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Eminence Green: Patagonia Corporation Essay

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Updated: May 25th, 2019

Introduction

This article highlights how an entity created a niche for itself in the corporate world. Patagonia, the entity in question was founded by Yvon Chouinard and operates in the sporting sector. Yvon turned his passion for outdoor and adventurous activities into a viable business venture. Subsequently, he embarked on a path which has culminated in the creation of an entity that has challenged conventional corporate philosophies.

The article also details the impacts of research, innovation, creativity and entrepreneurship skills in Yvon’s business. This has allowed the entity to deviate from the strategies adopted by most corporations. As such, Patagonia has become the ideal corporation, which has established a balance between capitalism and corporate social responsibility (CSR). In most corporations, capitalism and the need to generate profits has resulted in the erosion of values on which entities were based.

Yvon has adopted a radical approach in corporate management. He is unwilling to compromise on numerous policies that Patagonia has adopted.

Most entities begin as private companies. Nonetheless, they go public once they become a force in the market. This is a path which Yvon is unwilling to pursue. Such a corporate choice would change the policies of the organization in entirety as the management would focus on maximizing the shareholders’ value rather than undertaking policies which will benefit the clients in terms of value delivery.

The entity has diverted from convectional human resource management hence; employees are key stakeholders in the organization. Moreover, the organization has adopted a culture, which is relevant to the organization’s industry. This is crucial for motivating employees and leaving a long lasting image in the clients’ minds in regard to its culture and services.

The model adopted by this organization has created a precedent that many organizations cannot emulate. The current corporate world is dominated by large monopolistic entities that make it tough for small organizations to break into the mainstream market. Patagonia, via its inspiration founder Yvon, provides an example of how small entities can establish a market segment that large entities cannot take over.

I believe that creativity and innovation will be central to the success of smaller entities. An example of an innovation in Patagonia is the development of swim suits that are more comfortable and attractive. These qualities denote some of the customers’ main concerns. The large entities have been unable to reach this milestone, giving Patagonia a competitive edge.

The above accomplishments are also attributable to partnerships with various entities in the polyester and cotton production sector. Yvon has been brilliant at establishing strategic partnerships, which have spurred Patagonia forward. Such partnerships have given this entity a competitive edge that many entities in the sector cannot achieve.

Based on the strategic, managerial and operational decisions that Patagonia has implemented, it would only be logical to acknowledge Yvon’s skills in corporate matters. He has been honoured by many institutions for being a key player in transforming corporate governance. He has realized this by leaning away from corporate governance that is primarily motivated by capitalism.

The ideas postulated in the passage have multiple applications in real life. Many potential investors face questions such as how do I start a business? Which sector is the most profitable? How will my business perform against the powerful businesses? The article answers these queries by revealing how Yvon turned his passion into a viable commercial venture. The ideas in the passage reveal how he addressed those queries. In real life, potential entrepreneurs should invest in sectors that they are passionate about.

Conclusion

I have noted with concern that many other important issues of corporate governance have taken precedence over profitability. These issues include conservation of the environment and CSR. The entity spends large amounts of its revenues on such undertakings. Such policies would be treasonous in the current corporate world. The radical approach to management adopted by Yvon has contributed massively to Patagonia’s success. Moreover, its failure to go public has enabled Patagonia to retain its corporate innocence.

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IvyPanda. 2019. "Eminence Green: Patagonia Corporation." May 25, 2019. https://ivypanda.com/essays/eminence-green/.

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IvyPanda. (2019) 'Eminence Green: Patagonia Corporation'. 25 May.

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