Business Functions and Innovation Strategies of TOMS Shoes Company

This report discusses the different business functions of TOMS Shoes company and their innovative and creative strategies. It also covers recommendations for improving their growth and expanding their business.

BUSINESS and
ENTERPRISE

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Brief Overview of TOMS Shoes company:- ..............................................................................3
Business functions in relevance to TOMS shoes company........................................................3
Innovation and creativity in relevance to TOMS Shoes company.............................................5
Recommendation:-......................................................................................................................6
Developed skills which help in improving the academic and professional career......................6
TASK...............................................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals:....................................................................................................................9

INTRODUCTION
In simple words business may be define as the process making more and more money by
producing or buying and selling the goods and services in the competitive market. Business
organisation plays a very important role in improving the quality of life by two ways. By
producing high quality of goods and services according to their comfort and by producing
different types of employment opportunities for the individual(Daschner, 2017). In the
traditional times the meaning of entrepreneurship is limited to starting the business and earn
profit, but in the modern times the meaning of entrepreneurship is related to innovative ideas,
solving the problems, finding the opportunities and serve to the societies. The following report
is based on Tom shoes company which is multinational brand of US. This report is going to
cover the different business functions of the chosen company and their innovative and creative
strategies. This report also covers the recommendations for improving their growth and
expanding their business. After words this report cover the reflective skills which is required to
improve the academic and professional career.
MAIN BODY
Brief Overview of TOMS Shoes company:-
TOMS shoes is a multinational brand of Unites States. The founder of the company is
Black Mycoskie and company was founded in 2006. The owner of the TOMS Shoes is an
entrepreneur from Arlington, Texas. The headquarter of the company Los Angeles, California
and they deals in shoes, eye wear, coffee, apparel and handbags. In December 2019 the
company was purchased by its creditors Jefferies Financial Group Inc., Nexus Capital
Management LP, and Brookfield Asset Management Inc. In 2019 the revenue of the company is
recorded around $392 million and along with this, the TOMS shoes provide employment to
around 500 people.
Business functions in relevance to TOMS shoes company.
Business functions may be define as the different activities which are carried out by an
individual or group of people in an organisation in order to achieve the goals and objective of the

business. In context to TOMS shoes, following are the different business functions of the
respective company has been discussed below:-
 Operational function:- This function is also known as production function. This
function of the company responsible for producing the goods and services according to
the need and demand of customer(Katuu, 2019). In context to the TOMS shoes company,
the operation department of the company is responsible for converting the raw material
into the finish goods. As the production department of the chosen company work with
high level of efficiency this help them in maintaining their production level and quality of
the goods. The primary focus of this department is to enjoy the cost benefit.
 Human Resource Function:- The human resource (HR) function of the company is
being considered as one of the most important functions of the business. This function of
an organisation is responsible for managing the employees or worker for the each and
every department of the company. In relation to the TOMS shoes, this department of the
company is responsible for fulfilling the demand of employees within the company. This
department recruit the employees according to the qualification needed, provide training
to them, handle their termination and manage the industrial relation.
 Marketing and sales function:- This function is also being considered as one of the
most important function of the company. This department of an organisation is
responsible for developing the brand image of the company in the market, analyse the
market trends, sales of the company products and most important after sales services. In
context to the TOMS shoes, this department of the company is responsible for analysing
the market and collect the information from the market, so that company can produce
their items according to the need and demand of the customer which provide them long
term sustainability in the market. This department is also responsible for developing the
different marketing strategies and targeting the different market segment.
 Accounting and finance department :- this function of the company deals with all the
the transactions which is related to money (Phillips, 2018) . This department generate the
fund when required by the company and control the flow of cash in and out of the
business. In context to the TOMS shoes, this department of the company is responsible
for recording all the financial transactions and salaries of their staff members. Along with
this they are also responsible for the paying to supplier when due. This department take

the decisions which is related to finance and make the budget for each and every
department of the company.
 Research and development function (R&D):- the research and development function
is very important for the company. This department is responsible for making changes in
the existing product and developing the new product. The sustainability of the company
is totally depend on this department of the company. In relation to the TOMS shoes, this
department of the company coordinate with the marketing and sales department and make
changes exactly according to what the customer need.
 Distribution function:- The main function of this department is to distribute the goods
and services which are produce by the company to the end consumer. In context to the
TOMS shoes, this department of the company is responsible foe managing the supply of
goods to the customer who are living in different geographical areas. The TOMS shoes
follow the direct selling method in their distribution channel. This means that they
produce or manufacture the goods and services and directly supply to their customer, no
intermediator is involve in this process which helps the company in reducing the cost of
goods sold(Ruivo, Oliveira and Mestre, 2017).
Innovation and creativity in relevance to TOMS Shoes company.
Meaning of innovation and creativity:- in simple terms innovation and creativity may be
define as improving or replacing something. In relation to business, innovation means
developing and implementing the new ideas for introducing the new goods and services in the
market or improvement in the existing product. Innovation and creativity within the company
take place through the process of developing the products, services and technology. In relation to
the TOMS shoes, the company have a huge range of innovation. They innovate their products
from flat shoes to the expansion into ballet flats and eye wear. The most notable innovations
which have been done by the TOMS shoes company is Row collaboration. The another
innovative and creative thing which have been done by the TOMS shoes company is “ One by
One” campaign. The owner and the small team of the company go to Nepal and they shocked
when they see lack of lack of basic necessities and communities. The campaign which are
established by the Toms shoes company mainly focus on helping those people who live in that
area where support is not available(Szromek, 2021). If a customer purchase purchase a pair of
shoes or sunglasses from their collection they provide treatment to one individual.

In 2014, they evolved their business and start a new range of selling coffee. TOMS provide a bag
of supplies to all over the globe for their every sale. The bag of supplies has been provided to this
people who needed the most. Recently the company launched a bag line, so for every sale of bag
company helps the safer birth for mother. For managing the engagement of their customer's ,
company adopt Marketing cloud. Creative things like, customer's being rewarded when they
purchased a product from the company or reading their blog.
Recommendation:-
It has been recommanded that TOMS company must have to introduce some new and
innovation product in the market. This strategy is sounds simple but it is very challenging to
launch. This strategy helps the company not only in improving the business functions but also
help in expanding their business all over the globe. Along with this it also have been
recommanded that company have to sell more product not only to the existing customer but also
to the new customer. This strategy not only help the TOMS company in increasing their
customer base but also help them in improving their sustainability in the market. Another
recommendation which have been given to the company is that they have to use the STP model
in their business operations(Telukdarie and Sishi, 2018). STP stands for Segmentation, targeting
and positioning. This strategy helps the company in targeting their customer on the bases of age,
gender, and location. This helps the respective company in positioning their product and services
in front of those customer's who are able to pay the prices of goods and services. Another
recommendation for the TOMS company for improving their business and expanding their
business is acquire their rival firm. This strategy meant to be very expensive but help the
company in expanding their business all over the globe.
Developed skills which help in improving the academic and professional career.
During completing this module I have developed different types of skills within me
which not only help me improving my academic career but also help me in developing my
profession career. The following skills which have developed within me has been discussed
below:-
 Self- confidence:- the development of confidence within me help me in presenting in
front of some one in a very effective manner. This skill help me in completing any task in
a very confident manner. This skill help me in developing my academic and professional
career in a proper manner.

 Decision making skill:- Decision making skill help me in taking effective decision at
any point of time in a very effective manner. The development of decision making skill
within me helps me in analysing the every situation which I can face in my professional
and academic career in a very proper manner. I am able to take though full and trust
worthy decision with the help of this skill. I am able to take important decision of my
life. So ultimately this skill helps me in improving my academic career as well as my
professional career too.
 Time management skill:- the development of this skill with in me make me a well
organised person. Time management skill is very important for achieving a successful
position in life. As this skill help me in completing my all task within the set time limit.
This skill help me in developing my academic career as well as my professional career.
With the help of this I am able to complete all the task which I have received my
professional career.
 Communication skill:- during completing this project, communication and negotiation
skill has been developed with in me. The development of this skill help me conveying my
thoughts and perception in front of my friends, family member and my team mates in a
very effective manner. Communication skill also help me in achieving a successful
position in my life. In today's era this skill is plays a very important role in making
career. With the help of this skill I am able to speak in front of ever one and along with
this skill also improve my negotiation skill. The development of this skill within me help
me in improving my academic career as well as my professional career.
 Leadership skill:- I also develop leadership skill with in me during completing this
project. With the development of this skill within me helps me directing my subordinates
for completing the task in a very effective manner. This skill also improve my listening
power, which helps me in effectively listen to my subordinates. With the help of this skill
I am able to improve my academic career and also my professional career.
TASK

CONCLUSION
From the above report it has been concluded that it is very important for an organisation
to operate their all the business functions in a very effective manner. Different types of business
functions like production, marketing, finance, distribution, human resource and more has been
performed in an organisation. All these functions has its own roles and responsibilities. This
report concluded the different business functions in relation to the TOMS shoes company and
along with this, this report also concluded different types of innovating and creative ideas which
serves to the society. Afterwords this report concluded a recommendation which helps the the
company in improving their business operations and also helps them in expanding their business
all over the globe. In the end reflection has been concluded which helps in improving the
academic and professional carrer.

REFERENCES:
Books and Journals:
Daschner, S., 2017. Architecting Modern Java EE Applications: Designing lightweight,
business-oriented enterprise applications in the age of cloud, containers, and Java EE
8. Packt Publishing Ltd.
Katuu, S., 2019, December. Enterprise Architecture—A Value Proposition for Records
Professionals. In 2019 IEEE International Conference on Big Data (Big Data) (pp.
3116-3125). IEEE.
Phillips, R.A., 2018. A retrospective study on the views of alumni entrepreneurs towards
university enterprise education and training. IUP Journal of Knowledge
Management, 16(3), pp.54-71.
Ruivo, P., Oliveira, T. and Mestre, A., 2017. Enterprise resource planning and customer
relationship management value. Industrial Management & Data Systems.
Szromek, A.R., 2021. The Sustainable Business Model of Spa Tourism Enterprise—Results of
Research Carried Out in Poland. Journal of Open Innovation: Technology, Market, and
Complexity, 7(1), p.73.
Telukdarie, A. and Sishi, M.N., 2018, December. Enterprise definition for Industry 4.0. In 2018
IEEE International Conference on Industrial Engineering and Engineering
Management (IEEM) (pp. 849-853). IEEE.