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Copy of Copy of Copy of Patagonia

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Corado Yaritza

on 18 February 2014

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Transcript of Copy of Copy of Copy of Patagonia

Corporate Mission Statement
"Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis."

"To use market forces to drive positive environmental change by inspiring companies to give"

–Patagonia's Mission Statement


Organization Chart
Corporate activities
* Patagonia commits 1% of their total sales or 10% of their profit, whichever is more, to environmental groups. Patagonia calls this 1% For the Planet alliance. Since 1985, when the program was first started, Patagonia has donated $46 million in cash and in-kind donations to domestic and international grassroots environmental groups making a difference in their local communities.
* Patagonia also supports several smaller initiatives such as the World Trout Initiative, Environmental Internships, the Conservation Alliance,and the Organic Exchange.
* Patagonia also gives their employees time off to do the outside sports/activities that they love to do.



Current events
Their most recent campaigns include work with preventing oil drilling in the Alaska Wildlife Refuge, "Ocean As A Wilderness", and "Don't Dam Patagonia."
In the past year alone World Trout Initiative granted $75,000 for fish and habitat enhancement.
During the fall of 2011 Patagonia made all their clothing recyclable.
Since 2012 the animal welfare organization FOUR PAWS criticized Patagonia for using live-plucked down feathers and downs of force-fed geese. Patagonia denied using live-plucked down feathers but admitted to using down from the foie-gras industry and they are currently working on resolving this issue.
Management Chart
Nicole Lara, Yaritza Corado, Anh Nguyen, Nick Falciani
Case Question #3


1.) Some conflicts/controversies that Patagonia may face would be the issues that arise would be staying true to their companies mission statement and making their stakeholders happy. Patagonia wants to use renewable resources such as wind, solar energy power, recycled paper and organic cotton. Patagonia found out that airfreight requires at least eight times more energy than shipping by ground or sea. So Patagonia encourages customer to not overnight their products,"ask yourself if you really need your pair of pants sent overnight." even though Patagoina encourages there customers to choose the environmentally safe option they still offer their customers the over night option. This than breaks their mission, which can cause some controversy with their customers. Chouinard I think prepared well for this issue. What other option did he have either he can loose a lot of customers with taking away an over night option, because they are not easily available, or loose customers for not following their mission. Chouinard did his best by leaving the option open for over night shipping, for customer who want that, and than put out a statement asking customers to do the environmentally right thing, showing the stakeholders they still follow their mission. Chouinard did the best he could to deal with this conflict that arouse, which shows he can do the right thing to deal with future issues like this in the future.

"There is no business to be done on a dead planet."
Case Question #2
What examples and incidents from this brief history of Patagonia illustrate how the personal ethics and values of founders can positively influence an organization as it deals with the challenges of start-up and growth?

Yvon Chouinard never lost site of what he believed was right and what he loved. He started the company with his wife and they agreed from the beginning that the growth of the compamy would be on their terms. Their products wouldn't release toxins into rivers, the business wouldn't cause nervous breakdowns, nor would it chase endless growth. It wouldn't make disposable garments that people really didnt need. Anything it produced would be of the highest quality and manufactured in the most responsible way. The point wasn't to focus on making money. Yvon thought the focus should be on doing things right.






Case Question #1
Does the Patagonia experience prove that anyone can do business with principles or are there business realities that make it hard for others to copy?
Every business has the potential to minimize their environmental footprint however, most businesses take shortcuts for in order to maximize profit. the corporate mission statement of Patagonia is not to make the most profit but to make a top of the line product without damaging the earth. Other business's choose manufacturing processes that are harmful to the earth but more cost effective. Most businesses stride to make the most profit and Patagonia is a unique exception to the everyday business world. if more businesses aspired to Patagonia the world would be a healthier place to live in.
Rose Marcario
Chief Executive Officer

Mr. Yvon Chouinard
Founder
Mr. Stefan Wahlén
Managing Director
Mr. Barry Blanchard
Member of R&D Team
Ms. Joy Howard
Vice President of Marketing
CEO
Founder
Secretary
Customer Service Outsourcing Manager
Director of Communications and Public Relations
Environmental Analysis
Information technology Web
Marketing
Financial Planning and Analysis
About Patagonia
Case Question #4
2.)"During the busy holiday shopping season,Patagonia is running ads online and in mainstream publications encouraging shoppers NOT to buy its winter jacket. The company ads abuse Patagonia’s own products, explaining that "each piece of Patagonia clothing, whether or not it's organic or uses recycled materials, emits several times its weight in greenhouse gases, generates at least another half garment's worth of scrap, and draws down copious amounts of freshwater now growing scarce everywhere on the planet." Is this "Marketers Gone Wild," or an ingenious approach to standing out during the holidays?" Common Threads Initiatives


Brain Blink: Our products suck, happy holidays
29th Nov 2011 | Posted by Jeremy Baka
http://www.cohnwolfe.com/en/wolfetracking/our-products-suck-happy-holidays
*Where are conflicts and controversies most likely to occur among the interests of Patagonia's many stakeholders? How might Chouinard prepare to best deal with them?
it was founded in 1973 by Yvon Chouinard
clothing company that focuses mainly on high-end outdoor clothing
a member of several environmental movements
its a certified B corporation
employs a flex-time policy





Larger gross profit margin than its competitors and is targeting a 10% rate of annual growth in sales
Growing faster since last five years through the recession
2011 sales: up to 30%
2011 annual revenue: over $500 millions
2012 sales increased almost one-third to $543 millions
Average growth rate of 3% - 8% annually
Patagonia's Financial Condition
Find news items reporting on what has happened at Patagonia recently. After decades of growth, how has the economic downturn influenced its business decisions?

Patagonia's Water Challenge: "Our Common Water" - Patagonia’s environmental campaign, spotlights the need to balance human water needs with those of animals and plants. Patagonia’s water footprint – the water cost of doing business – and our efforts to reduce use.
Because of the unique and sustainable business policy, Patagonia has grown faster and more efficiently. The economic downturn could not affect the business operations. On the other hands, it has given Patagonia more successes over competitors. Patagonia has already influenced a number of Fortune 500 corporations. It is because of their responsibility for a healthy environment and their transparency in a competitive economy. Patagonia's policy of valuing customers and society, giving profit back to environment by their 1% for the Planet. Besides Patagonia also helps other smaller business with their practices. This is how Patagonia always succeed even in a recessive situation.
References

http://www.businessweek.com/articles/2013-08-28/patagonias-buy-less-plea-spurs-more-buying
http://search.proquest.com/docview/1019048398
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