¶ … Large System: Managing Strategic and Large Scale Systems Change
The objective of this study is to describe Patagonia's organization design or the Star Model and specifically the Galbraith Star Model. This study will assess the alignments among the elements of the design and explain how Patagonia integrates sustainability into its design.
Description of Patagonia's Organizational Design
Patagonia's organizational design is based on Jay Galbraith's 'Star Model', which is characterized by five categories including those of: (1) structure; (2) people; (3) strategy; (4) rewards; and (5) process. (Reinhardt, Casadesus-Masanell, and Freier, 2003, paraphrased) Patagonia is a privately owned company, which provides the leadership with a great deal of freedom since it does not have to answer to a public array of shareholders and investors. Two strategic decisions that were closely linked were addressed by Patagonia executives in 2003. Patagonia designs, markets and distributes high-performance wear for the outdoors. The first decision was centered on whether Patagonia should expand their product base, which included mountain and rock climbing clothing as well as clothing suitable for snow and ice activities including snowboarding, fishing, and other outdoor sporting activities. The question was how much expansion could be undertaken without sacrificing quality and reputation. As well, Patagonia's designs were very innovative enabling the company to charge 20%...
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now