Macro Environment Analyses
Discuss about the Certifications and Benefit Corporation Statutes.
Tom Shoes which is well recognized as TOMS is a for profit organisation which is established in California, The United States in the year 2006 by the efforts of Blake Mycoskie. The organisation is also considered as a good example of a social enterprise as its purpose of existence is not only profit making but also to help the societies and the communities to develop and grow. There are basically five primary products that comprises of handbags, apparel, coffee, eyewear and shows that are typically based on the design of Argentine alpargata. The key social objective of TOMS is to help the society by its social work such as whenever the organisation sells a pair of shoes, at the same time a new pair of shoes is offered to an impoverished child free of cost and when an eyewear is sold, the profit attained from that is used for restoring the eyesight of the individuals in the developing nations. In the year 2014, the organisation has launched TOMS Roasting Co. and where the social activity associated is supplying 140 litres of safe water to the people who are in need of it in respect with each purchase of TOMS Roasting Co. coffee. In the year 2015, the organisation launched the bag collection which was primarily launched for having a contribution in the maternal health advancements. With the purchase of TOMS bags, there is distribution of birth kits to the women for having a better and improved practice of safe childbirth (Toms, 2017). There is a need of marketing plan for the product and activities of the social enterprise can add value to the organisation and the report will present some key aspects of the marketing plan which will help in delivering high value to the enterprise.
There is a need to expand the products of TOMS so that more number of individuals can be the targeted customers and increase level of social development and social progress of the organisation. For this, there is a need to understand the untapped markets of The United States by the means of PEST analysis:
There is vast attention drawn from the several organisations to the social enterprises such as the government organisation, the non-government companies and the advocacy groups. Due to huge size of the retail sector as well as a significant aspect of the economy and social welfare, there are several discussions that occur due to future and present state of the social enterprise and the retail sector on the global basis. The numerous political aspects that affects the performance of TOMS comprises of the subsidies offered, legislations for the business activities, overseas competition and policies and procedures (Noori, Kucukvar & Tatari, 2015).
Macro Environmental Actors
The retail industry and the socially recognized organisations of The United States are somewhat at a high level of risk because of the fact that there is a need of high amount of capital, considerable strategic management and customer and community satisfaction (Lawn, et al., 2012). There are several economic aspects that impact the business operations of TOMS such as increased currency rates, trade cycles, competition with overseas countries, market season ability, competitive rivalry and mergers and acquisitions (Radojevic & Bashkin, 2007).
There is increased concern of the individuals over purchasing products and services from those organisations that are high in social responsiveness and responsibility. Therefore, it is a beneficial aspect for TOMS to perform business as a social enterprise to attract more number of consumers and as a result help the societies to get developed with a rapid rate. There are numerous practices of TOMS which are socially recognized and are vital in offering support to the organisation (Visser & Tolhurst, 2010).
The United States is one of the leading countries in retail sector as the retail industry is booming and developing with a sound and upsurge rate. The products and the services of the organisations are completely technologically developed and extremely techno savvy. There is integration of technology and operational efficiency that promotes the productivity of the organisations. The use of technology is also widening in the social enterprises for the purpose of social development as well as profit generation (Gambacorta, Hofmann & Peersman, 2014).
In the present scenario, the number of organisation who perform both profit for business and social good are increasing because of the fact that the customers also want to purchase from such socially responsible companies and thus the competition is also growing in this field too. There are few competitors both at domestic and international level that also perform similar things i.e. the development of the society through their business operations. It also comprises of competitors such as the NPOs, NGOs, the government organisation and other business organisations such as Teach for America, Newman’s Own, Comic Relief, etc. All such social enterprises are doing well and have strong customer base too so that they can help the societies to get boost and developed. These macro environmental actors i.e. the competitors have a direct impact on the value creation, communication and delivery of the products of TOMS. In terms of value creation, the societal values created by these actors are compared with atht of TOMS and the one who generates more value is considered as more socially responsible. Thus, it targets the organisation to deliver increased value to the society as well as the customers (Doherty, Haugh & Lyon, 2014). At the same time, the organisation is also required to have improved communication with the customers so that they can retain and have reliable association with the company otherwise such actors fetches the attention of the customers. And in terms of delivery, the impact of macro environmental factors can be realised as the organisation is required to perform the social good and development as soon as possible because of the fact that due to increased competition the reliability is proved by the means of delivery and outcomes only. Thus, the increased competition poses few threats for the enterprise and its long-term sustainability (Murray, 2012).
Business Performance Analysis
The business performance of TOMS can b e assessed and analysed as the company has offered 35 million pairs of shoes since its established i.e. by 2006. With a social purpose, the enterprise is successful enough in performing and operation a social business (Anderson, 2015). The organisation gives the shoes in around 60 nations and has an alliance with 100 NGOs that distribute these shoes to the needed ones. Presently the organisation has more than 550 employees who are serving in five different product lines and achieving the objectives of social development (Lebowitz, 2016). The organisation is one of the leading enterprises who have achieved balancing in performing profit with purpose. The business performance and the expansion and development of the enterprise can be realised as from $25,000 to $250,000 it has invested as its social entrepreneurship fund for the development of the societies. Thus, the organisation is one of the most recognized and leading example of social enterprise across the world (Buchanan, 2016).
Enterprises such as TOMS possesses some specific strengths such as they have huge subsidies and grants from the organisations, institutes and government as they are primarily working for a social cause. Strength of the organisation is that it is highly socially responsible which enhances the brand visibility and recognition of the enterprise in the customers’ eyes. Other few strengths of TOMS comprises of significant presence in few regions of The United States, reliable customer base and strong communal support. There is also appropriate support of the stakeholders because of increased profit generation (Toms, 2017).
Organisations such as TOMS barely cover their expenditures by the means of profits. The organisation has its key emphasis on the satisfaction of the consumers and the development of the society. Thus, the profits and revenues suffer and this is a prime weakness of the enterprise.
There are vast opportunities for TOMS to have more partnership, expansions and have grants from the institutes and government organisations. The organisation can enjoy the alliances and can extend the reach of the products and services and as a result there can be increased level of societal development as well as profits.
There is a threat of economic crisis as well as also having increased customer bases in such a competitive era is very much difficult for the organisation. Thus, there is threat that whether appropriate funds would be arranged or not for the accomplishment of the social cause or not (Anderson, 2015).
The complete market is segmented on the basis of four specific market segments. The segmentation of the market helps in effective target marketing and framing of adequate strategise to target the market band generate sales for the products and services.
On the basis of geographical segmentation, presently the reach of TOMS products is basically in California only and there is a vast need that few other regions of the United States must also target by the enterprise so that there can be increased reach of the products and higher level of societal support can be offered to the communal. Thus, geographically the market must be segmented by tapping the more untapped regions and also the one which are considered as good and crowded locations (Brown & Wyatt, 2010).
On the basis of demographic segmentation, both males and females member of the societies are equally targeted as there are products for bother of them such bas apparel, shoes, eyewear and from the handbags range the primary market segmentation will be done of the basis of women. As well as from the age perspective, the markets are segmented atht covers mostly the individuals from age group 20 to 50 as they have high purchasing power as well as increased demand or such products (Defourny & Nyssens, 2012).
On the basis of psychographic segmentation, there covers those people that are much involved in social activities and have high purchasing power. Such group of people are more likely to be the potential customers as they have a tendency to purchase things and get associated to those organisations that are working for a social cause too in addition to their commercial business.
On the basis of behavioural segmentation, the market segment is on the basis of loyalty and reliability as there are the customers who are evidently associated with the brand and the products of the enterprise. As well as the market is also segmented by the means of buyer readiness as these customers have an intention to buy products by having a concern regarding the social cause associated with each buying (Bull, et al., 2010).
For targeting the potential customers and the market, the enterprise will offer its products by the means of differentiation as there is also a social cause associated with the selling of the products which so not there in other organisations, thus the markets will be targeted by the means of offering the significance of fulfilling social responsibility through the purchase of the customers (Lee & Kotler, 2011).
The financial objectives of the enterprise is to have increased revenue and profit generation for the stakeholders by the means of increased customer base and selling of the products so that the stakeholders continue with their purpose of social development as well as also have funds to manage the commercial business of the organisation (Pirson, 2012). The organisation wants to increase its sales from twenty percent by the means of this marketing plan of having further expansion in the untapped regions of the United States (Luke, Barraket & Eversole, 2013).
The non-financial objectives of the organisation behind developing this marketing plan is to have increased societal growth and developments by the means of offering help to more number of individuals through water supply, funds, shoes and other monetary and non-monetary offerings. The organisation also wants to reach the developing nations and help them in various ways as a social enterprise for their progress and growth (Pirson & Lawrence, 2010.
A SMART principle or marketing objective can be used for as the blueprint for attaining high level of efficiency in the marketing plan developed for the organisation. In link with the situational analysis of TOMS following is the SMART principle or marketing approach of the enterprise:
The specific or particular marketing objective of the plan is to enhance the social development as well as the growth of the societies through increased customer base and expansion in the untapped regions of the nation.
The success of the marketing plan is measurable in nature as it can be evidently measured through the increased customer base, enhanced sales, increase demand for products, more number of alliances and high societal development. All these aspects measure the efficiency of the marketing plan.
The marketing objectives are achievable in nature as there can be extended the roots of the organisation in the rest part of the United States also. By having expansion and increased customer base, the objective of achieving more funds for the development of the societies can also be achieved with a faster rate (Grassl, et al., 2012).
The marketing objective or principle is realistic in nature as they can be achieved by the organisation as TOMS possess the strength to have expansion and get more number of customers associated with it and perform social good.
The marketing plan has a proper and scheduled beginning as well as ending. The marketing plan developed for TOMS have a proper timeline of the activities as it has present opportunities to grow and extend its customer base in a given time frame and also achieve social development of the societies through its expansion in a given timeframe (Sakarya, et al., 2012).
The product is the various products of Toms which need extended customer bases such as the shoes, bags, eyewear, apparel, etc. These are the products that also generate funds for the developed of the societies such as impoverished children, poor people, women, etc. With each purchase of the products and the profit earned by the organisation with the selling of some of the products, it can help such groups of masses with that money for their development and progress and have social good (Nwankwo & Gbadamosi, 2010).
The prices of the products are affordable in nature and can be purchased by the individuals who are middle as well as upper class. There are also available products which are offered at discounted prices when people buy them in a good number of quantities.
The place targeted is the domestic nation only i.e. the United States but the various untapped regions of the country where it has low significance and where the enterprise does not have a reach. There will be more number of stores of the enterprise at some of the most crowded and happening locations so that more number of customers get be attracted to purchase products (Mitchell, Madill & Chreim, 2015).
For the promotion of the organisation and its products, there will be used few key promotional tools such as firstly one of the most powerful promotional tool i.e. the social media. It is one of the prime source through which advertisement of the social enterprise can be performed and gather the attention of the potential customers such as by means of social sites and platforms. Another tool will be posters, hoardings, emails, television advertisements, personal selling and word of mouth. One more key promotional tool can be association with other organisations that work for social good so that more number of alliances can be formed and the brand visibility can be increased (Fourali, 2010).
The people associated are the employees as well as the volunteers that work for the enterprise. The organisation works both for commercial as well as societal benefit and thus there are people who have their reliable association with the organisations. They help in offering monetary and financial support the needed people (Mitchell, 2011).
The enterprise wants to expand its services through having more number of stores in some of the most renowned and best places of the United States only. If the store will be opened at the crowded and a place where there is a shopping mall or any hub for people where they regularly visit then it will be a point of attraction for them. There will also be uploaded the videos and photos of people who have received helped from the enterprise and have achieved a good an better life. Such ambience and physical evidence will help in increasing their interest for buying products from TOMS as it is a social good too (Ginevi?ius, Podvezko & Ginevi?ius, 2012).
The process involved is the manufacturing of those products and selling them at a price which can both perform a commercial business as well as help in achieving the social and ethical objective as planned. With every purchase of a shoe or an eyewear automatically with an integrated process same amount is used for the betterment of the individuals who require help (Mitchell, 2011).
The organisations are required to perform both entrepreneurial good as well as social good for having a recognized social presence and long terms sustainability. From this report, it can be concluded that if ROMS as a social enterprise expands in reach in the untapped regions than it can increase its customer base as well as also extend the reach of its social good and communal developed through the money earned from upsurge sales. Thus, it can be stated that the marketing plan for TOMS can be well executed and give positive results if it is performed with utmost effectiveness and efficiencies and by targeting the correct set of customers. It is recommended that the organisations must fulfil their social responsibilities by the means of giving some amount of share of their profits for the development of the societies as well as it should also take good use of the promotional tools so that more number of customers can have a reliable association with the enterprise.
Anderson, E., (2015). How Toms made hundreds of millions of dollars by giving shoes away, Retrieved on: 12th August, 2017, Retrieved from: https://www.telegraph.co.uk/finance/enterprise/11580387/How-Toms-made-hundreds-of-millions-of-dollars-by-giving-shoes-away.html
Brown, T., & Wyatt, J. (2010). Design thinking for social innovation IDEO. Development Outreach, 12(1), 29-31.
Buchanan, L., (2016). What's Next for Toms, the $400 Million For-Profit Built on Karmic Capital, Retrieved on: 12th August, 2017, Retrieved from: https://www.inc.com/magazine/201605/leigh-buchanan/toms-founder-blake-mycoskie-social-entrepreneurship.html
Bull, M., Ridley-Duff, R., Foster, D., & Seanor, P. (2010). Conceptualising ethical capital in social enterprise. Social Enterprise Journal, 6(3), 250-264.
Defourny, J., & Nyssens, M. (2012). The EMES Approach of Social Enterprises in a Comparative Perspective.
Doherty, B., Haugh, H., & Lyon, F. (2014). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417-436.
Fourali, C. (2010). Social marketing. Education and Social Change: Connecting Local and Global Perspectives, 79.
Gambacorta, L., Hofmann, B., & Peersman, G. (2014). The effectiveness of unconventional monetary policy at the zero lower bound: A cross?country analysis. Journal of Money, Credit and Banking, 46(4), 615-642.
Ginevi?ius, R., Podvezko, V., & Ginevi?ius, A. (2012, May). Determining the effectiveness of enterprise marketing based on the 4P’s model. In Proceedings of the 7th International Scientific Conference on Business and Management (pp. 10-11).
Grassl, W. (2012). Business models of social enterprise: A design approach to hybridity. ACRN Journal of entrepreneurship Perspectives, 1(1), 37-60.
Lawn, J. E., Kinney, M. V., Black, R. E., Pitt, C., Cousens, S., Kerber, K., ... & Oestergaard, M. Z. (2012). Newborn survival: a multi-country analysis of a decade of change. Health policy and planning, 27(suppl_3), iii6-iii28.
Lebowitz, S., (2016). The founder of TOMS Shoes talks growing a business, social entrepreneurship, and balancing profit with purpose, Retrieved on: 12th August, 2017, Retrieved from: https://www.businessinsider.in/The-founder-of-TOMS-Shoes-talks-growing-a-business-social-entrepreneurship-and-balancing-profit-with-purpose/articleshow/52766721.cms
Lee, N. R., & Kotler, P. (2011). Social marketing: Influencing behaviors for good. Sage.
Luke, B., Barraket, J., & Eversole, R. (2013). Measurement as legitimacy versus legitimacy of measures: Performance evaluation of social enterprise. Qualitative Research in Accounting & Management, 10(3/4), 234-258.
Mitchell, A. (2011). Marketing Strategy in Social Enterprises: An Exploratory Study. University of Ottawa (Canada).
Mitchell, A., Madill, J., & Chreim, S. (2015). Marketing and social enterprises: implications for social marketing. Journal of Social Marketing, 5(4), 285-306.
Murray, J. (2012). Choose Your Own Master: Social Enterprise, Certifications and Benefit Corporation Statutes. Certifications and Benefit Corporation Statutes.
Noori, M., Kucukvar, M., & Tatari, O. (2015). A macro-level decision analysis of wind power as a solution for sustainable energy in the USA. International Journal of Sustainable Energy, 34(10), 629-644.
Nwankwo, S., & Gbadamosi, T. (Eds.). (2010). Entrepreneurship marketing: principles and practice of SME marketing. Routledge.
Pirson, M. (2012). Social entrepreneurs as the paragons of shared value creation? A critical perspective. Social Enterprise Journal, 8(1), 31-48.
Pirson, M. A., & Lawrence, P. R. (2010). Humanism in business–towards a paradigm shift?. Journal of Business Ethics, 93(4), 553-565.
Radojevic, M., & Bashkin, V. (2007). Practical environmental analysis. Royal society of chemistry.
Sakarya, S., Bodur, M., Yildirim-Öktem, Ö., & Selekler-Göksen, N. (2012). Social alliances: Business and social enterprise collaboration for social transformation. Journal of Business Research, 65(12), 1710-1720.
Toms, (2017). About Toms, Retrieved on: 12th August, 2017, Retrieved from: https://www.toms.com/about-toms#corporateResponsibility
Visser, W., & Tolhurst, N. (Eds.). (2010). The world guide to CSR: A country-by-country analysis of corporate sustainability and responsibility. Greenleaf Publishing.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Essay: Certifications And Benefit Corporation Statutes: A Discussion.. Retrieved from https://myassignmenthelp.com/free-samples/certifications-and-benefit-corporation-statutes.
"Essay: Certifications And Benefit Corporation Statutes: A Discussion.." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/certifications-and-benefit-corporation-statutes.
My Assignment Help (2018) Essay: Certifications And Benefit Corporation Statutes: A Discussion. [Online]. Available from: https://myassignmenthelp.com/free-samples/certifications-and-benefit-corporation-statutes
[Accessed 26 February 2024].
My Assignment Help. 'Essay: Certifications And Benefit Corporation Statutes: A Discussion.' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/certifications-and-benefit-corporation-statutes> accessed 26 February 2024.
My Assignment Help. Essay: Certifications And Benefit Corporation Statutes: A Discussion. [Internet]. My Assignment Help. 2018 [cited 26 February 2024]. Available from: https://myassignmenthelp.com/free-samples/certifications-and-benefit-corporation-statutes.