Patagonia Article Analysis:
Patagonia & Chandler “Logic of Industrial Success:
– Patagonia making efforts to be a first mover in terms of being the “first” company in the world
fully dedicated to operating in the fashion of pro environment. “Lets be the first”
– Invesments made on R&D “Regenerative agriculture” for use in food and clothing products, first
mover investment as no other big clothing company doing this on big scale.
– Within their social responsible/pro-environment context, Patagonia uses economies of scope by
using regenerative agriculture’s shared intermediate production to benefit both Patagonia
clothing and Patagonia food provisions.
Patagonia & Greiner Phases of Evolution and Revolution
Patagonia & Barney “Looking Inside”
– Patagonia Equipped with valuable, rare, hard to imitate organizational resource with its
historical reputation “for past 45 years” of being socially responsible, relationship with
environmental groups, culture of social responsibility.
– Patagonia equipped with valuable, not rare or hard to imitate financial resource of equity in
startups as well as valuable, not rare or hard to imitate financial resource of capital.
– Patagonia equipped with physical valuable, rare, hard to imitate resource of regenerative
agriculture consisting of land, plants, farms
– Patagonia equipped with valuable, rare, hard to imitate human resources of knowledgeable
socially responsible farmers in india .
– Patagonia equipped with valuable, rare, hard to imitate organizational resource of political
influence/power to help their cause “We have this political power, a few million customers
who are really behind what we’re doing. So why not use it to do some good?”
Patagonia & Collin J Porras “Company Vison”
– Patagonia core ideology based on core purpose of ““Build the best product, cause no
unnecessary harm, use business to inspire and implement solutions to the
environmental crisis.”
Patagonia & Mintzberg “Managers Job”
– CEO rose Marcario takes up interpersonal spokesperson role and decisional resource allocator
by announcing Patagonia was “giving back $10 million in tax cuts to grassroots
environmental organizations”
– Founder Ivon Chounard takes up decisional entrepreneur role by changing company mission
statement.
– Founder Ivon Chounard takes up information role of Disseminator “Chouinard gave the HR
department some new marching orders.”
– Founder Ivon Chounard takes up informational role of Monitor ““But with regenerative
agriculture, there’s been studies that have shown that if we did our agriculture the
right way, we could capture more carbon than we’re emitting. Period.”
Patagonia & French & Raven Power”
– Both Marcario and Chounard command employees of company by exercising their legitimate
power granted from being CEO/founder, therefore their ability to prescribe behavior.
– Chounard exercises Referent power, which is gained through his interpersonal skills and
influence which enables him to have political pull.
Patagonia & Norton Score Card:
Financial Perspective # 1 Goal: Increase Profitability of companies invested income. Measure: Return on
Equity Ratio. Target: Increase by 20%, for when: within a year
Financial Perspective # 2. Goal: Increase Revenue Generated through Fixed assets. Measure: Fixed Asset
Turnover Ratio. Target: 30% increase. For when: within a year.
Customer Perspective # 1. Goal: Improve customer perception of Patagonia. Measure: % of customers
who purchase Patagonia for environmental reasons. Goal: Increase by 20%. For when: within a year.
Customer Perseptive # 2 Goal: Improve customer Satisfaction of Patagonia Products.
Measure: %Percentage of Customers Satisfied. Target : at least 70 %. For when: within a month.
Internal Perspective # 1 Goal: Increase amount of products made through sustainable/socially
