Toms UK works as a UK's nonprofit business located in Los Angeles with mass production of market shoes, handbags, and eyewear. This study sheds light on social entrepreneurship managed by the famous company, Toms UK. Defining key opportunities and constraints facing the organization of Toms The company has their own sustaining business model named “one-for-one”, in which the company gives away one pair of shoes to poor children for every pair they sell.
· Health-conscious products
· Excellent brand recognitions
· Existing marketing communication tools
· Use of digital media and channels
· Focusing on other social issues, i.e., Gun violence in the UK.
· Falling local business opportunities
· Intense competition
· Dependency on the UK government
· Negative impact socially
In addition, the impact of macro environment on the company can enhance social improvements and developments of the country.
Key opportunities of Toms business in the UK
- Political factors:UK has developed social policies on social welfare by reducing poverty, safety of children and families giving £18 billion on families and children in rural areas. It is one of the most common factors that sustains Tom’s business towards poverty alleviation in the UK.
- Economic factors:British government spent almost 240 million British pounds on child and family welfare that supports unemployment insurance, income support and child Toms, also started promoting social welfare excellent brand recognition that the country shares a remarkable number of donations of 10 million pairs by 2013 (Lindstrom, 2018). The brand is now standing in the UK marketplaces with a revenue of more than $200 million in 2020 (toms.com, 2022).
- Environmental factors:The brand builds fostering impressions amongst conscious customers of today. On the other hand, Singla (2021), consumers are also looking for reducing environmental hazards where the company provides remarkable purposeful initiatives to carve out today’s competitive sustainable marketplaces.
Figure 1: Measuring up Tom’s business
(Source: toms.com, 2022)
- Technological factors: Technological factors in UK has developed so much that sustained economicgrowth in the UK, innovation focused on social welfare and outcomes for human services agencies The advertising techniques and IT supports used by Toms can connect with consumers by expanding media storytelling and owning their websites, social media, email marketing and other braided outlets.
- Legal factors:UK has strong influence of legalisations, social policies that as part of the activation strategy, Toms in the UK actively invite their consumers to raise their voices against other social issues: gun violence. In 2018, famous politicians in the UK received over 680,000 letters that were sent through TOMS.com (Waller, 2019).
Defining constraints facing the organization
- Social cultural factors: Toms disrupts local business economies while giving away free shoes to children. However, the brand is been criticised for their initiatives towards existence of poor community. Also, some of the shapes of shoes, comfort and quality issues cannot get satisfied by huge range of customers in the UK. According to Apadula, and Predmore (2019), it has several negative impacts on poor families and children who become more aid-dependent.
- Economic competition:the impact of giveaways can create huge competition between local marketers. It also impacts Tom’s quality of products to be lower. with the purpose of poverty alleviation, the company can go for short term goals and target specific demographics in the developing countries.
Assessing the ability and necessity for the organization to sustain and enhance current performance effectively in the future in social entrepreneurship
Necessities of social entrepreneurship
Social entrepreneurship provides the opportunity where entrepreneurs address social issues along with influencing society as their major priority.
- Sustaining environmental business facilities in the UK environment:The necessity of sustaining the business of Toms UK can create environmental awareness towards eco-friendly packaging.
- Promoting corporate social responsibilities to increase awareness amongst people:accomplish the highest standard of corporate social responsibility and manage ethical business practices.
- Establishing social welfare:Toms UK has initiatives of social entrepreneurship with the charity and focusing on a younger demographic. As opined by Ford and Stohl (2019), it can increase all over environmental improvements and sustainability by applying holistic approaches towards eco conscious practices towards social welfare in the UK.
Abilities of continuing social entrepreneurship of Toms UK
Toms UK can also assess their ability to enhance their current performance and impact effectively in future by,
- The company has been recertified as B- corp. Company in the UK increasing the social improvements efforts and evaluating social wellbeing.
- The increase in the environmental score of the country can make available remarks by addressing social issues, building traceability and doing well in the society.
- On the other hand, Tom’s business in the UK increased 100% of chemical free plant dye that impacted on growth of the business all about 30% (Melas, Foret and Heskova, 2020).
- Also based on organic cotton, rubber, natural hemp and recycled polyester, the company is trying to reduce environmental hazards and reduce consumer per waste.
- The implementation of 100 % vegan canvas made up with natural jute can have purposeful business developments without any use of chemicals and traditional fibers.
- Lastly, it can be added that Tom's evaluation also impacts nature and builds sustainability by rolling out a new brand identity, youthful and vibrant targets, competitive creative advantages and also developing the economy of the country by introducing opportunities of Social entrepreneurship.
The study defines how Toms UK access key opportunities and evaluate their ability in social entrepreneurship while building future business areas. It can be recommended that, Toms must collaborate with the local players and provide wide varieties with quality. It can boost their profitability along with establishing long term achievements in developing countries and social communities.
Apadula, L.T. and Predmore, C.E., 2019. The Shift to “Social”: Social and Commercial Entrepreneurship Must Meld to Meet Changing Consumer Preferences. Journal of Management Policy and Practice, 20(1), pp.9-14.
Ford, B.R. and Stohl, C., 2019. Does CSR Matter? A longitudinal analysis of product reviews for CSR-associated brands. Journal of Brand Management, 26(1), pp.60-70.
Lindström, J., 2018. TOMS Shoes: Positive and Negative Effects in Developing Countries.
Melas, D., Foret, M. and Hesková, M., 2020, June. Importance of quality of life and social indicators in contemporary marketing. In Proceedings of FEB Zagreb International Odyssey Conference on Economics and Business (Vol. 2, No. 1, pp. 768-779). University of Zagreb, Faculty of Economics and Business.
Singla, A., 2021.Business Responsibilities From The Lens Of a Company: a Global Perspective. Available at SSRN 3836642. toms.com, 2022. About Us. https://www.toms.com/
Waller, M., 2019. Amplifying and Catalysing the Social through Designing.