1) What were the Nau’s founders’ primary motivations for founding Nau? Ans: The primary motivations of the Nau’s founders was a new retailing concept was to combine the eco-friendly and mountain-climbing chic of Patagonia with the fashion-forward urban cool styles of brands like Prada, using eco friendly materials to make the outfits.
2) What kind of entrepreneurial venture is Nau? Ans: Nau is a eco-frieldly start-up technical and lifestyle outdoor apparel company with a design philosophy blending beauty, performance and sustainability, and a commitment to creating positive change.
3) How do you feel about management’s decision to give a percentage of the firms sales to charity? Describe the pros and cons of such a decision. Ans: It was a good corporate social responsibility of the new start up by deciding to donate 5% of sales to non-profit entities which were worthy of it and which were selected by the various buyers. They also didn’t worry about the slightly high price because they were positive that ecofriendly customers wound not mind it knowing that they were also supporting a cause. The main advantage of this move was that it could help the society and will be able to prove to the customers and new investors that it was worth buying their product. The only disadvantage is that for a new company they should have waited for a few years of growth and development in order to take such a step. The disadvantage of loosing money.
4) After reviewing these two companies websites, what do you believe Nau’s owners saw in Patagoinia and Prada that was relevant to their idea for a startup? Ans: Prada is a very fashion forward and urban clothing brand and Patogonia is a brant which makes eco-friendly mountain climbing clothes and gear. They wanted to combine the ideas of both the styles of these two brands and make them into one where the clothes were still eco-friendly and durable for the mountains, the trail and the weather but which could also look and feel stylish and comfortable and look sleek on the wearer in the city as well.
5)Describe Nau’s competitive advantage? Ans: CEO of the firm Chris Van Dyke and marketing chief Ian Yolles had previous worked as marketing executives in Patagoina and Nike, respectively and the they were even able to hire a top designer from Patagonia as Nau’s lead designer. The green movement was in full swing , a booming economy was giving rise to a sort of mass philanthropic movement. This was their advantage. By using the power of business as a force for change and my producing sustainable fabrics they were at a competitive advantage.
6) What characters of successful entrepreneurs do the founders embody? Ans: The founders intended for Nau to be more than merely another clothing company. They wanted to “make meaning” which is one of the reasons many successful entrepreneurs have in mind to start a business. The founders also embodied a commitment to be eco friendly and to demonstrate highest levels of citizenship possible. They believed that companies had a broader responsibility than simply generating profit.
7)What mistake do you believe Nau’s management made in executing their strategy? Ans: Nau went in too fast and tried to do a lot instead of depepding of slow stable growth. They also donated a lot to non profit charity which could have been done at a later stage when it got more established.
8)Do you believe it was a wise decision for Nau to partner with Horny Toad? Ans: Yes, it was a wise decision for now. Because it needed the necessary funds with was provided by the Owner or Horny Toad. It is a small start and recovery for now at the moment but hopefully will get back on track soon.