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Sustainability and High Annual Revenues Essay

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This case chronicles a story about how Patagonia achieved its success via leading a green revolution. As the economy goes down and consumers are short for cash, Patagonia takes four actions to turn the tables. The first step leading to Patagonia’s success is brought up by Yvon Chouinard, the founder and also the president of Patagonia. He first suggested that we must take risks to succeed. He priced a rain coat for four hundred dollars which is counterintuitive. It turned out that it is a good business with high annual revenues.

Chouinard said, “The key to surviving a conservative economy is quality. Consumer will pay more for a long last and multifunctional product” (Schermerhorn, 2012). The second action of Patagonia is its environmentalist ideal. They contribute a certain amount of money to environment groups each year and inspire their employees to be volunteers with full pay from Patagonia. They think it’s a cost of doing business. The third one is to be always investigating, always updating their products and green. They have changed many different materials for their products.

Once they found out the material has a bad influence on the environment, they will abandon it immediately, even though this may cause inadequate supply. The last action is to be sustaining. Chouinard promised that none of their stuff ever ends up in a landfill (Schermerhorn, 2012). They try their best to make their products to be repairable and recyclable. What’s more, they convinced a zipper company to join them so that the product can be totally recyclable. I am in total agreement with the growing green and the sustainability action for “sustainability is an important social responsibility goal” (Schermerhorn, 2012).

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Making products more lasting and recyclable not only is an ethical behavior, which is driven by value, but also benefits customs. This thinking is also a utilitarian view. The action delivers the most good to the largest amount of people (Schermerhorn, 2012). I admire the decision Chouinard made and I think he is a good manager. He cared about the profit, people and the planet at the same time (Schermerhorn, 2012). All these things showed me how powerful the organization’s potency can be.

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