MBA 625 Strategy in Action

Dickson Jay Department of Management

Lecture 8 Leadership

1. Advice to a new CEO?

Learn as much as you can about each

department and senior team Identify what is working, and not Address tensions head on Enhance communication between stores and HQ protect the brand Improve talent and experience Reinstitute real-estate strategy Ecommerce? Slow growth?

2. Why invest in Lululemon?

Vision

Product

Elevate the world from mediocrity to greatness Create components of people to live healthier, more fun lives

Mission

Yoga inspired high-end wear, sells itself Fit, function and technology Sells itself (guests/educators) US, Australia, China Real estate strategy Chip and Bob Store managers,employees
3

Goal: $1B, 300 stores Business strategy

Growth potential

Differentiation through vertical integration

Actors

Core Values

3. Culture & Growth How?

What is the Hiring strategy

culture? Would you like to work there? How do you keep the culture while growing?

(manifesto) Training strategy Onboarding Performance management

4

5. Why hire (and fire) Bob?

Chip needed help

Expertise in managing growth Equity

Bobs role

How did they differ?

Increase number of stores Improve operations Professionalize the management team Sales per square foot dropped, same store sales stalled, inventory problems, low moral and teamwork, under performance
5

Accomplishments?

6. What should Day do first?

Manage the team Give Chip a job Align the top management team Improve teamwork Improve talent Manage Growth Real estate management E-commerce Australian and China markets Store roll out management Avoid copy cats

Keep: Business strategy, growth strategy (real estate) and culture