Sustainable Business Management Strategies for Patagonia
Verified
Added on 2023/06/15
|10
|2463
|391
AI Summary
This report provides recommendations for sustainable business management strategies for Patagonia, including risk and opportunities, environmental sustainability, social sustainability, and economic sustainability.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Sustainable Business Management
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 TASK..............................................................................................................................................3 Risk and opportunities for the case company.............................................................................3 Sustainable strategies......................................................................................................................4 Environmental sustainability.......................................................................................................4 Social Sustainability....................................................................................................................5 3. Economic Sustainability..........................................................................................................7 CONCLUSION................................................................................................................................8 REFERNCES:..................................................................................................................................9 Books and Journals:....................................................................................................................9
INTRODUCTION The report aims to ascertain many strategies in order to resolve the challenges faced by the company in sustainability. A business is required towork on sustainable strategies to create its positive impact on the company. Sustainable refers to the act of kindness, value and concern towards the society and its people. A business leads to perform many diversified operation which requirestolookaheadontheenvironmentprotectionsuchaspollutioncontrol,waste management, recycling and reusing (Nosratabadi, and.et.al 2019). Therefore, this report is going to provide some recommendation over the sustainable challenges faced by Patagonia. The challenges faced by company which are identified shows social, economical and environmental risks. Due to the change in taste and preferences of the customers, the company could not work upon the strategy of product replacement due to changing needs. Also, other challenges of employee termination and environmental challenge faced company through not focusing on production activities which leads to cause carbon emissions. The report will work on the relevant theories to drive sustainable operations in the company. MAIN BODY TASK Risk and opportunities for the case company The Patagonia is the leading clothing firm which has sets its values and mission towards the great quality and innovation. Risk and opportunities are everywhere in the organisation which creates impact on the profitability and success of the company. The Patagonia is involved in many operation of quality management, waste reduction, reusing their products and employees welfare. They find every responsible way to restore and reuse their resources to be a better contributor in the economy(Reyes-Menendez, and.et.al., 2020). The risk involves in the company is of changing modern trends and preferences of the customers which restore and rebuild the whole management system. The company may get diverse from their strategies and working criteria. Also, there are many risk of employment opportunities as company looks for the talented, professional and skilful employees which shows that. They does not provide opportunities to other freshers to explore in the market. Competition and customer demands are become threats for the Patagonia. Whereas, the key opportunities are there due to having their core value towards planet and protection. Therefore, the company needs to get ascertain about
coreopportunitiesfordiversification,technology,recyclingandreusingoftheproduct. Therefore, the company could take opportunities of fresh talent to give employment. Use for product reuse and recycling, reduction in carbon emission with used of advance technology and get involve with the procedure of the talent management. Also, the company has opportunity to create awareness among the customer in order to be concern towards environment. This could be done through making good corporaterelations, develop public interconnection and launch campaigns for effectively work for the planet protection. As business only could not be able to work on the sustainability by their own so that, people engagement is necessary to get effective results. Sustainable strategies Environmental sustainability It is seen that there are certain challenges related to environment that are being faced at this point of time. The business organisations work to earn more and more revenue and do not focus on environment. This is a major challenge that causes harm to environment. There are certain initiates that must be taken by Patagonia in order to overcome this challenge. It is time to work according to the principles of sustainability so that the overall work can be completed on time. It is seen that rise in pollution cause hand there are various gases that also harm the environment. Doing business in such a manner will cause issue for the company in long run. It order to work in proper manner they need to become sustainable. They must reduce the carbon footprints so that they are able to minimise the harm being caused to the environment. It is necessary to use qualityproductandcarnagetheprocessofdesigningtheproductssothatthereisno environmental harm caused(Buffa,Franch,and Rizio, 2018). They must understand that society is important and by taking care of sustainability they will be able to achieve good brand image and support of government at the same time. Ecological modernisation is the best theory that must be used by Patagonia in order to achieve success and overcome the environmental challenge. This theory believes economy benefits from moves towards environmentalism. This is important for all the business organisation that there long term benefit lies in following the right strategy(Caldera,Desha, and Dawes, 2018). They must think of long term benefit. A co0mpamy will be able to earn profit in long run of they
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
follow the principles of sustainability at the present time. It is time when all the people have became conscious about the situation of environment. They prefer the company who is taking proper care of environment. It is necessary to note that by following this theory the business organisation will take prober care of environment(Lahti, Wincent, and Parida, 2018). Giving attention to this is necessary for the success of company and all the international organisation also focus on the same. The government will also support the business organisation if they will be accelerating technical progress. All the regulations must be followed so that they are able to overcommit the challenge of environment harm. This is important to understand that usage of the strategy will help them to attain success. Social Sustainability Patagonia is found to be one of the most sustainable organisations but still they are facing sustainable challenges. It is found that customers have continuously changing their tastes and preferences so Patagonia has a challenge that their replacement products will be like or not by customers(Al Breiki, and Nobanee,2019). For that purpose, Patagonia should adopted strategies so that they can overcome with the challenges of social sustainability. So there is a strategy which is recommended to company and their justification is mentioned below: The principle of social value
For the purpose of increasing equality, environmental sustainability and improving well- being in the society then company should use this strategy(Geissdoerfer,Vladimirova, and Evans, 2018). They need to follow of principles of social value so that they can able to increase the value in the society. It is identified that this strategy have seven important principles and they are focusing on building blocks for the person who want to make decision. The principles are mentioned below: Involve stakeholders: It is the first and foremost principle in which Patagonia should involving stakeholders in the process of increasing social value. For that purpose, they need to inform to the stakeholders that what gets measured and how it will be measured and valued by an organisation. Understand what changes:It is the second principle in which Patagonia should focus on articulating how change is created. In addition to this, company needs to evaluate the change with its negative and positive impact so that they can able to find the problems. Value the outcomes that matter: After finding the requirement of changes, it is necessary for Patagonia should take an appropriate decision for allocation of resources in order to recognize the value of stakeholders.
Only include what is material: It is crucial forPatagonia that they have to determine that what information and evidence should include in the accounts for providing a true and fair picture to their stakeholders. Do not over claim:Patagonia should try to claim the value which are responsible for creating social values. Be transparent:It is found that stakeholders should know all the relevant information about the company's activities so that's why they have to be transparent. Verify the result:The last principle is verifying the result so company can ensures that they are dealing in fair practices or not. The company is facing a challenge of customers' like or dislike to their products or services. Customers are the important stakeholders of the company and that's why this strategy is choosing. But it is found that it is the time taking process. 3. Economic Sustainability Company was expanding their business but they faced a challenge of financial conditions and due to this, they lay off their one fifth employees(Singh,2018). It is very important for Patagonia that they have to adopt strategy. So the suggested theory is mentioned below: Circular economy theory It is found to be one of the important theories which consists of three important principles that are elimination of waste and pollution, keeping materials and products in use and regenerate natural systems(Di Vaio, Syriopoulos,, Alvino, and Palladino, 2020). This strategy is adopted because it focuses on building and rebuilding overall systems health. This concept is focusing on importanceofeconomywhichshouldbeworkinaneffectiveworkforbigandsmall organisations. This is the reason that this theory is following three principles: Design out waste and pollution:It is the first and important principle which is focusing on designing a system in the organisation so that company is able to reduce waste and pollution in the environment. With the help of reducing waste by an organisation, company is able to reduce the cost of production and it will lads to decline the products price. This will assists in cutting and saving the unnecessary costs. Keep products and materials in use:In the circular economy theory, it focuses on preserving the value in the form of labour, energy and materials. That means it is found
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
that company have to focus on reuse, durability, re-manufacture, and recycling of products and services. This will helps in making the effective use of bio based materials. Regenerate natural systems:The last principle is circular economy avoids the use of non renewable resources. In addition to this, company have also focusing on preserving natural resources which are not able to renew(Wang, Xu, Qin, and Skare, 2021). It is very important to note that these kind of actions will be very helpful for company as they are able to cute the extra costs and effective use of available resources. From this theory, it is found that company have to focus on circular theory so that they are able to make the strong financial conditions(Cosenz, Rodrigues, nd Rosati, 2020). But it is also found that this process requires a long period and it is not certain that the result will be positive. CONCLUSION Itcanbe concludedfromtheabovediscussionthatitisveryimportantforthe organisations that they have to take appropriate steps for the purpose of sustainability challenges. It is found from this report organisations have faced many sustainable challenges in the workplaces so that's why they need to take right actions. This can be possible with the help of adopting right strategies. There are some important strategies which discussed in this report are ecological modernization theory, the principles of social value and circular economy theory.
REFERNCES: Books and Journals: Nosratabadi,and.et.al2019.Sustainablebusinessmodels:Areview.Sustainability,11(6), p.1663. Reyes-Menendez,and.et.al.,2020.UnderstandingOnlineConsumerBehaviorand eWOM StrategiesforSustainableBusinessManagementintheTourism Industry.Sustainability,12(21), p.8972. Buffa, F., Franch, M. and Rizio, D., 2018. Environmental management practices for sustainable business models in small and medium sized hotel enterprises.Journal of Cleaner Production,194, pp.656-664. Lahti, T., Wincent, J. and Parida, V., 2018. A definition and theoretical review of the circular economy, value creation, and sustainable business models: where are we now and where should research move in the future?.Sustainability,10(8), p.2799. Geissdoerfer, M., Vladimirova, D. and Evans, S., 2018. Sustainable business model innovation: A review.Journal of cleaner production,198, pp.401-416. Cosenz, F., Rodrigues, V.P. and Rosati, F., 2020. Dynamic business modeling for sustainability: Exploringasystemdynamicsperspectivetodevelopsustainablebusiness models.Business Strategy and the Environment,29(2), pp.651-664. Singh,S.K.,2018.Sustainablebusinessandenvironmentmanagement.Managementof Environmental Quality: An International Journal. Wang, X., Xu, Z., Qin, Y. and Skare, M., 2021. Service networks for sustainable business: A dynamic evolution analysis over half a century.Journal of Business Research,136, pp.543-557. Di Vaio, A., Syriopoulos, T., Alvino, F. and Palladino, R., 2020. “Integrated thinking and reporting”towardssustainablebusinessmodels:aconcisebibliometric analysis.Meditari Accountancy Research. Al Breiki,M.andNobanee,H.,2019. Theroleoffinancialmanagementin promoting sustainable business practices and development.Available at SSRN 3472404.
Caldera, H.T.S., Desha, C. and Dawes, L., 2018. Exploring the characteristics of sustainable businesspracticeinsmallandmedium-sizedenterprises:Experiencesfromthe Australian manufacturing industry.Journal of Cleaner Production,177, pp.338-349.