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Bella Casali

on 13 June 2013

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Transcript of Lululemon

Although the globalization of Lululemon has had problems, such as CEO Chip Wilson making careless mistakes which could ruin the business, there has been more progress, such as initial inspection of factories and the giving spirit of the company.
Background Information
The founder of Lululemon is Dennis "Chip"
"Yoga inspired athletic apparel company".
Factories are located in U.S.A.,China, Israel, Taiwan, India, Thailand, Peru, Indonesia, and the main factory is in Vancouver, British Columbia, Canada.
Founded in 1998.
There was an increase in female participation in sports in the late 90's and in accordance with Dennis' beliefs in yoga as a way to maintain athletic excellence.

CEO Dennis (Chip) Wilson controversially defends child labor in sweatshops
Child Labor
Chip Wilson has said, "child labor provides children with much needed wages." Although this may be true, the working conditions in sweatshops are most likely bad, which does not benefit the children or the company.
Globalization in Lululemon has caused the founder, Chip Wilson, to make many careless mistakes. If people found out about these mistakes, it could ruin the whole company.
Furthermore, Chip Wilson named the company Lululemon because he "thinks it is funny how the Japanese workers cannot pronounce the 'L' sound."
This proves that the CEO of the company is racist and mean spirited. The previously stated facts could easily turn buyers away.
Despite some negatives, like the CEO's careless errors, the globalization of Lululemon is more positive because of the initial inspections and scoring of their factories
In March of 2013, Lululemon had to recall some of their yoga pants and bring them back to all the factories.
There is an initial inspection at all factories to ensure that the facilities meet the code of conduct.
This shows that Lululemon factory workers should inspect all their apparel more before sending it out to the stores.
This shows that the factory workers are entitled to rights and they make sure they have a safe and clean environment to work in.
If there is a problem during inspection, a corrective action plan (CAP) is put in place. They then discuss the roots of the problem, solution to the problem, and time frame it will take to fix it.
Lululemon scores all of it's factories based on safety standards and cleanliness while inspecting them.
factory 1-78%
factory 2-83%
factory 3-82%
factory 4-51%
factory 5-55%
factory 6-61%
factory 7-80%
This shows that the company cares about the workers and their factories. Lululemon does not want to be known as a company with bad working conditions, so the CAP is very important to them.
This shows that Lululemon cares about their factories and want to make sure that all of their factory workers are as safe as they can be.
The factories of Lululemon follow the California Supply Chains Act.
This demonstrates a positive outcome from the globalization of Lululemon because it shows that this company wants all the factories and stores to be working the best they can. it also shows that Lululemom takes their business very seriously to follow this act.
The globalization of Lululemon has left a good mark with the company's giving spirit.
The California Supply Chains Act:
1. States that all products must be evaluated before leaving the factory.
2. Requires suppliers to declare that materials in the product follow the laws regarding slavery and human trafficking.
3. Maintains standards for all employees.
4. Supplies all companies who make over $100 million a year with a great management team.
Lululemon pays for all of its staff to attend the Landmark Forum, which is an organization that boosts self confidence. "It sets up a culture of no complaining and of being responsible for the job that you’re doing, for clear communication, and not bringing your own personal crap to work" says Chip Wilson, founder.

This proves that Lululemon really does care for its staff because they send them to a free retreat to become the best version of themselves.
Furthermore, all Lululemon stores give free yoga classes to the public.
This shows that the company cares for its buyers just as much as they care for their staff. They want their buyers to be the best they can be too, so they teach them free yoga!
All money made at the Landmark Forum goes right to the Boston College Children's Hospital. " I have five boys and it’s like I have a 1-800 number to the Children’s Hospital. They’ve all spent a lot of time there" says Chip Wilson.
This shows that CEO Chip Wilson has a good side too. He want his staff to be friendly and happy.
Just in case you still don't see the good side to Lululemomn's globalization, watch these two quick videos on how yoga is beneficial and fun through out the world! It is a very good thing that Lululemon has stores in many countries because more people can enjoy the products of a trust worthy company!
(videos below)
This video shows that what you learn in yoga can help you in your outside life and it doesn't matter who you are. The video also shows that when you are angry or frustrated you can use yoga to help you out.
This video shows what yoga does for you and tells you some important phrases that will help you get through your life. Yoga helps your inner self and shows you important techniques to bring into the outside world.
Careless mistakes by Chip Wilson are caused by globalization.
The giving spirit of the company has been affected by the globalization of the factory.
Inspecting their factories has made Lululemon's globalization a good thing.
Full transcript