper explains this issue based on the Bata case in three parts The first part evaluates the different ways in which Bata has interacted with foreign political systems in its investments and operations aboard In the second part the advantages and disadvantages which MNEs bring to their company and the host-country when doing foreign direct investment are analyzed relating to the Bata case And the last part gives a detailed analysis of the complex political impact on international business with reference to the political environment in general also supply the way of formulating effective political strategy Section 2 Evaluate the different ways in which Bata has interacted with foreign political systems in its investments and operations aboard 21 Batas effective organizational structure and managing style With activities in 60 countries Canada-based Bata Shoe Organization has much operational experience both in developed countries and developing countries and can deal with different political systems It has an effective organization structure which consists of Bata Limited located in Toronto Canada acts as headquarters of the operating companies Regional offices exist in Toronto Mexico City Singapore Paris Calcutta and Harare The International structure a decentralized organization where operating companies are independent businesses supported by a global management team Private Ownership Bata shoe organization companies have also entered into a number of joint ventures retail franchising and brand licensing agreements 1 By and large Batas operations are independent units established in each country where the firm does business As such Bata is able to decentralize control of its political strategy--giving subsidiaries significant autonomy in managing relations with their respective government For example although Bata prefers not to export production in the countries
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