Case Study Of Patagonia Inc.

1121 Words3 Pages
bulb-icon

Recommended: Effect of organizational structures

Several topics are considered to be controversial surrounding the operations of Patagonia Inc. A few of these controversial topics are as follows:
• Profitability is secondary because Yves Chouinard views large growth negatively
• Horizontal organization (little to no middle management members)
• Informal operations
• Liberal culture
• Distrust among employees due to lack of quality measurement system
• Employee concern among accounting division (lack of business/related education)
• Psychological and financial damage from the 1991 crisis
• Products are made of durable, high quality material
• Goals of the OBM system:
a. Foster better communication of the corporate goals throughout the company
b. Establish a clear understanding of how every …show more content…

Workers were curious about the financial statements and enjoyed the “brain food” courses. This is all what we like to call “fool’s gold” because problems began showing up at end of the year. Unfortunately, it turns out that many objectives were not met, lack of communication showed up, and employees began blaming one another.

Patagonia employees began manipulating the system in the second year by altering objectives so that they were very easy to accomplish. Consequently, this damaged the financial statements and did nothing to challenge the employees and improve the company.

At this point, it is obvious that the Workbook Process is not working in the manner Patagonia intended. Although things can turn around at any point, it is unlikely that they will. Moving forward, we suggest that Patagonia fix the problems listen in question 1 and 2:
• The Workbook Process is heavily financially oriented, which is contradicting in a corporation that places profitability as a secondary concern
• Lack of participation among employees due to the lack of understanding of financials
• Unnecessary costs in time and paperwork
• Lack of individual rewards for motivation (group rewards prove to be unmotivating)
• Results of new ideas decrease enthusiasm towards new ones
• Uncertainty among departments and objectives
• Process does not contain long-term

Show More
Related

  • Business Strategy Case Study: Casa De Esperanza

    1409 Words  | 3 Pages

    It also lacks the emphasis necessary to reach business goals and to develop strategies that will move the company onward. Having no objective weakened the possibilities of long term growth and risked achievement in the business. It put at threat funds for future projects that needed them especially since there business kept growing, not with the intent that they had at the beginning which was to help Latina women fighting domestic violence but to expand to every women going thru the same

    Read More

  • Mike’s Mall Mart

    1405 Words  | 3 Pages

    Top management is spending too much time on employee development and not enough on the overall strategy of the business.

    Read More

  • Costco Case Analysis Essay

    811 Words  | 2 Pages

    Costco Wholesale Corporation was an uncommon type of retailers called wholesale clubs. These clubs differentiated themselves from other retailer by requiring annual membership purchase. Especially in case of Costco, their target market is wealthier clientele of small business owners and middle class shoppers. They are now known as a low cost or discount retailer where they sell products in bulk with limited brands and their own brand. The company is competing with stores like Wal-Mart, SAM’s, BJ’s, and Sears. The case begins with an individual shareholder, Margarita Torres, who first purchased shares in 1997 and who is trying to evaluate the operational performance of the business in order to make a decision rather or not purchase more shares

    Read More

  • Chris Correa Case Study

    824 Words  | 2 Pages

    Employee morale has dropped significantly, threatening to compromise the organization’s corporate culture. To ease these tensions, an email from CEO William DeWitt should be sent to all employees on Feb. 1, thanking them for their patience and updating them on the litigation results. On Feb. 9, a second email should highlight the changes that have been adopted to prevent similar incidents. These changes include outsourcing the master password list company and requiring employees to change their passwords quarterly.

    Read More

  • Problem Management Case Study: Vermont Teddy Bear

    963 Words  | 2 Pages

    The main problem, in this case, is involving Vermont Teddy Bear which was John Sortino in 1981 is that the companies point of sale system was severely lagging behind. In 2011, The company struggled with major surges in customer periods, for example, Valentine's day and Christmas Eve this occurred because of VTB's intricate middleware system. The issue may have happened because instead of revamping it's system during down periods the company attempted to do patch work jobs over time. This is quite alarming because a major retailer would not have these types of issues with the system when they need it most. Which leads to the next point of the IT supervisor being faced with a dilemma on what to improve prior to the next surge period(Mother's

    Read More

  • Global DNA Capsim Simulation Summary

    332 Words  | 1 Pages

    This summary report will provide an overview of the decisions we made as a team, the strategies we used and an evaluation of the final results. This report will also reflect on the learnings on how to successfully manage an organization.

    Read More

  • Case Study 1: Costco Wholesale in 2012

    1104 Words  | 3 Pages

    Key Issues: At the end of 2012, Costco was a successful business; however, there are some issues that they would need to deal with. These issues mainly arise from their previous successful ventures as a warehouse wholesale company. The first issue is that Costco has competitors that can actually be and are a threat to their success. Competition allows a company to improve itself and prove its prowess to its customers. However, when a competitor is able to provide the service at a much reduced cost, problems will arise.

    Read More

  • Case Study: Panera Bread Company

    1276 Words  | 3 Pages

    According to the Panera Bread website (2011), the company mission is simply “A loaf of bread in every arm.” (para 7).

    Read More

  • THE GOAL

    2037 Words  | 5 Pages

    All the plant managers and their subordinate staffs were called by Mr. Peach in the headquarters for a meeting. They discussed their current condition of the company and came up with some future goals. The s...

    Read More

  • Case Study: Victoria's Secret

    1408 Words  | 3 Pages

    Case Study: Victoria's Secret OVERVIEW Victoria's Secret, one of the world's most recognizable fashion brands, established itself in the Bay Area in the early 1970s. Originally owned by an ambitious Stanford graduate looking for a comfortable and high-end retailer to buy his wife lingerie, Roy Raymond opened the first store at Stanford Shopping Center. Styled after a Victorian boudoir, Raymond's success prompted him to open three other locations, a catalog business, and a corporate headquarters within a few years. His inability to balance finances with his creative vision, Roy Raymond fell into trouble and was forced to sell his company for the small sum of $1 million dollars to The Limited, an Ohio-based conglomerate owned by Les Wexner.

    Read More

  • Case Study Of Nestle Company

    1400 Words  | 3 Pages

    The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develops strategic intent for their business organizations following the strategic factors and approaches. I will analyze the strategic management process as firm used to achieve strategic competitiveness and earn above-average returns. I will critically examine the strategy formulation that includes business-level strategy and corporate-level strategy. It also aims to identify market place opportunities and threats in the external environment and to decide how to use their resources, capabilities and core competencies in the firm’s internal environment to pursue opportunities and overcome threats.

    Read More

  • Case Study Of Microstar Industries

    847 Words  | 2 Pages

    In asking the consulting firm for assistance, President Paul Willard stated that the main issue within the organization was a “power struggle between people and departments.” This is precisely where the issues in both the sales and production departments are stemming from. After analyzing the situation, several issues can be pointed out in the sales department, the first being the leadership style of sales executive vice-president Ernie Lane, the second being the dramatic shift in the work force, and the third being the lack of motivation and compensation to maintain morale, satisfaction, and productivity. Most importantly, all the problems are

    Read More

  • Business Case: Panera Bread Company

    788 Words  | 2 Pages

    The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.

    Read More

  • Case Study Of Pepsico

    1986 Words  | 4 Pages

    In 2011 PepsiCo announced the launch of their Social Vending System. This system featured a full touch interactive screen. A consumer can select a beverage and enter the reciepent's name, mobile number, and personalized message and gift it with a video. PepsiCo uses technology to their advantage for global implementation.The company uses media sites in multiple was as advertisement and marketing tools.

    Read More

  • Accounting Education: The Future Of The Accounting Future

    1883 Words  | 4 Pages

    Change is inevitable. Yogi Berra once said “The future ain’t what it used to be.” It is clear that the future of the accounting profession ain’t what it used to be (Gormon and Hargadon 1). The changes occurring are happening fast, they are dynamic and they are completely and undeniably real. Since the world around the accountant is changing, the accountant has no option but to change as well. The field of accounting has always been one to know change and to know adjustment, but within the recent past and certainly within the next few decades, the changes that are occurring and will occur absolutely are the most dramatic and exponential yet. Obvious changes lie in the expanding scope of services performed by accountants, the increased use of

    Read More

More about Case Study Of Patagonia Inc.

Open Document