Around 90 percent of the companies on this continent and a similarly large percentage of businesses located around the world are family-owned. Some of the more recognizable businesses still managed by family members include Benneton, Beretta, Estee Lauder Inc., Tootsie Roll, Playboy, Gucci, Carnival Cruise Lines, Harley-Davidson, Inc., U-Haul, Ford Models, Forbes Inc., and Ford Motor Co (Lagorio-Chafkin, 2010). They vary widely in regard to the overlap of family and business issues, and much can be learned from studying their experiences. Economic Impact Before going into the how they can compete in an ever more challenging market, let’s discuss the economic impact that family owned businesses have on the World economy. For the purposes of this paper, a family business will be considered a company that is controlled and majority-owned by members of the same family.
Question #1: Sourcing Headquartered in Beaverton, Oregon, Nike, Inc. has become the largest supplier of athletic shoes, apparel and sporting equipment in the world. In 2012, Nike reported revenue of approximately $24.13 billion dollars (Schulz, n.d). Nike’s sourcing strategy has traditionally been characterized as vertical disintegration through the practice of outsourcing their manufacturing activities to independent factory owners in foreign countries (Collins, 2010). Outsourcing allows Nike to focus on their core competencies such as marketing and product development (Mongelluzzo, 2002). Nike creates the manufacturing designs and specifications, and their suppliers follow them through the production process.
It first opened in 1962 as Dayton Hudson Corporation, but was later changed to Target Corporation in 2000. It is the second largest retailer in the United States. 1. Business Strategy: Distribution channel and manufacturing While Wal-Marts’ competitors use twenty five percent of their stores space for inventory storage, Wal-Mart only needs ten percent. This is because of their distribution channel which consists of just in time inventory (JIT) and cross docking. This means that products are received just in time in one side of the warehouse and are sent through the other side.
Do organisations implement corporate environmentalism into their core management practises solely to attain profit maximisation? Since the introduction of large scaled industrial organisations post the Industrial Revolution the key focus of firms has been on maximising profit through implementing management frameworks which aim to correct the internal environment of the workplace. The perception organisations have about the term ‘environment’ has gradually shifted towards an ‘ecocentric’ view whereby organizations acknowledge the ecological impact caused by their actions. As of recent with the introduction of pro-environmental media such as Rachel Carson’s book Silent Spring (1962) and Al-Gore’s infamous documentary An Inconvenient Truth (2006) based on biological degradation and global warming, organisations are trending towards a ‘sustainability’ paradigm (Gladwin et al. 1995).
Patagonia Philosophy and Background Patagonia, a subsidiary of Lost Arrow Corporations, is a privately held company that debuted in 1973 by a group of surfers and climbers. In 2006, Patagonia totaled $270 million in revenues, achieved with 1080 employees, wielding market power in the green apparel market. A purveyor in outdoor clothing and gear, Patagonia manages its research and development, design, manufacturing, merchandising and sales of all its products. Holding a competitive advantage in technical innovation, it is the leader in the outdoor retail industry. Patagonia prides itself on its deep commitment to environmental and socially sustainable industrial practices, and continually launches new products that are dedicated to its mission statement: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” An unusual mission statement, company founder Yvon Chouinard’s vision for long-term sustainability and low environmental impact has attracted employees devoted to shared environmental causes.