College Of Administrative And Financial Sciences Assi 176266

College Of Administrative And Financial Sciencesassignment 2deadline

Based on the text about TOMS Shoes Company, answer the following questions:

1. What is the competitive strategy used by TOMS Shoes Company?
2. Identify opportunities and threats as well as strengths and weaknesses of the company (illustrate them within a table)
3. Describe the roles of directional, marketing, operations and human resource strategies in the overall well-being of TOMS Shoes Company.

Paper For Above instruction

Introduction

TOMS Shoes has established a distinctive competitive strategy rooted in social entrepreneurship and a mission-driven business model. Its strategy primarily revolves around combining profitability with social impact, leveraging a unique "One for One" approach that engages consumers in charitable giving directly linked to their purchases. This model differentiates TOMS from traditional footwear companies by aligning business objectives with social responsibility, thereby attracting ethically conscious consumers and fostering brand loyalty (Prahalad & Hart, 2002). Additionally, the company employs a market penetration strategy through online channels and collaborations with well-known brands and celebrities, increasing its visibility and accessibility. By maintaining low marketing expenses and relying on word-of-mouth and brand storytelling, TOMS strategically emphasizes its social mission to generate competitive advantage while also promoting its products.

Competitive Strategy

The core competitive strategy employed by TOMS Shoes is a differentiation strategy through social entrepreneurship. The company differentiates itself by integrating social impact into its core business operations—donating a pair of shoes for every sale—and appeals to consumers who prioritize social responsibility. The company’s product quality, combined with its social mission, creates a unique value proposition that sets it apart from other footwear brands. This strategy is supported by brand storytelling, celebrity endorsement, and emphasis on ethical manufacturing practices (Porter, 1985). Moreover, TOMS’s innovative business model fosters consumer loyalty and brand engagement, which are critical in the highly competitive footwear industry.

Opportunities, Threats, Strengths, and Weaknesses

The roles of strategic functions in TOMS Shoes

Directional Strategy

The directional strategy of TOMS revolves around its mission of social impact, with a focus on responsible growth. This overarching strategy guides all operational and marketing actions, ensuring alignment with the core vision of improving lives through business. It influences decision-making, guided by a long-term vision of expanding the social enterprise model globally. The company's leadership emphasizes sustainability and ethical standards, which shape policies and investment decisions, thus ensuring that the company's growth trajectory remains consistent with its social mission (Mintzberg, 1994).

Marketing Strategy

In terms of marketing, TOMS employs storytelling and cause-related marketing to build emotional connections with consumers. Its marketing strategy emphasizes transparency, authenticity, and engaging consumers as active participants in social change. Using social media platforms, celebrity endorsements, and interactive campaigns like "One Day Without Shoes," the company promotes its brand’s mission while increasing awareness and sales. This strategy not only differentiates TOMS from competitors but also fosters a community of socially conscious consumers, essential for sustained brand loyalty and growth (Kotler & Keller, 2016).

Operations Strategy

The operations strategy of TOMS involves ethical manufacturing, cost efficiency, and supply chain management to support its social mission. The company ensures factories adhere to fair labor standards and conducts regular audits, aligning its operations with social responsibility. The focus on outsourcing production to countries with sound labor practices allows TOMS to minimize production costs while maintaining ethical standards. Additionally, the company leverages technology to optimize inventory and distribution processes, ensuring timely delivery and operational sustainability (Slack et al., 2013).

Human Resources Strategy

Human resource strategies at TOMS emphasize fostering a strong organizational culture centered on social responsibility and employee engagement. The company recruits employees passionate about its mission, providing them with meaningful roles and opportunities for involvement in community outreach and sustainability initiatives. Training and development programs reinforce the company’s values, encouraging innovation and commitment among staff. Moreover, volunteer programs and internship opportunities promote a sense of ownership and alignment with the company’s social objectives, enhancing employee morale and retention (Werner & DeSimone, 2012).

Conclusion

In conclusion, TOMS Shoes’s strategic approach integrates social responsibility with competitive business practices across all functional areas. Its differentiation strategy based on social entrepreneurship provides a competitive edge, fostering brand loyalty in a crowded market. The company’s strategic management in marketing, operations, and human resources supports its mission-driven model, enabling sustainable growth and social impact. As TOMS continues to expand and innovate, maintaining alignment among these strategic functions will be crucial for long-term success and societal benefit.

References

• Porter, M. E. (1985). Competitive Advantage. Free Press.
• Prahalad, C. K., & Hart, S. L. (2002). The Fortune at the Bottom of the Pyramid. Strategy+Business, 26, 2-14.
• Mintzberg, H. (1994). The Rise and Fall of Strategic Planning. Harvard Business Review, 72(1), 107-114.
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
• Slack, N., Brandon-Jones, A., & Burgess, N. (2013). Operations Management (6th ed.). Pearson.
• Werner, J. M., & DeSimone, R. L. (2012). Human Resource Management (12th ed.). Cengage Learning.
• Hunger, J. D. (2014). Mini Case 23, Textbook, pp. xx-xx.
• Additional scholarly sources relevant to social entrepreneurship, corporate social responsibility, and strategic management theories.