Business Management Assignment
1. What were Nau's founders' primary motivation for founding Nau?
The founders wanted to make Nau a clothing line on steroids, versus a simple clothing line. They wanted their clothing to have a purpose as they committed the company to having a small carbon footprint, give back to the community, while supplying a quality constructed product that both performed well and looked nice.
2. What kind of entrepreneurial venture is Nau?
A team of entrepreneurs that are in it to win it.
3. a: How do you feel about the management's decision to give a percentage of the company's profits to charity? b: Describe the pros and cons of such a decision
a: I think it is a great idea to give a percentage to charity. What is not discussed is the percentage. If the percentage is too high, profits will suffer to a point ...view middle of the document...
If profits are too low, sustainability is unobtainable and growth is impossible. You are giving away hard earned revenue.
4. Nau's owner's think of their clothing as part Patagonia and part Prada. Review the websites of these two companies. What do you believe Nau's owners saw in Patagonia and Prada that was relevant to their idea for startup?
Patagonia brings style, comfort, functionality, and durability together into one product. Prada is the pinnacle of high status-quo fashion. Nau saw their product as a clothing that it's customers would be proud to wear on the side of a mountain or walking down Main Street.
5. Describe Nau's competitive advantage.
Nau entered into a clothing market with the advantage of being on e of the first "green" companies in a time in history wherein such an ideal was at the forefront of the media. In the mid-to-late 2000's carbon foot-printing and company generated philanthropy was a cutting-edge idea (Tom's est. 2006, Warby Parker est. 2010, Barnabas Clothing est. 2010)
6. What characteristics of successful entrepreneurs do the founder's embody?
The founders are progressive thinking, creative, and hungry to succeed (almost to a fault).
7. What mistakes do you believe Nau's management made in executing their strategy?
The company tried to grow too rapidly without the proper plan for that growth rate. Their vision to open numerous locations at the beginning was their downfall, without having the proper systems in place. The old expressions "you have to crawl before you walk" held very true. They also could have been written into their original contracts with their investors that they would be able to get more funding if needed.
8. Do you believe it was a wise decision for Nau to partner with Horny Toad? Why or why not?
It was absolutely a great idea to partner with Horney Toad. As it stood, Nau was dead in the water. Horney Toad provided a vehicle to reintroduce their product to the public. He provided the necessities needed for Nau to put it all together.