...Patagonia Case 1. Situational Analysis Purpose of Organization and Product Patagonia is an outdoor clothing company worldwide leader of environmentally responsible business that offers products that are simple, functional and multifunctional. Patagonia’s product line is composed of four main product categories: Sportswear, Technical Outerwear, Technical Knits and Hard Goods. It is an industry leader in technological innovation, that invest in development and tests raw materials to cause the least amount of harm to the environment as possible. Patagonia’s mission statement is: “Build the best product, cause no unnecessary harm and use business to inspire and implement solutions to the environmental crisis”. Promotion Their marketing strategies are quite different from what is customary for an outdoor clothing company. Patagonia’s main idea of marketing is to inform its audience, so they have incorporated educational messages for its consumers instead of just publicity of the brand. Patagonia invests less than 1% of its sales on advertising and marketing. The ethics and the unique vision of the company has especially attracted the attention of the media, and this has led them to get free publicity from the press in many occasions. Price and Target Market Patagonia consumers have a median age of 38 years and an annually average income of $160,000. Basically, its target market are lovers of outdoor sports that are willing to invest approximately 20% to 50% more...
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...The Case of Patagonia Click Link Below To Buy: http://hwcampus.com/shop/the-case-of-patagonia/ This week, you are assuming the role of a human resources consultant, hired by Patagonia to analyze their employees' levels of motivation. Your Assignment Read the Case Application 1: Passion for the Outdoors and for People (end of Chapter 17). After reading the case details, prepare your report for Patagonia managers by answering the following questions: 1. According to Maslow's hierarchy, which basic needs does the Patagonia culture meet? What would it be like to work at Patagonia? (Hint: Go to Patagonia’s website and find the section on jobs.) What’s your assessment of the company’s work environment? (20 points) 2. Use the expectancy theory or the equity theory of motivation to explain how feeling underpaid might affect the work of a Patagonia associate and what a manager can do to increase the employee's motivation. (20 points) 3. What do you think might be Patagonia’s biggest challenge in keeping employees motivated? If you were managing a team of Patagonia employees in the retail stores, how would you keep them motivated? (20 points) Grading Rubric Grading Rubric for Week 6 Case Study: Patagonia Case Study (page 531) This case is worth 80 points. Please name your paper, "LastName FirstName". Understanding 60 Please list each question as it is stated, then respond. Quality of the answers to questions 1–3 will be based on the requirement that you research...
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...Patagonia case If the class focus on cultural control, the following assignment questions are appropriate: 1. The objective of Patagonia, Inc. seems not to be to maximize shareholder value. What is Patagonia’s primary objective? Is this appropriate? We think the primary objective of Patagonia is to make everything sustainable in the company, to create a flexible and freedom-working environment. To meet the employee’ satisfaction and do contribution to planet. Yes, they are focus on the sustainable growth between 3%-5% but not the profit. So they are using the revenue in order to maintain that system. 2.Patagonia has a strong culture. Does this culture ensure that Patagonia employees will work hard and act consistently in the corporation’s best interest? If not, what must Patagonia managers do to shore up the company’s control system? Initially, we think this strong culture will ensure that Patagonia employees work hard because they are given the incentives to stimulate them to work hard in order to take leisure. But also when the company wants to make some changes, it is difficult to convenience the employee act consistently in corporation’s best interest because the company culture favored minimum bureaucracy and maximum informality. If the class focus is on planning and budgeting processes or open book management systems, the following assignment questions are appropriate: 1. Evaluate Patagonia’s Workbook Process. Would you recommend to Patagonia’s management...
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...The Case of Patagonia Company Patagonia was founded in 1957 by Yvon Chouinard, an avid and renowned outdoorsman. With the superiority of Yvon’s designs, by the late 1960s Chouinard Equipment had an estimated 80% of the US market for climbing hardware.In the late 1960s Yvon shifted his attention to the sale of quality outdoor clothes. His company continued to grow slowly until 1972 when the clothing line took off.(Merchant,Stead 2012) We began to grow at a rapid pace; at one point we made Inc. Magazine's list of the fastest-growing privately held companies. That rapid growth came to a halt in the summer of 1991, when our sales crimped during a recession and our bankers, themselves in trouble and up for sale, called in our revolving loan. To pay off the debt, we had to drastically cut costs and dump inventory. We laid off 20% of our work force–many of them friends and friends of friends. And we nearly lost our independence as a company. That taught us a major lesson. We have kept growth – and borrowing – to a modest scale ever since.(Patagonia,2014) "Rapid growth and maximization of corporate profits were not among Patagonia’s goals. Yvon Chouinard explained publicly that the only reason he and Malinda had not sold the company was that they were “pessimistic about the fate of the world and felt a responsibility to do something about it.".(Merchant/Van der Stead/2013,pg.342) 1. The objective of Patagonia, Inc. seems not to be...
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...Patagonia has created a strong brand and a sustained competitive advantage through focusing on the product quality to meet tough expectation of customer and win their trust and loytalty, while at the same time reducing the environmental damage. This environmental position of Patagonia contributes to strengthen the company's uniqueness against competitors by differencing it from others in a market where technology improvement has become increasingly challenge. Patagonia uses incremental innovations approach to improve existing products and processes, as new technical systems for their apparel and gear for instance. The company chosed to maintain high margin with command prices 20% above their competitors. Inside the company, Patagonia's employees showed high satisfaction and fidelity, which led to much lower turnover comparing to other rivals. Finally, the firm differentiates itself from other major competitors by focusing on customers who are knowledgeable about their sports and outdoor activities (niche market of dirtbags) and willing to pay additional amount for superior quality. It is true that Patagonia's environmental position contributed to company's competitive advantage in positive ways, such as strengthen the company's uniqueness against rivals. Also we could believe that business and sustainability seems to be compatible when we se how the positive and improved image of Patagonia helped it to gain legitimacy with stakeholders; or when its competitors are making...
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...Principles of management | Passion for the Outdoors and for People | CASE APPLICATION 1 | | Juan Uzcategui. | 10/22/2014 | 1. According to Maslow's hierarchy, which basic needs does the Patagonia culture meet? What would it be like to work at Patagonia? According to Maslow’s hierarchy, the basic needs that the Patagonia culture meet is the Esteem because it allows the employees to be confident, self-esteem, allow them to achieve their goals by coaching its managers, and by training the managers to define expectations, communicate deadlines, and then let employees figure out the best way to meet those after being well trained. Also the respect of others, and respect by others is very important for an organization that wants to keep its employees motivated. None of the employees have private office. If an employee does not want to be disturbed, he or she wears headphones. That is a great way to show that everyone is equal and that each one of them are allow to do anything the feel like doing but always respecting each other. What would it be like to work at Patagonia? Work at Patagonia would be a paradise especially for people that like the beach, people that have kids, and for people that does not like to be wearing office clothes at all times. The beach lovers have a big advantage to work for Patagonia because they already are in their favorite place and being able to catch some waves and some sun in the middle of the workday is just fantastic, it makes...
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...| 2012 | | PATAGONIA CASE STUDY | Table of Contents PART 1 Discuss the management control system in the Patagonia Company. Explain and discuss the nature, context, evolution, elements, processes, strengths, weaknesses/problems of the management control system at Patagonia (including a critical evaluation of the Workbook Process). Page 3 PART 2 Would you recommend to Patagonia’s management that they continue with or discontinue the Workbook process? Explain your reasons and make recommendations for any changes needed. Whether to enhance the existing process or to replace it? If you recommend continuing the process, what would you replace it with?) Page 7 PART 3 Would you like to work at the company? Explain your reasons. (Note: group members can disagree on this. Reasons for and against (if any) should be explained.) Page11 PART 4 Discuss the management control system in the Patagonia Company. Explain and discuss the nature, context, evolution, elements, processes, strengths, weaknesses/problems of the management control system at Patagonia (including a critical evaluation of the Workbook Process). What makes Patagonia different from many corporate organisations? Everything! Patagonia is a very successful business that has grown at a sensational pace. What is interesting about Patagonia is that the founder’s motivation was never solely about making money...
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...Patagonia Case Study - Harsha Narravula Patagonia has a unique culture when compared to other corporate companies. They seem to simplify their values around 3 key cultural elements, caring about environment through corporate responsibility and furnishing profits by producing high quality and innovate products. These values were not just a marketing campaign but were well established/ visible throughout the company through visual artifacts, communication and pursuing business strategy in line with the values. It is these strong values that have set the company apart from competition and helped the company during economic down turns (values create identity, Lencioni, Pg6). These corporate values were so strong and dominant that it affected day to day business (Concept of core values, Lencioni, Pg6). Top level management, CEO’s and board members were hired in line with the culture and shared the same values that have existed. Deviation from the values sometimes has resulted in rapid turnover of top level management. This strong culture stemmed from its founder Yvon Chouinard establishing strong set of values that had initially worked well for the company (Strong Culture, Greenberg, 371). Due to the continued success, these values permeated through the company even without Yvon being involved in a formal position (Organizational memory, Greenberg, Pg 375). As stated above the corporate responsibility to environment is a core value that the company practices. The...
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...för- och nackdelar med varje område av kontroll utifrån kursboken. Strukturen för detta uppdrag är sådan att i det första kapitlet, är kontrollerna av Patagonia Inc. i varje område av ledningens kontroll före arbetsbok processen utvärderas. Det andra kapitlet är en analys av arbetsbok processen som ett kontrollverktyg. I det tredje kapitlet problemen i arbetsbok processen diskuteras mer i detalj. 1.1 Analys av resultaten, action och människor kontroller av företaget Patagonia Inc. hade genomfört olika kontroller i sin verksamhet från alla tre områden av ledningens kontroll. Distinkt former av resultatkontroll kunde ses på det sätt anställda kompenseras för sitt arbete. Varje anställd hade individuella årliga mål MBO-typ och ordnade utvärderade sina underordnade prestationer och utifrån det, gav dem löneökningar från en höjning pool. Dessa exempel representerar enkla och effektiva sätt att belöna de anställda för goda resultat, men kontrollerna verkade sakna styrbarhet och begriplighet. Till exempel i 1997 en bonus pool av $ 80.000 höjde oro bland anställda i bolaget eftersom det inte fanns någon riktig kunskap om önskat resultat och om hur man kan påverka de önskade resultaten. Dessutom var resultatet kontroller mäts subjektivt av chefer och överordnade, vilket kan leda till en snedvriden utfall. Action kontroller i Patagonia Inc. ingår femåriga miljömål för varje avdelning som övervakas av chefer i avsevärd detalj. Detta skulle kunna ses som en förutlösning översyn, eftersom...
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...1 Patagonia Case Assignment Patagonia Case Assignment MSOD 617 Louise Keefe, Ron Milam & Laura Woodward September 23, 2013 2 Patagonia Case Assignment Patagonia’s “futuring” capability Based on the case study provided, Patagonia is more values based than future based. They are less concerned about specific future scenarios and more focused on a values-based approach to their business, focused on sustainability. “SMO’s (Sustainable Managed Organizations) need to look at short-, medium, and longterm business horizon, and there is a specific purpose for each. The long-term view considers possible future strategic intents and the operating assumptions that will drive them whereas short-term futuring guides adjustments to the current strategic intent.” (Lawler & Worley, 2011, Ch. 5, page 111/449-ibooks). While Patagonia appears to be looking for new technology to make their products even less impactful to the environment, they are not actively engaging in scenario sessions. They did bring up the fact that the generation that currently fits in their “core” is aging. They were bringing in “outside talent” to discuss which might imply disconnect on their part to longer-term need for change. “SMO’s focus their futuring process on three effectiveness areas: financial performance, social value, and the natural environment.” (Lawler & Worley, 2011, Ch. 5, page 113/449ibooks). Patagonia is focused on four: Quality, financial, social, and environment. They seem to have hit the...
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...Patagonia on yhtiö jonka yrityskulttuuri poikkeaa selvästi valtavirrasta. Yhtiö pyrkii mahdollisimman vähään byrokratiaan sekä jouhevaan tiedonkulkuun. Tästä mielenkiintoinen esimerkki on se, että kenelläkään ei ole yksityisiä toimistoja, ei edes johdolla. Johdolla on selvät arvot, he haluavat pitää hyvää huolta työntekijöistä ja tuottaa parasta laatua. Muilla asioilla, kuten kasvuvauhdilla ja tuotoilla ei ole niin suurta arvoa. Yhtiön perustaja ja omistaja Yvon Chouinard teki investointipäätökset intuitiivisesti ja jätti budjettisuunnittelut yms. vähälle huomiolle. Tämä aiheutti 1990 -luvun alussa sen, että yhtiö joutui vaikeuksiin. Yhtiöön jouduttiin palkkaamaan ulkopuolista apua kiinnittämään huomiota talousasioihin. 1990-luvun puolivälissä yhtiö päätti aloittaa ”Workbook” prosessin, jonka toivottiin auttavan työntekijöitä ymmärtämään heidän työnsä merkityksen yhtiölle ja rohkaisemaan heitä osallistumaan kehityssuunnitelmiin. ”Workbook” prosessin alettua, siitä saatiin pääasiassa positiivista palautetta. Sen nähtiin pitävän ideat liikkeellä ja työntekijät halusivat jakaa ideoitansa. Kun tavoitteita asetettaessa huomattiin, että kahdella osastolla oli sama tavoite, sitä alettiin yhteistuumin toteuttaa. Kaiken tämän positiivisen palautteen takana piilee kuitenkin ongelmia ja huolenaiheita. ”Workbook” prosessi on erittäin paljon aikaa vievä, kaiken lisäksi tuloksia saadaan useita kuukausia myöhässä, joka turhauttaa työntekijöitä. Heidän pitäisi suunnitella joulukuun lukuja...
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...Patagonia, Leading a Green Revolution Case Study, pg. C-6 September 16, 2013 1. The company’s mission statement declares their determination to “build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis”. This company has proven that charging a premium price for ecofriendly products is a solid business model and they follow it. Based on what I have learned about Patagonia and Yvon Chouinard’s ideals is they do not have to choose between business practical and environmental friendly, with their creativity and innovation they have both. This company really gives you what they promise on their products, they build useful things that last, repair what breaks and recycle what comes to the end of its useful life. Demand for environmentally-friendly services and products continue to grow, consumers are willing to pay high prices in exchange for high quality and sustainable products. Patagonia’s success is a testament to its viable business model. 2. Patagonia must remain true to Yvon Chouinard’s vision after he leaves. The company should continue to provide its core beliefs and values into every product it produces. Maintain innovative designs, exceptional quality, and environmental ingenuity is the key to continue being profitable and successful. The Patagonia philosophy must continue to preach leading a green revolution and their online The Footprint Chronicles to allow customers to track where all Patagonia’s...
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...Patagonia Problem Patagonia, a highly recognized brand that manufactures high end outdoor gear, refers to the Fair Labor Association’s accredited monitors for monitoring its manufacturing standards. The conflict of interest arises with the methods FLA uses to monitor its corporate affiliates like Patagonia. FLA allows its affiliates to pick the factories that need to be inspected as well as the inspectors who will be conducting these inspections. The affiliates are also responsible for compensating these monitors. As a result, FLA, which claims to be a third party monitor, ceases to be one thereby allowing its corporate affiliates to monitor themselves. The other issue in the case is that since Patagonia is a privately held company, the standards and procedures it expects of its manufacturers and suppliers are not made public. This lack of transparency does not necessarily help Patagonia back its claim operating 100% organic, since the data that proves it is not available to the public. The third issue is the fact that Patagonia enables farmers to pick their own certifier to certify the cotton fiber and production. This could pose a problem as farmers may jeopardize quality by using certifiers that are cheaper and require fewer and less thorough inspections to cut costs. The totality of these issues raises questions whether Patagonia is genuine in their efforts to promote the use of organic textiles in its effort to tackle the environment crisis or is it another case of greenwashing...
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...casecase 4 4 patagonia patagonia First ascents: finding thethe way First ascents: finding way toward quality of life life and work toward quality of and work > .> 1. The lie of the land Patagonia’s brand awareness and reputation are distinctly out of proportion to its size. Nestled in a quiet street just yards from the ocean in Ventura, California, Patagonia has for over two and a half decades been renowned for supplying highquality outdoor clothing and equipment to discriminating enthusiasts. A stepchild of Chouinard Equipment, the leading US supplier of speciality climbing equipment in the early s, Patagonia remains privately held. It is a subsidiary of Lost Arrow Corporation, established in as the holding company for Patagonia, Patagonia Mail Order, Chouinard Equipment (now Black Diamond) and Great Pacific Iron Works. Patagonia sales in were US$ million, achieved with employees. Patagonia manages the research and development, design, manufacturing, merchandising and sales (retail, catalogue and web-based) of adult and children’s outdoor clothing, hardgoods such as packs and travel bags, and, more recently (following founder Yvon Chouinard’s long-standing philosophy that, if you can’t find a good one, make it) surf boards! The heart of Patagonia’s success lies in relentless technical innovation that produces a continuous stream of products good enough to meet the tough and © 1999 Greenleaf Publishing Ltd > a. Corporate overview 2 mapping...
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...양세열 16010292 Chapter 11 Case Application #1 11-28) What would it be like to work at Patagonia? What’s your assessment of the company’s work environment? Personally, I believe that working at Patagonia would be a paradise because I am the person that is likely to get a job that is related to outdoor products. Based on what I have researched, there is a recent article in the New York Times called “Working Life”, which it compares Patagonia and other companies about their working environment, as it says that Patagonia knows the better way to treat their employees, the happier and more productive the employees are going to be. So due to this article and the case study, I can be very sure that I will be pleased to work in Patagonia since the employees can have the chance to enjoy suffering, jogging or biking in the middle of the workday, which is a good way to motivate employees and increase their job satisfaction. If I will be working for Patagonia, I would like to be positioned in marketing department because I want to tell to all the customers about the quality of our products. For me to work efficiently in this company, I need to first get to know about our company (technology, history, eco-friendly and etc.), which is the most important assessment. Secondly, I need to get used to the culture of the company, where the employees have no private office and everyone is equal by respecting each other. For the last, I believe that I have to try using our company’s products so...
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