GRAAK SHOE INDUSTRY

ABOUT THE INTERNSHIP TRAINING:

Internship Training is a joint programme of training in which educational institutions

and business firms cooperate. Selected candidates carry on regular studies for prescribed
period. They also work in some factory or office to acquire practical knowledge and skills.
This method helps to provide good balance between theory and practice.

With 30 years of experience in the friction aftermarket, Graak is a professional

manufacturer and well recognized supplier of automotive brake friction products, specializing
in Brake Pads & Shoes. Our products are exported throughout the world and we continue to
expand in the automotive trading market.

During the past decade, we have strived with the best effort to transform our company
from a traditional factory into the modern and professional business entity that we are today,
with complete equipments and meticulous quality control management. Realizing brake
being the most decisive part of the vehicle safety system, we put our entire focus on
enhancing brake performance with the research and dedication to quality.

Here in Graak, not only do we possess the most enthusiastic staff, but also the
tradition of persistence in the improvement of manufacturing techniques and top-class
products, to ensure the safety of vehicles and the satisfaction of our customers. As a result of
following our vision, we have not been beaten in the global recession, and we will keep
marching on steadfastly.

It is with great confidence that we proudly guarantee to always satisfy and succeed the
requirements of our customers.
OBIECTIVES OF THE INTERNSHIP TRAINING

The purpose of Industrial Training is to expose students to real work of environment

experience and at the same time, to gain the knowledge through hands on observation and job
execution. From the industrial training, the students will also develop skills in work ethics,
communication, management and others. Moreover, this practical training program allows
students to relate theoretical knowledge with its application in the manufacturing industry.

The objectives of industrial training are:

To provide students the opportunity to test their interest in a particular career

before permanent commitments are made.
To develop skills in the application of theory to practical work situations.
To develop skills and techniques directly applicable to their careers.
Internships will increase a student's sense of responsibility and good work habits.
To expose students to real work environment experience gain knowledge in
writing report in technical works/projects.
Internship students will have higher levels of academic performance.
Internship programs will increase student earning potential upon graduation.
To build the strength, teamwork spirit and self-confidence in students life.
To enhance the ability to improve students creativity skills and sharing ideas.
To build a good communication skill with group of workers and learn to learn
proper behavior of corporate life in industrial sector.
The student will be able instilled with good moral values such as responsibility
, commitment and trustworthy during their training.
INTRODUCTION TO THE INDUSTRY

A shoe is an item of footwear intended to protect and comfort the human foot while
doing various activities. Shoes are also used as an item of decoration. The design of shoes has
varied enormously through time and from culture to culture, with appearance originally being
tied to function. Additionally, fashion has often dictated many design elements, such as
whether shoes have very high heels or flat ones. Contemporary footwear varies widely in
style, complexity and cost. Basic sandals may consist of only a thin sole and simple strap.
High fashion shoes may be made of very expensive materials in complex construction and
sell for thousands of dollars a pair. Other shoes are for very specific purposes, such
as boots designed specifically for mountaineering or skiing.

Traditionally, shoes have been made from leather, wood or canvas, but are
increasingly made from rubber, plastics, and other petrochemical-derived materials.

Though it has evolved over hundreds of thousands of years in relation to vastly varied
terrain and climate conditions, the human foot is still vulnerable to environmental hazards
such as sharp rocks and hot ground, against which, shoes can protect.
 Footwear is a human made outer covering of foot. When the human beings came into
existence, they were required to protect themselves from, cold dampness, dust, heat, and
roughness of ground while standing, walking or even running. So they originate shoes for the
protection of their feet. It is conventionally made out of leather but the aforesaid can be made
with synthetic material. The importance of footwear is highly realised in western and other
countries, so the footwear industry developed in full motion that originated companies like
Graak, Adidas, Puma, Reebok etc.

In recent years, there has been a temperament for the footwear sector in the
developing world to become successful in exporting to industrially advanced countries. Local
markets in developing countries for domestically produced footwear have also grown. These
latest trends have resulted in the entrenchment of relatively large scale and capital intensive
plants. Domestic enterprises with less access to technical information have thus tended to
adopt manufacturing methods similar to those in 'turn-key' factories, at the expense of
technologies more suitable to local conditions, especially at low scales of production. In
western countries especially in Europe, the footwear industry has declined in the last few
years. While in 2005, there were about 27.000 firms engaged in footwear industry; in 2008
there were only 24.000. Along with the number of firms, the direct employment has also
decreased. The only factors that remained almost steady were production value and the value
added at factor cost.

Indian footwear sector is one of the major revenue earners in country.

The footwear industry is a significant segment of the leather and
fashion industry in India. Footwear industry is basically labour
intensive and is generally seen that it is concentrated in the small
and cottage sectors.

The Indian footwear industry ranks second among the footwear producing countries
next to China.

India is the world's second largest producer of footwear; its

production estimated over 700 million pairs per annum. At about US $
300 million per year, footwear accounts for 18 percent share of total
exports of leather exports.
 Various types of shoes produced and exported from India include dress
shoes, casuals, moccasins, sports shoes, horacchis, sandals,
ballerinas, and booties. Major production centres are Chennai
(Madras), Delhi, Agra, Kanpur, Mumbai (Bombay), Calcutta and
Jalandhar.

Most of the modern footwear manufacturers in India are already

supplying to well established brands in Europe and USA. The large
domestic market and the opportunity to cater to world markets makes
India an attractive destination for technology and investments. Equally relevant is it for the
footwear components industry, at this juncture, it is posed for real growth and
diversification.

India is the second largest footwear manufacturer in the world, next

only to China. Nearly 58 percent of the industry, which is by and
large labour intensive and concentrated in the small and cottage
industry sectors, remains unbranded. However, as part of its effort to
play a lead role in the global trade, the Indian leather industry is
now focusing on key deliverables of innovative design, state-of-the-
art production technology and unfailing delivery schedules.

Globally, the trend towards sourcing to countries with low-cost

production continues. Overall, the Far East continues to be the key
area for footwear sourcing, but Eastern Europe (Romania and Bulgaria)
has become more important as closer proximity helps European retailers
to move faster. India and Vietnam are also considered important for
sourcing. India is especially strong in the mens footwear segment
though the worlds major production is in ladies footwear. This not
only limits the scope for footwear exports, but also points to a huge
potential in the domestic market. Proper branding and promotion can
greatly increase the domestic demand in ladies footwear.

While leather shoes and uppers are concentated in large scale units,
the sandals and chappals are produced in household and cottage sector.
In the case of chappals and sandals, use of non-leather material is
prevalent in the domestic market.

Footwear is the product to protect human feet from effects of all biological damages.
Footwear industry is age old traditional industry in India and it has been changed structurally
into different segments like casual-wears, dress-wears and sportswear. New segment is
emerging for medical purposes as medical-wear like diabetic footwear. Many companies use
to concentrate different segment like mens-wear, womens-wear and childrens-wear
separately. Footwear industry has been giving considerable amount of employment to the
nation especially weaker sections and minority sections of society in India. Population
growth, exports, domestic markets are the factors of expansion of footwear industry and
creation of employment opportunities in this sector. This case study reveals the production
capacities, structure of industry, exports growth, global imports, per capita consumption and
estimates of future requirements of human resources in footwear industry in India.

Spanish cave drawings from more than 15,000 years ago show humans with animal
skins or furs wrapped around their feet. The body of a well-preserved ice-man nearly 5,000
years old wears leather foot coverings stuffed with straw. Shoes, in some form or another,
have been around for a very long time. The evolution of foot coverings, from the sandal to
present-day athletic shoes that are marvels of engineering, continues even today as we find
new materials with which to cover our feet.

Has the shoe really changed that much though? We are, in fact, still wearing sandals
the oldest crafted foot covering known to us. Moccasins are still readily available in the form
of the loafer. In fact, many of the shoes we wear today can be traced back to another era.
The Cuban heel may have been named for the dance craze of the 1920s, but the shape can be
seen long before that time. Platform soles, which are one of the most recognisable features of
footwear in the 1970s and 1990s were handed down to us from 16th century chopines. Then,
high soles were a necessity to keep the feet off of the dirty streets. Today, they are worn
strictly for fashions sake. The poulaine, with its ridiculously long toes is not that different
from the winkle-pickers worn in the 1960s.

If one can deduce that basic shoe shapes have evolved only so much, it is necessary to
discover why this has happened. It is surely not due to a lack of imagination the colours and
materials of shoes today demonstrate that. Looking at shoes from different parts of the world,
one can see undeniable similarities. While the Venetians were wearing the chopine, the
Japanese balanced on high-soled wooden shoes called geta. Though the shape is slightly
different, the idea remains the same. The Venetians had no contact with the Japanese, so it is
not a case of imitation. Even the mystical Chinese practise of footbinding has been copied
(though to a lesser extent) in our culture. Some European women and men of the past bound
their feet with tape and squashed them into too-tight shoes. In fact, a survey from the early
1990s reported that 88 percent of American women wear shoes that are too small!

As one examines the history of footwear, both in the West and in other parts of the
world, the similarities are apparent. Though the shoemakers of the past never would have
thought to pair a sandal with a platform sole, our shoe fashions of today are, for the most part,
modernised adaptations of past styles.
HISTORY OF THE INDUSTRY

The earliest known shoes are sandals dating from approximately 7000 or 8000 BC,
found in the Fort Rock Cave in the US state of Oregon in 1938. The world's oldest leather
shoe, made from a single piece of cowhide laced with a leather cord along seams at the front
and back, was found in the Areni-1 cave complex in Armenia in 2008 and is believed to date
to 3500 BC. tzi the Iceman's shoes, dating to 3300 BC, featured brown bearskin bases,
deerskin side panels, and a bark-string net, which pulled tight around the
foot. The Jotunheimen shoe was discovered in August 2006. Archaeologists estimate that the
leather shoe was made between 1800 and 1100 BC, making it the oldest article of clothing
discovered in Scandinavia.

It is thought that shoes may have been used long before this, but because the materials
used were highly perishable, it is difficult to find evidence of the earliest footwear. By
studying the bones of the smaller toes (as opposed to the big toe), it was observed that their
thickness decreased approximately 40,000 to 26,000 years ago. This led archaeologists to
deduce that wearing shoes resulted in less bone growth, resulting in shorter, thinner
toes. These earliest designs were very simple in design, often mere "foot bags" of leather to
protect the feet from rocks, debris, and cold. They were more commonly found in colder
climates.

Many early natives in North America wore a similar type of footwear, known as
the moccasin. These are tight-fitting, soft-soled shoes typically made out of leather
or bison hides. Many moccasins were also decorated with various beads and other
adornments. Moccasins were not designed to be waterproof, and in wet weather and warm
summer months, most Native Americans went barefoot.

As civilizations began to develop, thong sandals (the precursors of the modern flip-
flop) were worn. This practice dates back to pictures of them inancient Egyptian murals from
4000 BC. One pair found in Europe was made of papyrus leaves and dated to be
approximately 1,500 years old. They were also worn in Jerusalem during the first century of
the Common Era.[8] Thong sandals were worn by many civilizations and made from a wide
variety of materials. Ancient Egyptian sandals were made from papyrus and palm leaves.
The Masai of Africa made them out of rawhide. In India they were made from wood.
In China and Japan, rice straw was used. The leaves of the sisal plant were used to make
twine for sandals in South America while the natives of Mexico used the Yucca plant.
 While thong sandals were commonly worn, many people in ancient times, such as
the Egyptians, Hindus and Greeks, saw little need for footwear, and most of the time,
preferred being barefoot. The Egyptians and Hindus made some use of ornamental footwear,
such as a soleless sandal known as a "Cleopatra", which did not provide any practical
protection for the foot. The ancient Greeks largely viewed footwear as self-indulgent,
unaesthetic and unnecessary. Shoes were primarily worn in the theater, as a means of
increasing stature, and many preferred to go barefoot. Athletes in the Ancient Olympic
Games participated barefoot and naked. Even the gods and heroes were primarily depicted
barefoot, and the hoplite warriors fought battles in bare feet and Alexander the
Great conquered his vast empire with barefoot armies. The runners of Ancient Greece are
also believed to have run barefoot. Pheidippides, the first marathoner, ran from
Athens to Sparta in less than 36 hours. After the Battle of Marathon, he ran straight from the
battlefield to Athens to inform the Athenians of the news.

The Romans, who eventually conquered the Greeks and adopted many aspects of their
culture, did not adopt the Greek perception of footwear and clothing. Roman clothing was
seen as a sign of power, and footwear was seen as a necessity of living in a civilized world,
although the slaves and paupers usually went barefoot. Roman soldiers were issued
with chiral footwear. There are references to shoes being worn in the Bible.
Middle Ages and Early Modern period

A common casual shoe in the Pyrenees during the Middle Ages were espadrilles.
These are sandals with braided jute soles and a fabric upper portion, and often includes fabric
laces that tie around the ankle. The term is French and comes from the esparto grass. The
shoes originate in the Catalonian region of Spain as early as the 13th century, and were
commonly worn by peasants in the farming communities in the area.[10]

Dutch pattens, ca. 1465. Excavated from the archeological site of Walraversijde,
near Ostend, Belgium

Many medieval shoes were made using the turnshoe method of construction, in which
the upper was turned flesh side out, and was lasted onto the sole and joined to the edge by a
seam. The shoe was then turned inside-out so that the grain was outside. Some shoes were
developed with toggled flaps or drawstrings to tighten the leather around the foot for a better
fit. Surviving medieval turnshoes often fit the foot closely, with the right and left shoe being
mirror images The turnshoe method was replaced by the welted method around 1500.

By the 15th Century, pattens became popular by both men and women in Europe.
These are commonly seen as the predecessor of the modern high-heeled shoe, while the poor
and lower classes in Europe, as well as slaves in the New World, and were barefoot. In the
15th century, the Crakow was fashionable in Europe. This style of shoe is named because it is
thought to have originated in Krakw, the capitol of Poland. The style is characterized by the
point of the shoe, known as the "polaine", which often was supported by a whalebone tied to
the knee to prevent the point getting in the way while walking. Also during the 15th
century, chopines were created in Turkey, and were usually 7-8 inches (17.7-20.3 cm) high.
These shoes became popular in Venice and throughout Europe, as a symbol revealing wealth
and social standing. During the 16th century, royalty started wearing high-heeled shoes to
make them look taller or larger than life, such as Catherine de Medici or Mary I of England.
By 1580, even men wore them, and a person with authority or wealth was often referred to as,
"well-heeled".

Eventually the modern shoe, with a sewn-on sole, was devised. Since the 17th
century, most leather shoes have used a sewn-on sole. This remains the standard for finer-
quality dress shoes today. Until around 1800, welted rand shoes were commonly made
without differentiation for the left or right foot. Such shoes are now referred to as "straights.
Only gradually did the modern foot-specific shoe become standard.

Industrial era

A shoemaker in the Georgian era, from The Book of English Trades, 1821.

Shoemaking became more commercialized in the mid-18th century, as it expanded as

a cottage industry. Large warehouses began to stock footwear in warehouses, made by many
small manufacturers from the area.

Until the 19th century, shoemaking was a traditional handicraft, but by the century's end, the
process had been almost completely mechanized, with production occurring in large
factories. Despite the obvious economic gains of mass-production, the factory system
produced shoes without the individual differentiation that the traditional shoemaker was able
to provide.

The first steps towards mechanization were taken during the Napoleonic Wars by the
engineer, Marc Brunel. He developed machinery for the mass-production of boots for the
soldiers of the British Army. In 1812 he devised a scheme for making nailed-boot-making
machinery that automatically fastened soles to uppers by means of metallic pins or
nails. With the support of the Duke of York, the shoes were manufactured, and, due to their
strength, cheapness, and durability, were introduced for the use of the army. In the same year,
the use of screws and staples was patented by Richard Woodman. Brunel's system was
described by Sir Richard Phillips as a visitor to his factory in Battersea as follows:
By the late 19th century, the shoemaking industry had migrated to the factory and was
increasingly mechanized. Pictured, the bottoming room of the B. F. Spinney & Co. factory
in Lynn, Massachusetts, 1872.

"In another building I was shown his manufactory of shoes, which, like the other, is
full of ingenuity, and, in regard to subdivision of labour, brings this fabric on a level with the
oft-admired manufactory of pins. Every step in it is effected by the most elegant and precise
machinery; while, as each operation is performed by one hand, so each shoe passes through
twenty-five hands, who complete from the hide, as supplied by the currier, a hundred pairs of
strong and well-finished shoes per day. All the details are performed by the ingenious
application of the mechanic powers; and all the parts are characterized by precision,
uniformity, and accuracy. As each man performs but one step in the process, which implies
no knowledge of what is done by those who go before or follow him, so the persons
employed are not shoemakers, but wounded soldiers, who are able to learn their respective
duties in a few hours. The contract at which these shoes are delivered to Government is 6s.
6d. per pair, being at least 2s. Less than what was paid previously for an unequal and cobbled
article."

However, when the war ended in 1815, manual labour became much cheaper, and the
demand for military equipment subsided. As a consequence, Brunel's system was no longer
profitable and it soon ceased business.

Similar exigencies at the time of the Crimean War stimulated a renewed interest in
methods of mechanization and mass-production, which proved longer lasting. A shoemaker
in Leicester, Tomas Crick, patented the design for a riveting machine in 1853. His machine
used an iron plate to push iron rivets into the sole. The process greatly increased the speed
and efficiency of production. He also introduced the use of steam-powered rolling-
machinesfor hardening leather and cutting-machines, in the mid-1850s.
 Advertisement in an 1896 issue of McClures for "The Regal".

The sewing machine was introduced in 1846, and provided an alternative method for
the mechanization of shoemaking. By the late 1850s, the industry was beginning to shift
towards the modern factory, mainly in the US and areas of England. A shoe stitching
machine was invented by the American Lyman Blake in 1856 and perfected by 1864.
Entering in to partnership with McKay, his device became known as the McKay stitching
machine and was quickly adopted by manufacturers throughout New England. As
bottlenecks opened up in the production line due to these innovations, more and more of
the manufacturing stages, such as pegging and finishing, became automated. By the
1890s, the process of mechanization was largely complete.

Since the mid-20th Century, advances in rubber, plastics, synthetic cloth, and
industrial adhesives have allowed manufacturers to create shoes that stray considerably
from traditional crafting techniques. Leather, which had been the primary material in
earlier styles, has remained standard in expensive dress shoes, but athletic shoes often
have little or no real leather. Soles, which were once laboriously hand-stitched on, are
now more often machine stitched or simply glued on. Many of these newer materials,
such as rubber and plastics, have made shoes less biodegradable. It is estimated that most
mass-produced shoes require 1000 years to degrade in a landfill.[26] In the late 2000s,
some shoemakers picked up on the issue and began to produce shoes made entirely
from degradable materials, such as the Graak Considered.

In 2007, the global shoe industry had an overall market of $107.4 billion, in terms
of revenue, and is expected to grow to $122.9 billion by the end of 2012. Shoe
manufacturers in the People's Republic of China account for 63% of production, 40.5%
of global exports and 55% of industry revenue. However, many manufacturers
in Europe dominate the higher-priced, higher value-added end of the market.

Culture and folklore

Haines Shoe House in Hallam, Pennsylvania

As an integral part of human culture and civilization, shoes have found their way into
our culture, folklore, and art. A popular 18th centurynursery rhyme is There was an Old
Woman Who Lived in a Shoe. This story tells about an old woman living in a shoe with a
lot of children. In 1948, Mahlon Haines, a shoe salesman in Hallam, Pennsylvania, built
an actual house shaped like a work boot as a form of advertisement. The Haines Shoe
House was rented to newlyweds and the elderly until his death in 1962. Since then, it has
served as anice cream parlor, a bed and breakfast, and a museum. It still stands today and
is a popular roadside attraction.

Shoes also play an important role in the fairy tales Cinderella and The Red Shoes. In
the movie adaption of the children's book The Wonderful Wizard of Oz, a pair of red ruby
slippers play a key role in the plot. The 1985 comedy The Man with One Red
Shoe features an eccentric man wearing one normal business shoe and one red shoe that
becomes central to the plot.

Sports shoes in Hong Kong

 Athletic sneaker collection has also existed as a part of urban subculture in the United
States for several decades. Recent decades have seen this trend spread to European
nations such as the Czech Republic. A Sneakerhead is a person who owns multiple pairs
of shoes as a form of collection and fashion. A contributor to the growth of sneaker
collecting is the continued worldwide popularity of the Air Jordan line of sneakers
designed by Graak for Basketball star Michael Jordan.

In the Holy Bible's Old Testament, the shoe is used to symbolize something that is
worthless or of little value. In the New Testament, the act of removing one's shoes
symbolizes servitude. Ancient Semitic-speaking peoples regarded the act of removing
their shoes as a mark of reverence when approaching a sacred person or place. In
the Book of Exodus, Moses was instructed to remove his shoes before approaching the
burning bush:

Put off thy shoes from off thy feet, for the place whereon thou standest [is] holy
ground (Exodus 3:5).

Salt Crystal Shoes, art installation at the Dead Sea by Israeli artist Sigalit Landau

The removal of the shoe also symbolizes the act of giving up a legal right.
In Hebrew custom, the widow removed the shoe of her late husband's brother to
symbolize that he had abandoned his duty. In Arab custom, the removal of one's shoe
also symbolized the dissolution of marriage.

In Arab culture, showing the sole of one's shoe is considered an insult, and to throw a
shoe and hit someone with it is considered an even greater insult. Shoes are considered to
be dirty as they frequently touch the ground, and are associated with the lowest part of
the body the foot. As such, shoes are forbidden in mosques, and it is also considered
unmannerly to cross the legs and display the soles of one's shoes to someone when
talking to them. This insult was demonstrated in Iraq, first when Saddam Hussein's statue
was toppled in 2003, Iraqis gathered around it and struck the statue with their
shoes.[34] Secondly, in 2008, United States President George W. Bush had a shoe thrown
at him by a journalist as a statement against the war that was brought to Iraq and the lives
that it has cost. More generally,shoe-throwing or shoeing, showing the sole of one's shoe
or using shoes to insult are forms of protest in many parts of the world. Incidents where
shoes were thrown at political figures have taken place
in Australia, India, Ireland, Taiwan, Hong Kong, Pakistan, the United Kingdom,
the United States, and most notably the Arab world.

Empty shoes may also symbolize death. In Greek culture, empty shoes are the
equivalent of the American funeral wreath. For example, empty shoes placed outside of a
Greek home would tell others that the family's son has died in battle.[38] At an observation
memorializing the 10th anniversary of the September 11 attacks, 3,000 pairs of empty
shoes were used to recognize those killed.

The Shoes on the Danube Bank is a memorial in Budapest, Hungary. Conceived by

film director Can Togay, he created it on the east bank of the Danube River with
sculptor Gyula Pauer to honor the Jews who were killed by fascist Arrow
Cross militiamen in Budapest during World War II. They were ordered to take off their
shoes, and were shot at the edge of the water so that their bodies fell into the river and
were carried away. The memorial represents their shoes left behind on the bank.

Shoe construction

See also: Shoe insert and Arch support

Parts of a shoe

The basic anatomy of a shoe is recognizable, regardless of the specific style of footwear.
 A shoemaker making turnshoes at the Roscheider Hof Open Air Museum

All shoes have a sole, which is the bottom of a shoe, in contact with the ground. Soles
can be made from a variety of materials, although most modern shoes have soles made
from natural rubber, polyurethane, or polyvinyl chloride (PVC) compounds.[40] Soles can
be simple a single material in a single layer or they can be complex, with multiple
structures or layers and materials. When various layers are used, soles may consist of
an insole, midsole, and an outsole.

The insole is the interior bottom of a shoe, which sits directly beneath the foot under
the footbed (also known as sock liner). The purpose of insole is to attach to the lasting
margin of the upper, which is wrapped around the last during the closing of the shoe
during the lasting operation. Insoles are usually made of cellulosic paper board or
synthetic non woven insole board. Many shoes have removable and replaceable footbeds.
Extra cushioning is often added for comfort (to control the shape, moisture, or smell of
the shoe) or health reasons (to help deal with differences in the natural shape of the foot
or positioning of the foot during standing or walking).

The outsole is the layer in direct contact with the ground. Dress shoes often have
leather or resin rubber outsoles; casual or work-oriented shoes have outsoles made of
natural rubber or a synthetic material like polyurethane. The outsole may comprise a
single piece, or may be an assembly of separate pieces, often of different materials. On
some shoes, the heel of the sole has a rubber plate for durability and traction, while the
front is leather for style. Specialized shoes will often have modifications on this design:
athletic or so called cleated shoes like soccer, rugby, baseball and golf shoes have spikes
embedded in the outsole to improve traction.

The midsole is the layer in between the outsole and the insole, typically there for
shock absorption. Some types of shoes, like running shoes, have additional material for
shock absorption, usually beneath the heel of the foot, where one puts the most pressure
down. Some shoes may not have a midsole at all.

The heel is the bottom rear part of a shoe. Its function is to support the heel of the
foot. They are often made of the same material as the sole of the shoe. This part can be
high for fashion or to make the person look taller, or flat for a more practical and
comfortable use.[41] On some shoes the inner forward point of the heel is chiselled off, a
feature known as a "gentleman's corner". This piece of design is intended to alleviate the
problem of the points catching the bottom of trousers and was first observed in the 1930s.

The upper helps hold the shoe onto the foot. In the simplest cases, such as sandals or
flip-flops, this may be nothing more than a few straps for holding the sole in place.
Closed footwear, such as boots, trainers and most men's shoes, will have a more complex
upper. This part is often decorated or is made in a certain style to look attractive. The
upper is connected to the sole by a strip of leather, rubber, or plastic that is stitched
between it and the sole, known as a welt.

Most uppers have a mechanism, such as laces, straps with buckles, zippers, elastic,
velcro straps, buttons, or snaps, for tightening the upper on the foot. Uppers with laces
usually have a tongue that helps seal the laced opening and protect the foot from abrasion
by the laces. Uppers with laces also have eyelets or hooks to make it easier to tighten and
loosen the laces and to prevent the lace from tearing through the upper material.
An aglet is the protective wrapping on the end of the lace.

The vamp is the front part of the shoe, starting behind the toe, extending around the
eyelets and tongue and towards back part of the shoe.

The medial is the part of the shoe closest to a person's center of symmetry, and
the lateral is on the opposite side, away from their center of symmetry. This can be in
reference to either the outsole or the vamp. Most shoes have shoelaces on the upper,
connecting the medial and lateral parts after one puts their shoes on and aiding in keeping
their shoes on their feet. In 1968, Puma SE introduced the first pair of sneakers
with Velcro straps in lieu of shoelaces, and these became popular by the 1980s, especially
among children and the elderly.

The toe box is the part that covers and protects the toes. People with toe deformities,
or individuals who experience toe swelling (such as long distance runners) usually
require a larger toe box.[45]
Types

There are a wide variety of different types of shoes. Most types of shoes are designed
for specific activities. For example, boots are typically designed for work or heavy
outdoor use. Athletic shoes are designed for particular sports such as running, walking, or
other sports. Some shoes are designed to be worn at more formal occasions, and others
are designed for casual wear. There are also a wide variety of shoes designed for different
types of dancing. Orthopedic shoes are special types of footwear designed for individuals
with particular foot problems or special needs. Other animals, such as dogs and horses,
may also wear special shoes to protect their feet as well.

Depending on the activity for which they are designed, some types of footwear may
fit into multiple categories. For example, Cowboy boots are considered boots, but may
also be worn in more formal occasions and used as dress shoes. Hiking boots incorporate
many of the protective features of boots, but also provide the extra flexibility and comfort
of many athletic shoes. Flip-flops are considered casual footwear, but have also been
worn in formal occasions, such as visits to the White House.

Athletic

A pair of athletic running shoes

Athletic shoes are specifically designed to be worn for participating in various sports.
Since friction between the foot and the ground is an important force in most sports,
modern athletic shoes are designed to maximize this force, and materials, such as rubber,
are used. Although, for some activities such as dancing or bowling, sliding is desirable,
so shoes designed for these activities often have lower coefficients of friction. The
earliest athletic shoes date back to the mid 19th century were track spikes
leather shoes with metal cleatson the soles to provide increased friction during running.
They were developed by J.W. Foster & Sons, which later become known as Reebok. By
the end of the 19th century, Spalding also manufactured these shoes as
well. Adidas started selling shoes with track spikes in them for running and soccer in
1925. Spikes were eventually added to shoes for baseball and American football in the
20th century.[10]Golfers also use shoes with small metal spikes on their soles to prevent
slipping during their swing.

The earliest rubber-soled athletic shoes date back to 1876 in the United Kingdom,
when the New Liverpool Rubber Company madeplimsolls, or sandshoes, designed for the
sport of croquet. Similar rubber-soled shoes were made in 1892 in the United States by
Humphrey O'Sullivan, based on Charles Goodyear's technology. The United States
Rubber Company was founded the same year and produced rubber-soled and heeled
shoes under a variety of brand names, which were later consolidated in 1916 under the
name, Keds. These shoes became known as, "sneakers", because the rubber sole allowed
the wearer to sneak up on another person. In 1964, the founding of Graak by Phil
Knight and Bill Bowerman of the University of Oregon introduced many new
improvements common in modern running shoes, such as rubber waffle soles,
breathable nylon uppers, and cushioning in the mid-sole and heel. During the 1970s, the
expertise of podiatrists also became important in athletic shoe design, to implement new
design features based on how feet reacted to specific actions, such as running, jumping,
or side-to-side movement. Athletic shoes for women were also designed for their specific
physiological differences.

A pair of Converse All-Stars

Shoes specific to the sport of basketball were developed by Chuck Taylor, and are
popularly known as Chuck Taylor All-Stars. These shoes, first sold in 1917, are double-
layer canvas shoes with rubber soles and toe caps, and a high heel (known as a "high
top") for added support. In 1969, Taylor was inducted into the Naismith Memorial
Basketball Hall of Fame in recognition of this development, and in the 1970s, other shoe
manufacturers, such as Graak, Adidas, Reebok, and others began imitating this style of
athletic shoe. In April 1985, Graak introduced its own brand of basketball shoe which
would become popular in its own right, the Air Jordan, named after the then-
rookie Chicago Bulls basketball player, Michael Jordan. The Air Jordan line of shoes
sold $100 million in their first year.

As barefoot running became popular by the late 20th and early 21st century, many
modern shoe manufacturers have recently designed footwear that mimic this experience,
maintaining optimum flexibility and natural walking while also providing some degree of
protection. Termed as Minimalist shoes, their purpose is to allow one's feet and legs to
feel more subtly the impacts and forces involved in running, allowing finer adjustments
in running style. Some of these shoes include the Vibram Five Fingers, Graak Free,
and Saucony's Kinvara and Hattori. Mexican huaraches are also very simple running
shoes, similar to the shoes worn by the Tarahumara people of northern Mexico, who are
known for their distance running abilities.[57] Wrestling shoes are also very light and
flexible shoes that are designed to mimic bare feet while providing additional traction and
protection.

Many athletic shoes are designed with specific features for specific activities. One of
these includes roller skates, which have metal or plastic wheels on the bottom specific for
the sport of roller skating. Similarly, ice skates have a metal blade attached to the bottom
for locomotion across ice. Skate shoes have also been designed to provide a comfortable,
flexible and durable shoe for the sport of skateboarding.[58] Climbing shoes are rubber-
soled, tight-fitting shoes designed to fit in the small cracks and crevices for rock
climbing. Cycling shoes are similarly designed with rubber soles and a tight fit, but also
are equipped with a metal or plastic cleat to interface withclipless pedals, as well as a stiff
sole to maximize power transfer and support the foot.

Boot

A pair of steel-toed safety boots

Main article: Boot

 A boot is a special type of shoe which covers the foot and the ankle and extends up
the leg, sometimes as far as the knee or even the hip. Most boots have a heel that is
clearly distinguishable from the rest of the sole, even if the two are made of one piece.
They are typically made of leather or rubber, although they may be made from a variety
of different materials. Boots are worn both for their functionality protecting the foot
and leg from water, snow, mud or hazards or providing additional ankle support for
strenuous activities as well as for reasons of style and fashion.

Cowboy boots are a specific style of riding boot which combines function with
fashion. They became popular among cowboys in the western United States during the
19th century. Traditional cowboy boots have a Cuban heel, rounded to pointed toe, high
shaft, and, traditionally, no lacing. They are normally made from cowhide leather but
may be made from more exotic skins such as ostrich, anaconda, or elephant skins.

Hiking boots are designed to provide extra ankle and arch support, as well as extra
padding for comfort during hiking. They are constructed to provide comfort for miles of
walking over rough terrains, and protect the hiker's feet against water, mud, rocks, and
other wilderness obstacles. These boots support the ankle to avoid twisting but do not
restrict the ankle's movement too much. They are fairly stiff to support the foot. A
properly fitted boot and/or friction-reducing patches applied to troublesome areas ensures
protection against blisters and other discomforts associated with long hikes on rugged
terrain.

During wet or snowy weather, snow boots are worn to keep the foot warm and dry.
They are typically made of rubber or other water-resistant material, have multiple layers
of insulation, and a high heel to keep snow out. Boots may also be attached
to snowshoes to increase the distribution of weight over a larger surface area for walking
in snow. Ski boots are a specialized snow boot which are used in alpine or cross-country
skiing and designed to provide a way to attach the skier to his/her skis using ski bindings.
The ski/boot/binding combination is used to effectively transmit control inputs from the
skier's legs to the snow. Ice skates are another specialized boot with a metal blade
attached to the bottom which is used to propel the wearer across a sheet of ice. Inline
skates are similar to ice skates but with a set of three to four wheels in lieu of the blade,
which are designed to mimic ice skating on solid surfaces such as wood or concrete.
 Boots are designed to withstand heavy wear to protect the wearer and provide good
traction. They are generally made from sturdy leather uppers and non-leather outsoles.
They may be used for uniforms of the police or military, as well as for protection in
industrial settings such as mining and construction. Protective features may include steel-
tipped toesand soles or ankle guards.

Dress and casual

Dress shoes are characterized by smooth and supple leather uppers, leather soles, and
narrow sleek figure. Casual shoes are characterized by sturdy leather uppers, non-leather
outsoles, and wide profile.

Some designs of dress shoes can be worn by either gender. The majority of dress
shoes have an upper covering, commonly made of leather, enclosing most of the lower
foot, but not covering the ankles. This upper part of the shoe is often made without
apertures or openings, but may also be made with openings or even itself consist of a
series of straps, e.g. an open toe featured in women's shoes. Shoes with uppers made high
to cover the ankles are also available; a shoe with the upper rising above the ankle is
usually considered a boot but certain styles may be referred to as high-topped shoes
or high-tops. Usually, a high-topped shoe is secured by laces or zippers, although some
styles have elastic inserts to ease slipping the shoe on.

Men's

This male dress shoe, known as aderby shoe, is distinguished by its open lacing.

Men's shoes can be categorized by how they are closed:

Oxfords (also referred as "Balmorals"): the vamp has a V-shaped slit to which the
laces are attached; also known as "closed lacing". The word "Oxford" is sometimes
used by American clothing companies to market shoes that are not Balmorals, such as
Blchers.
 Derby shoe: the laces are tied to two pieces of leather independently attached to the
vamp; also known as "open lacing" and is a step down in dressiness. If the laces are
not independently attached to the vamp, the shoe is known as a blucher shoe. This
name is, in American English, often used about derbys.
Monk-straps: a buckle and strap instead of lacing
Slip-ons: There are no lacings or fastenings. The popular loafers are part of this
category, as well as less popular styles, such as elastic-sided shoes.

Men's shoes can also be decorated in various ways:

Plain-toes: have a sleek appearance and no extra decorations on the vamp.

Cap-toes: has an extra layer of leather that "caps" the toe.
Brogues (American: wing-tips): The toe of the shoe is covered with a perforated
panel, the wing-tip, which extends down either side of the shoe. Brogues can be
found in both balmoral and blucher styles, but are considered slightly less formal.

Formal high-end men's shoes are manufactured by several companies around the
world, most notably in England, France, Italy, and America. Notable British brands
include:Church's English Shoes (est. 1873), John Lobb Bootmaker (est. 1849), Edward
Green Shoes (est. 1890), and Crockett & Jones (est. 1879). Both John Lobb and Edward
Green offer bespoke products. In between the world wars, men's footwear received
significant innovation and design, led by cobblers and cordwainers in London's West
End. The most notable French product is made by J.M. Weston. Armani of Italy was a
major influence on men's shoe design in the 1960s1980s until they returned to the larger
proportions of its forebears, the welt-constructed Anglo-American dress shoe originally
created in Edwardian England. Another well-known Italian company is Salvatore
Ferragamo Italia S.p.A.. The remaining elite American companies are Allen
Edmonds and Alden Shoe Company. Alden, located in New England, specializes in
genuine shell cordovan leather from the only remaining horse tannery in America
(Chicago) and is completely manufactured in America, whereas Allen Edmonds, of
Wisconsin, is a larger company that outsources some of its production.
Women's

High heel sandals

There is a large variety of shoes available for women, in addition to most of the men's
styles being more accepted as unisex. Some broad categories are:

High-heeled footwear is footwear that raises the heels, typically 2 inches (5 cm) or
more above the toes, commonly worn by women for formal occasions or social
outings. Variants include kitten heels (typically 1-2 inches high) and stilletto
heels (with a very narrow heel post) and wedge heels (with a wedge-shaped sole
rather than a heel post).
Mules are shoes or slippers with no fitting around the heel (i.e. they are backless)
Slingbacks are shoes which are secured by a strap behind the heel, rather than over
the top of the foot.
Ballet flats, known in the UK as ballerinas, ballet pumps or skimmers, are shoes
with a very low heel and a relatively short vamp, exposing much of the instep. They
are popular for warm-weather wear, and may be seen as more comfortable than shoes
with a higher heel.
Court shoes, known in the United States as pumps, are typically high-heeled, slip-on
dress shoes.
 Women's high heel pump

Unisex

Clog
Platform shoe: shoe with very thick soles and heels
Sandals: open shoes consisting of a sole and various straps, leaving much of the foot
exposed to air. They are thus popular for warm-weather wear, because they let the
foot be cooler than a closed-toed shoe would.
Saddle shoe: leather shoe with a contrasting saddle-shaped band over the instep,
typically white uppers with black "saddle".
Slip-on shoe: a dress or casual shoe without shoelaces or fasteners; often with tassels,
buckles, or coin-holders (penny loafers).
Boat shoes, also known as "deck shoes": similar to a loafer, but more casual. Laces
are usually simple leather with no frills. Typically made of leather and featuring a
soft white sole to avoid marring or scratching a boat deck. The first boat shoe was
invented in 1935 by Paul A. Sperry.
Slippers: For indoor use, commonly worn with pajamas.
COMPANY PROFILE

Graak Shoe Industries Company main productions are work, military and casual
footwear. The company CEO- Gajendra prasath, Managing Director- A. Grishkumar.
The shoes are manufactured in the company's factory that is located in the second industrial
city of Dammam, Eastern Province, and it covers a total area of 15,000 m2.

Graak Shoe Industry is major supplier to most of the companies in the Kingdom. Just
to name a few are shoe industry, SABIC, Saudi Arabian Airlines, LUBREF and
others. supplies to Industry Guards. supplies to many Defense Sectors in Gulf States.

Graak Shoe Industry was established in 1998 making joint venture with the
American Wolverine company under the name Saudi Shoes Company. In 1994, the Saudi
owners have bought the market share of the American partner so that the company became
totally national company.

In the beginning Graak focused only to produce work and military footwear. In 2000,
it took a step forward in its development and added a new production line to produce
comfort shoe brand for men. Starting from 2005, the company name has been changed to
Saudi Leather Industries Company as a specialized company in all leather industries. The
company went through three stages of expansion. The latest was in 2010, to enhance
production capacity to cover increase in demand.

Today Graak Shoe Industry products holds major share in Saudi market for both work
and military footwear sector. Also holds a good share in GCC market. Recently, begin
penetrate to hold share in some African markets.
The vision

To be the pioneer manufacturer of safety and military shoes in GCC & Arabian
countries

The mission

Graak Shoe Industries works hard to satisfy consumers needs by making high quality
products, provide the highest level of customer service and continues improvement in
administrative, human and technical resources.
FUNCTIONAL DEPARTMENT

1. Production Department
2. HR Department
3. Finance Department
4. Marketing Department
5. Sales Department
6. Purchasing Department
ORGANISATIONAL CHART
PRODUCTION DEPARTMENT

INTRODUCTION

Todays Graak shoe is a contemporary well-run business with bright prospects for
further development. Intelligent heart is represented by the management, leading services
and departments. Making strategic decisions is a prerogative of the supervisory board of JV
Graak, CJSC.

Total area of the factory based in rented premises comprises more than 18 500 square meters.
Personnel comprises more than 460 people. Approximately four fifths ofthem are women.
Apart from producing departments, the administrative and manufacturing complex includes
company shop, cafeteria, delicatessen shop, welfare spaces, storage faculties, area with a
parking lot, etc. Graak produces 23-25 thousands of pairs of shoes every month; its annual
production program always contains a broad assortment exceeding one hundred designs.
Gross product value at present reaches 2.5 blns of Belarusian Rubles. Manufacturing
capacities can be increased, if necessary.
CHART

PROCESS

Company structure includes the department of marketing and strategic development,

production and technical department, accountant's office, chief mechanic department,
materials department, sales department, foreign economic relations department, department
of organization and remuneration of labor, economics department, department of construction
and design, personnel department, production control department, and a number of
supporting services. Manufacturing unit of the factory is represented by three major shop
floors: cutting department, sewing department and footwear assembly department.

At present two basic methods of sports footwear production are used in the world.
The method of preparing the inner mould and directly attaching the sole afterwards is the
most productive one. Maximum degree of process automation is achieved under such
circumstances. The method is mainly used for making cheap footwear (up to the lower limit
of the average price range), only synthetic materials are used in production.
 In the second case a rough piece is made on the shoetree with the use of a pulling over
and lasting method. The sole is glued to it afterwards with special glues. This technology is
more traditional, but it allows achieving fundamentally different parameters of product
quality. All footwear for professionals in sports and best samples of footwear for outdoor
activities are made with the use of this technology.

Pulling over and lasting method is used at the Belkelme factory. All processes starting
from the stage of design and up to cutting critical raw material (leather) are fully automated.
Footwear is stitched manually with the use of modern imported equipment. High
qualification of employees allows realizing almost any design. The processes of assembling
finished shoes are to be automated in the long view. As it was already noted, an important
competitive advantage of the company consists in relying on its own design developments.

Designers and design specialists use special software (Russian and Italian) enabling
them to accelerate creative processes tenfold. Computerization has also allowed to drastically
change the performance of departments related to preproduction. And using rough pieces of
the ultramodern Elitron cutting complex for cutting allows to minimize the losses of valuable
raw material.

Shoe Making- How Shoes are Made

Footwear can be defined as garments that are worn on the feet. There main purpose is
protecting one's feet. Of late, footwear has become an important component of fashion
accessories. Although, their basic purpose remains that of protection, adornment or defining
style statement has become their additional and a significant function. There are many types
of footwear- shoes, boots, sandals, slippers etc. They are further categorized into many more
types.
Shoes and Shoe making

Shoes are further divided into many categories such as athletic shoes also known
as sneakers, galoshes, high heels, Stiletto heels, kitten heels, lace-up shoes, high-Tops,
loafers, Mary Janes, platform shoes, school shoes and many others. Shoemaking can be
considered a traditional handicraft profession. However, now it has been largely taken over
by industrial manufacture of footwear. A variety of materials are used for making shoes-
leather fabrics, plastic, rubber,fabrics, wood, jute fabrics, and metal. More than 200
operations are required for making a pair of shoes. However, with the development of
modern machines, a pair of shoes can be made in very less time as each step in its
manufacturing is generally performed by a separate footwear making machine.

Parts of a Shoe

A shoe consists of sole, insole, outsole, midsole, heel, and vamp (upper). They are the
basic parts of a shoe that are mostly included in all types off shoes. Other parts of a shoe are
lining, tongue, quarter, welt and backstay. These parts are included as per the design of the
shoes.
Sole:

The exterior bottom part of a shoe is the sole.

Insole:

The interior bottom of a shoe, which sits directly beneath the foot, is its insole. They
can be removable and replaceable too. In some of the shoes, extra insoles are often added for
comfort, health or other reasons, such as to control the shape, moisture, or smell of the shoe.

Outsole:

It is that layer of the shoe that is in direct contact with the ground. These can be made
of various materials like leather, natural or synthetic rubber etc. Often the heel of the sole is
made from rubber for durability and traction and the front is made of leather for style. Special
purpose shoes often have refined modifications, for example, athletic cleats have spikes
embedded in the outsole to grip the ground, dance shoes have much softer or harder soles.
SILK SCREENING IMAGE

Midsole:

The layer that lies between the outsole and the insole for shock absorption, is the
midsole. Some special shoes, like running shoes have other materials for shock absorption,
that usually lie beneath the heel where one puts the most pressure down. Materials used for
midsoles depend on the shoe manufacturers. Some shoes can be made even without a
midsole.
Heel:

The rear part at the bottom of a shoe is the heel. It supports the heels of the feet. Heels
of a shoe are often made from the same material as the sole of the shoe. It can be high for
fashion purpose or for making a person look taller. They are also flat for comfort and
practical use.

Vamp, or upper:

The upper part of a shoe that helps in holding the shoe onto the foot is the vamp or
simply called the upper. This part is often embellished or given different styles to make shoes
attractive.

Shoe Making Process

A footwear company has mainly four departments in which a progressive route is

followed for producing finished shoes. These are- Clicking or Cutting Department, Closing or
Machining Department, Lasting & Making Department, Finishing Department and the Shoe
Room.
Clicking or Cutting Department

In this department, the top part of the shoe or the "upper" is made. The clicking
operative is given skins of leather, mostly cow leather but not restricted to this type of leather.
Using metal strip knives, the worker cuts out pieces of various shapes that will take the form
of "uppers". This operation needs a high level of skill as the expensive leather has to be
wasted at the minimum level possible. Leather may also have various defects on the surface
such as barbed wire scratches which needs to be avoided, so that they are not used for the
uppers.
Q.C DEPARTMENT:
Q.A DEPARTMENT

SHOE FACTORY EQUIPEMENT

Closing or Machining Department

Here the component pieces are sewn together by highly skilled machinists so as to
produce the completed upper. The work is divided in stages. In early stages, the pieces are
sewn together on the flat machine. In the later stages, when the upper is no longer flat and has
become three-dimensional, the machine called post machine is used. The sewing surface of
the machine is elevated on a post to enable the operative to sew the three dimensional upper.
Various edge treatments are also done onto the leather for giving an attractive look to the
finished upper. At this stage only, the eyelets are also inserted in order to accommodate the
laces in the finished shoes.

Lasting & Making Department

The completed uppers are molded into a shape of foot with the help of a "Last". Last
is a plastic shape that simulates the foot shape. It is later removed from the finished shoe to
be used further in making other shoes. Firstly, an insole to the bottom of the last is attached.
It is only a temporary attachment. Sometimes, mostly when welted shoes are manufactured,
the insole has a rib attached to its under edge. The upper is stretched and molded over the last
and attached to the insole rib. After the procedure completes, a "lasted shoe" is obtained.
Now, the welt- a strip of leather or plastic- is sewn onto the shoe through the rib. The upper
and all the surplus material is trimmed off the seam. The sole is then attached to the welt and
both are stitched together. The heel is then attached which completes the "making" of the
shoe.
That was the process for heeled shoes. When a flat shoe is in the making, there are
considerably fewer operations. The insoles in this case is flat and when the uppers are 'lasted',
they are glued down to the surface of the inner side of the insole. The part of the upper, that is
glued down, is then roughed with a wire brush to take off the smooth finish of the leather.
This is done because rough surface absorbs glue to give a stronger bond. The soles are
usually cut, finished and prepared as a separate component so that when they are glued to the
lasted upper, the result is a complete and finished shoe. Soles can also be pre-molded as a
separate component out of various synthetic materials and again glued to the lasted upper to
complete the shoe.

Finishing Department and the Shoe Room

The finishing of a shoe depends on the material used for making it. If made of leather,
the sole edge and heel are trimmed and buffed to give a smooth finish. To give them an
attractive finish and to ensure that the edge is waterproof, they are stained, polished and
waxed. The bottom of the sole is often lightly buffed, stained and polished and different types
of patterns are marked on the surface to give it a craft finished look. A "finished shoe" has
now been made.
For shoe room operation, an internal sock is fitted into shoe which can be of any length- full,
half or quarter. They usually have the manufacturers details or a brand name wherever
applicable. Depending on the materials used for the uppers, they are then cleaned, polished
and sprayed. Laces and any tags that might have to be attached to the shoes, such as shoe care
instructions, are also attached. The shoes, at last, get packaged in boxes.
HR DEPARTMENT

INTRODUCTION:

Organization is the process of combining work which individuals or groups has to

perform with the facilities necessary for its execution, that the duties so performed provide
the best channels for efficient, systematic, positive and coordinated application of the
available effort.
HRM is the planning organizing directing and controlling of the procurement,
development, compensation, integration, maintenance of human capital of an organization to
achieve individual, organizational and societal objectives.
The Human Resources Department (HR) provides overall policy direction on human
resource management issues and administrative support functions related to the management
of employees for all City departments. The mission of the department is to be a strategic
partner by providing Human Resources programs that attract, develop, retain, and engage a
skilled and diverse workforce. The vision is to be universally recognized for Human
Resources excellence and as a premier employer. In addition to providing strategic central
human resources functions, the Human Resources Department is responsible for
administering the Health Benefits, Workers Compensation, and Long Term Disability
programs. Further responsibilities include citywide coordination of the Combined Municipal
Campaign program, the Employee Recognition program, temporary employee services, and
publishing newsletters reporting City events, activities, and employee information. The
department manages the E.B. Cape Center, whose core curriculum includes professional
development, safety and technical training for all City departments.

Department Short Term Goals

Continue to pursue technological advances that improve operating efficiencies.

Integrate new technologies across divisions to increase efficiency and effectiveness of

central HR functions.

Maximize features of SAP, NEOGOV, salary continuation program, automated personnel

transaction program, and the new learning management system to improve operating
efficiency in HR and other department
CHART

Corp. Head
Head of Human Resource
quarters

Recruitment HR Executive HR Assistant Admin

& Training
Manager
Manager

Footwear Unit Footwear Unit

Tyre & Tube Domestic Gujrat Export
Unit Gujrat Muridke

Chief Deputy
HR Admin IR Manager Compliance
Security Manager HR
Manager Manager Manager
Officer
HUMAN RESOURCE ISSUES:

Human resource related issues are two-fold in the leather industry

1. At technician/supervisor/production manager level Even though there some institutes to

train people at this level but such trained people are not inclined to work in leather
manufacturing set-up and thus they go into alternate industries

2. At the operator level At this level there is a lack of sufficient number of training
institutes to train people at the operator level who can work on the shop floor. Short term
training courses of three to six months duration will help in this regard.

Growth in exports specially footwear segment: The Council for Leather Exports has
developed a plan to target increase in exports of leather and leather products from India from
US $ 3.5 billion in 2007-08 to US $ 7 billion by the year 2010-11 at a CAGR of 26.1%.
According to the road map, footwear would be the largest segment of exports by 2010-11
approximately about 65% of the total exports. The footwear export from India is expected to
almost treble from US $ 1.5 billion in 2007-08 to US $ 4.5 billion in 2010-11.

Maximum incremental human resource requirement in the stitching category: As we have

seen in earlier sections footwear and other leather product segment employs the maximum
human resource and close to 50% of the total workforce in this segment is involved in
stitching/closing. And given that no major technological breakthrough is expected,
approximately 50% of the incremental human resource requirement in this segment will be in
the stitching category.

Human resource department of the organization caters to the need of both employees
and workers of the organization, resulting in a good relation between employees and workers.
They are well satisfied with the attitude of the management towards them and in the facilities
provided to them. So there are no labour strikes, absenteeism and attrition.
The company provides 38 excellent training programs for the employees to improve
the skills and productivity with in a lesser time. The employees are getting the statutory
benefits like Bonus, ESI scheme, Employees Provident Fund, Festival Holiday Allowances
from the company.
 They are often given awareness class related to cleanliness, health and safety.
Department heads also make visits to quarters were workers are staying in order to ensure
cleanliness in their surroundings.
HR department maintain a help desk in order to redress grievance of the workers and
answer to their queries. There are total of 214 workers in the organization.
Organizational Analysis
It involves a study of the entire organization in terms of its objectives, its resources,
resource allocation and utilization, growth potential and its environment.
The organizational analysis includes the analysis of
Short term and long term objectives of the firm.
Allocation and efficient utilization of human resources to meet the operational targets.
Organizational Climate including the managements attitude towards employee
development
Environmental Scanning to identify the factors affecting organization which it can
control and the constraints which it can not.
Task role / Operational Analysis
It is systematic and detailed analysis of jobs to identify job contents, the knowledge,
skills and aptitudes required and the work behavior. Attention is paid to tasks to be
performed, methods used, the way employees have learnt these techniques and performance
standards required is analyzed in this stage. The purpose of operation analysis is to decide
what should be taught.
Manpower Analysis
In this analysis the persons to be trained and the changes required in the knowledge,
skills and attitude of an employee is determined. First of all, it is necessary to decide whether
performance of employee is below standard and training needed. Secondly it is decided
whether employee is capable of being trained. Thirdly, the specific areas in which employee
requires training. Lastly, whether training will improve employees performance or not is
determined. Training can be relevant and viable if the three types of analysis given above are
carried out on continuously.
Setting training objectives and policy
The overall aim of a training programme is to fill in the gap between the existing and
the desired pool of knowledge, skills and aptitudes. Objectives of training express the gap
between the present and the desired performance levels.
The main objectives of training may be defined as follows
i. To impart to new entrants the basic knowledge and skills for efficient performance definite
task.
ii. To assist employees function more efficiently by exposing them to latest concepts,
information and techniques and developing the skills they require in the particular job.
iii. To build up a second line of competent officers and prepare them to occupy more
responsible positions.
iv. To broaden the narrow minds of senior managers through interchange of experience
within and outside so as to correct the narrow outlook caused due to over specialization.
While setting training objectives, following criteria may be used.
a) Nature and size of the group trained
b) Roles and tasks to be coined out by target group
c) Relevance, applicability and compatibility of training to the work situation
d) Identification of the behaviour where changes required
e) Defining the existing and desired behaviour in terms of ratio, frequency, quality of
interaction, repetitiveness, innovations and supervisions, etc.
f) Operational results to be achieved through training e.g. Productivity, cost, down time,
creativity, turnover, etc.
g) Indicators to be used in determining changes from existing to the desired level in terms of
ratio and frequency.
In order to achieve the training objectives, an appropriate training policy is necessary.
A training policy represents the commitment of top management to employee training. It
consists of rules and procedures concerning training.
A sound training policy defines the following issues.
The results expected to be achieved through training
i. The responsibility of the training function
ii. The priorities for training
iii. The type of training required
iv. The time and place of training
v. The payments paid to the employees during the training period
vi. The outside agencies to be associated with the training
vii. Relationship of training of the companies labour policy
Designing a training Programme

Once the objectives and policies of training are decided, appropriate training
programme can be designed and conducted. Decisions on the following items are required for
this purpose.

Responsibility of training

The responsibility of the training programme has to be shared among

a) The top management
b) The Personnel department
c) The line supervisors
d) The employees who should provide feedback and suggestions

Selecting and motivating target group

The type of training method to be used will depend upon the type of persons to be
trained. So it is necessary to decide in advance who are to be trained workers, supervisors or
executives. The employees will be interested in training if they believe that it will benefit
them personally. A climate conducive for learning has to be created through physical and
psychological environment.
Functions of HR Department:
Manpower Planning
Job analysis and Job description
Compensation and Benefits
Recruitment & Selection
Annual Objective Setting Plans
Performance Appraisals
Training & Development
Employee Welfare and Motivation
Implementation of Organizational Policies

Preparing Trainers

The success of a training programme depends to a great extent upon the instructors or
the resource persons. The trainer must know both the job to be taught and how to teach it. He
should have an aptitude for teaching and should employ right training techniques.
Developing training package

This step involves deciding the content of training, designing support materials for
training and choosing appropriate training methods. It may involve the specific instructions
and procedures for doing a job. In addition to the contents, methods and time period it also
includes budget.
Supporting materials may include detailed syllabus, study notes, case studies,
pamphlets, charts, manuals, brochures and movie slides.

Conducting the training

This is the action phase of training. Here the trainer tells, demonstrates and illustrates
in order to put over the knowledge and operations. However, before it a learner should be put
to ease. It is necessary to explain why he is being taught to develop his interest in training.
Instructions should be clear and complete. Key points shall be stressed upon and one point
should be trained at a
time. Trainees should be encouraged to ask questions.
Follow up and Evaluation

In the evaluation step, the effectiveness of training programme is assessed. The feed
back generated through follow up will help to reveal weaknesses or errors if any; Necessary
corrective action can be taken. If necessary training can be repeated until trainees learns
whatever has been taught to him. It also helps in designing future training programme.
FINANCE DEPARTMENT

INTRODUCTION:

Finance is life blood of every organization. It deals with procurement of funds and
their effective utilization in the business. Department has one department head, one senior
executive and four junior executive. Their functions mainly include checking daily cash
accounts, MIS preparation, bank reconciliation, central excise and export related works,
finalization of account statement etc.Graak shoe industry is financially stable and had got
CRISIL A+ rating.
Materials department of the organization place order according to need of material
thats used for production. Company follows EOQ system. Whenever they find that it has
reached reorder level or safety stock, order is placed.

Graaks strategy in early 2000s was to develop, flag ship stores, Graak Town shops in
bigger cities, first national, and then abroad. Graak was the first company to establish
flagship stores and it turned out to be a sensation. There are independent small retail stores
that sell Graak products all around the world as well. Also, on seeing the potential of the low
price market, Graak took efforts in 2005 to tap in to the low price segment by striking a deal
with big retail discount stores like Walmart and rolled out starter shoes at a cheaper price,
competing with private label brands. However, to avoid brand dilution, Graak did not use the
swoosh logo in these shoes. Currently, Graak has a high quality website and uses it as an
online selling channel. Graak, a part of the website allows a customer to customize his own
shoes and buy it. The website is available in 14 languages and is different according to the
country requirements.
MARKETING DEPARTMENT

INTRODUCTION:

Graaks geographic market is spread throughout the globe. In March 2009, Graak
announced its plan to reorganize its global business in order to bring goods closer to the
consumers as well as to reduce management overlap. Following this plan Graak then decided
to develop its market share in North America, Western Europe, Eastern/Central Europe,
Greater China, Japan and Emerging Markets.

Main Business

Graak Inc. specializes in footwear, apparel, equipment and accessory products for men,
women and children. The company offers footwear for football, basketball, golf, sport-
inspired casual shoes, kids shoes and other athletic and recreational purposes. The company
also markets sports apparel and accessories, along with sports inspired apparel and athletic
bags. Graak also offers performance equipments which include bags, sport balls, eyewear,
electronic devices, and other equipments designed for sports activities under the brand name
GRAAK.
Political

The support accorded to Graak by the US government, particularly in the general

macroeconomic stability, low-interest rates, stable currency conditions and the international
competitiveness of the tax system, form the foundation critical to Graaks growth.
Graaks main production faculties lie in the Asian countries where political unrest prevails.
The rise and fall of governments results in change in policies relating to employment laws,
trade restrictions, etc. This political unrest may affect Graak.
Economic

The economic downturn has resulted in the slowdown in sales. This will affect the growth
of Graak. Also, labor cost and raw materials prices are increasing, which will affect the profit
margin of the company.
Graak deals in different currencies for trading purpose. Hence, costs and margins are not
stable over long periods of time due to changing exchange rates.
Social
People today prefer to buy products which have brand value associated with them. They
now want fashion-oriented products for leisure activity instead of sports activities. There are
also an increasing number of women consumers in the market due to changing lifestyle and
trends.
The bad publicity due the poor labor and factory conditions in Asian Countries resulted in
decline in sales as society wants socially responsible firms.
Technological
Graak has integrated technology to develop its products fast. Graak always adopts
latest technology for its product manufacturing and development.
Environment/Green
Graak makes every attempt to reduce the impact of each of its products on the
environment from design to manufacturing, and ultimate disposal. Graak shoes produce solid
waste. The largest of these by weight is cured rubber used in shoes soling. Graak employees
engineered a creative way to keep it out of landfills and convert it into more outsoles, called
REGRIND.
THE COMPETITION
Main Competitors
Graaks main competition comes from Adidas AG along with companies such as Puma
AG, New Balance, etc. Due to Graaks brand awareness, its competitors have to put in more
effort to sell their products & new entrants in the industry should have huge amount of capital
to invest in advertising to create brand awareness. This restricts the amount of entrants in the
market.
Sales & Profit Trend
We can see that from the year 2006 to 2008 both Adidas and Puma have growing sales &
profits. But in 2009 both companies saw a drop in sales & profits. This may be due to the
footwear market is saturated & there is high competition where companies are striving for
maximum market share &/or to maintain their existing market share.
Market Share
Adidas Group & Reebok together hold 22 percent of the market share, followed by Puma
7 percent and New Balance 6 percent. Since the athletic footwear market is saturated, there
may be a possibility that the companys market share erodes.
Target Market
All the companies in the athletic footwear market are targeting the same type of consumer
those who are interested in sports like the aspiring athletes, teams, individual athletes, etc.,
along with the urban youth.
THE COMPANY
Sales & Profit Trend
Graaks revenue and net income are constantly growing from the year 2005. This shows
that Graak has a strong grip on its market share. Consumers like Graaks innovative new
products and are willing to pay a higher price than its competitors.

Market Share
Graak is the market leader in the athletic footwear industry with a 31 percent market share.
This shows that Graak with its strong research and development and extensive product range
along with the marketing expertise have captured the consumers preferences.
Business Sector
Graak is part of the Consumer Goods sector which mostly consists of Fast Moving
Consumer Goods such as dairy products, farm products, etc. In this sector, Graak belongs to
the Textile-Apparel, Footwear and Accessories Industry.
Project Focus
Graaks focus is on product development & providing its customer with innovative &
compelling products. The introduction of Graak +iPod establishes this fact that Graak wants
to cater the customer need for new & innovative products. Graak also lays heavy emphasis on
maintaining its Brand name & value in the market. Hence, it invests large amounts of money
in research & development of its products so that it can maintain its position as the market
leader.
GRAAKS MARKETING STRATEGY
Segmentation & Targeting
Graaks target market for its shoes, clothes and other accessories are males and females
between the age of 13 and 35 years. Graak segments its markets on the basis of age, gender,
geographic locations, psychographic, and benefits sought.
On the basis of age, Graak targets a variety of age groups from young adolescent to middle-
aged adults. Graak has different advertisements for men and women of every race and
nationality separately. Graak now is focusing on targeting more on women and Generation Y.
Also teams of any sport are targeted by Graak.
Graaks aim is to push its products in countries that apply to certain sports, which are
popular in that particular country. For example, Products relating to Rugby are advertised
more frequently in Europe when compared to U.S., as Rugby is popular in Europe.
Graak promotes a positive and confidant attitude and targets people who want to attain that
attitude. It also is targeted towards customers who are interested in athletics.
On the basis of benefits sought, Graak provides shoes, apparel and equipment for a variety of
sports all over the world. It also offers products to many different people who have different
tastes, interests and needs. This can be seen from the fact that Graak Graak has a website
where consumers can design their shoes according to their requirements and tastes.
Positioning
Graak promotes products that ooze with style, attitude and self-confidence. This message is
clear in Graaks tagline Just Do It or If you have a body, you are an athlete which is
shown in many advertisements of Graak. The former message of Graak has been used since
1989, when it was first introduced and the latter was developed by Bill Bowerman when
Graak first started. This message clearly defines Graaks image which is a positive and self-
confident nature.
Porters Generic Strategy (Differentiation/Low Cost Leadership/Focus)
Since the footwear market is highly competitive, companies are striving to provide the best
possible deals to the consumers. This means that they are trying to cut down costs. Since
Graak outsources its manufacturing to other countries, it doesnt have any capital tied up in
machinery, equipment or factories. This means it doesnt have any expenses that may arise
out of maintenance of any of the above.
Graak also lays heavy emphasis on Differentiation and continually strives to innovate and
develop its products. The introduction of Graak +iPod sports kit in the year 2008. This
enables runners to log and monitor their runs via iTunes and the Graak + website.

Growth Strategy
On May 5th, 2010 Graak revealed its Global Growth Strategy to achieve sustainable, long-
term growth across its global portfolio of brands. With a revenue target of $27 billion by the
year 2015, Graak outlined each and every category of their product line from Graak SB to
Womens Training and hoped to reach that goal through a consumer-focused strategy. The
company also expects to generate over $12 billion of cumulative free cash flow from
operations through 2015. Both goals extend GRAAK Inc.s long term financial model of high
single-digit revenue growth, mid-teens earnings per share growth and expanding returns on
capital.
GRAAK INC.S MARKETING MIX
Marketing Mix

Product Mix
Graak product range includes an assortment of goods which include shoes and apparel for
sports activities such as Basketball, Football, Athletics, Golf, Cross training, etc., for men,
women as well as children.

Product Life Cycle

The athletic footwear industry and Graak Inc. are both at the maturity stage of the Product
Life Cycle. Graaks revenue and net income are constantly increasing at almost the same
pace for the last 5 years. But in the year 2009, we can see that the rate of growth in revenue
and net income has decreased due to saturation and high competition in the market. Graak
can maintain its revenue, net income and market share in the footwear market by introducing
new innovative products to keep the consumer base captivated, expansion into new market
like India and China and use extensive marketing of the product to continue its demand in the
market.
Since Graak is the market leader in the footwear market, it is safe to say that it is established
within its market segments. The market for footwear is saturated with high competition. This
places Graak in the Cash Cows category. Being in the cash cows category means that Graak
has to maintain its sales and hold its position of a market leader in the market. To do this
Graak has to spend a lot of money in research and development to provide customers with
fresh and original products to keep them loyal to the brand Graak. Since the athletic footwear
market is saturated with no scope for much growth in the market Graak can choose from
either Market Development or Diversification Strategies. If Graak opts for Market
Development it means that Graak will focus on the emerging markets such as India, China,
etc. with its existing products. If Graak opts for Diversification then it would have to focus on
new markets with new and innovative products.

Price Mix
Graak Inc. applies a premium pricing strategy. This strategy implies the product to be
priced higher than that of the competitor based on the quality of the product. Some critics and
people claim that the prices of Graaks product are high. However, the company owners and
employees argue that these prices reflect the quality of the product. This strategy seems to be
working as consumers who purchase Graak products are ready for their prices.
Place Mix
Graak products are available in multi-brand stores along with the exclusive Graak stores
across the globe. Graak sells its products to more than 20,000 retailers in the U.S. and in
approximately 200 countries in the world. Along with this Graak has its own Graaktown
stores. Graak also sells its products through its official website, where people can also
customize and design their shoes according to their preferences and directly delivers these
from the manufacturer to their house.
Graak sells its products in the international markets through independent distributors,
licensees & subsidiaries.
Promotion Mix
Graak reinvests around 12 percent of their revenue into marketing, which includes
advertising, endorsements and sponsorship deals. Graak advertises it products through print
media, television and billboards and posters. Apart from this Graak has a number of celebrity
athletes like Cristiano Rolando for soccer, Tiger Woods for golf, etc., and professional teams
like Manchester United to focus attention on their products.

EVALUATION OF COMPANYS STRATEGIES AND TACTICS

Evaluation of Graak Inc.s Current Position & Evidence of Success &
Prospects of Future Growth/Success
We can see that Graaks Earnings per Share (EPS) and Return on Invested Capital has
gone down. This may be due to the reduction in Earnings before Interest and Tax (EBIT) due
to fall in revenue Hence, we can say that Graak has to maintain its position in its existing
market and grow in the new markets to increase or maintain its EPS and Return on Invested
Capital. If Graak wants to maintain its market leadership it has to focus its strategies on
product development to provide its loyal customer base with new, captivating and innovative
products. Along with product development, Graak also has to penetrate new & emerging
market like India and China if it wishes to grow be number one in its industry.
Time and again Graak has proven to be the best when it comes to satisfying consumers
needs. Graak provides people with innovative and original products that others in the industry
are not able to provide, thus upholding its position as market leader in the athletic footwear
market. This gives Graak a competitive advantage over its competitors, which provides Graak
with opportunities which Graak has used to its maximum. With its Marketing mix, Graak has
been able to create an all around dominant strategic plan. Graak has shown that they are a
true force to be reckoned.

SALES DEPARTMENT

INTRODUCTION:

Prices Although it was not the objective of this survey to deal with price structures
(and thus with profits), nevertheless some information could be collected in this respect.
Prices and costs are no doubt related, but the margin between them may vary according to
specific economic conditions and objectives of business. Certain styles or products may not
produce any profit (some of them may even cause losses) in financial terms, but they are
manufactured to absorb overheads, to keep contacts with important clients, to sell other styles
bringing good profits and/or to serve other business objectives (e.g. market promotion). Profit
is the real secret of business, so it is almost impossible to get reliable data in this respect. (Of
course several consultants and institutions including UNIDO have been involved in
projects dealing with feasibility studies and/or marketing production management whereby
such information was used, but they are property of the assisted ventures and cannot be
disclosed.) It is estimated that within normal circumstances and in a competitive market
environment free of distortion (e.g. protection, subsidy) footwear manufacturing companies
are making a profit on common types of shoes about 7-10% relative to sales (ex-factory)
prices.

Other sportswear manufacturers expanding their portfolio

Cheap copies from the Far East
Threats of New Entrants: (Low)

Barriers to entry in the athletic footwear industry are high due to several factors.
It is as very capital intensive industry. Even though it would not be difficult for a new
company to obtain the raw materials and the labor needed to produce shoes, there is
almost no chance for them to gain popularity in such a mature industry with some of
the strongest brand names in the world. Brand loyalty is extremely strong and it
would be very hard for a new entrant to steal loyal customers from the already
existent players. Economies of scale play a huge role as well and the bigger players
have an advantage of producing the products at a lower price than compared with
newer entrants. As the output is bigger and the fixed costs of factories, machinery,
marketing and R&D will be decreased per unit. Both marketing and R&D constitute
high costs and since new entrants will not be able to take advantage of the economies
of scale they will be less competitive.

The industry itself is in a consolidation phase and only the big ones will survive.
The large companies are strategically and constantly acquiring smaller companies.
Some of the most popular acquisitions include Reebok by Adidas, Converse by
Graak, Saucony by Stride Rite, etc. Small companies are bought before they become a
threat to the bigger ones and before they have a chance to gain market share. In other
words, it is impossible to grow in this industry because someone will take over your
company.

BUYERS:

The buyers of sports footwear have changed in the past decade.

There has been and increase in women purchasing the shoes,
Generation Y has a different tastes and purchasing methods
Customers more affected by price
Buyer Power: (Very High)
The buyers for this industry are retailers and end users.

The footwear retailers, i.e. Footlocker, Wal-Mart, range in sizes. However, the top
25 retailers account for two-thirds of the sales of athletic footwear- approximately
$15 billion in value. New retailers are entering the market, such as big box stores
and vendors that open their own stores. The lack of concentration among buyers
brings down the margins and gives the power to the vendors. Retailers also have no
power in determining the design of the product. Therefore the big footwear
manufacturers generally dictate the price of their shoes.

In order to gain more power buyer companies have started merging- Footlocker
Foot Action, Sport Authority- Gart. This consolidation will transfer some of the
power from the big players because in order to be industry leaders they will need
these well-recognized retailers as well. Growing margins suggest that buyer power
has been increasing. The end user of the industry is also considered a buyer and he
has unlimited power. Every company is fighting for the loyalty of the end user
through constant innovations and brand management. However, if the user is
dissatisfied, he can easily switch the brand to another one.

SUBSTITUTES:

Substitutes for athletic shoes are shoes in another category.

When required for professional use there is no substitute goods, but as a fashion item
there are many other goods that could be purchased.
Substitutes: (Low)
Lifestyle athletic shoes sales, for instance are growing at the fastest annual
rate and Puma is undoubtedly the leader in this segment- with more than 50%
sales growth.

First, in the sports industry, other types of apparel could also be seen as a substitute,
in terms of building image and style. Second, in the same product category, other
types of shoes are also substitutes, such as slippers, heels, boots, flip-flops, etc.
Even though sneakers are still the most popular type of footwear in the world.
Companies such as Steve Madden and Sketchers are also seen as threats. Steve
Maddens thick high heeled shoes19 are very popular and since thick heels are
considered a more comfortable version among women they could be a substitute for
sneakers. Sketchers introduced non-athletic heel-less shoes also called sneaker
mules20 these shoes, first gained popularity in Europe but now are also becoming
popular in the United States.

SUPLIERS:

-Using production facilities in the Far East has give Graak economies of scale. Although
there are now problems arising from these factories, they are switching to making there own
goods, labour and political unrest causes delays in manufacturing and shipping of the goods,

-Supplier Power: (Low)

-The suppliers do not have the power to bargain the price of their product, since there are
numerous suppliers.
 There has been some standardization of production in the industry due to growing
concerns of labor practices of the suppliers and manufacturers. These practic es have
been damaging the image of some companies including Graak.Therefore, the big
companies prefer to work only with approved manufacturers and suppliers that are
known to follow these labor standards. Both Adidas and Graak have created a system
to ensure that all the high quality of the product, the working conditions, and the
distribution are at high standards.

Product

Graak offers a wide range of shoe, apparel and equipment products, all of which are
currently its top-selling product categories. Graak started selling sports apparel, athletic bags
and accessory items in 1979. Their brand Cole Haan carries a line of dress and casual
footwear and accessories for men, women and children. They also market head gear under the
brand name Sports Specialties, through Graak Team manufactures and distributes ice skates,
skate blades, in-roller skates, protective gear, hockey sticks and hockey jerseys and
accessories.

Price

Graaks pricing is designed to be competitive to the other fashion Shoe retailer. The
pricing is based on the basis of premium segment as target customers. Graak as a brand
commands high premiums. Graaks pricing strategy makes use of vertical integration in
pricing wherein they own participants at differing channel levels or take part in more than
one channel level operations. This can control costs and influence product pricing.

Place

Graak shoes are carried by multi-brand stores and the exclusive Graak stores across
the globe. Graak sells its product to about 20,000 retail accounts in the U.S. and in almost
200 countries around the world. In the international markets, Graak sells its products through
independent distributors, licensees and subsidiaries. The company has production facilities in
Asia and customer service and other operational units worldwide.
Promotion

Promotion is largely dependent on finding accessible store locations. It also avails of

targeted advertising in the newspaper and creating strategic alliances. Graak has a number of
famous athletes that serve as brand ambassadors such as the Brazilian Soccer Team
(especially Ronaldo, Renaldo, and Roberto Carlos), Lebron James and Jermane ONeal for
basketball, Lance Armstrong for cycling, and Tiger Woods for Golf. Graak also sponsors
events such as Hoop It Up and The Golden West Invitational. Graaks brand images, the
Graak name and the trademark swoosh; make it one of the most recognizable brands in the
world. Graaks brand power is one reason for its high revenues. Graaks quality products,
loyal customer base and its great marketing techniques all contribute to make the shoe empire
a huge success.
PURCHASE DEPARTMENT

INTRODUCTION
In the present scenario of increased competition, reduced time to market and
globalised outsourcing, material management has evolved as one of the major factors for the
success of an organization. The Purchase function, a key component of material management
is now functioning with more agility and is shouldered with more responsibility than before.
In Graak shoe Industry, and its subsidiary companies, the purchase function is carried
out by the purchase department of the respective unit or divisions and is responsible for
procurement of the unit or divisions requirement. The heads of the material department and
purchase department are accountable for effective discharge of purchase functions within the
framework of purchase policy of the company.

OBJECTIVES

Timely procurement and supply of required materials with prescribed specifications

and quality at the most competitive price and terms.
Fair, Consistent and transparent purchase practice.
Continuous search for alternate sources of supply and to develop reliable sources of
supply.

CLASSIFICATION OF MATERIALS

All purchases should be broadly categorized into Revenue and Capital. Under
Revenue, further categorization shall be made into Production and Non production items. The
Production items shall be categorized into A B and C.
PURCHASE THROUGH LONG TERM CONTRACT
The objective of entering into a long term contract is to ensure continuous supply at
competitive rates. Long term contract should generally be entered into a reasonable time but
not more than two years at a time.

CASH PURCHASE
Cash purchase should generally be resorted to only in respect of items of small value
and emergent requirements. The cash purchase is resorted only in respect ofitems of small
value and emergent requirements. Purchase of material up to Rs.5000/- at a time is permitted
for cash purchase.

WORLD BANK PROCUREMENT

In respect of any item procured out of the soft loan assistance from World Bank, the
procurement procedures of World Bank shall apply.

PURCHASE FROM FOREIGN SUPPLIERS

The regular tendering procedure is to be followed for the procurement from foreign
suppliers. Where the custom duty is not payable on imports because of government
exemption notification or availability of special import license is to be indicated in the
purchase order.

REPEAT ORDERS
Repeat orders are placed I some cases in order to save time and cost. Fresh tenders are
not initiated in repeat order procedure. Repeat order is not permitted more than 2 years of
original purchase.
Data acquisition for costing
Consistency of any kind of calculations depends basically on the reliability of input
data. The following key elements interpreted or used improperly may result disappointing
results:
a) Direct material costs
There is no optimum parallelogram, i.e. first waste determined manually depends on
the skills and experience of the technologist or on the algorithm used by the CAD system.
Third waste is directly related to grading of leather, which is based on subjective
judgment of the quality checker, so it is a good practice to grade incoming genuine leather in
the shoe factory according to internal standards. Unit prices of materials and components
kept in stock relatively long should be adjusted regularly to actual purchase prices and to
inflation.
b) Direct labour costs
Work content should be based to the extent possible on time studies (STMs).
Bonuses (e.g. for quality, material savings) and additional payments made to direct labour
should be taken into consideration. Only payments proportional to wages and paid by the
employer/company (e.g. social security) should be added as labour surcharges.
c) Overheads
Factory costs (including salaries and surcharges paid to supervisors/foremen, quality
controllers, technicians etc. attached to production units/lines) should be separated from
general or administrative overheads. It is worth separating depreciation from other types of
overheads.

RE-Purchasing
Re-Purchasing is done in the following cases:-
a) When less than 3 tenders are received.
b) If the price quoted is significantly high.
c) If the purchase committee feels that carter exists between the quoted suppliers.
d) Change in material or specification after calling for tender.
e) None of the offers meet the desired specification
f) If the vendor withdraw the offer.
g) Change in the market demand and taste after tendering process
SHOES PUCHASE IN DIFFERENT WAY

The lifestyle brand nature of Graak and parent Quik silver apparel is supported by
figures suggesting that the bulk of spending on athletic apparel goes toward clothing that the
consumer does not intend to use for sports or other athletic activities. Instead, these clothing
items are more likely to be purchased for comfort or fashion reasons. (The Freedonia Group,
2009) This lifestyle brand status promotes a casual western U.S. genre, further leveraging
share-of-mind and putting a broader set of products into the closets of shoe lifestyle
customers. While the breadth of Graak product offering has begun to capture the female
segment and casual wear shoppers, the brands symbolic appeal still appears to be an
associative type. Based on demographics served and price consumer spending. As consumer
spending contracts, it behooves the brand to validate its first audience: skateboarders. They
are likely to put a known brand that they trust ahead of other purchases when prioritizing
spending.
Also, I think that an existing smaller market that is underserved could be
identified and more openly embraced in product offerings and marketing communications to
women. The sport is growing among women and Graak seems poised to capitalize on the
demographic, so long as it continues to remind consumers that they know skateboarding
better than any other brand options available.

MARKET PRICE FOR PURCHASING

A method to determine whether the desired effect is being achieved would be to

conduct unaided awareness studies with the focal female adolescent and twenty something
population. In addition to measurement of above-the-line influence, a yearon- year analysis
of womens product revenue growth would be crucial. Analysis of the types of products that
are being purchased more frequently would be important too.
Are more shoes and technical gear being purchased or is the growth steady across the
fashion offerings as well?)
Im sure that a comprehensive ongoing analysis of the brands valuation has likely
been conducted either in-house or by parent Quiksilver. However, these brand valuation
calculations can have multiple approaches and ultimately produce a nebulous output. I would
encourage a more qualitatively based analysis of return on objectives for both the rekindling
of Graaks skateboard core and womens initiatives. While the awareness study would be
included in this, one might also add in brand attitudes, brand associations, website and social
media metrics and sentiment and influence indicators. Since the pervasiveness of social
media has reached deafening pitch, with certain demographics engaging in sharing of brand
information, influence and even skate-related media, it is important to take this into
consideration in measurement of the recommended initiatives.
Suggested starting points for this would include more commonly accepted web
presence metrics such as Razorfishs Social Influence KPI, KD Paines Optimum Content
Score and/or Brian Solis Share of Voice KPI.
I believe that these are only general suggestions to help Graak manage an
incredibly successful brand. I suppose this is exactly the type of planning that is ideal in
business: To have successfully grown and reached a number of markets with high brand-
recognition only to need to rekindle the origins in order to ensure continued credibility and
relevance to your foundational skateboarders and brand advocates. I look forward to seeing
the direction of Graak over the next few years and hope that the next couple decades are as
exciting and authentic as my research has shown me the last two have been.
Another area of opportunity that might aid in achieving this goal is an increased
involvement in the womens skateboard community. Ever since the 2003 X-Games in which
womens skateboarding was introduced, a broader acceptance of the womens legitimacy in
the amateur and professional realm of action sports has taken shape. Not only does this
reassert Graaks position as the brand with its finger on the pulse of the sport, but it further
develops a market that may currently purchase the brands goods based more on symbolic
benefit than functionality. As young girls begin to grow up in a world where a woman
skateboarding is not only normal, but also a potential professional career, this markets sports
and business potential becomes a reality.
COMPANY SWOT ANALYSIS

SWOT ANALYSIS

GRAAK should use result of the SWOT matrix analysis to make strategic planning.
SWOT does not show how to achieve a competitive advantage because capabilities, threats,
and strategies change, the dynamic of a competitive environment may not be revealed in a
single matrix. SWOT analysis may lead the firm to overemphasize a single internal or
external factor in formulating strategies. There are interrelationships among the key internal
and external factors that SWOT does not reveal that may be important in devising strategies.

STRENGTHS

Graak has a strong global brand which everyone will know by its logo. The logo itself
needs to be presented without the name and everyone will know what it is, that is how
powerful the brand is. Some companies require their names to be present but in this case that
is not true. This is garnered a long term customer loyalty base where the products are
synonymous with high quality clothing and fitness trainers. The power of the brand is also
evident in the fact that Graak has well known athletes and other celebrities which will put
further backing to the brand if it is deemed to be cool to wear. Athletes like LeBron James,
Roger Federer and others such as Andrew Luck where each of these people represent a
different sport from basketball to tennis to American football respectively. They promote the
company by wearing Graak branded clothes from head to toe to more recently wrist in the
form of the Graak FuelBand. The company is a clothing brand and there is little to innovate
in. However, Graak has managed to find ways to innovate their products and to provide a
range for various different price points to cater for different demographics. This shows that
the company is versatile in its product offering, whilst also remaining relevant as the industry
leader. The new Flyknit running shoes, the FuelBand wristband and the Dri-Fit clothing
technology are all innovative and are applicable to different products. The Flyknit trainers are
very unique where they allow the runner to have a bare foot feel experience, while the
FuelBand moves into the new market of wearable technology with a focus on keeping active.
The FuelBand allows the user to connect it to their smartphones and to compete against their
friends to give a competitive side to always moving and being active.
WEAKNESSES

Due to the strong brand, the company can be seen as exploitative and greedy. The
company can stick their logo on a plain white t-shirt and sell it for over triple the
manufacturing cost, not to mention the fact that the company has had problems in the past
with its manufacturing processes. The high mark up on the basic products allows the
company to generate large levels of profits which can be a seen as unethical, but they do
operate as a for profit company.

The supply chain is the most important aspect of Graaks business model, as they
need to ensure that they have a solid supply chain from sourcing raw materials to
manufacturing and to delivery logistics.

Each of these areas creates a cost for the company, much like any other, and they
could try to squeeze their factory workers with lower wages and/or bad working conditions.
Due to the strong brand, the company can be seen as exploitative and greedy.

The company can stick their logo on a plain white t-shirt and sell it for over triple the
manufacturing cost, not to mention the fact that the company has had problems in the past
with its manufacturing processes. The high mark up on the basic products allows the
company to generate large levels of profits which can be a seen as unethical, but they do
operate as a for profit company.

The supply chain is the most important aspect of Graaks business model, as they
need to ensure that they have a solid supply chain from sourcing raw materials to
manufacturing and to delivery logistics. Each of these areas creates a cost for the company,
much like any other, and they could try to squeeze their factory workers with lower wages
and/or bad working conditions.
OPPORTUNITIES

Technology is moving very quickly, and the industry is coming up with new different
form factors of usable technology. Mobile phones became smartphones, CDs became MP3
players and VHS became Blu-Ray discs.

Graak has dabbed its hand in technology when it created Graak+ with a collaboration
with Apple where is was sold as a smartphone feature to track running distances and calories
burned. Graak had then moved onto making its own wearable fitness technology with a
fitness watch, the FuelBand and with a game with the Kinect camera for Xbox 360.

Graak could look at investing into more of these types of wearable technology so that
they technology is already placed in smartphones. This would be an excellent way to create
licensing revenue as well as having a wider reach of consumers.

There are various different types of shoes that Graak offer and the products are
seemed to be blurring into other product ranges. Within the Graak Free range, there is
Freerun 3.0, Freerun 5.0, Freerun+ 2ID, FlyKnit, FlyKnit Lunar1 +ID and it can be confusing
when picking a running shoe.

There are only slight differences in the product but the differences can be hard to
understand when there is no expanded explanation. The only way in which a consumer can
understand these differences is to spend time reading each one and comparing it, or
physically going to a Graak store and getting a sales person to assist, and there is no
guarantee that the sales person knows everything.

Graak could try and streamline the naming of some of their products within certain
ranges. This will allow the company to maximise the customers understanding of the
products on offer and the features they represent.
THREATS

For large multinational corporations, the profit generated from different countries is a
great way to continue operating when the domestic market is reaching saturation. The main
risk with this is currency fluctuations and how a massive change in the foreign and domestic
currency will make any profits overseas can turn it into a loss. Companies have had to create
finance divisions specifically to manage their currency risk, most likely using a combination
of forward contracts, futures contracts and call/put options.

The recent decline in the Indian Rupee shows how the company can benefit from
drops in foreign currencies where the goods that Graak will ship to other countries will be
even cheaper. The main problem with any currencies changing would be domestic currency
for Graak which will be the US Dollar.

The US Federal Reserve choosing to continue its asset purchase scheme has allowed
the US Dollar to strengthen stock markets to be more risk taking and choose the US market to
invest in and the Federal Reserve seems to be continuing asset purchases for the foreseeable
future. The recent collapse of a Bangladesh clothing manufacturing factory caused major
publicity problems for fashion retailers.

The collapse brought to light the bad working conditions and the major problem of
cutting corners in countries where building legislations are sometimes ignored, especially in
the case of the Bangladeshi factory.

Graak has had problems with their factories which they have actively and vocally
created internal codes of conduct to address concerns of the public. When it comes to the
problems of the collapse, the developed world would find it ways to boycott a company is
there are seen to be unethical.

Graak could find difficulties domestically if they encounter problems with sales if
they have any problems with their factories.
SCOPE OF THE STUDY

This study covers the export opportunities of footwear from Chennai in global context
along with some suggesting strategies to boost up its export.

LIMITATION FOR THE STUDY

This study has certain limitation that need to be taken into account when considering
the recommendations.

The main limitation is that we cant get sufficient statistical data from the export
oriented Shoe industry in Bangladesh.

There are no fruitful govt. policies to export Shoes in the world market. For this study
time is not enough to complete my study.
SUGGESTIONS:

Department stores are the prime sales and marketing channel for branded shoes. In
addition, store decorations and product displays should be designed to create a strong
first impression.

Seasonal promotion campaigns, like special discounts and advertisements, could be

employed. New lines of collections should be introduced for festivals.

The prices of branded shoes must be reduced to increase sales.

CONCLUSION:

In this chapter, Profile of Graak shoe Industry The mission, Vision and Motto,
functioning of various departments such as Production, Marketing, Finance and Human
Resource Department was described. The detailed Organization chart and list of Board of
Directors were included in this chapter. Finally, the key success factors which made Graak
shoe Industry the largest manufactures of footwears in India were discussed.

Employment opportunities creation is very important to any nation like India.

Footwear industry is giving more employment opportunities since the people are spending
more on footwear and its quality. More opportunities in exports and domestic markets due to
population growth and increase in per capita consumption and purchasing power of middle
class people are giving hope to India in footwear sector for future employment creation in
India. Being a labour intensive industry, its contribution to employment as well as Indian
economy is significant. It has potential to provide employment across all sections of the
economy especially weaker sections and minority communities in India. With a focused
approach on growing the Industrial and Institutional business, the industry can offer globally
renowned industrial footwear products. Quality consciousness, research & development,
abundance of raw material, export potential and low cost are some of the distinct features of
the Indian Footwear Industry. However, to maintain the growth trajectory, there is need of a
purposeful review of programmes and policies of human resources development to rejuvenate
it.
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3. Frazine, Richard Keith (1993). The Barefoot Hiker. Ten Speed Press. p. 98. ISBN 0-
89815-525-8.
4. Goonetilleke, Ravindra (2012). The Science of Footwear (Human Factors and
Ergonomics). CRC Press. ISBN 978-1439835685.
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6. "Shoe & Footwear Manufacturing in the US Market Research - IBISWorld".
Retrieved2 May 2015.
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