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Flourishing Business Canvas - Patagonia Case Study

Holonomics Education is a strategy and innovation consultancy based in São Paulo. Our mission is to help our clients to implement great customer experiences, powerful and effective strategies, and develop purposeful, meaningful and sustainable brands.

Simon Robinson and Maria Moraes Robinson, the founders of Holonomics Education, are members of the Strongly Sustainable Business Model Group and have a First Explorer License for the Flourishing Business Canvas. The Flourishing Business Canvas provides16 necessary and sufficient questions to describe any business model: financially, socially and environmentally.

We have created a case study based on Patagonia, generally regarded as one of the most sustainable and authentic companies in the world, to help people explore the canvas in detail.

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Flourishing Business Canvas - Patagonia Case Study

  1. 1. Created by ! Holonomics Education! ! www.holonomics.co.uk Flourishing Business Canvas ! Case Study!
  2. 2. holonomics.co.uk Flourishing Business Canvas v2.0 Patagonia
  3. 3. holonomics.co.uk Holonomics Education is a strategy and innovation consultancy based in São Paulo. Our mission is to help our clients to implement great customer experiences, powerful and effective strategies, and develop purposeful, meaningful and sustainable brands. ! The way we do this is to help inspire people within these organisations to think and see differently. Hence we help people to develop an expanded level of consciousness and to understand the importance of universal human values. ! Simon Robinson and Maria Moraes Robinson, the founders of Holonomics Education, are members of the Strongly Sustainable Business Model Group and have a First Explorer License for the Flourishing Business Canvas. The Flourishing Business Canvas provides16 necessary and sufficient questions to describe any business model: financially, socially and environmentally. ! We have created a case study based on Patagonia, generally regarded as one of the most sustainable and authentic companies in the world, to help people explore the canvas in detail. ! !
  4. 4. holonomics.co.uk Patagonia's founder was Yvon Chouinard, a climber who started making his own climbing equipment in 1957. His business grew and became the most successful equipment manufacturer in the United States. Patagonia was founded in 1973 as a new company to start producing clothing for a range of outdoor sports, not just mountaineering. ! Patagonia have four main goals. ! • Build the best products which cause no harm • Save wild and beautiful places • Reverse the decline in the overall health of the planet • Build a company which can last at least for100 years ! These goals articulate the main purpose and ambition of the company and are the organisation’s definition of success. ! We can then look at their main value proposition which is to make highest quality clothing for outdoor sports enthusiasts. Patagonia is aimed at conscious consumers and they are not focused on fashion.
  5. 5. holonomics.co.uk ! Patagonia’s Mission Statement! Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis. ! ! Our Reason for Being! Patagonia grew out of a small company that made tools for climbers. Alpinism remains at the heart of a worldwide business that still makes clothes for climbing – as well as for skiing, snowboarding, surfing, fly fishing, paddling and trail running. These are all silent sports. None require a motor; none deliver the cheers of a crowd. In each sport, reward comes in the form of hard-won grace and moments of connection between us and nature. ! Our values reflect those of a business started by a band of climbers and surfers, and the minimalist style they promoted. The approach we take towards product design demonstrates a bias for simplicity and utility. ! For us at Patagonia, a love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet. We donate our time, services and at least 1% of our sales to hundreds of grassroots environmental groups all over the world who work to help reverse the tide. ! We know that our business activity – from lighting stores to dyeing shirts – creates pollution as a by-product. So we work steadily to reduce those harms. We use recycled polyester in many of our clothes and only organic, rather than pesticide-intensive, cotton. ! Staying true to our core values during thirty-plus years in business has helped us create a company we're proud to run and work for. And our focus on making the best products possible has brought us success in the marketplace.
  6. 6. holonomics.co.uk Patagonia’s target market is the outdoor sports community, and we can locate these people in the Stakeholders section. ! The main channels are Patagonia’s shops and online store, and other retailers. ! A key resource are the textile mills and sewing factories which Patagonia do not own. ! Value Co-Destructions are also known as the negative value propositions of the enterprise and are an inevitable consequence of being in business. For example Patagonia have worked hard to reduce the harmfulness of the water resistant coating on their jackets, but the coating is still harmful to the environment. If they replace the chemicals totally, the result is a jacket that will last for just two years instead of 15 or 20, so there is always a balance. Fossil fuels are also used to extract nylon and polyester polymers. This results in two costs - pollution and waste. ! Fossil fuels are also used to extract nylon and polyester polymers. This results in two costs - pollution and waste.
  7. 7. holonomics.co.uk Patagonia are focused on the repair and reuse of their clothes, and they have partners like iFixed to help them. They use recycled polyester and wool and are always looking at how to reduce resource consumption. ! Patagonia are a company who are conscious of their impact on both biophysical stocks, and biophysical services, in this instance organic cotton, clean water and organic soil. ! Patagonia work hard to ensure that factories provide quality and are also socially and environmentally compliant, and they work with a wide of partners to help them monitor their activities and share data with other brands using the same factories and mills. For example the Fair Labour Association helps them to audit factories. ! Patagonia support small NGOs and environmental activities, and they do so by donating 1% of their sales to hundreds of grassroots environmental groups all over the world. This is a good example showing why the Flourishing Business Canvas does not just focus on customer segments but stakeholders.
  8. 8. holonomics.co.uk The New Footprint Chronicles Another major goal of Patagonia is to provide good working conditions for every worker who sews. For Patagonia better working conditions are a non-financial benefit of their business. We can therefore add farmers, factory workers and local labour communities to the list of stakeholders who are all impacted in the business ecosystem. The Flourishing Business Canvas makes the systemic connections between business activities, stakeholders and society and the environment explicit. ! Patagonia were one of the first companies in the U.S. to offer child care for their staff, and they also provide comprehensive medical care and paid internships for environmental groups. ! Patagonia has been so successful because they have managed to achieve long-term profitability through loyal customers. The company is as transparent as possible, allowing customers to understand where their products came from and the resources required to create them through their Footprint Chronicles initiative.
  9. 9. holonomics.co.uk In the Flourishing Business Canvas ecosystem actors are individuals, groups, organisations, or non-humans who may be impacted by the business in any way. Patagonia’s efforts have resulted in major energy savings for them, but there are many other people who benefit from Patagonia’s efforts and activities. ! Patagonia for example make sure that no children are employed in the factories and mills which they use. And they are also concerned with ensuring that all outdoor sports enthusiasts are able to enjoy their sports in natural locations which are clean, healthy and beautiful. Patagonia are not just focused on those people who purchase their products. ! And finally the Flourishing Business Canvas addresses our higher needs, such as protection in extreme weather conditions, protection for those working in factories, and ensuring that we as people have the freedom to enjoy our leisure time out in nature.
  10. 10. holonomics.co.uk Flourishing Business Canvas v2.0 Wild and beautiful places Best products no harm Reverse ecological decline Company of 100 years Quality outdoor clothing Conscious consumption Outdoor sports community Mills and sewing factories Patagonia shops On-line site Other retailers Pollution Waste Toxic chemicals Use of fossil fuels Organic cotton Clean water Soil Reduce resource consumption Repair clothes iFixit Repairs Donate 1% of sales revenue BCorp. Fair Labour Blue Sign Share data with other brands Activists and small NGOs Audit factories Ensure factory compliance Insurance Child care Internships Farmers Factory workers Local labour communities Better working conditions Better working conditions Customer questions Recycled polyester and wool Energy savingsLoyal customers Climbers, surfers, skiers etc Children Humanity Rock-faces Rivers Oceans Subsistence Protection Leisure Mastery Recognition Respect Patagonia
  11. 11. holonomics.co.uk Contact Details and Further Information! ! ! ! Strongly Sustainable Business Model Group! ! LinkedIn: www.linkedin.com/groups/5005769 ! Holonomics Education! ! Simon Robinson Twitter @srerobinson Email: simon@holonomics.com.br ! Flourishing Business! ! This Flourishing Business Canvas is © Edward James Consulting Ltd, 2014 · All Rights Reserved ! www.FlourishingBusiness.org ! Twitter @FlourishingBiz Email: inquiry@FlourishingBusiness.org

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Holonomics Education is a strategy and innovation consultancy based in São Paulo. Our mission is to help our clients to implement great customer experiences, powerful and effective strategies, and develop purposeful, meaningful and sustainable brands. Simon Robinson and Maria Moraes Robinson, the founders of Holonomics Education, are members of the Strongly Sustainable Business Model Group and have a First Explorer License for the Flourishing Business Canvas. The Flourishing Business Canvas provides16 necessary and sufficient questions to describe any business model: financially, socially and environmentally. We have created a case study based on Patagonia, generally regarded as one of the most sustainable and authentic companies in the world, to help people explore the canvas in detail.

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