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Case study Background

Patagonia is a Californian company producing high-quality sportswear. Its corporate culture has its roots in the 1960s Californian counterculture of climbers and surfers with the ethic of radical environmentalism.

Although its CEO, Yvon Chouinard, is dedicated to social change he also insists on disciplined management and sound business practices. As a previous CEO of Patagonia said, “The one thing I’m clear about is that Chouinard demands 10% pretax profit”. For him, it is not a question of social good or business profit, but social good and business profit.

Task

Work in small groups.

You are members of the working group which will discuss suggestions for formulating a company mission.

  1. Brainstorm ideas of your own.

  2. Differentiate between the organizational goals and objectives that are more aligned with the concept of vision and those that are aligned with mission.

USEFUL TIPS

  1. Each word should be powerful and meaningful, clear and concise.

  2. Make it obvious what your business is attempting to do. It shouldn’t need explaining.

  3. A good mission statement is compelling, exciting and passionate, but realistic and achievable.

  1. Identify significant factors necessary for you: the products or services you will provide, the kind of people you will need.

  2. Discuss advantages and disadvantages of the suggestions. How will the mission statement keep management focused on preserving (strengthening) the company’s unique competitive niche? Does it reflect Patagonia’s business philosophy?

  3. Choose the best mission to present.

  4. As a member of the working group, write a memo to the CEO of Patagonia informing him of the key mission which came out of the brainstorming. You should indicate why you favour this idea.

UNIT 2 Company Structure