Patagonia Executive Summary

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Patagonia “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Heidi Kerwin & Patricia Bergstrom Strategic Management Dr. Dawn Keig December 2,2014 Executive Summary Company Introduction: Patagonia is a top-line, outdoor, retail clothing company. Based out of California, and founded by Yvon Chouinard in 1973. Their beginnings supported rock and alpine clothing and have expanded to skiing, surfing, climbing and other sports. Strategic Analysis: Patagonia has emphasis on the triple bottom line and continues to constantly analyze, understanding their environmental impact, chain of supply and the challenges in order to maintain a sustainable strategy. Problems…show more content…
The company has been growing steadily with a 6% increase in sales every year. Even during the 90’s recession they were able to continue this growth rate. They are looking for a future growth rate closer to 10%. Levels of employment were affected through recessions. During the 90s recession they needed to layoff 20% of their workers. Even though they laid off 20% of their workforce, growth remained at a constant growth rate of 6% per year. Currency exchange rates were considered as well. Patagonia wanted to make their products in America but realized the cost of labor was 4-10x’s higher, than anywhere else, so they contracted outside of America as is the industry norm, and overall help reduce the…show more content…
For such a well-perceived public image it is incredible to believe that Patagonia spends less than 1% of sales on Marketing and Sales. They have an entrenched image of caring for the environment. When the company attracted mass attention from the media and public for its production of Synchilla fleece made from recycled soda bottles; this attracted nearly five million dollars worth of press for the company. Their environmental stance generates vast amounts of value; when the press exposes these stories they gain millions in free publicity, highlight environmental issues that are
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    decreasing costs and increasing revenues, thereby allowing for maximum profit growth, but Patagonia, Inc, development marked by the values and beliefs of its founder, Chouinard,seems to run counter to this assumption. Patagonia has maintained their focus on satisfying the stakeholders of the community by producing products made from eco-friendly materials,environment remained the primary focus. It is obvious that Patagonia strives to live out its mission statement where they stated their commitment to preserving

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