Muhammad Ateeb Khan

Patagonia Case

Company Objectives: To earn sufficient profit by delivering innovative, excellent, useful products and service to customers without the pursuit of growth for growth’s sake. To reduce or reverse the environmental harm caused by company operations

Strategy: Designing high-quality outdoor equipment and clothing. “Quality” is the way of doing business for Patagonia. This includes Quality products, quality service and quality life of employees.

Internal Controls: The company initiated a program called “The workbook process” that was aimed to get the employees actively involved with the companys performance and also to assess which work groups were meeting their targets and which weren’t. The Workbook process involved making every department’s and corporation’s plan visible to all employees and encouraged employees to become actively involved in the planning and operating review process. This process also made monthly department and corporate financial and operating repots visible to all employees. This new system was initiated as an improvement to the company culture of concern for employees’ quality of life, which in turn reflected motivation to serve company objectives

The Company uses results controls to monitor and direct the actions of its employees. The workbook process was designed for this very reason so that employees can be fully aware of the objectives their group needs to accomplish for the financial year and also serves as a numerical feedback as to how good their department/group performed and if they fell short, where did they fail. The Workbook process was a significant improvement in getting the employees actively involved in the budgeting and planning aspect of the business. Even though the bonuses linked to employee performance was very subjective, it still motivated workgroups to meet their budgets because at times the bonuses would be shared by all the employees in the workgroup....

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