National University of Management

TQM-M13-GROUP4
Professor: Samphy Yi

Group discussion
Patagonia’s Opportunity for improvement program

Submit by
1. Seat Thida 5. Hy Daravolack
2. Siv Solita 6. Yim Naraputhika
3. Sum Chantha 7. Heng Mengsophanith
4. Heng Channdaravath 8. ENG Kimhoung

2022-2023

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Table of content

I. Introduction
1.1 Execute summary
1.2 Mission, Vision, and Core value

II. Discussion Questions & Answers

2.1. How does an organization know whether its suggestion system is worth the time and effort
needed to make it work?
2.2. If a suggestion system is costing more to operate than it is generating in terms of
improvements, how would you respond?
III. Reference

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I. Introduction

Patagonia can be described as people, products, and planets. Patagonia’s mission statement is, "Build the
best product, cause no unnecessary harm, use business to inspire and implement solutions to the
environmental crisis”. This truly sums up the heart and soul behind the large California-based retailer.
Founded in 1973, Patagonia started creating climbing gear and has since expanded to clothing, packs, and
gear for snow sports, surfing, fishing, running, yoga, and more! Patagonia has continued to grow and
proven to be an authentic brand that goes above and beyond for its customers, the creativity of its
products, and its ethical stance on issues such as environmental effects and fair trade.

Patagonia Mission Statement

Mission and vision statements are the touchpoint of a company. What a company wants to do, how they
will do, where they want to see themselves in the future -these all are the key part of the mission and
vision statement.
Patagonia mission statement is “We’re in business to save our home planet.”
1. Protecting the environment
2. Exceptional quality
3. Improving human livelihoods

Patagonia Vision Statement

Patagonia has grown to realize the strong relationship between its company and environmental
conservation. This corporation has interwoven its future with that of Earth to be a part of the larger goal.
Patagonia doesn’t release any official vision statement yet. They claim that its reason for existing is – To
use all its resources to defend life on Earth. Patagonia’s ethical labour policies are another way through
which it has contributed to its vision. It has established a culture that ensures justice for all, including
consumers and the environment.

Core values of Patagonia

Patagonia strictly maintains its philosophy and values. The core values are comprised of
1. Build the Best product
2. Cause No Unnecessary Harm
3. Use Business to Protect Nature
4. Not Bound by Convention

This case study is an in-depth look into Patagonia’s opportunity for an improvement program. This study
will provide a background to Patagonia’s success and practices, and provide insight into two key questions
about how the company has and continues to improve to succeed:
1. How does an organization know whether its suggestion system is worth the time and effort
needed to make it work?
2. If a suggestion system is costing more to operate than it is generating in terms of
improvements, how would you respond?

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The system installed by the Patagonia HRM system at Patagonia is a blend of contingency and configurational
perspectives. The goal of the HRM system is to deliver specific types of employee behaviours, which would
generate desired performance. These behaviours may be specific to individuals, groups, or organizations, to
provide the company with the differentiation strategy to gain a competitive edge over its competitors.

II. Discussion Questions & Answers

2.1 How does an organization know whether its suggestion system is worth the time and effort
needed to make it work?

Employees often make great ideas that can save costs, raise revenues, enhance efficiencies, or generate
higher-quality products, and businesses that use efficient suggestion systems are finding this out (Polzin,
1998). Employees are more productive when they work together as a team and frequently contribute ideas
together. In addition, they start to think more like managers by expanding their perspectives beyond the
confines of their jobs. Some businesses operate under the false assumption that because they encourage
open communication between their workforce and management, employees would spontaneously
volunteer suggestions for process changes without being specifically prompted to do so. However,
industry experts remark that formal suggestion systems inspire workers to consider their tasks seriously
and desire to participate in the organization's running. Employees are made aware of the worth of their
suggestions through formal suggestion systems. Such methods may lead to a rise in employee motivation,
loyalty, and teamwork. In addition to the favorable influence that employee suggestion systems can have
on a firm's bottom line, these advantages arise because these systems are beneficial to employees.

2.2 If a suggestion system is costing more to operate than it is generating in terms of improvements,
how would you respond?

I will agree to their terms if a suggestion system is operating at a higher cost than it is producing in terms
of improvements because businesses that set up effective suggestion systems find that their employees
often offer brilliant ideas that can reduce expenses, boost revenues, boost efficiency, or generate higher
quality. Bell (1997) asserts that a successful suggestion system strives to tap into every employee's
innovative and creative thinking to enhance operations and output. To accomplish this goal, everyone
involved in the process needs to have an accurate grasp of it, the management team needs to back the
system, employees need motivation and meaningful incentives, and there needs to be a framework to
ensure that nothing is overlooked. Four primary components make up an effective employee suggestion
system: program structure, management support, program visibility and promotion, and recognition and
incentives for employees.

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III. Reference
1. Patagonia company introduction from: https://www.patagonia.com/company-history/
2. Bell, R. F. (1997). Constructing an effective suggestion system. IIE Solutions, 29(2), 22-26. Deshmukh,
R. (2021). Patagonia's purpose-driven marketing strategy. The Strategy Story. Retrieved September
15, 2022, from: https://thestrategystory.com/2021/09/14/patagoniamarketing- strategy-mix/
3. Polzin, M. J. (1998). Employee suggestion systems: boosting productivity and profits. Human
Resource Planning, 21(3), 49-51. Reseller Ratings. (n.d.). Patagonia consumer verified ratings &
reviews. Retrieved September 15, 2022, from: https://www.resellerratings.com/store/Patagonia