The Mass Decline Of Stakeholder Satisfaction - 1474 Words

1.0 KEY ISSUES The main issue that Lululemon is facing is the mass decline of stakeholder satisfaction, including customers and shareholders, associated with general public criticism regarding actions of the company prior to the recall of the Luon yoga pants and the management of damage control and the recall. Specifically, these criticisms were targeted at the quality of the Luon pants, the comments made by the company regarding the pants, the controversial advertisements in their stores, the alleged dishonesty of the company, and the values of the company that were publicized through these proceedings. Moreover, each of these factors in turn, as a part of the overall issue of stakeholder dissatisfaction with the activities and behaviour of the company, at the general time of the Luon pants recall helped to exacerbate the situation to the point where the stock prices fell significantly, the CEO of Lululemon resigned, and the company incurred heavy losses in the process of recalling the defective p ants. 2.0 ANALYSIS The company has arrived at a state that is attributed to a few factors, each of which reveal that the changing stakeholder values are not necessarily in line with the values that the controversy of the Luon pants has helped bring to the forefront of this discussion. These factors include quality control, business ethics, publicity and company values. 2.1 QUALITY CONTROL The first factor is the quality of Luon pants. 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