Entrepreneurial Venture Case Study

2. What kind of entrepreneurial venture is Nau?
Samaan thinks it’s a social entrepreneurial venture and that it’s a team of entrepreneurs that are in it to win it. The mentioned company was the partnership firm between the topnotch designers from well-known companies. The individuals were carrying the same basic idea, the business knowhow and finally dreamt of an organization of their own which would let then showcase their personal skills and knowledge. Nau sells expensive outdoor-type clothing with the added incentive of style and a donation to charities from each purchase. In their quest to make meaning, the founders of Nau established a Code of Conduct that dealt with human rights for the business, sustainable business practices, environmentally
How do you feel about management’s decision to give a percentage of the firm’s sales to charity? Describe the pros and cons of such decision
Samaan is in full support of Nau’s idea to give a percentage of sales (2%) to charity. Giving a percentage of sales to charity was idealistic in the eyes of the wider society. From a business perspective it was not yet a practical decision because it was a bit early in the whole scheme of things and too early in the stage of business. Samaan thinks that this was quite ambitious though!
The management’s first priority should be to secure themselves (Nau) first. Only then can charitable work “giving back" begin, and they should not worry about public opinion. The philanthropy espoused by Nau is 2% of each sale to one of the partner organizations (chosen by the customer at the point-of-sale). The organizations are Conservation Alliance, Ashoka, People for bikes, Ecotrust, Mercy Corps, Breakthrough Institute, and Kiva. (http://www.nau.com/partners-for-change/).

Pros: Samaan thinks that giving to a charity was an excellent idea of Nau. It showcases the company in a humanistic light. Positive publicity is always paramount for a developing company. ABOVE ALL IT HELPS PEOPLE AND THE
 May not be conscientiously supported by all of Nau’s people/workforce/employees.
 It was too idealistic and much less practical, it contributed significantly to the downfall og the company.

4. Nau’s owners think of their clothing line as part Patagonia (http://www.patagonia.comand part Prada (http://www.prada.com). 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 a startup?
Patagonia has a large imprint of environmentalism on its website called The Footprint Chronicles®. These chronicles include the tracking of “the impact of specific Patagonia products from design through delivery.” The mission statement is very similar to that of Nau: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” In addition, the site lists their corporate social responsibility in detail and the Footprint Library provides insight to the environmental impact of Patagonia. Patagonia reinforces their commitment to protect and support wildlife. Prada, on the other hand, has a very creative website that supports the arts and includes exhibitions, books, and support of culture. The clothing and accessories created by Prada support these cultural