Question : what is the weaknesses should derive from Internal factors?

Question : what is the weaknesses should derive from Internal factors? (( from the text ))

CASE 4.2 TOMS's One-fox-One Business Model: Is it Sustainable for the Future? Web: www.toms.com Facebook: TOMS Twitter: OTOMS Introduction was added in 2014. For every bag of coffee that's sold. 2005 Blake Mycoske, a serial entrepreneur, needed TOMS donates an equivalent amount of money to pro break. After starting 5 companies in 12 years, he tray vide clean water and sanitation for people who need it the most led to Argentina looking for some time to relax. He met some expatriates who were doing social work in villages on the outskirts of Buenos Aires and asked the could tag along. In one village in particular, he noticed TOMS is known for pioneering the one-to-one business that most of the children didn't have shoes. He stopped model. Ami's business model is a plan or recipe for a fow of the kids to look at their feet and so cuts how it creates, captures and delivers to take brasions, and infections. He know the agers were holders. TOMS business model is unique in that it poor and couldn't afford to buy their children shoes combines the goals of a for profit company with the and wondered what he could do to help. He also know bitions of a philanthropic organication. TOMS business there was an inexpensive shoe in Argentina called the model template is shown nearby. The following is a brie Margata. What would be the best way to provide poor Overview of each of the major sections of the business Argentinean children alpargata shoes model template Mycoskle thought about starting a charity but fort the charity model wouldn't work. He envisioned himself Core Strategy asking his family and friends for contributions and new they would contribute once or twice, or maybe even TOMS's mission is one for One. The mission is made several times. But it would be hard to continue to ask possible by the way TOMS Structured TOMS has two What he needed was an approach that would sust parts. TOMS is a for-profit company that manages the tot by sing a product that people needed to buy Overall operations and logistics Friends of TOMS is a anyway. The approach Mycoskie came up with heater nonprofit organization that combles volunteers, do bubbed "one for one. He would create a for-profit us on the shoes and coordinates the eyewearestors ness to sollpargata shoes, and for every par sold he'd tion and coffee bean water initiatives conate a pair to a child in need An important decision Mycoside and his team made Mycoske returned to the United States and set carty on, when TOMS was siya shoe company was up shop in Santa Monica, California. He started TOMS that the cost of providing shoes to children in ned would with no shoe industry experience. The company was be built into the shoes selling price. The same approach originally called Shoes Tomorrow but was quickly now aplies to wear and coffee. As a reasong shortened to TOMS. To get started, Mycoski went from as TOMS Bits products to topic one retail store to another with his unique businesses mission. It does not need to rely on donations as most A w Los Angeles boutiques agreed to set the shoes Charities and nonprofits de to sustain sell His first break came when the Los Angeles Timesanan TOMS Strategy is built on selling practical prod wticle about his business. To Mycose's surprise, the uts Shoes are products that are article spurred 588,000 in orders in a single weekend. sold widely shoes are pricy 554 to $80 for a par Fast forward to today. TOMS is now an international of simple soon, but people know that when they brand. It's one for one model has been expanded to buy TOMS shoes they are paying for a pair that will be include shoes, eyewear, and coffee. As of mid-2014 donated to a child in need. TOMS reis heavily on vol TOMS had given away 10 million pairs of shoes in 60 unters, and parties to do much of two countries, had helped restoresight for 200,000 people Mary of the people who volunteer and work with TOMS in 13 countries, and is providing clean water and sanita- are motivated by the company's mission, which changes son to villagers in 5 countries. The one-to-one model Ives. In some countries shoes arred in order to has been tweaked some, but the intention is the same attend school. Owning a pair of shoes provides a chida TOMS tilgives away a pair of shoes for ever part chance to be educated and to have a better TOMS sos. Eyewear was added in 2011. Rather than donat is not rectant to share these types of roes which ing a pair of glasses for every parts, TOMS do deeply resonate with volunteers and customers. TOMS as an equivalent amount of money that is used for has almost as many inters for camp, working in its Sght-saving measures, such as eye Surgery, medical facilities omployees. Friends of TOMS works with non treatment or a new pair of prescriptions Coffee profits and NGOs to distribute its products. It does this continued 142 PATE DEVELOPNA SUCCESSFUL RUSSO Core Strategy Baierar Naalaa Beste . Gry The Customer Moderate Financials Operations ho . Costructure hanging . Pod whe Torte: Barringe/riand Business Model Template 2014 r. R. Blauw in part because local organizations ambedded in a country, Inow the needs better than TOMS does and can direct the company, An TOMS partner who with the seve Foundation to moments restore program. The Sexe Foundation Insight programs in Nepal, Tibet, and Cambodia oped to help TOMS make the best use of its dans TOMS product scope now includes shoes, eyewear, and coffee. The company has "Marketplace that is a variety of ams, including jewelry, household oms, and to products. The com pany one for one mission till spiestina entform. If you buy a $140 Turbo Abe Necklace for example, your purchase will get you the necklace and provide 11 mois for a child in need or making around the lot of people who does the factors have bed TOMS ogrodowe wong and thout in Sonos TONS domingo mentando in ording to otto. Forma TOMS voor the part of he world to ma'who which is that TOMS forringo Anyone cancy for ther and for many time changing Every Shoe TOMSON on a child foot by a TOMS Other pers, but thered by TOMS TOMS has proponents and the vackerthangaring ek TOMS which encourage 5 tion. For one of that TOMS that when the child of shoes to sevent. The Resources TOMS has been diligent in the motion of its one-to- one model its products we can sharoic wana Mwand Guatemala in regard to distribution, TOMS its products to its retail and online partners, who in turn to their customers TOMS Sosno drop ship or sell on a consignment Manufacturing and sing is only the first step in TOMSSc. phanthropic efforts come next. To distribute shoes. TOMS partners with non- profits and NGOs in the countries in which it distrib utos products. These organizations are called "Giving Partners. The Giving Partners identify the children in need. The process of actually distributing the shoes stened to Shoe Drops Priends of TOMS coordinate the shoe Drops, TOMS byewearestore sight and to clean water initiatives are secuted in a similar manne TOMS works with Friends of TOMS and local organizations to make the distributions in regard to channels, TOMS se its products rough both land online outlets. Over 500 ron around the word now carry TOMS shoes Its distribution network for and coffee is growing. A string of TOMS Cassis on the drawing boards. The cafe stores will sol TOMS na co house setting and will sol TOMS shoes.ws and other products in an adjacentral ng TOMS business model would not be possible without any partners is most important parmesands of TOMS nonprofit Buy the nonprofits and NGOs that distribute its products and its volunteer TOMS has a robust te program grow out of the shoes and be right back to where he or she started. TOMS acknowledged this criticism valid point, and has responded by putting a programin place that tracks the children to whom shoes have been provided. It make sure the children receive additional shoes when needed TOMS has a number of key assets. It has a healthy corporate culture, which draws people in. It has an entire apparatus to get people involved in its initiatives including community groups, students, education and others. You can see TOMS's work in this area by accessing the TOMS Community website www.tom bommunity.com. TOMS frequently to the work of volunteers on its Twitter account, which saya able at OTOMS. TOMS also organizes events, which heartfelt and draw attention to its products and ces. The most popular events its One Day Without Shoes campaign. This campaign was started in 2008 to raise public awareness of the importance of shoes tasks ordinary people to go one day without shoes just to see how it feels. The point is to instill in people what a difference a simple pair of shoes can make particularly for children. The campaign grows every ear. You can see highlights of the most recent year's campaign at www.toms.com/daywithoutshoes. In past years, people from over 25 countries have participated Participants have included Kris Ryan, Charlize Theron the Dallas Cowboys Cheerleaders, and employees from Nordstrom, Microsoft and AOL Financial TOMS's rovere comes from product sales. TOMS is a cost-driven business. It contains costs via its partner ships, volunteer network, and by avoiding traditional marating. TOMS does very little traditional marketing such as print media radio and television. Instead, on word-of-mouth, social media, and prominent cements in retail stores by its retail partners. TOMS does not manufacture its products. Instead, it roles on contract manufacturers and growers for its of o spread throughout the world. TOMS approach to manufacturing has raised eyebrows because it produce products in China, where labor practices are suspect TOMS agressively police its manufacturers and other suppliers. It maintains strict Standards that everyone In its supply chain obligated to adhere to particu inly when it comes to fames to workers. TOMS employees regularly visit its manufacturers to monitor compliance TOMS funds it operations from profits. It also be afts from the work of its volunteers Operations To produce its products, TOMS manages a global sup ply chain. Its shoes are made in low-wage countries such as China, Argentina, and Ethiopia. Its eyewear made in Italy. Its coffee beans are sourced from growers Bros the world and are roasted in the United States Some of its most popular selections come from growers COM For some, may be hard to imagine that TOMS is, but this point out fins in TOMS approach, which some go as far as to say that the The criciam focuses on the main First critics argue that TOMS. Giong with similar organ sons, makes people in poor countries dependent on the good wil of these han creating opportunities for them to care of themselves. Many social entrepre- nous believe that the best way to create sustainable change in poverished country through educa tion, ob cestion and rather than ald, which is WTOMS doo, Infacta mantra among som entreprise et ad Microfinance which provides loans to people in developing countries to start their own business on these principles. The second timist TOMS has manufacturing faci es in China and where where human rights viola tions have been documented. The third criticism is that by pouring a large number of free shoes into countries such as Argentina and Ethiopia. TOMS inadvertently styming local entrepreneurship. The idea is that by providing the forte TOMS es potential but no way from local companies which provide not only shoes but jobs TOMS of hand in each case has responded in a proactive manner combud 144 PART 2 DEVELOPING SUCCESSFUL BUSINESS IDEAS Is TOMS's Business Model Sustainable? The question is, "Is TOMS's business model sustainable for the future?" The primary threats to its business model stem from the criticisms it receives, its reliance on people continuing to pay a premium for its products, and whether the one-for-one movement will continue to resonate with volunteers and nonprofit partners. Another threat is the nature of the products that TOMS sells. On the one hand, selling a physical product mitigates TOMS's risk because it does not have to rely on donations to fulfill its mission. On the other hand, TOMS has the dual challenge of managing a global supply chain while at the same time leading a worldwide philanthropic effort. The complexity of this challenge will grow as TOMS continues to scale its business. No company has attempted to scale a one-to-one business model to the extent that TOMS is contemplating Discussion Questions 4-38. What is TOMS's target market? How might that market change in the future? 4-39. What revenue streams does TOMS have tha how the firm competes? How sustainable an revenue streams? 4-40 What key assets does TOMS possess and how sustainable are those assets? 4-41. What are the major challenges TOMS faces a fimm continues implementing its business mo a means of reaching its mission? Which of th challenges is the most serious and why? Sources: TOMS website www.toms.com, accessed June TOMS, Wikipedia, www.wikipedia.com, accessed June 5, A. Spaulding, S. Fernandez, and J. Sawayda, "TOMS: On Ono Movement." Daniels Fund Ethics Initiative, University Mexico, http://danielsethics.motumn.edu