Toms Shoes Company

Toms Shoes Company Background of the Company Toms Shoes Company is a profit-oriented business enterprise located in Santa Monica, California. The company runs a subsidiary, Friends of Toms. Blake Mycoskie, a business enthusiast from Arlington, Texas, conceptualized Toms in 2006. Toms is a maker and distributor of shoes based on Alpargata design borrowed from Argentinean style and fashion. For every pair sold by Toms, Friends of Toms gives out a pair to a needy person.Advertising We will write a custom article sample on Toms Shoes Company specifically for you for only $16.05 $11/page Learn More Blake conceived this business idea while on vacation in Argentina. He realized that many people could not afford shoes in poor Argentinean villages. This prompted him to sell his online business to raise funds for this noble cause. The company manufactures shoes in various designs and styles, all inspired by Argentinean traditional fashion. Toms Company also deals with the manufacture, s ale of eye ware and clothing items. Analysis of Internal and External Environment With regard to the internal environment, the company has several valuable assets that help to sustain and propagate continuity of its vision and mission. The most critical asset is their line of footwear being the key driver to the progress of Toms Company. The company has production centres in Ethiopia, China, and Argentina. The company’s strategic location in the United States counts as a dominant influencing factor. However, the most dominant internal advantage is its strategic plan. The company’s strategic plan is visionary, elaborate, and amazingly unique. Their main strength is the decision to donate a pair for every pair of shoes that they sell. This policy of helping the needy has continued to endear the company to millions of consumers around the world. Companies constantly evaluate their external environment to determine changes in the business landscape. The main external threa t to Toms Company is emerging competition from newcomers in the market. These companies have a business strategy and philosophy similar to that of Toms. An example of such competition is Sketchers Company. Sketchers has developed a product similar to Toms; they have also adapted the concept of donating one pair for each pair they sell. However, Toms has a competitive edge because its customers are loyal because Toms Company has an inspirational story behind its business venture. Another threat relates to pricing. The product by Sketchers is cheaper than Toms product. In the meantime, this threat has not affected business operations of the company. Another external consideration is the aspect of production and supply. Their production centres are in Ethiopia, China, and Argentina. This approach is noble because it creates jobs in these localities, thus improving lives of local residents. The cost of producing shoes is relatively fair. Toms Company has rallied support from suppliers a nd other organizations that assist in donating shoes. This effectively neutralizes potential threat of unreasonable prices from suppliers. The company has a loyal customer base because of its philanthropic approach to business.Advertising Looking for article on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Business Level and Corporate Level Strategies Toms business level strategy anchors on its unique and exemplary service that continually attracts customers and partner organizations. The company is unique and unrivalled in service delivery and customer satisfaction. The company provides an opportunity for everyone to participate in changing lives and giving hope to the poor in society. This materializes through its one for one giving policy. Through this business level strategy, the company is creating a sustainable future for posterity. This business strategy guarantees loyal support from customers and partn er organizations. Its corporate level strategy uses internal advancement as a tool for diversification. The company has dedicated employees who actualize its mission of providing shoes to the poor. Toms offers unique products that accord opportunity for charity. The company organizes corporate events that unite all stakeholders. These events help in determining new and progressive market needs. The events also promote the spirit of entrepreneurship. In fact, the company initiated a competition where customers compete to develop new and innovative footwear designs. This corporate level strategy has contributed to popularity of the company. Acquisition and Restructuring Strategies These two strategies are increasingly becoming popular and vital in contemporary business practices. A company must have well articulated acquisition and restructuring strategies. These strategies help companies to counter effects of competition in the market. They also increase confidence of customers in th e company. Toms Company revises its acquisition and restructuring strategies according to customers needs. For example, the company uses new tools and methods to market their products. They rely on social media for their marketing and publicity needs. These strategies enable the company to determine and adapt innovative business tools. International Strategies Toms Company has developed an intricate business network in the international market. Their international influence anchors on philosophy of giving to needy people. The company has an elaborate international strategy that is the hallmark of its expansion plan. The company is easily adaptable to international markets due to its extensive network of influence.Advertising We will write a custom article sample on Toms Shoes Company specifically for you for only $16.05 $11/page Learn More Their international foray thrives on consistency and availability of their products in the market. People in the intern ational market embrace its products because of the noble cause behind them. The international market is favourable to the company because their products are unique and of high quality. Strategic Control and Corporate Governance Toms Shoe Company does not have a functional board of directors. Its founder and Chief Executive Officer control the corporate governance of the company. People support the company because of their corporate image and philosophy that they portray. Developing and maintaining this image is a primary function of corporate governance. In business practice, it is advisable to detach management from ownership. However, the governance model at Toms is different. The founder embodies both aspects of the company. The success of this model is evident in the loyal support from its customers. They participate in company activities through social media. The company has an elaborate strategic control and corporate governance strategy. Strategic Leadership and Organizationa l Structures Organizational structures are practices that embody relations between customers, mode of operation, and application of favourable technological procedures. The company applies a simple organizational structure. In this strategy, the CEO makes key decisions. The staffs are responsible for implementation. The company focuses on fulfilling its vision and mission. This materializes through strategic leadership and appropriate organizational structure. The approach has ensured constant growth of the company. Corporate Social Responsibility Corporate Social Responsibility (CSR) is a form of corporate policy practice constituted in the operation model of an organization. This policy serves as a mechanism through which a business evaluates and propagates sustainable compliance to legal provisions and acceptable business practices. CSR anchors on the desire for responsible actions and ensuring positive impact through interaction with customers, staff, environment, community, ass ociates, and members of the public. Tom’s Shoes Company is a profit-oriented and socially motivated business outfit that understands the intricate relationship between business success and social responsibility. The company has a policy of giving one pair of shoes for every pair sold. Hitherto, they have donated over one million pairs in 23 countries around the world. This CSR model has endeared the company to the social and corporate world