Leadership, Culture, and Transition at Lululemon, Multimedia Case Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Leadership, Culture, and Transition at Lululemon, Multimedia Case Case Solution

Question 3

Since the organization came under the leadership of Bob, it started facing various issues which eventually affected the overall structure and performance of the company. The aggressive expansion strategy adopted by Bob was the major reason that exposed the company to various issues. Due to the aggressive strategy application to expand across borders, they started its operation in the U.S without having any sufficient knowledge about the U.S market, as a result the company ended up having huge loss due to low demand and high cost of expansion because the budget was insufficient to cover the cost of operation in the U.S market. Apart from this, due to rapid expansion strategy Bob realized that lot of work needs to be done within a short time span. He appointed a team of individuals from his former company into the management which caused the original model of the company affected. The employees started feeling offensive as no explanations were given to them by passing the decision that they no longer possess any right in decision making and interfering in decision making process. This resulted in high turnover of employees.

The company due to rapid expansion, gap between the management and employees and increased number of stores without proper management affected the inventory and the infrastructure negatively. Bob’s leadership created a lot of issues that soon started affecting the company’s reputation and its profit margins. In order to resolve these issue Bob Meer was replaced by Christine Day in 2008.

Question 4

The most important performance gap that is being faced by the company is the underperforming of the stores due to the mismanagement of the strategy that was adopted by Bob in real estate market that increased the cost of locations in the US markets. The less demand of the products in such locations is making it difficult for the company to cover the cost of the location. Furthermore the poor management and supervision at various sites in the U.S increased the quality and the cost concerns for the company.

The company was also struggling to manage its inventory system, as due to the increase number of stores and inaccurate forecasting, the company faced the shortage issues in the area where products were in great demand that affected the income and profit of the company. The financial figures also indicated the lack of confidence in consumers on the product and the growing certainties in the global market affecting the financials of the company. The sales of the company per square foot dropped from $1710 to $1451 in the year 2018 and the overall store sales dropped from 24% to 3% due to continuous inventory and real estate issues in the United States.

Question 5

As the CEO of the company the first step of Christine should be to understand the culture of the company because the former CEO’s major mistake was that he didn’t try to understand the organizational culture of the company and tried to impose a new way of doing the business that was against the previous practices of the company. The good understanding of organizational culture of company will provide Christine with a leverage and will help her to understand the mind set of her employees in a better way by improving her interaction with the employees in the company.

She should share her ideas on the issues prevailing in the company especially with the senior management. The main aim of hers should be to motivate the employees and to get their commitments back by reviving the previous values that company used to practice before Bob being appointed as CEO.

She should restructure and redesign the structure in company with an alignment of organization’s vision and mission by assigning new roles and responsibilities and replacing old managers internally. The communication gap should be eliminated by building strong networks and bonds between the management and employees by involving everyone in the decision making.

Getting rid of the store’s locations in the U.S that are not less than a financial burden on the company and exploring new locations having the core guest or customers of the company, so that it could bring in relatively more profit. Providing employees with more job autonomy and rewarding them with intrinsic rewards rather than extrinsic and bringing back the feedback culture in the organization............

This is just a sample partical work. Please place the order on the website to get your own originally done case solution.