BSS017-2: Patagonia - Sustainable Strategies for Business Resilience

This report examines Patagonia's sustainable strategies, focusing on environmental, social, and economic dimensions. It identifies risks and opportunities for the company, emphasizing the importance of recycled materials, responsible sourcing, and employment opportunities. The analysis covers strategies such as increasing the use of recycled materials, implementing a buy-repair-recycle approach, and expanding employment opportunities to enhance overall efficiency and productivity. The report concludes that sustainability is crucial for meeting present needs without compromising future generations, and highlights the significance of competitive strategies for long-term profitability and growth. This document is available on Desklib, where students can find a wide array of study resources including past papers and solved assignments.

Patagonia

Table of Contents
INTRODUCTION...........................................................................................................................3
Risk and opportunities for company................................................................................................3
Sustainable strategies.......................................................................................................................4
1. Environmental sustainability...................................................................................................4
2. Social sustainability.................................................................................................................5
3. Economic sustainability...........................................................................................................6
CONCLUSION................................................................................................................................7
REFERNCES...................................................................................................................................8

INTRODUCTION
Sustainability means to meet needs without comprising ability of future generations to
meet their own needs. It is important for an organisation to use resources efficiently and make
good quality products to customers. These include environment sustainability, social and
economic sustainability. Patagonia is a private benefit corporation which was founded in the year
1973 founded by Yvon Chouinard. Its headquarter is in Ventura, California, U.S. Patagonia uses
mostly materials which can be recycled. The report examines, risk and opportunities for
company like, competition which can affect performance of company. Sustainable strategies
such as, environmental sustainability, social sustainability and economic sustainability (Abad,
Alvaro and Nudelman, 2018). It is important for an organisation to identify market analysis so
that better plans can be made and it helps in achieving goals and objectives of firm.
For gaining competitive advantage it is essential to analyse threats and identify
opportunities in market and make plans accordingly so that targets can be accomplished.
Managers are handling all the activities and responsible for identifying market opportunities and
make products accordingly so that targets can be achieved. Patagonia is using material which can
be recycled and using resources efficiently. They are not wasting resources because there is
shortage of material and it should be used properly.
Risk and opportunities for company
For an organisation there are many opportunities available in the market and risk which is
faced by company to run business smoothly and to gain competitive advantage. It is the
responsibility of managers to identify risk or challenges and make plans accordingly so that goals
and objectives can be accomplished (Bischoff and Staufenberg, 2021). Risk which is faced by
Patagonia is, lack of resources and equipment to climb the mountains. People want good quality
product which is built with cotton which allow climbers to entertain extra protection. Risk for
Patagonia is to make better products then competitors so that they can gain competitive
advantage and profit can be earned. It is essential to make good quality products so that need of
customers can be satisfied and profit can be earned by company.
For facing challenges, managers should conduct market analysis to identify strengths,
weakness, opportunity and threats. This helps in making good quality products and satisfy need
of customers. Patagonia should use material which can be recycled like fabrics which includes,
polyester, nylon and wool. When material which can be recycled is used then company can

satisfy need of customers and more revenue can be generated. It is essential to do market
analysis so that plans and strategies used by competitors can be identified and better plans can be
made to gain competitive advantage and this helps in expansion of business. It is essential to use
product which is beneficial for growth of company and environment. Patagonia is successful
because they are making good quality products and using resources efficiently because there is
shortage of material. Opportunity for Patagonia is they can expand their business in other
countries so that more profit can be earned and it helps in achieving goals and objectives can be
accomplished.
Sustainable strategies
1. Environmental sustainability
Environment sustainability strategy which can be applied by Patagonia is to increase
percentage of recycled materials (Drawbridge, 2018). This is the best strategy which can be used
by Patagonia so that they can gain competitive advantage and perform better than others to earn
more profit. It is important to use material or resources which can be recycled and fabrics like,
nylon and polyester should be sued. This is beneficial for growth and development of firm and
better products and services should be provided to people so that their needs can be satisfied. It
helps in achieving targets and creates positive image in market. When resources which can be
recycled is used then good quality products can be made and needs of customer can be satisfied.
When recycled material is used then it is beneficial for environment because resources will be
used efficiently and there will be less wastage of material. There is scarcity of resources and
when resources are used efficiently then it is beneficial for growth of company. This strategy is
chosen because this is easy and effective as there is shortage of resources so recycled material
should be used. With the help of this strategy more products can be made and there will be no
issue regarding lack of material.
This strategy is better than other alternatives because if other alternative is applied then
maybe there will be issues of shortage of resources. So, this environmental sustainable strategy is
best and targets can be achieved. There are some benefits of using recycled material like, it
reduces the amount of waste and resources can be used efficiently (Hara and et.al., 2022).
Environmental sustainable strategy conserves natural resources such as, timber, water and
minerals. This helps in increasing economic security and saves energy. Environmental
sustainable strategy prevent pollution and there will be no issue in future. When recycle material

is used then Patagonia can make better plans and gain competitive advantage. This lead to reduce
cost as less resources are used and recycling can be done. There are no issues in this
environmental strategy because it is easy and simple strategy which helps in accomplishing
targets and better plans can be made for future growth and development of company. It is
essential to apply environmental strategy to gain competitive advantage and more revenue can be
generated.
2. Social sustainability
Social sustainability strategy Patagonia should use is to buy material which they need,
repair it and recycle it. This strategy should be used so that better products can be made and it
helps in gaining competitive advantage. It is essential to apply this strategy and buy products
which is useful and recycle products. Patagonia should use material which is beneficial for
growth and development of company and it helps in accomplishing goals and objectives. There
are many challenges which is faced by company and they have to find creative solution so that
better products can be provided to people and their needs can be satisfied. Social sustainability
strategy is beneficial for firm as it helps in unlocking new markets and more opportunities can be
identified (Lozada, 2020). This helps in improving risk management and targets can be achieved.
This strategy is better than alternatives because it does not require any investment and better
products and services can be provided to people. Social sustainability helps in making good
plans which is beneficial for future growth and development of firm and satisfy need of people.
Social sustainability strategy helps in raising internal morale and increase employee
engagement. This helps in attracting customers and business partners are also attracted because
resources are used efficiently and satisfy need of people. Social sustainability concept includes,
health and social equity, human rights, labour rights, social responsibility and justice, decent
working conditions. This strategy is beneficial for it creates positive image in minds of customer
and more profit can be generated. It is important to focus on satisfying need of people by
providing them good quality products. Corporate social responsibility is used by Patagonia
company to achieve targets directly and donation is given out of profit. This helps in attracting
people and more revenue can be generated. There are any issues which is faced by company and
they have to find creative solutions to gain competitive advantage. Employees are using
resources efficiently and there is no wastage of material. This reduces cost because company do
not have to buy much resources and they are purchasing resources which is of need and recycling

so that good quality products can be made from less material (O’Rourke and Strand, 2017). It is
the responsibility of company to give back benefit to society because they are using resources
from society. It is their duty to give them back by providing good products and services.
3. Economic sustainability
Economic sustainability strategy that can be used by company is to increase employment
opportunities. This strategy is beneficial for growth and development of company because when
more employees get opportunity then it increases overall efficiency and productivity of firm. It is
essential to make plans after analysing market situation and strategies which is sued by
competitors so that more revenue can be generated and it helps in achieving goals and objectives.
When all employees will work efficiently then it becomes easy to accomplish targets. Patagonia
is using recycle materials and build best product, it causes no unnecessary harm. They are using
business t inspire and implement solutions to the environment crisis (Rattalino, 2018). It is
essential to make products after analysing market situation and needs of customers so that their
needs can be satisfied and it helps in earning more profit. When Patagonia provide employment
opportunities to people then it increases overall economy and more products can be made which
is beneficial in accomplishing targets. Patagonia is providing good quality products and services
to customers to earn profit and making new products to attract people.
Patagonia is planning to use recycled resources and did not use any harmful or unnecessary
element which affect performance of firma and it is not good for customers. Economic
sustainability strategy to generate employment opportunity is good because this helps in
satisfying need of people and they will get jobs. This lead to improve overall performance of
company and employees will work efficiently. Other alternative strategy is not so effective as
providing jobs attract people and increase profit of firm. The company is trying to make best
product which involves recycled material and no harmful resources are included (Schillmann).
When people will get jobs then it reduces poverty and better products can be used. There are
some issues in economic sustainability strategy i.e., it is difficult to provide training to
employees who are recruited and they will need time to understand work and complete it without
wasting time and resources. It is essential to provide training and development programs for
employees to improve their performance and measure work done by workers. This is an issue
which members has to face find solution so that targets can be achieved. So, economic

sustainability strategy should be applied to gain competitive advantage and more profit can be
earned.
CONCLUSION
From the above discussion it can be concluded that, sustainability refers to meeting own
needs without compromising ability of future generations. There are some risk and opportunities
for company like, more growth and development opportunity, business can be expanded etc. has
been described. Further, sustainable strategies such as, recycle material is used, purchase
material which is required and generate employment opportunities so that people can get jobs has
been discussed. Sustainable strategy such as, environmental sustainability, social sustainability
and economic sustainability has been described. It is essential to make plans better than
competitors and gain competitive advantage to earn more profit.

REFERNCES
Books and Journals
Abad, A. M., Alvaro, C. E. and Nudelman, N. S., 2018. Pedagogic proposal focused on
sustainable development: Fracking, a matter of active debate at present in the Argentine
Patagonia. In Sustainable Development Research and Practice in Mexico and Selected
Latin American Countries (pp. 93-102). Springer, Cham.
Bischoff, T. and Staufenberg, C., 2021. Sustainable actions before profit?: The effects of
sustainability efforts on the brand experience in the clothing industry exemplary
represented on Patagonia.
Drawbridge, J. E., 2018. Going Off Course: A Case Study on the Marketing Strategy of
Patagonia.
Hara, S. M., and et.al., 2022. Exploring drivers and levels of technology adoption for ecological
intensification of pastoral systems in north Patagonia drylands. Agriculture, Ecosystems
& Environment. 324. p.107704.
Lozada, P. P., 2020. How Patagonia apply Triple Bottom Line in their marketing strategy.
O’Rourke, D. and Strand, R., 2017. Patagonia: Driving sustainable innovation by embracing
tensions. California Management Review. 60(1),. pp.102-125.
Rattalino, F., 2018. Circular advantage anyone? Sustainability‐driven innovation and circularity
at Patagonia, Inc. Thunderbird International Business Review. 60(5). pp.747-755.
Schillmann, C. Patagonia Inc. under a sustainability perspective.