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Sustainable International Business Futures - Patagonia, Inc - Case Study Example

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The paper "Sustainable International Business Futures - Patagonia, Inc" is a perfect example of a management case study. The legendary environmentalist and businessman Yvon Chouinard was the founder of Patagonia, Inc, which is one of the most inspiring companies in the world. Patagonia has managed to minimize its effects on the environment, for instance, by making fleece clothing from recycled soda bottles…
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SUSTAINABLE INTERNATIONAL BUSINESS FUTURES By Students Name Course Professor University State Date Introduction The legendary environmentalist and businessman Yvon Chouinard was the founder of Patagonia, Inc, which is one of the most inspiring companies in the world. Patagonia has managed to minimize its effects on the environment, for instance, by making fleece clothing from recycled soda bottles. Chouinard under the umbrella of leaving no traces behind philosophy, he has managed to run Patagonia successfully for the last fifty years. The philosophy has acted as a guiding pillar towards sustainable business practices (Galea, 2004). Chouinard has also managed to remain as a study environmentalist inside the similar business world and donating financial aid to small nonprofit organizations that are overlooked easily. This is an important move in making sure that the environmental concerns in Patagonia remains with an explicit focus on environmental friendly to humans. The company values such as making money, but share the love and creating a diversity of the outdoor products and the outdoor facet are essential to its operations. In addition, the company has been developing high-quality products in the most responsible way that does not leave a trace behind (Galea, 2004). The major aim of this paper is to have a deeper insight of this philosophy in the business world. Essential elements of Patagonia's Business Philosophy Patagonia has been in business for many years and their operations have all long been depicted by their mission and aspects such as by free-climbing wherever possible; and when aid climbing, through the uses of safety equipment that wouldn’t scar the rock. Their philosophy has been leaving no trace behind. Apart from this move there is a series of elements that can be drawn from their philosophy (International Society for Philosophers. 2003). These elements include; Product design philosophy Patagonia strives hard to make quality products that cause no unnecessary harm to its customers. Under this philosophy, the company operations seek to answer a set of questions. These helps Patagonia designers define whether a product is up to the standards of the company or not. The questions are based on aspects such as functional or multifunctional product, durability, product fitness for its customers, simplicity, added value and any unnecessary harm that the product can cause. Production philosophy Any company that is involved in the production of products should strive hard to produce the best goods within its category. This is easily said than it's done; however, Patagonia has managed to solve it. They involve their designers with the producers in order to come up with long lasting relationships with contractors and suppliers. They also weigh product quality first against on time delivery as well as low cost. Management philosophy Patagonia is core familial company and can be implicated that its operations are based on trust other than on authoritarian rule. The philosophy works well for Patagonia because there is no even a single core employee who would wish to work in an environment where this kind of trust never existed. The main reason for this is because democracy mainly works best in small societies. The number of people working for Patagonia is not many; as a result, a sense of personal responsibility prevails. According to Choulinard himself, this kind of management is an MBA that is, management by absence. Environmental philosophy The basis for this philosophy in Patagonia is action. The main reason for this is because Patagonia is in business with an aim of transforming the way corporations and governments ignore the environmental crisis. The company makes efforts to try cleaning up and correct the potentially fatal environmental damage the society is inflicting on the globe and people. Philosophy into practice This philosophical system has been put into practice through a number of ways that include the following: Building the best product, causing no superfluous harm, and using business as a tool to animate and utilize solutions to the environmental juncture. The company ensures that whatever is produced is what its customers wants. In order to identify the customer needs the company spares much of its time in a market analysis for its products, as well as, listening to customers reviews. As a result, they work hard to produce products that align with their target customers values and needs. More of an incremental approach is applied by Patagonia to help improve the existing procedures and products. The incremental innovations are also a source of competitive advantage for the company. Eventually, ensures that the products produced are of high quality and any point of creating unnecessary harm is eliminated. The other practice area of the philosophy can be seen where Patagonia as a business is used in implementing and aspiring solutions for the environmental crisis. The company collaborates with other innovative business partners and adds value to the marketplace. In this regard, the company has partnered with numerous environmental groups, other clothing companies, and suppliers in customer want satisfaction, and financial assistance in environment preservation. Why Patagonia adopts the philosophy Many business strategies key goal is focused on cost reduction and increasing revenues, therefore, creating room for maximum profit growth. Through its philosophy, Patagonia seems to go against countering this supposition. The primary focal point for this company has been environment interests although it's also profit bound like any other business. Many business survive in the market once they make to make reasonable profit. The primary goal for Yvon Chouinard, when he created the company, was to lead by example and focus more on core business values other than bottom line profits. Customers and the environment has been a major concern for this company. This was a nontraditional way of business operation that has managed to create a revolution in regard to the role of CSR. The company has remained responsible towards the well being of the society and employees as well. Since it was started and through the philosophy, the company has managed to maintain an annual growth rate of 3-8%.The philosophy has played a part in a continued privatization approach. As a result, it makes moves that are fit for the agenda and future goals. The philosophy is also a form of simplicity, which is the company advocates for a simple lifestyle through its dedication to sustainability. Patagonia's practices comparison and contrast to international business sustainability In these days, it is clear that no one is in denial for a sustainable business practice needs. In this case current international businesses like Patagonia have high recognition of the fact that viability of a business is based on the resources available within a healthy ecosystem and just societies stability (Gonzalez-Perez, & Leonard, 2013). Patagonia and many businesses have an increased knowledge of international business sustainability. This is because they are seen to adopt in business activates and strategies that have the ability to meet the stakeholder and enterprise needs. Their bossiness also activates protects enhances and sustains the natural and human resources that will be required in the future. Patagonia and other admirable companies have managed to launch initiatives that are inspiring, although the negative effects on business activity are continuing to grow. Patagonia for decades has been devoted to the business sustainability. Currently, price calculation is being done for many (Gonzalez-Perez, & Leonard, 2013). Capital flow is increasing for those companies that can manage the cost. There are also indices that are being established currently and which allows contributors who are desperate within the supply chain to converge easily on the sustainability standards. The sustainability concept has evolved through three eras to what it is currently. Initially, it was taken to be an operational concern that comprised of significant defensive efforts that were directed towards reducing environmental cut waste and footprints from companies. Patagonia practices were still based on leaving no trace behind. The focus has shifted from cost reduction to innovation in which effects considerations permeate all the decision making of companies Patagonia business philosophy duplicability This philosophy is replicable because it's mainly based on business operation; thus those companies that wish to adopt can only make little changes to their operations and decisions (Galea, 2004). The philosophy is mainly based on Building the best product, causing no unnecessary harm, and using business as a tool to inspire and implement solutions to the environmental crisis. Those willing to adopt the philosophy must be consenting and ready to shift all their focus towards the well being of the environment, customers and the quality of their products. The starting point is to make sure that products are made in a responsible way. And consume less in order to have a sustainable economy (Great Britain. 2010). All those who would wish to replicate the philosophy the mission statement should mandate them in order to face the growth question and look up into the business situation that is thoroughly ensnared within the global industrial economy (Sharp, 2009). The common traits that Patagonia has always been having are based on innovation, quality, as well as, restrained growth. The secret behind the philosophy is remaining innovative not just for the sake of making new products, but replacing the old ones with better ones through a more appropriate technology. Consumer attitudes Changing the customer attitudes start by understanding their needs and then respecting them. Companies can adopt a reverse marketing approach whereby they will be able to make their consumers fill encouraged to go after a product on their own other than a company seeking to sell certain products to consumers (Russell, 2002). A company like Wal-Mart rather than trying to compete with other companies in the marketplace it should embark on a strategy to convince consumers that its products are the best. The best approach, in this case, is to build a respected image between it and customers. Customers need to think deeply before making a purchase. As a result, customers should be equipped with informative materials regarding how much waste and pollution is created by inconsiderate consumerism (Jansson-Boyd, 2010). Quality of a product influences the level of altitude that customers builds to wards a company or a product. The customers buying altitude will change towards the company ones it manages to depict its self with increased concern for sustainability and respect than just making profits. Customer value itself is a tools towards changing customers altitude in a market setting. These approaches will help change the customer attitude towards the quality of products and help increase the company's sales in a very effectual form of reverse marketing. Government's contribution towards approaches to sustainability Environmentalists have called upon many companies to add on business sustainability. There numerous pressing reasons that make companies increase durability in addition to environmental factors. Governments should come up with strict regulations with a specific aim of reducing and limiting environmental damage. Another very crucial step is making sure that the public is made aware of sustainability aspects. This can be achieved through increased pressure to adopt to sustainable strategies. This leads to a rise in the number of businesses that adapts to the sustainability policies, as well as, attempts that have been made. The government can also help firms adopt to the sustainability approaches discussed in this paper by creating a stable environment that is causative to business operations. An environment like this creates economic growth conditions. All sorts of non systematic changes that can be introduced in the environment lobbying groups must be avoided through the help from the government. The government can also ensure that there is reduced administration burden, enforceable laws that are effective and legislative framework that is consistent. Taxes on social contributions can also be reduced and grant financial and non-financial support to those nonprofit organizations that are highly concerned about the safety of the environment. Conclusion Patagonia has adopted the philosophy of leaving no trace behind for more than fifty years now. The paper has clearly shown that although the company is profit oriented in order to survive in the market it has made progressive contributions to business sustainability. The have provided financial support towards solving environmental crisis. The philosophy can be duplicated by other companies all that require to do is to change their operations and decision making procedures. All that those who wish to duplicate the philosophy can do is to make sure that their customers altitudes are aligned with the decision and operations of the new philosophy. The philosophy has an increased focus on product quality in order to minimize any unnecessary damage that can be caused by product. The government also has a role to play in order to make sure that firms adopts in sustainability approaches like those that Patagonia follows. Therefore, it is clear that future sustainable intentional business is not a one party battle, all the relevant stakeholders in this case must help in any way possible. Patagonia has managed to remain sustainable for a number of years, but there are challenges that the company has faced and is still facing. Reference List Galea, C. 2004. Teaching business sustainability. Sheffield, UK, Greenleaf. Galea, C. 2004. Teaching business sustainability. Volume 1, Volume 1. Sheffield, U.K., Greenleaf Pub. http://gse.publisher.ingentaconnect.com/content/glbj/tbs/2004. Gonzalez-Perez, M. A., & Leonard, L. 2013. International business, sustainability and corporate social responsibility. Bingley [England], Emerald. http://oclc- marc.ebrary.com/id/10672475. Great Britain. 2010. Business sustainability. Edinburgh, Forestry Commission. International Society for Philosophers. 2003. Philosophy for business. [Sheffield], International Society for Philosophers. http://bibpurl.oclc.org/web/44978. Jansson-Boyd, C. V. 2010. Consumer psychology. Maidenhead, Open University Press Russell, 2002. Business sustainability. London, Caspian. Sharp, I. 2009. Four Seasons: the story of a business philosophy. New York, N.Y., Portfolio. Read More
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