Based in California, Patagonia is a company, which was created in 1972 by Yvon Chouinard. This company specializes in high quality outdoor clothing and equipment. Patagonia, Patagonia Mail Order and Great Pacific Iron Works are subsidiaries of the Lost Arrow Corporation, established in 1984 as the holding company. The company was a pioneer in the over $15 billion outdoor apparel and equipment industry and in the domain of environmental protection and corporate social responsibility. Indeed, the company manages research and development, design, manufacturing, merchandising and sales of technical equipments like clothes for adults and children and also surf boards and high alpine climbing accessories. Patagonia was the first company to switch to an organic cotton and to a sustainable development policy.
[...] Patagonia's relation with the financial aspect is confrontational. Chouinard do not integrate the financial department as a core department on Ventura's site. So, the building for financial department is far from the main office. Financial department is really put aside of the company. According to Alison May, who was its financial executive her main job was “tying the financial part of the company more to the business strategy. The philosophy before was that finance was a separate part of the company." Another financial executive described that his efforts to identify, profit center and segments making money were in vain because the financial aspect was not recognized by Yvon Chouinard , even denigrated . [...]
[...] Patagonia's model relies on specialty retailers. This type of channel is now threatened. Furthermore, high price in each segment purposed by Patagonia can be a problem to win new markets. Use of environmental arguments by competitors: Now company like Nike, The North Face or Columbia Sportwear Company use environmental tools like foundation for the biodiversity. There is some clothing, which are made with organic cotton and recycled raw materials. Furthermore their size allows more communication; they are more visible than Patagonia. [...]
[...] Even people in central park in New York wearied Patagonia's clothes. Indeed, the growth in the 80's was so sudden, and the company was not prepared. The company decided in 1987 to reduce its wholesalers from 900 to 650 and resellers had to follow trainings and seminars; moreover Patagonia has developed its own shops to provide the best technical advice and develop an after sale service. In 1989, Chouinard Equipment Ltd was sold and renamed Black Diamond because the company had big problems. [...]
[...] He changed standard model. His way of initiating enormous changes like organic cotton in first and when his company had profits, improved the faith ant trust that people have in his ideas. Furthermore he is admired by other company leader for the risks he took in the past. Moreover his single mind attracts people, who enjoy to work in such way, with such man. His personality has guided the company and its success. Chouinard's absence: Despite the imprint of Chouinard about the company, he let often this last one for long time to make the most of surfing, climbing or fishing in remote plan. [...]
[...] Between 1989 and 1991 the pay roll had grew from 40% Analysis of the Chouinard's leadership for teamwork in Patagonia: Common goals Conflict resolution Interaction and involvement Respect for differences What team needs Self- esteem Mutual trust Open communication Attention to process and content Power to make decisions Common goals The company has built its reputation about its environmental consciousness and the quality of its products. Furthermore the character of their leader and his believes. People, who work in Patagonia in the whole like sport and nature. [...]
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