Pategonias Expansion Strategy Essay Example for Free

Pategonias Expansion Strategy Essay 1. Patagonia’s Current Strategy: Key Processes and Customer Perception In the context of our business model our number one key process is our Rules and Norms (a complete breakdown of Patagonia’s current business model and a to-be-proposed business model are available for review in Exhibit I). This ethos that started with the founding of Chouinard Equipment continued through the creation of Lost Arrow and indeed Patagonia. Our self-proclaimed â€Å"dirtbag† culture has resulted in some unorthodox business practices over the years. We pride ourselves on our efforts to reduce the social and environmental impact of the lifetime of the goods and services we produce. This is something that our competitors recognize but do not focus efforts on; for us it is of the utmost importance. I took this liberty to draft a Customer Value Proposition (CVP) for our current model: â€Å"We provide high quality, durable outdoor athletic clothing and accessories that are produced with a high standard for environmental and social impact. We make the products that we want to use.† To extrapolate on the latter portion of our CVP, we expect our employees to not only share in the environmental and social consciousness that Mr Chouinard has weaved into the culture of Patagonia but we expect employees to be users of our products as well. This gives us an incredible insight into the functionality and durability of our products. This is exemplified in our generous sabbaticals and midday surfing breaks at our corporate headquarters. Additional insight in this regard is provided by our investment in brand ambassadors, who also provide us with the core of our visual marketing in our catalogs, our website, and social media. In order of volume we move our products through three main channels: wholesale, retail, catalog/internet. In order of profitability the channels are arranged as such retail, catalog/internet[1], and wholesale. There is an additional product repair arm of Patagonia’s structure that at the moment is not profitable. Our commitment to the ethical fiber that binds the core of what Patagonia as a brand stands for results in a product that comes at a premium price, however we believe that the money you spend on Patagonia products is a contribution to our commitment for care when it comes to the environments and social spheres within which we operate. So far we have seen success as shown below. 2. Financial Review of Current Business Model The competition analysis in Exhibit III outlines our industries averages for financial health. It would seem that our â€Å"dirtbag† approach to business has boded well for us over the last ten years. While our total market share (annual sales) is far below the industry average over all the company is making money. Our gross profit margin is over 6% higher than the industry average and our pre-tax profit margin is right in line with the industry average. While Patagonia’s ROE and ROA are below the industry average it is not my much and our debt to equity ratio is far below the industry average. So while we holds more equity and assets on hand than our competitors we has enough liquid cash flow to finance operations without having to incur much debt. Our 12 month revenue growth is trending along with the industry however our 12 month net growth income is nearly 13% higher than our competitors. Thus while we are experiencing growth that is on par with the industry we are experiencing a downward turn in our operating and/or material costs. It should be noted that the information here is of companies who compete in our industry but not exclusively. Columbia is the competitor that competes most directly with our niche in the industry and on every account except for debt/equity our numbers are favorable and even in the case of debt/equity the difference is negligible. The standards for philanthropy and an ethical purview for production and material sourcing at Patagonia are much higher than the industry average. We donate 1% of gross sales to environmental initiatives and causes, and our COGS are higher than competitors as a result of our ethical stance. However, once again (as shown in Lost Arrow: Financials, Exhibit III) we have been operating in the black for the last decade. This may also be explained by our company ethic. We focus on a curbing of consumption and that focus has limited how much we are willing to spend on advertizing. Conversely our competition holds advertisement as a high priority when establishing sales and brand. This observation is not trivial and could more than account for the balance between our costs and those of our competitors. 3. Moving Forward As discussed the current model for Patagonia works. You can be a â€Å"dirtbag† and make make money. The question is how do we continue on with the goal of 10% growth per year for the next five years? Whatever we choose we must operate within that moral fiber that helped us to achieve who we are today. Following are two suggestions for how to move forward, one uses our current business model, the other proposes a change. Please reference Exhibit I for business model analysis and Exhibit II for strategy. Strategy: Current Business Model Tactic One: A Focus on Retail – Our best margins are derived from retail sales however this accounts for just one third of our sales volume. The best type of marketing asset we have are our retail employees. Our Dirtbag Ambassadors are out there skiing, snowboarding, climbing, camping, bouldering, and living the life that Patagonia wants to be an integral part of. We must expand our retail channel and focus on those areas where dirtbags convene. A quick review of the 26 stores in the United States can be found in Exhibit V. Portland, Seattle, St. Paul, Chicago, Atlanta, DC. Sure dirtbags live in cities but where are our stores in Telluride, Tahoe, Bend, Cheyenne, or Buffalo? An expansion of our retail stream increases profitability as well as the reach of our marketing, the Patagonia way. These are the places our competitors don’t wants stores for lack of traffic, but our stores are more than commerce they are community centers for dirtbags. Tactic Two: Research and Development – Our industry ethic has produced one of the best research and development laboratories in the industry. We can leverage this in two ways. First and foremost we must fund research to produce material with the ethical and physical integrity that also helps lower our gross margins. We have pioneered ethical durable material in the industry, now we must find a way to do so cheaper. Doing so would open up the market for those dirtbags who dont have as much money and would normally go to a competitor based on price point. Second we hold patents for these materials we could offer to sell material to other outdoor companies, or begin a joint venture. In either of these cases we must make sure that the material we produced is being utilized in an end product that is up to the standards of Patagonia. Strategy Two: A New Business Model There comes a time in a business life when you have to ask: While what we are doing has worked, how long will it work? To achieve the goal of 10% growth per year we may have to think outside of our wheelhouse and think about how committed we are to our ethical and social standards. As long as we continue to produce more clothing people will buy it. As it stands our customer base has expendable income. How can we convince them to only buy what we need? Through an expansion of our clothing repair services and clothing swap market. A case is made for the business model change in Exhibit I. Tactic One: Expansion of Repair and Retail – It is not our goal to abandon what has made Patagonia the company it is today, thus once again we will need to expand retail stores however we do so in a way that will facilitate clothing repair. Each store should have a mending workshop staffed and equipped to repair what comes their way. To really take advantage of this service we must willing to mend non-Patagonia clothing. This will do two things: it will reduce the overall number of unnecessary purchases in our market and it will introduce people to the Patagonia lifestyle through our retail store. These store can also facilitate a recycling program for those articles of gear that are beyond repair. Something as simple as an in store credit can get people who would otherwise go to Nike experience Patagonia CA. Additionally the expanded retail presence will be an opportunity to create a network for clothing swaps Tactic Two: Expansion of Internal Repair – Expand the repair infrastructure behind retail presence. That is to say, as opposed to expanding retail and having repair work centers in-store, invest in larger repair facilities that stores can send garments to. In our current business model we are reaching critical mass with regard to how much clothing repair we can handle. If we strategically place lager facilities near our exiting stores we can handle this work load our selves. This also ensures that the materials and process of clothing repair is within the ethical conduct of our company without having to do audits of our outsourced partners. The clothing repair infrastructure for our market is basically nonexistent at this point and with research and development focused on this new business model we can create and dominate this market. This will once again involve repairing more than just Patagonia products but in the end that’s what this business model is about. To survive and grow into the next decade we must not just reduce the consumption of our customer base but we must reduce the consumption of our competitors as well. When a dirtbag holds on to a coat for another year he helps reduce Patagonias impact on the earth and its inhabitants. When Patagonia repairs a Columbia or North Face coat and it lasts for another year we have slowed the consumption of unethically produced clothes and possibly created another dirtbag. Exhibit I: Four Components of Business Model Framework (Johnson, Christensen, Kagerman) Customer value proposition (CVP): Current: Providing high quality durable outdoor athletic clothing and accessories (CA) produced with a high standard for environmental and social impact. Proposed: In addition to production, engage the consumer in the environmental and social impact of their outdoor athletic CA by involving them in the maintenance/repair/swap of CA. Profit formula: Revenue model: Current: Standard industry mark up on goods sold. Proposed: Lower the price of goods sold and charge a small fee for repairs or continue with current price structure charge cost for repairs of Patagonia clothing/accessories, charge premium repair rates for non-Patagonia clothing and accessory repair. Cost structure: Current: COGS = 80% materials 20% parts with a wholesale margin of 45% and a retail margin of 65% Proposed: A modified cost structure that emphasizes retail sales and profits off of repairs Margin model: Current: Largest channel of sales in wholesale 44%, second retail 33%, and finally Catalog/internet 23% Proposed: Shift focus from wholesale to retail/catalog/internet sales, add additional emphasis on repair cost structure for maximum profitability Resource velocity: Current: In general keeping inventory exhausts resources, something which Patagonia wants to minimize. Thus production should match as close to demand as possible. Assets should be available, although they do not need to be incredibly liquid. Proposed: Same as current model. Key resources. Current: People: There is a certain type of person who works for Patagonia. Ideally a person who works at Patagonia is the ideal consumer of their goods. Brand: With a strong brand associated with high environmental and social standards combined with a strong dislike of standard advertising channels for the industry the reputation Patagonias brand has gained is remarkable (this is achieved through the people they employ as well). Technology: Their ethical commitment to responsible sourcing and production has resulted in some profitable patents of great CA material. Proposed: The current Key Resources should not be lost but the Technology will shift to the new business model – a focus on materials , threads, and substances for repair. Additionally there would be a re-purposing of Facilities to reflect this model change as well. Key processes. Current: Rules and Norms: Patagonias Rules and Norms inform every aspect of their business and it is no different when it comes to their Key Processes. So while manufacturing, service, and training are all important, it all comes down to the Rules and Norms. Propsed: This would not change. When a new business model is needed. 1. The opportunity to address through disruptive innovation the needs of large groups of potential customers who are shut out of a market entirely because existing solutions are too expensive or complicated for them. The product repair market is just this. As it stands now such jackets tend to be luxury purchases as they hobbies they are designed for are not generally cheap ones to keep. 2. The opportunity to capitalize on a brand new technology by wrapping a new business model around it or the opportunity to leverage a tested technology by bringing it to a whole new market Patagonia isn’t capitalizing on a new technology when it comes to CA per se but the market could motivate their RD department to develop a technology that could be incorporated into the repair model. 3. The opportunity to bring a job-to-be done focus where one does not yet exist The expansion of clothing repair for Patagonia and other non-Patagonia CA provides a real opportunity for an existing market that consumers may not know they need. It creates a job to be done (clothing repair as opposed to replacement). 4. The need to fend off low-end disrupters. Patagonia would be a low end disrupter in the repair market; repair is cheaper than replacement. 5. The need to respond to a shifting basis of competition. Patagonia would be shifting the basis of competition.

Comparing Development of the King in Richard II, Richard III, Henry IV,

Shakespeare’s Development of the King  in  Richard II, Richard III, Henry IV, Henry V   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Shakespeare's plays beginning with Richard II and concluding with Henry V presents an interesting look at the role of a king. England's search for "the mirror of all Christian kings" provided the opportunity to explore the many facets of kingship showing the strengths and weaknesses of both the position and the men who filled that position. Through careful examination, Shakespeare develops the "king" as a physical, emotional, and psychological being. By presenting the strengths and weaknesses of these characteristics, Shakespeare presents a unified look at the concept of "kingship" and demonstrates that failure to achieve proper balance in "the king versus the man" struggle, leads to the ongoing bloodshed examined in this tetralogy and the next.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Richard II demonstrates the extreme of the conceit of divine right. He abuses his power and position caring only for the regal image he projects. His desire is for the physical, majestic appearance accompanied by the power and wealth of royalty. Richard desires to "look" the part which he succeeds in doing. In Richard II III.iii, York says of Richard in line 68, "Yet looks he like a king!" Richard does not care if he truly is a king with regard to responsibility for his subjects. He has interpreted divine right to be an agreement from God to him with no obligations to the subjects over whom he has dominion. This is exemplified in his attitude toward his ailing uncle, John of Gaunt, when he says to his friends, "Come, gentlemen, let's all go visit him. Pray God we may make haste and come too late (RII I.iv.63-64)." Richard's only interest is in the estates Gaunt's ... ...: Yale UP, 1990. 6. Chapman, George. All Fools. [1605.] Ed. Frank Manley. Lincoln: U of Nebraska P, 1968. 7. Council, Norman. When Honour's at Stake. London: George Allen & Unwin Ltd., 1973. 8. Craig, Horace S. Dueling Scenes and Terms in Shakespeare's Plays. Los Angeles: U of California P, 1940. 9. Edelman, Charles. Brawl Ridiculous: Swordfighting in Shakespeare's Plays. New York: Manchester UP, 1992. 10. Kiernan, V.G. The Duel in European History. Oxford: Oxford UP, 1988. 11. Marlowe, Christopher. The Jew of Malta. [1633.] Ed. James R. Siemon. New York: W W Norton, 1994. 12. Seldon, John. Table-Talk. [1689]. Ed. Edward Arber. London: Alex, Murray & Son, 1868. 13. Shakespeare, W. "The Tragedy of King Richard the Second." The Complete 14. Signet Classic Shakespeare. Toronto: Harcourt Brace Johanovich, Publishers, 1972   

Client conceptualization

Session Number: 3 Setting: Office Client's Age: 8 Estimated # of Sessions Required: 15 Case Conceptualization Client History: Client is an eight year old, Caucasian female. The client's mother, age 31 , works out of the home. She in not married or in a relationship at this time. Client's mother is the sole provider for client and her bother, age 10. Client's mother stated that, â€Å"their dad left when she was Just a baby and they have had no contact with him since†. Linnet's mother stated that client's dad would drink beer on a regular basis during he time in which they were married. Client's mother voiced that she and client's father would argue in front of the children before he left, but they were never violent. Client's mother voiced that she does not drink alcohol or take drugs and never has. Client's mother stated that she has never been In Jail or In trouble with the law. The current legal status of client's father is unknown at this time, as he now lives â€Å"out o f state†. Client's mother has never remarried and has not brought any boyfriends around the children.Client's mother stated that client interacts well with her brother, UT â€Å"they start out playing nice then they get rough and someone starts to cry'. Client is going to be in the second grade at a local public school next year. Her grades in school are not consistent, varying from As to As. Client is indifferent about going to school and stated that she â€Å"doesn't care if I have to go or not†. Client goes to a separate class to help her with her math and reading. Client began this last year, and mother states that there has been some improvement. Client does not have many friends at school.She has been suspended for hitting and kicking other dents. When asked why she was aggressive with the other students, client responded, â€Å"they were being mean to me and talking about my kitty. When asked about her pregnancy with the client, her mother responded, â€Å"l h ad a normal pregnancy and was not sick much. I took my vitamins everyday and tried to take care of my self. I had her at 39 weeks and 4 days†. When discussing client's development as a toddler, her mother stated â€Å"she was always a happy toddler, she would get upset when she didn't get her way or her brother took something from her. Present Concerns:The client was brought in to the agency by her mother. Client's mother stated, â€Å"l am worried about her because she plays very rough with her animals and her brother†. Mother stated that client has a difficult time following directions and is aggressive with her words as well. Mother stated that client is â€Å"very aggressive when I OFF up† for no reason at all; it does not take much to anger her. Mother reports that client fights with her brother while at home and does not get along with the neighbors. Actual Core Issues: Cognitive Behavioral Therapy (CB) seems to be the most appropriate approach to apply to this case.The CB model has great appeal because it focuses on human thought. Human cognitive abilities have been responsible for our many accomplishments so may also be responsible for our problems. By exploring patterns of thinking that lead to self-destructive actions and the beliefs that direct these thoughts, this client can modify her patterns of thinking to improve coping. CB is a type of psychotherapy that is different from traditional psychodrama psychotherapy in that the therapist and the client will actively work together to help the client recover from their mental illness.People who seek CB can expect their therapist to be problem-focused, and goal-directed in addressing the challenging symptoms of mental illnesses. Because CB is an active intervention, one can also expect to do homework or practice outside of sessions. Cognitive Behavior Therapy is usually more focused on the present, more time-limited, and more problem-solving oriented. In addition, patients learn spe cific skills that they can use for the rest of their lives. These skills involve identifying distorted thinking, modifying beliefs, relating to others in different ways, and changing behaviorsThe client's mother brought her in for services because of her â€Å"rough† behaviors and aggression. With CB, the therapist will focus on the thoughts that are causing the feelings, which are then causing the behaviors. When others tell the client something that she does not agree with or like, the client has an anger outburst and sometimes uses physical harm on the other person. The aggressive behavior could be triggered by the thought that no one else cares about what she thinks. With the CB model, we can help the client take responsibility for her own actions. When the linen plays rough with her brother, she gets angry and hits him.That behavior is triggered by the thought that client's brother is playing too rough with her and trying to hurt her. Through redirection, the therapist c an work with the client to understand how positive and negative thoughts lead to a specific thought, which then lead to a behavior. When the client is able to understand how her thoughts lead to a specific behavior, and the counselor has helped the client change the direction of her thoughts, the client will be better. When she is able to identify that a thought does to have to a negative reaction, the client will be able to discharge from treatment.Treatment Intervention: The treatment intervention here, should involve the active participation of the client in exploring her thoughts and behaviors. The expectation is that the client can realize how many distorted beliefs she has and help redirect her to healthy thoughts. The client's treatment will focus on thought patterns that cause distress and also on developing more realistic interpretations of events. Delusions are treated by their beliefs and encouraging them to recognize evidence that may have been overlooked, evidence that does not support the belief.The benefit of using CB with this client is that by changing the way she thinks about a situation, the client will be able to control her behavior. The goal of treatment is aimed to help the client become aware of when she makes negative interpretations, and of behavioral patterns, which reinforce her negative thinking. CB will help her develop alternative ways of thinking and behaving to reduce the psychological distress. It will be the counselor's Job to teach the client how to identify distorted cognitions through a process of evaluation. The linen will learn to discriminate between her own thoughts and reality.The end goal is for the client to be able to identify her own unhelpful benefits and prove them wrong resulting in her beliefs changing. The role of the counselor is to help the client solve problems that are of greatest distress. This can be done through a structure that seeks to maximize efficiency, learning, and therapeutic change. Important parts of each session include a mood check, a bridge between sessions, proportioning an agenda, discussing specific problems and teaching skills in the context of solving these problems, setting of self- alp assignments, summary, and feedback.

The Internets Harm on Children - 2135 Words

The Internets Harm on Children The Internet has affected our lives in a considerable way. We use the internet in order to connect with society, look up information for work and educational purposes, shop, handle daily errands such as paying bills and so on. Children are not excluded from this, in fact they are capable of using internet more effectively than adults. The reason for this being that chÄ ±ldren are able to learn to use new technology faster than theÄ ±r adult counterparts. It is wÄ ±dely accepted that having internet connection can be very useful for children, teachers and children consider internet as a powerful tool to access to academic sources to research for theÄ ±r classes and homework (Ofcome, 2007). Also having the internet†¦show more content†¦According to the theory, aggression is a learned behavior as well and Bobo Doll experiment is a strong evidence for this claim. In the experiment there were two groups of children. One group observed an adult being aggressive towards the Bobo Doll and another group watched an adult play with the doll appropriately. After that children got parted from the adult model and were tried to disappointed by saying they were not permitted to play with the toys in the room. The children who observed aggression do not only act more violent toward Bobo Doll but also they used same behaviors and words that they had seen from adult model. While other children play Bobo Doll properly. As seen from the experiment children are influenced from what they have observed and they are very fast to implement their observations into their life. When applied in video games this theory foresees that children can learn and also imitate the aggressive behaviors by exposing the violence in the games. The other negative affect of online video games is desensitization. While the initial response of children to violation is fear and anxiety, with repeated exposure to media violence children start to perceive violence a s a normal behavior and their reaction to violence reduces. Children also influenced by positive context such as cartoon-like characters, exciting music, sound and visual affects which are always used in video games. Seeing their favorite characterShow MoreRelatedThe Cyberbullying Epidemic Essay930 Words   |  4 Pageshas always affected teens and children in some form or another, but in modern times, with the advent of the internet and social networking, we have the first generations of young people facing a much more insidious assailment: cyberbullying. It is one much stronger than what traditional bullying once was, and poses problems of greater magnitude. For victims, this fairly new entity of social aggression has them facing substantially greater intimidation and emotional harm. 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