Professional Documents
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Chapter 18
Managing Service and
Manufacturing Operations
By Katie Presnell, Alex Legarza, Adam Lumpkins, Sanam
Alavizadeh
About Patagonia
Timeline
1965: Original company founder Yvon Chouinard started partnership with Tom Forst named Chouinard
Equipment
1970: Became the largest supplier of climbing hardware in America
1972: Changed company name to Patagonia Inc.
1980s: Introduced vibrant colors and prints into their clothing line
1981: One of the first companies to provide on-site child care
1985: Developed two new fabrics, Capilene and Synchilla, that revolutionized outdoor gear
1986: Made the oath to donate 10% of profits or 1% of sales (whichever is greater) to over 1,000 small
environmental organizations
1991: Sales suffered due to recession, had to lay off 20% of the company
1993: Created Patagonia Employee Internship Program
1996: Opened first (and only) distribution center in Reno, Nevada
1996: Vowed to only use organic cotton for all their products
1998: Started their first national environmental campaign and have done it every year since
2005: Launched the Common Threads Recycling Program
2006: Won award for Environmental Sustainability by Business Ethics
2008: Won award for EcoBrand of the Year at the Volvo EcoDesign Forum
2010: Won award for Gear of the Year by National Geographic
2012: Won a lifetime achievement award for Leading Sustainable Business by The Sustainable Business
Council
Competitors
Strengths
Weaknesses
Opportunities
Renting highly specialized
equipment
Widen market share
Advertise product as both
extreme sports and everyday
wear.
Increase of online spending
Expand target market
Expand to new countries
Increase of environmental
activism
Threats
Specialty retailers have shifted to
large department stores
Competitors: North Face, REI,
Columbia Sportswear, etc.
Higher costs for growing and
handling organic raw materials
Ageing target market
Corporate Responsibility
Promoting fair labor practices
and safe working conditions
throughout Patagonias supply
chain
Working with factories
Working with mills
FAQs
Amount of processing
Make-to-stock operations
Flexibility
Batch production
Productivity
Inventory Management
Types of Inventories
1. Raw materials
2. Component parts
3. Works-In-Progress
4.Finished goods