Alexander Anzar

Karina Chino Sanchez

Steele Gainey
Brandon Ornelas
TOMS Case Study
1.
Kc- I believe that TOMS company needed to involve their business because companies where already
copying their idea. Also, TOMS company needed to involve because there were other social issues that
were impacted in the moment and gave the customer the option of who or what organization they want to
help with their purchase.
Bo- It was necessary for TOMS to update their business model for two reasons, the first was so that the
for-profit side of TOMS could provide monetary to their non-profit side. And the second reason was that
to remain profitable and able to help others, they needed to mix up their business plan. Although the
company started off fresh and exciting, they soon begun to become stagnate.
AA- I believe that it was necessary for TOMS to update their business model because I believe that
companies need to evolve and not be complacent. They need to improve their non-profitable side for them
to earn more customers. I believe that they can still improve in their business.

SG- TOMS was relevant and making head way in the footwear business. Their business model of
providing shoes for children without was the forefront of the reason for their fame. As this fad was
becoming less popular and not withstanding time, they had to evolve their business model as the
consumer was also evolving. Without this, TOMS would fail.

2.
Kc- TOMS most important stakeholders are customers. I believe if TOMS do not meet their expectations
of Philanthropic customers will not buy anymore from TOMS. This will make TOMS company to
decrease sales and profit. So, TOMS’s priority are customers.

Bo-I believe that TOMS most important stakeholders for their business, were their customers who
purchased their shoes. Because, without them they could not receive any profits. And without profits the
ability to give back a pair to people in need is non-existent.

AA- Toms most important stakeholders is someone who is going to purchase Toms. Without customers
they would not even be in business. Toms wouldn’t be a company if no one wanted to buy their products.

SG- The consumers are TOMS biggest stakeholder. The brands movement and vision is what is most
important to the consumer, without sticking to the movement, the brand wouldn’t be able to keep their
consumer base. The consumers that are loyal to supporting the brand keeps them alive.
3.
Kc- yes, one for one model is a great technique to target the philanthropic market. Customer will buy
their products because they feel they are helping others in need, making the company very profitable and
competing with for profit companies.
Bo-I believe that the one for one business can be appropriate for another business to model after.
However, the product would have to be cheap enough to produce at a value where a profit can be made.
As well as hold enough value to someone, so that they are willing to purchase, their product. I think this
could be done through a toothbrush company, where the product holds a value for both consumer and
giftee. All while the manufacturing cost are low enough to turn a profit.
AA- Yes, I believe that there one for one model can be for another business. They must make a product
that everybody can afford and make profit from it while still making profits and helping others out. I
believe you can do this with a water company, where the product is easy to make, and you can also give
the water away because everybody needs water.

SG- Yes, people enjoy giving back to others and supporting those who may be in less fortunate
situations. The One-for-One model makes people feel good when they purchase from a company
involved with this vision.
 Summary
From the start TOMS has been a groundbreaking company who has been able to mix two worlds into one,
that being for profit and philanthropy. Toms founder Blake Mycoskie started TOMS after finishing his
adventure on the Amazing Race, where he visited the country of Argentina and realized how the Children
lacked shoes. He came up with a plan to start a company where for everyone pair of shoes sold, he would
give one pair to a child in need. Which could be coined the one for one business plan. He began his
business by opening two different sectors one side a non-profit and the other a for-profit business. What
was great about TOMS philanthropy model is that they required no direct funding to keep the
organization going. The for-profit side of TOMS funded the cost to produce and distribute the shoes to
the people they were giving back to. TOMS went above and beyond in the way they gave their shoes
back, first by setting up teams to find honest organizations and helping them distribute the shoes
personally. And through other programs such as helping with health care and offering jobs. The
marketing TOMS was able to accomplish was extraordinary. The owner knew he had no money to fund
an advertisement campaign. So, he relied on word of mouth and came up with tactics such as people
posting flags from their shoes to the TOMS websites. All this attention brought a buzz in consumers
which has led to over 100 million pairs of shoes to be given back. With TOMS limited budget the focuses
on recruiting and hiring have been put toward individuals who are sold on their bigger picture rather than
money. Although times have seen to have gone from booming sales to steady sales. TOMS seems to
continually still try and switch up their business plan by offering new give back opportunities. And even
recently letting others choose which, one for one program they want to donate too. Overall, it seems
TOMS has developed a plan that shows business and philanthropy can work together. Allowing others to
follow on the same path in the goal of giving back, which TOMS seems to believe so strongly in.