'Lululemon\r'

' tiffin is hover and well positioned to move to another level in the luxury sports coiffure marketplace. While our challenges everywhere the last 18 months grow been Impacting, we pee-pee keep profitability and have not lost meaning(a) market sh atomic number 18. In response, our leadership team conducted environmental and plaqueal s dejections over the last 30 days. From these scans, we have identified whatsoever future strategic opportunities and challenges that when treated, testament set us up to become the #1 sports luxury app arl provoker in the world.We bequeath continue our innovation by Introducing new products lines; on that point is a great opportunity for us to go ballistic Into a childrens line. Another opportunity for Luncheon Is to investigate new channel strategies In diversification of gross sales revenues. In tandem with these opportunities, we urgently need to address several threats inclusive of varying our supply chain and astir(p) habitual transaction to resonate our core value and fool.Our environmental scan included a macro instruction trends report, examination of our industry/ competition, and a super go off of our stakeholders needs and expectations. Significant macro trends worth noting allow in: sustained popularity of yoga fitness for the near term, continued increase in online sales, and sustained usage of social media (with women representing a disproportionately large amount of users engaging our brand). out-of-pocket to the use of petroleum and cotton products, material and prod costs for Luncheon can sometimes be unpredictable homed on fluctuations in these goodness markets.Our Industry analysis Indicates that the sports apparel brand Is a $106 cardinal dollar Industry with the two biggest players notwithstanding owning 14 recent of the market share, [See Financial summary Slide]. We are the top ranked premium sports apparel organization and the 5th heightsest ranking organization overall. Our suppliers are more than suppliers; they are partners, [See Industry/ Competitive summary Slide]. Our collaborative relationship with our suppliers helps us create some of the most modernistic products in the market.Supplier issues with materials and manufacturing have represent an ongoing issue due to various recalls creating a drop In follow stock price, which In turn, has raised concerns with dockworkers, [See stakeholder analytic thinking slide]. These problems have caused Luncheon to confront intense scrutiny in the market and media, which in conclusion resulted in negative Public Relations link issues. The inability for the Public Relations department to cut through such incidents has impacted the overall product brand within the market place.With that said, the financial health of the company Is good. Net revenue for the fiscal year 2013 increase 16% to $1. 6 billion from $1. 4 billion In fiscal 2012. The company ended with $698,649,000 notes on hand, enough to mutantd its operating activities. Our usable support reveals Luncheon client satisfaction clay proud despite recent and ongoing manufacturing issues, [See Stakeholder Analysis Slide]. We possess a loyal customer base and have recently moved all of our stores from the claim model to being ran internally to maximize on our culture.From this environmental scan, we were able to conduct a comprehensive and In-depth Internal analysis to determine how well inclined(p) we included an operational health report, a financial report, and a review of our culture. The current organization is incorporated so that there is an opportunity for open immunisation throughout the business, age wellness programs create high employee satisfaction. Since our inception, our culture has been about creating components for people to live long, healthy, and fun lives.This culture permeates through our employees, our in-store experience, and of course our customer base. We commit in support of the commu nities in which we are a part by creating various festivals, retreats and continually stress on sustainability. Overall, our internal report shows we are poised for growth and have the tools to take advantage of our opportunities while meeting our challenges head on. Luncheon is the leader in luxury sports apparel. In order for us to check-out procedure the premier luxury sports apparel provider, we have to attract sure we keep our core competencies aligned.Our core competencies are defined as follows: 1 . Developing innovative luxury designs, 2. Grass grow marketing, 3. Creating a actuate workforce, 4. Creating a second to none positive customer experience. Our quadruple recommendations outlined in the beginning of the memo align perfectly with these core competencies, and our reports show we have the ability to achieve success in to each one area. Developing new product lines, especially focussing on a line for the youth, will vouch we stay diversified.In developing thes e lines we can start to diversify our suppliers by finding other markets in which to partner. currently our depth in suppliers is large, however, the diversity is nominal. Our suppliers are in the first place concentrated in one region, Asia-Pacific, leaving us susceptible to natural disasters, border wars, and other issues that can affect production, [See Stakeholder Analysis Slide]. Creating additional channels of sales will work to enhance our second to none customer experience.Working with luxury hotels and other recognizable high end partners known for great customer serving will also help with our grass roots marketing along with increasing our positive public relations presence. Also, by controlling our public relations and placing an increased emphasis on it, we will be able to better position our image and brand for lasting resonance in the marketplace. We are activated for Luncheon and look forward to partnering with you on implementing these four strategic objectives that will propel our great organization to another level.\r\n'