《Case Study- lululemon - Wikispaces.docx》由会员分享，可在线阅读，更多相关《Case Study- lululemon - Wikispaces.docx（6页珍藏版）》请在三一文库上搜索。
1、Case Study- lululemonEthics and Social ResponsibilityADRIAN, TILLEY, SAKHA, KUNAAL, DAVID十一月 8, 2010Table of ContentsExecutive Summary.Page 2Issue/Problem Statement.Page 2Background Information.Page 2-3Current Information.Page 3Data Analysis.Page 3Current Business Strategy and Results.Page 3-4Recomm
2、endations and Implementation Plan.Page 4Conclusion.Page 4-5References.Page 6Case Study- lululemonEthics and Social ResponsibilityExecutive SummaryFounded in 1998, lululemon has become an extremely successful company. Over the last 12 years of operation, its mission is to improve health, make a diffe
3、rence in all the communities it is located in, and provide guests with quality products to help them live healthy lives. Currently, lululemon still strives to make a difference in each community through the Community Legacies Program. Plans for expansion are also in effect, and its economic responsi
4、bilities are continually being met by the income generated each year.Social Responsibility is the backbone of lululemon. It presents many positive aspects for the company such as maintaining a positive image within society; however it may result in potential negative outcomes such as lower profits.S
5、trategically, lululemon uses proactive strategy in regard to social responsibility. Lululemon athlethica meet all the criteria in evaluating social responsibilities, which are economic, legal, ethical and discretionary responsibility. Thus, lululemon is able to prevail in the competitive market. The
6、 next step for lululemon is to help people find a better balance between work, family, and healthy living, together. This can be accomplished through the use of “lululemon parties,” encourage guests to bring their families out to the yoga classes or branch out to other retailers.Issue/Problem Statem
7、entlululemon athleticas main goal is to provide their guests with products that will help them live long and healthy lives. They ensure quality in their products, as well as recognize customer needs and adapt to meet those needs. Their goal is to demonstrate integrity and ethics in their company as
8、well as create a positive relationship between their stores and the communities they are located in. lululemon constantly challenges itself to maintain these social bonds, ethical and social responsibility practices, while achieving their economic and financial quotas. Background Informationlululemo
9、n is a Vancouver based company with over 100 locations worldwide and is valued over $200 million dollars. The company was founded in 1998 by Chip Wilson, who started the company with the idea that his products would help improve the level of health within a community. Responding to the increased num
10、ber of women participating in Yoga, lululemon has created products with new innovative fabrics and technology to fit, and feel better which helps women improve their fitness goals. They have provided a culture that provides awareness of the health benefits of doing yoga in daily life. lululemons mis
11、sion statement is to help people live long, healthy, and fun filled lives. They focus on ensuring that their products are of the highest quality and that their store experiences are one of a kind. lululemon invests money in training to educate their staff on effective and creative ways to create a u
12、nique experience in each individual store. With deep rooted ties in each community, lululemon created the charitable giving program, where guests of each location decide which local charities they would like to support. lululemon then chooses up to eight of these charities to be part of the program.
13、Current Informationlululemon has established their popular Community Legacies program which is a “5-year vision that is based on the belief that every person we hire, garment we create, store we open, customer we educate and yoga class we attend contributes to building a legacy in our communities.In
14、 2009, lululemons net income generated about 58.3 million dollars. Their earnings have topped the Streets consensus for seven consecutive quarters. It is also bringing U.S stores to the same level as Canadian stores. The 44 stores in Canada (35% of the total) generated 60% of revenues last year.For
15、the year of 2010, lululemon has plans on opening 12 to 15 new stores this year; it aims to open 25 showrooms by June of the following year and 20 by August.“CFO John Currie projects a possible 300 stores in North America, with Asian expansion likely into 2012.”Data Analysislululemon athletica has be
16、come a strong and successful company which can be measured economically, as well as by its social responsibility practices. By being socially responsible and utilizing their strong code of ethics, lululemon has created a prestigious reputation for itself by effectively serving the interests of the c
17、ustomer by creating new, quality goods that helps benefit the customers. lululemon has also fulfilled customer interests by letting them choose which charities in the community they want to support. lululemon also acts in a socially responsible manner by having in store yoga classes for customers to
18、 fulfill their mission of helping people live healthier, longer lives. Although lululemon athletica is a very strong company, it has some weaknesses. By acting in a socially responsible manor, this may cause a halt in the companys economic increase. Profit loss may be a main consequence of investing
19、 so much money for training, hiring yoga instructors, and supporting charities. In a short-term perspective, resources such as intellectual capital, money, and time are used on educating the public about the yogi lifestyle. In the long-term, the company is able to effectively use social responsibili
20、ty as a competitive advantage, as resource utilization and “waste” is a necessity to running a successful business. This is redeemed by the companys high prices on their product, which then is redeemed by the positive and unique in-store experiences. This allows lululemon to have a strong economic a
21、nd prestigious reputation, making it a successful company with a high competitive advantage compared to its opponents. Current Business Strategy and ResultsA key aspect lululemon uses is social responsibility, to be more precise it uses proactive strategy; their whole organization is driven by convi
22、ction. This athletic company demonstrates all for evaluation in order for it to be recognized as using the proactive strategy. The organization accomplishes economic responsibility. Their net worth for the company is over $220 million. lululemon is currently globalizing to other parts of the world s
23、uch as in Europe; they plan to open over 200 stores, which is part of their 5 year long term plan. lululemon is an innovative company, creating new apparels that are desired by their clienteles. lululemon has been also fulfilling legal responsible by inducing their strong code of ethics, demonstrate
24、d by their community legacies program. They have met ethical responsibility. They make use of organic fibers called OQOQO in their clothing; making their goods more environmentally friendly. lululemon constructs meaningful quotes that inspire individuals to pursue a more balanced and healthier life
25、style. Also, employees are well treated and they kept them active. An educator at a lululemon location in Toronto was shocked by how much the company cared. “Ive never before worked for a company that cares so much about my life. They genuinely want you to be proactive in your own life. At head offi
26、ce, employees are encouraged to display professional and personal goals on posters over their desks”They meet discretionary responsibility by means of leading their industry in creating clothing more comfortable and stylish to accommodate customers. They participate in being involved with charities,
27、 by giving eight local charities each year chosen by their consumers. They provide yoga classes to the community. The stores also provide free products to yoga teachers, fitness instructors and others to spread the word to people who have the same personal interests.Proactive strategy resulted as a
28、competitive advantage for the company causing, the company to become successful. This allowed for an exceptionally ideal form of advertisement, which is word of mouth. People recommend the store to their friends, co worker and family resulting in recommendation from a person they trust. There was no
29、 need for any costly advertisement. Overall, lululemon has remained to be a successful business with loyal customers because of the unique experience in every store and by giving customers what they want.Recommendations and Implementation PlanThe companys next step is to focus on providing their cus
30、tomers with a better lifestyle where they can find a balance between work, family and health, as it is part of their core values. This could be accomplished by expanding their in-store yoga classes from just the guests, to their entire families. This would allow lululemon to bring in more customers
31、as more people will be involved with the in-store experience. This would also not dilute the main purpose of the business as their focus is to create healthier communities by improving the balance between work, family, and life. lululemon could also utilize “lululemon parties” which would go to peop
32、les homes and introduce the products that are offered, talk about the companys code of ethics and its plans to create healthier communities, and introduce people to the idea of doing yoga in their own homes creating a positive environment in the home.lululemon could also expand on the idea of sellin
33、g their products to other retailers such as Nike and Adidas making people more aware to their products, however the major retailers would have to implement a system where the customers can experience the unique aspects of the company.ConclusionThough being socially responsible can lead to economic d
34、ownfall, lululemon has become an extremely successful company. This is shown in how it serves the interests of the customers by providing them with quality products and how it meets its mission to help people live healthier lives by providing in store yoga classes. People also have a say in which ch
35、arities they want lululemon to support, which encourages people to use their products since they will know that money will go to charities. It is evident that lululemon meets its economic and discretionary responsibilities as the company is valued at over $220 million and are still opening stores, a
36、nd how they support charities in every community the company is located in. Its ethics and legal responsibilities are also met as lululemon does not partake in any unethical practices and obeys the laws set in place. The company also advocates that they will keep their promises. With lululemon enter
37、ing the global market, it will continue to achieve major success by being socially responsible in any location it operates in.ReferencesMedia Kit. October 2009.http:/ (accessed November 26 2010). Bogomolny, Laura. Toned and ready: Lululemon transitions. April 24, 2006.http:/ (accessed November 6, 2010).Lacy, Jacq. Lululemons ground-level business strategy. Wednesday, 29 September 2010.http:/ (accessed November 6, 2010).“lululemon and charitable giving” http:/ (accessed 07/11/10).