Pumpkin Patch
Source: http://www.pumpkinpatch.co.nz
Everyone loves a story - and the Patch definitely has a story worth telling.
From its early days in the founder's garage, the first mail order catalogue
and store in Auckland, New Zealand; to opening its first store in Los Angeles - it's been a true epic!
Pumpkin Patch was founded in 1990 by Sally Synott, a former childrenswear buyer. She identified
a gap in the market for a specialised retail brand offering design-driven kidswear - and Pumpkin
Patch began, initially as a mail order business, followed soon after by its first retail store. Chrissy
Conyngham and Maurice Prendergast joined the team in 1993, and remain the Design Director
and Managing Director, respectively to this day. Maurice and Chrissy took over to nurture the
company toward its current success.
In the mid 90s, while travelling through Australia, Maurice and Chrissy recognised there was an
opportunity in Australian kids' apparel. And the expansion that rolled out from this time has been
the business model that has continued the growth of the Patch around
the world. United Kingdom was next on the list - with the roll out of
stores being gradual, and with careful planning, to ensure the brand
grew organically. Like New Zealand and Australia, a mail order catalogue
was included in the marketing mix to further grow the brand awareness.
The first store opened in Bromley in 2000, and as complementary retail
sites were identified, the Patch northern hemisphere team grew.
At this time, wholesale relationships were also being established with quality department stores in
the United States of America; and this began the continued retail expansion across the Atlantic.
The Patch opened its first US store in Los Angeles in 2005, and there are now 20 stores in the
United States of America.
Pumpkin Patch employs over 3,000 people and has over 200 stores in four
countries along with wholesale operations in 14 countries. The Patch brand
can be found throughout Australasia, in selected countries across Asia and
the Middle East; and of course in the United Kingdom and the United States
of America. This sort of growth didn't just happen overnight, and it certainly
doesn't happen unless you've got something unique to offer. We feel
Pumpkin Patch is exactly that 'something wonderful and unique' and we're
passionate about bringing our loyal customers the best kidswear collections we can, season after
season.
Our team
We value the relationships in our workplace, with a strong culture inspired by family values. Many
of our early employees can still be found in a variety of areas around our company and contribute
to the 'family' atmosphere at the Patch. We aim to treat our employees with respect and fairness;
and we encourage our suppliers to do the same with their
employees.
Our strong mix of distinctive quality product; marketing expertise;
strong customer focus; enthusiastic people and up-to-the-moment
technology has created a unique brand. The loyalty we continue to
receive from our customers speaks volumes and makes the hard
work so worthwhile. Our company continues to grow and we are
well aware that this would not be possible without their support.
Revision questions for Level 2 Exam
PP has an enterprising culture. Citing examples from the case study discuss what enterprising culture
means and why it is important for PP to have one
Discuss what type of leadership style would be best suited for PP’s culture? Justify why this style
ofleadership is better suited than the others. Choose from:




autocratic
paternalistic
democratic
laissez faire
Explain ways in which the culture of PP can be communciated to it’s employees and customers using
specific examples from the case study. Use terms such as:




legends
traditions
language
heroes
Explain why New Zealand needs businesses like PP to be enterprising
PP needs to continue to be enterprising in the future. Suggest one area that PP could look to be more
enterprising and justify, with reasons, how this will benefit PP in the future
Fully explain why it may be difficult for PP to ensure all employees are in agreement, and therefore
practice, the culture that PP want to portray. Use terms such as:



conflict
resistance
confusion
Describe the type of production process that PP is likely to use (job, batch, flow). Justify, using business
knowledge, why that method is more likely to be successful than the other methods for PP.
PP are likely to engage in lean production. Fully explain what lean production is and how it will benefit PP
in the short and long term. Use the terms



waste
productivity
costs
As PP have grown, they have been able to take advantage of economies of scale to make their business
more efficient. Fully explain one example of economies of scale that PP may be able to take advantage of
as they grow. In your answer you should:
 define and explain your chosen economies of scale. Choose from:
o technical
o specialisation
o purchasing
o management
o marketing
 refer to examples from the case study
 explain how having economies of scale may benefit PP
 justify, with reasons, why economies of scale are important for PP as the grow
Fully explain how PP will use financial information to help make business decisions as they grow. In your
answer you should:
 Outline different financial tools that PP may use. Refer to:
o Break even
o Ratio analysis
o Financial Statements
o Budgets
 Fully explain how one of these financial tools will be benefical to PP in meeting their objective of
organic growth
 Justify why PP needs to use financial tools in their business decision making by examining the
advantages and disadvantages of using financial information.
PP is a business that needs to behave ethicially. Identify a business decision from the case study where PP
will need to act ethically. Fully explain why it is important to be ethical and what the consequences may be
if they are not ethical in your example. You should;
 Define the term ethics
 Identify a business decision from the case study
 Fully explain why PP need to be ethical in this example
 Outline what costs may be associated with acting ethically
 Explain the consequences to PP if they are not ethical in this business decision
The case study indicates the importance of having good supply chain management when operating a
successful business, especially when opening stores in the USA. PP use a supply chain consisting of many
links from resource supplier through to retailer.
Fully explain why PP choses to use wholesalers and retailers in the USA rather than supplying directly
themselves. In your answer you should:
 Define Supply Chain Management
 Refer to the USA example in the case study
 Define the terms wholesaler and retailer and explain their functions
 Discuss the advantages and disadvantages of using wholesalers and retailers
 Justify, with reasons, why PP are better off using wholesalers and retailers rather than directly
distributing their own products to the USA market
PP add value to the supply chain where they are involved. Explain how PP add value as their products
move through the supply chain from supplier through to customer. In your answer you should:



Define the term ‘added value’
Identify examples from the case study where PP can add value
Explain the importance to PP of having control over the supply chain in areas where they are
adding value