Partners: Elegant Harmonies- Key Ideas and Descriptions.

Jacob Hetu
SCA 320
1. Concinnity means “a skillful blending of the parts achieving elegant harmony.” It is typically
used to described elegant use of thoughts, but organizations can reach that state as well. It is
when everything comes together perfectly and it achieves being all that it can be and thrives.
2. Either/Or thinking limits choices to a set of options and narrows options to as few as two.
This was of thinking severely limits how proactive and reactive a company can be. Both/And
thinking allows for a limitless supply of options to choose from. FoEs don’t have to compromise
between profits and adding stakeholder value using this was of thinking.
3. FoEs are intent on helping stakeholders gain from their relationships with the company,
including helping suppliers become more financially successful. Large companies that demand
that suppliers’ lower costs so that they can sell it for more profit is exploitation. The price
difference is the supplier’s problem then. FoEs that collaborate with their suppliers don’t pit
procurement against suppliers. When organizations collaborate with with suppliers, suppliers
can become more efficient and more profitable and those costs can be saved by the larger
organization instead of taking it from the supplier.
4. Ironic Management in this case means an “incongruous or unexpected result that does not
seem to be on the natural outcome of the activity or condition that produced the result. Firms
of Endearment produce results that are counterintuitive from what conventional management
logic would predict. Such as decentralized decision making that increases top level executive
influence at all levels, higher frontline staff pay, and transparency.
5.Firms of Endearment are part of a new style of business that can be called “Moral
Evangelism.” There is a social transformation of capitalism can be seen in all sizes of
businesses. Leaders in such companies are using their buying power to raise the moral bar of
their suppliers and customers. Organizations that are called to this make great partners
because they are willing to help partners become more profitable and efficient.

Case Studies:
1 Starbucks – Starbucks uses a C.A.F.E (coffee and farmer equity) incentive program to reward
their growers as they meet performance standards and sustainably. These farms get more
business than others and become more profitable and a better work environment through
rewards. Santa Teresa farm was a disaster and almost out of business, but in partnership with
Starbucks, the farm became a model farm.
2. Ikea – Ikea opened its first Massachusetts store in 2005. In preparation Ikea plastered its
loge over subways and distributed more than a million catalogs to area households. On the first
day the 350,000 square foot store welcomed 25,000 customers. Employees welcomed
shoppers with thunder sticks and cheers as they came into the store. Ikea enjoys a cult like
following of customers and the area had been waiting years for one. Direct competitors in the
same area let Ikea use their lot for the grand opening. FOEs extend their caring to everyone,
even competitors.
3. Southwest – Southwest chose not to layoff and cut pay during 9/11 which was one of the
wort times for US airlines in terms of business. Southwest didn’t take any paybacks and rode
out the storm. Instead of downsizing, Southwest created coping mechanisms that enabled
their employees to respond cohesively to the crisis in innovative ways that allowed
organizational performance to return more quickly.
4. Harley Davidson – Harley Davidson views unions as partners. A former CEO said that for “the
business to work, everything must work well and function together, everyone must be excited
about going to work in the morning”. When Harley Davidson was in bad shape in the 1980s the
union stuck with them. 13 executives bought it from AMF and Harley didn’t lay off workers for
25 years. At times the company would bring outsourced tasks back in house instead. Currently,
when Harley has to reduce staff, it works with Unions to do it humanely. Harley started dealer
programs and rider programs to help bring the brand back online and into profit.
5. New Balance – New Balance’s CEO works directly with retailers to improve sales and share
trend data. It is able to restock retailers faster because they are US made and stocked in the
US. New balance also teamed up with leather supplier Prime Tanning to create a better
waterproof leather and is able to reduce prototype time to being sold in stores by 50%. They
also pay American workers 15$ ad hour instead of the .30 cents others shoe companies pay
foreigners non-US workers.
6. Honda – Honda is leader in supply chain management. They work with suppliers and help
them become more efficient. They buy 80% of what makes up every care from outside
suppliers. This is the reason it is important that they treat suppliers as partners since they rely
on them so much. Working directly with suppliers Honda was ablet o reduce the Accords cost
by 21.3 percent.
7. Whole Foods – Whole Foods goal is to be a vehicle for making the world a better place.
Whole foods have the highest profits as a percentage of sales, highest ROI on capital, and sales
per square foot compared to other fortune 500 companies. By paying employees benefits and a
fair wage they are able to operate with less turnover as well
8. Patagonia – Patagonia puts high demand on its suppliers to meet specified quality,
environmental, and social responsibilities. The higher restrictions often lead to higher demand
which leads to higher profits for them. Patagonia is seen as a prized customer with whom there
can be long term relationship with. They also are unremittingly committed to mitigating
environmental impact all along the value chain. They co-venture with suppliers to make the
world a better place.
C Research
REI has been a member of the Sustainable Apparel Coalition (SAC) since its inception, helping
evolve tools created in the outdoor industry and scale them across the global footwear and
apparel markets. The centerpiece of the SAC is the Higg Index, a suite of groundbreaking
assessment tools that empower brands, retailers and manufacturers to measure their
environmental and social impacts at each stage of the value chain. REI uses the Higg Index with
our own brands and is encouraging its adoption across our leading brand partners. 

Rei. “Sustainable Product Practices & Standards - Rei Stewardship.” REI Co-op. Accessed
November 29, 2021. https://www.rei.com/stewardship/sustainable-product-practices.