Issue/Problem Statement luncheon
Social Responsibility Is the backbone of luncheon. It presents many positive aspects for the company such as maintaining a positive image within society, however it may result in potential negative outcomes like possible profit loss.
Strategically, luncheon uses non-traditional and unique marketing and business schemes. For example, luncheon relies on social activities for product promotion rather than typical ad campaigns such as print and/or television media. The next step for luncheon Is to encourage people to bring families to the In-store yoga lasses to better find a balance between work, family, and healthy living, together.
Issue/Problem Statement luncheon athletics 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 well as create a positive relationship between their stores and the communities they are located In. luncheon constantly challenges itself to maintain these social bonds, ethical and social accessibility practices, while achieving their economic and financial quotas.
Background Information luncheon 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 number of women participating in Yoga, luncheon 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. Lemon’s mission 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. luncheon Invests money In training to educate their staff on effective and creative ways to create a unique experience in each individual store. With deep rooted ties in each community, luncheon created the charitable giving program, where guests of each location ecocide which local charities they would like to support.
Lemon then chooses up to eight of these charities to be part of the program. Current Information luncheon NAS est. II D sneak tenet popular community Legacies program winch 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 2009, luncheon’s net income generated about 58. 3 million dollars.
Their earnings have topped the Street’s 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 the year of 2010, luncheon 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.
“CUFF John Currie projects a possible 300 stores in North America, with Asian expansion likely into 2012. ” Data Analysis luncheon athletic has become a strong and successful company which can be measured economically, as well as by social responsibility.
By being socially expansible and utilizing their strong code of ethics, luncheon has created a prestigious reputation for itself by effectively serving the interests of the customer by creating new, quality goods that helps benefit the customers’. luncheon has also fulfilled customer interests by letting them choose which charities in the community they want to support. luncheon also acts in a socially responsible manner by having in store yoga classes for customers to fulfill their mission of helping people live healthier, longer lives.
Although luncheon athletic is a very strong company, it has some weaknesses.
By acting in a socially responsible manor, this may cause a halt in the company’s economic increase. Profit loss may be a main consequence of investing 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 responsibility as a competitive advantage, as resource utilization and “waste” is a necessity to running a successful business.
This is redeemed by the company’s high prices on their product, which hen is redeemed by the positive and unique in-store experiences.
This allows luncheon to have a strong economic and prestigious reputation, making it a successful company with a high competitive advantage compared to its opponents. Current Business Strategy and Results luncheon executes an innovative non-traditional business strategy which can be seen in the marketing strategies used.
Since luncheon does not use traditional advertising techniques, it relies on running clubs and other social activities for their products to gain attention. The stores also provide free products to yoga teachers, tiniest instructors and others to spread the word to people who have the same personal interests. luncheon is also known to spend money on in-store yoga classes where they can stick to their mission statement and inspire and build trust and loyalty among guests by concentrating on providing quality products, and providing a positive and memorable experience.
Through this innovative marketing strategy luncheon is able to maintain a competitive advantage over other brands that create a similar product for half the price. Just like their marketing style, luncheon’s business strategy is non-traditional. Before opening a store the company opens a “showroom” where educators interact with guests through yoga and fitness classes to unreason want customers In ten area need ten most, odometer management differs from store to store, however the results are similar; the guests have a place to be challenged, relax and achieve personal goals.
Each store also creates a positive work environment for the educators creating an extremely high quality of work life because the company cares about all of the educators’ health. An educator at a luncheon location in Toronto was shocked by how much the company cared.
I’ve 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 office, employees are encouraged to display professional and personal goals on posters over their desks” Luncheon also uses a proactive strategy as it meets all of the economic, legal, ethical and discretionary responsibilities. These responsibilities are met since the company is valued at over $220 million; they operate legally; want to help people live healthier lives; and is committed to supporting charities. As a result of the strategies used, Lemon 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 Plan The company’s next step is to focus on providing their customers 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 luncheon to bring in more customers as more people will be involved with the in-store experience. This also would not dilute the main purpose of the business as their focus is to create healthier communities by improving balance between work, family, and life.
Conclusion Through being socially responsible can lead to economic downfall, luncheon 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 charities they want luncheon to support, which encourages people to use their products since they will know that money will go to charities.
It is evident that luncheon meets its economic and discretionary responsibilities as the company is valued at over $220 million and are still opening stores, and how they support charities in every community the company is located in. Its ethics and legal responsibilities are also met as luncheon 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 luncheon entering the global market, it will intention to achieve major success by being socially responsible in any location it operates in.
