Good Intentions Business - Assignment Example

Their promotional policy is that for every pair of shoes bought from the company, company will donate a pair of shoes for a shoeless child. Blake is an American traveler and during his visit to Argentina he observed many children with bare feet. With his pure good intentions, he established a company and named it as TOMS shoes. Keeping the situation of children with bare feet in mind, Blake went to the Argentina in the same year with his colleagues, co-workers, friends and family with 10,000 pairs of shoes, which was made possible by the help of customers of Toms’s shoe. a. The situation TOMS shoes is a company, which has the vision and aspiration to help and give out its finished product (i.e. shoes) to third world societies, where usually the poor roam bare feet.

This company gives away a pair in charity against purchase of every pair bought. Mainly they are sending shoes to those countries that are shoeless such as Haiti, South Africa, Ethiopia, Mississippi, Kentucky and Rwanda. This campaign is known as “One on One”. The situation has led to the high sales of the alpargata in high society of the western world. b. The rationale for your/their actions This “One on One” campaign is eventually leading the western world; people are buying expensive shoes, as the humanitarian cause is not truly fulfilled through the corporate itself.

The prices of TOMS shoes are high comparatively to their competitors, because the customers are getting one shoe pair in price of two pairs. Reason being that the western world consumer is paying for the charity. These shoeless countries are suffering from the diseases like hookworm and elephantiasis; these diseases are found in these countries because more often than usual people roam bare feet on dirty soil. c. The specific poor results However, Blake Mycoskie, the CEO of TOMS Shoes, have initiated this charity work for the shoeless countries, but eventually it ended in the twofold objective.

As shoeless countries are facing diseases due to various reasons such as the hookworm. And such diseases could be tackled by constructing latrine or improve sanitation in Ethiopia. According to the case study, TOMs’ CEO oodles money by keeping the price of the charity purpose pair of shoes same as the normal pair of shoes, but the manufacturing cost of the charity shoe is even lesser than the half of taken. This situation led to running the local shoe industry on the country, as the sales went high up of TOMS shoes and local shoe industry declined. d. The individuals, people, or groups that were affected, and how they were affected Though this charity work has helped a lot of shoeless countries and people, but it has also left negative impact on people’s working there.

Donation affected the shoe industry drastically. In a way, TOM shoes were undermining the business of local shoe industry. This in-kind charity can be a short run benefit for the consumers, but the disturbance in the local industry will lead towards immense poverty in the long run. 2. Using systems thinking apply Singe’s concepts of “dynamic complexity” and “circles of causality” to the situation and explain the interactions and relationships. There are two types of “complexity”, one is detailed complexity which means that a person handles a complex situation that involves