Conceptualizing a Business Essay
Conceptualizing a Business
When establishing a successful business, no matter how big or small, one monitors progress, assesses results, and develops new programs. One must determine what they want the company to be, produce, and accomplish. Several things have to be determined for the purpose of the business or organization. For example creating a vision, mission. and values statement allows the organization and its customers to identify what the company believes in, what they want to do, and where their long term goal is. Another important component of a successful business is a strong strategic plan. One company that can benefit by re-defining their vision, mission, and values statement is TOMS Shoes Inc. New customers can be gained by analyzing areas where TOMS can improve their business strategy and re-define the companies direction.
TOMS Shoes Inc. is a private for profit company that was created in 2006 by Blake Mycoskie. During one of his travels he came by a village in Argentina where several children that had no shoes. His desire to help these children impelled him to create TOMS’., a company that would sell shoes in order to give shoes to the children in need. After realizing the impact of matching purchases with donations TOMS launched an eyewear line that would help give sight to a person in need with every pair sold. TOMS gives in over 60 countries and has given 10 million pairs of shoes to children in need. TOMS is now giving different types of shoes based on the terrain and climate where the children in need live. TOMS has also created local jobs in third world countries by producing shoes in the countries it gives in. Since 2011 TOMS purchases has restored the sight of 150,000 people in need. Since TOMS was established it has created an awareness for global issues of poverty.
However, TOMS has also been criticized for not having the most efficient way to have economic development. Also, that TOMS aid model is not enough and creates other economic issues in the companies they give to. After extensive criticism TOMS determined that they wanted to increase economic development in the countries they give to by producing the shoes in those countries. In addition to the gift of shoes and sight TOMS has added the gift of water, for every bag of coffee sold they will provide clean water to those in need. Even though TOMS has taken some steps to improve the organizations strategy, there are additional steps they can take to improve the company’s impact.
In order to improve TOMS vision, mission, and value statement it is important to understand what these statements mean, their significance, and how they will benefit. The purpose of a vision statement is to provide a clear picture of where the organization would like to be in the future and what they want their long term accomplishments to be. The mission statement describes what the purpose of the organization is and is focused on the present. Values statement identifies the organizations guiding principles and core beliefs. The values statements also assists in guiding the organizations employees to implement strategies to achieve the organization’s mission and vision. Researching through TOMS website it is difficult to identify the companies mission, vision, and values. However, after extensive searching one can determine that the vision statement for TOMS Shoes Inc. is “to be a company that would match every pair of shoes purchased with a pair of new shoes given to a child in need.” The mission statement is “One for One”. Although the values are not clearly stated one can assume by the company’s overview that they believe in giving back, responsibility, and environmental responsibility.
Redefining some of TOMS practices can increase the impact the company already has created. First step is to create a vision, mission, and values statement that are parallel to what the company stands for. TOMS product is to produce comfortable footwear that attracts customers to give to those in need by purchasing their shoes. The new mission statement is “to create sustainable giving; with every product we sell we will give back, one for one. We strive to reduce poverty, increase economic growth, and improve people’s lives through business.” TOMS redefined vision is “to be a leader in corporate citizenship and sustainable development, to create social impact by influencing others to give back by showing them the value of giving and that giving is fun.” TOMS stated values will be: responsibility, transparency, honesty, independence, generosity, and growth.
TOMS will also include customer feedback in the company’s growth and giving strategies. Currently TOMS has attracted customers that like to be involved in giving to those in need and also like comfortable shoes. The strategy of involving customers to give has made TOMS successful. In 2006 when TOMS first started there was no other company that followed the one for one model and the media promoted the giving model and gave TOMS free marketing. This is what gave TOMS a competitive advantage and made TOMS a successful company. Since then, TOMS has been criticized for not responding to customers complaints through TOMS social media outlets. If TOMS wants to stay involved with their social media success they should also respond to customers’ needs and complaints. In doing so TOMS will show that they are willing to take the time to listen to their customers and show that TOMS values them.
With the redefined vision, mission, and value statements TOMS has a clearer definition of what they do and why they do it. This allows for customers to better identify with the company and to promote their success.
ASQ. (2014). Vision, Mission, Values Statements. Retrieved from http://asq.org/service/body-of-knowledge/tools-vision-mission-values Toms CEO Blake Mycoskie Offers Surprising Answer To His Critics. (2013, November). Huffington Post, (), . Retrieved from http://www.huffingtonpost.com/2013/11/14/toms-ceo-critics_n_4274637.html TOMS Shoes Inc.. (2006-2014). One for One. Retrieved from http://www.toms.com/gift-of-water