1. Patagonia Sur Case: http://www.patagoniasur.com/subpage.php
Jacob Warren MGT 4120
This case presents an entrepreneur that was both a social entrepreneur while relying
heavily on his business skills in order to fulfill his intentions. Warren Adams used the approach
of building on his existing networks from Amazon and his past career. He would show passion
and vision by seeing the solutions when everyone else saw the problems. Adams wanted to
break the cycle of the systems that were fast approaching the Patagonia, which was going to
change the culture and way of life for the people there.
In the case of Patagonia Sur there wasn’t the usual humble beginnings we’ve had in the past.
The fact that Warren Adams came from Harvard University and started a successful career right
away gave this case a different feel. It was surprising to learn how big of an advocate he became
for the environment. It was impressing that he became so successful at the pace he did. Moving
to such a new venture so quickly gave me the impression he was always going to be very
ambitious. Obviously, this is a quality that all entrepreneurs should have in order to be
successful. Adam’s innovations throughout the case were staggering. His goals and missions
were always consistently the first to be implemented within the industry.
His setting, Chile, had momentum from every angle that contributed to his industry. My
favorite was that Chile had a positive government role for competition and conservation. This
helped Patagonia Sur implement their innovative systems that benefited their company’s profits
and goals infinitely. For example, Chile was already trying to implement laws such as the
Forestry Development Law reclaiming Chile’s native hardwood forest. Another example is how
Chile rewarded landowners with subsidiaries who took action to preserve the lands conservation.
Chile also took up a large scale within the continent making up one-third of South Africa.
Besides his personal appreciation, these are all great reasons to pick Chile for the new business
venture.
Adam’s idea was short and concise at first but allowed him room for growth and an
ability to fill in the blanks when the time came. Knowing how much it takes to get the ball
rolling and how much it takes from investors is very important. He gave investors good ways to
see what their willing to pay was and how much they could expect. Even though it didn't seem
likely investors would see the possible revenue Adams saw, he didn’t rely on persuasion, which
was important. It was great how he reflected skills of compromising by giving the investors a
large amount of the 15% IRR while keeping flexibility. For example, he didn't guarantee any
assurances of liquidity or dates to pay the investors. The business model involving multiple
businesses made me doubtful he would be able to sustain organization throughout Patagonia Sur.
However, the innovation of the programs and laws were impressive and consistent. Patagonia
Sur had great organization for purchasing their land and analyzing their decisions. He made sure
the 100,000 acres were always cheap and protected through their Nature Reserve.
The best stage was the master plan where the study was done to see ecologically if the
land was significant in flora, fauna, and in the ecosystem. They were able to value and measure
the land before the purchase occurred. As an investor, this would catch my eye because it shows
forecasting and educated predictions. He showed consistency within his vision by implementing
the Limited Development Areas. This reflected a good image on Patagonia Sur by saying they

2. weren’t going to buy sections that couldn't support development with out interfering with
conservation initiatives. Adams showed credibility by protecting the property through legally
binding agreements as well.
The best innovation Patagonia Sur put in place was for the investors. The “key” was a
handbook for the investors to see the potential for their land while following the guidelines. The
‘keys’ were only the beginning of how Adams changed the game through implementing his
services and innovative ideas on how the system worked. These services were the catalyst for
his continued growth. He found a way to sell his companies tools and methods of how to
network, analyze, and operate legally throughout the system.
Adam created great challenges for himself at times by not forecasting and analyzing the
innovations fully. The carbon offsets created a great opportunity to loose revenue by
underestimating how many nurseries he needed. This should have been carefully observed and
analyzed creating a forecast of how many they needed to begin with. He should not have gotten
in the business without doing this. Even though, he showed he was consistent in doing it the
right way. He made sure the Chilean National Forestry Corporation verified each was planted
and maintained. He made sure any deaths were replaced within five years. This was very
important to investors because they could always trust there money was being spent responsibly.
It was clever to use Eco-Tourism Membership to create visibility for Patagonia Sur. It
was another great use of innovation to