...PATAGONIA: LOOKING THROUGH A HR PERSPECTIVE Founded in 1973, by Yvon Chouinard, Patagonia, Inc. is an outdoor clothing company, based out of Ventura, California. It initial started by making tools for Alpine climbers. Over time it grew to become one of the most predominant retailer for selling merchandise for skiing, surfing, fishing, trail running, snowboarding, paddling, as well as its original focus of climbing. Looking Through the Lens of Human Resource There are many variations of human resources among the many companies. There are some that stick out from the rest. These companies stray from the normal practices of human resource. Patagonia, Inc. is one who exemplifies unique practices. Patagonia begins its trailblazing by its environmental impacts. Most companies focus all of their energy to management, marketing, and other business related processes, rather than their environmental impacts. Patagonia sets the bar by looking further. They personally see to it the entire life cycle of their products have the least possible impacts. The company’s mission statement, “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis,” explains the personal accountability of each employee (Our Reason for Being, n.d.). In addition to the mission statement, they pursue greater quality in everything that they do; they believe that relationships build on integrity and respect; they serve as a catalyst for personal...
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...to a charity. Patagonia is a different company. They do not just speak of environmentalism and a company vision of giving back to create a sustainable environment, they live it. Patagonia’s roots are in creating the best hiking and outdoor gear. Patagonia’s present is on the frontline of corporate responsibility to the planet. With no less than 15 different environmental initiatives currently in operation, Patagonia is demonstrating how to run a successful company based on fundamental values. Origin and Evolution Businesses face competition and the key to success requires a business to continually change over time to meet customers’ demands and needs. Evolution is a way to isolate key competitive advantages. Businesses entering the marketplace evolve through several growth stages and eventually the market share will be saturated (Pearce & Robinson, 2009). Patagonia started out as a company that made tools for climbers (Patagonia, 2011). The business evolved from a small, marginally profitable garage business that sold one product to a successful company that offered customers many options including clothing, mountain climbing gear, and fishing equipment. The company grew from appealing to only mountain climbers to appealing to outdoor enthusiasts of every kind imaginable. Patagonia proves that the process of evolution through isolating competitive advantages and satisfying customer needs brings them continued success in a demanding market (Patagonia, 2011). Drive ...
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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 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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...Vision Statement Analysis of Patagonia and Columbia Sportswear Patagonia Mission Statement: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis. Columbia Sportswear Mission Statement: Design and deliver authentic, outdoor, high-value products for active consumers of all ages. Mission Statement Analysis Both Patagonia and Columbia Sportswear principle market sector involves outdoor apparel and equipment. Patagonia’s mission statement does not directly state what their product is but focuses more on the quality and impact of manufacturing on the environment. Based upon Patagonia’s annual report from 2013, the company has gone to endless measures to ensure they maintain their social responsibility as guardians of the environment. “[C]ause no unnecessary harm”, is reflected in one instance in 1996 when the company stopped using traditionally grown cotton in their clothing because of chemicals and pesticides used in growth. In 2001, founder Yvon Chouinard cofounded 1% for the Planet, a collective of organizations dedicating 1% of their sales to support environmental efforts. Patagonia consistently sets the bar for environmental awareness in business and manufacturing practices. As a consumer of their products for close to a decade, I can attest the “[b]uild the best product” is an accurate statement, comparative to other outdoor clothing producers. Even with “build the best product” as their initial statement...
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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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...Case Study Four Patagonia: Leading a Green Revolution 1) Patagonia has a history of putting sustainability ahead of profits. Based on what you learned about Patagonia’s ideals, how do you think the company determines what possible ventures will be both business practical and environmentally friendly? Patagonia determines how its possible ventures will be both business practical and environmentally friendly by turning their company into a eco friendly environment. It clearly states this in their mission statement. “ Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis” Their main focus is going “green” to help the environment but also using business as a way to expand this envision. Profit and helping the environment are the two main building blocks of this company. All products that are used in this company are environmentally friendly. For example after coming to learn the effects that cotton was having on the environment they decided to switch to using synthetic cotton and other material that was in no ways harmful to the environment. Although they had a tough time in the start with the costs and quantity of these raw materials, Yvon stuck to his envision and ended up gaining success. He even came up with a unique way of recycling his clothes. He gave consumer the options to bring back their clothes if it was torn and not wearable. This piece of clothing would either be fixed or “ melted...
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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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...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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...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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...Patagonia: Corporate Social Responsibility Analysis According to John L. Campbell, a socially responsible company does no harm to stakeholders and if harm is done, they quickly rectify the problem (p.951). Before a company can be socially responsible, the key decision makers must know what the term means. Patagonia's mission statement demonstrates the company's awareness of what it means. "Build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis" (Patagonia web page). The coupling "of attention to the stakeholders" and "attention to the operations" establishes a "managerial method" that Hosmer calls "unify and guide" (p.121). When a company defines its values and goals, and then incorporates it into the mission statement, it explains why they exists (p.121) On the Patagonia's company website, they not only have their mission statement, but they also provide a definition of what corporate responsibility means to them. Patagonia does not make their clothing, but must rely on other companies to produce the material, cut the patterns and put the garment together. As such, they require the 70 companies they work with to embody the same commitment and integrity. Every company is required to adhere to Patagonia's code of conduct and undergo a rigorous review process prior to Patagonia doing business with them. The due diligence process is carried out by a special department headed by a Director of Social...
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... 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 the employee more motivate...
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...5:40 Case Study 1 (A Passion for the Planet) At Patagonia McGregor’s theory Y plays a major role. Patagonia reveals the true meaning of work, when a person truly enjoys what they do on the job, maximum effort is put forth. This allows a person to do the job that’s before them to the best of their ability and enjoy the job every step of the way. Patagonia extents a hand to let employees know that their self-worth and well being is important to the company. If a company let’s you know that it’s important to them that your self-esteem is built upon which causes you to be a more outgoing person in the company. This also builds on social and human capital to infusion sooner of the befits of being about of the company. In the 21st century manager’s have to worry about who or where they will leave their children and how or who will be picking them up. When a company goes out on climb to ensure an onsite daycare, this make for a very ease employees. Most employees know that a higher education allows for a better job position. When a company agrees to pay a portion of the cost of your education this makes for a more productive employee. This also brings the profile of the 21st century manager to life. Fairness is one of the moral principles being force on at Patagonia’s magic causes you to get out of the box. Companies, especially those that have shareholders will not let their shareholders take a suffering lost. Within the Patagonia this allows shareholders to have a since of purpose...
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...employees’ levels of motivation that are hired and working for Patagonia I am able to determine that Patagonia really strives to make sure that their employees are happy and working well. They believe that a successful worker is happy and well balanced as can be viewed just by walking into their extraordinary outdoor tranquility represented office. Patagonia is meeting the basic need as described by Maslow hierarchy of needs by allowing their employees to have self-actualization, building their esteem, making them feel a sense of belonging and love, helping them feel safe, and by contributing to their lives by allowing them to make a living in order to satisfy their Physiological needs. I think that it would be awesome to work for a company that allowed me to serf on the beach a block away during my lunch hour. They have a daycare on site for employees to bring their children creating an environment that really speaks to us about how the company feels about not only their employees but also showing that they care about what their employees care about. According to our textbook, “Its combined voluntary and involuntary turnover in its retail stores was around 25 percent, while it was only 7 percent at headquarters. (The industry average for retail is around 44 percent.) Patagonia’s CEO Casey Sheahan says the company’s culture, camaraderie, and way of doing business is very meaningful to employees and they know that “what they do each day is contributing toward a higher purpose—protecting...
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...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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