BUSI 601
Contemporary Management Technique Research Paper – Lululemon
Liberty University
BUSI 601 – Accounting for Decision Making
Lululemon is a retailer that specializes in athletic apparel. Products of Lululemon range
anywhere from yoga pants to men’s golf attire. Founded in 1998 by Chip Wilson, Lululemon has
positioned itself as a front runner in the athletic/sportswear industry. With a market cap of over
$40 billion and over 500 stores globally, Lululemon appears to have a successful implementation
of contemporary management techniques. This paper will show why Lululemon needs to
incorporate the theory of constraints technique and how the implementation of the theory of
constraints management technique will aid in the potential to achieve its critical success factors.
Rationale for the Contemporary Management Technique Selected
In a data and tech-driven society, end of the line consumers are placing more and more of
an emphasis on the speed as to which they can purchase and receive merchandise. This fast-
paced environment has also caused consumers to constantly be looking for the next great
product, placing pressure on corporations to increase the product life cycle speed and the rate as
to which they can develop and manufacture new merchandise or products. Companies cannot
survive if they fail to obtain competitive advantages by producing high-quality products and
services in shorter throughput time and quicker inventory turnover. (Rahman, 1998, pg. 336).
Various management techniques can be used to help a firm achieve its critical success factors,
especially the theory of constraints. Theory of constraints is a multi-faceted systems
methodology that has been progressively developed to assist people and organizations to think
about problems, develop breakthrough solutions, and implement those solutions successfully.
, (Mabin & Balderstone, 2003, pg. 569). The theory of constraints management technique
improves the profitability and cycle time by identifying the bottleneck in the operation and
determining the most profitable product mix by the bottleneck. (Bolcher et al., 2019, pg. 15).
A bottleneck is a part of the various business and manufacturing processes that slow the overall
operation down or at least play a contributing factor to the overall process not running as
efficiently as possible. The ability and potential to be faster than competitors in today’s global
market is undoubtedly an exceptional critical success factor. An example of showing how crucial
it is to eliminate all bottlenecks related to speed and the delivery of products or merchandise and
the role that it plays in the growth and success of a business is what Amazon has accomplished in
the past couple of decades. Amazon could be considered one of the most successful businesses of
recent time, and one of their main operating principles and management techniques has been
built on speed and the theory of constraints technique. The rationale for Lululemon incorporating
the theory of constraints management technique is because there are certain aspects of the
business operation, both in the manufacturing and service sectors, that could increase the speed
as to which consumers can obtain their products. Lululemon currently has a “Power of Three”
strategic plan to accelerate growth that encompasses a five-year growth plan that aims to double
men’s apparel, double digital, and quadruple international revenues. (Lululemon, 2019). The
three main emphasis points that Lululemon will prioritize are product innovation, omni guest
experiences, and market expansion. With this strategy in mind, the theory of constraints
management technique will allow the quickest transition and path to success. For example,
Lululemon prides itself on consumer experience, particularly in storefronts. This could present a
bottleneck in business operations, especially in the event of a global pandemic that restricts
travel and personal interactions as a whole. Lululemon also has plans that might come with some
risk – being one of the most experimental brands in the industry, stating that its vision is, “to be
the experimental brand that ignites a community of people living the sweatlife through sweat,
Contemporary Management Technique Research Paper – Lululemon
Liberty University
BUSI 601 – Accounting for Decision Making
Lululemon is a retailer that specializes in athletic apparel. Products of Lululemon range
anywhere from yoga pants to men’s golf attire. Founded in 1998 by Chip Wilson, Lululemon has
positioned itself as a front runner in the athletic/sportswear industry. With a market cap of over
$40 billion and over 500 stores globally, Lululemon appears to have a successful implementation
of contemporary management techniques. This paper will show why Lululemon needs to
incorporate the theory of constraints technique and how the implementation of the theory of
constraints management technique will aid in the potential to achieve its critical success factors.
Rationale for the Contemporary Management Technique Selected
In a data and tech-driven society, end of the line consumers are placing more and more of
an emphasis on the speed as to which they can purchase and receive merchandise. This fast-
paced environment has also caused consumers to constantly be looking for the next great
product, placing pressure on corporations to increase the product life cycle speed and the rate as
to which they can develop and manufacture new merchandise or products. Companies cannot
survive if they fail to obtain competitive advantages by producing high-quality products and
services in shorter throughput time and quicker inventory turnover. (Rahman, 1998, pg. 336).
Various management techniques can be used to help a firm achieve its critical success factors,
especially the theory of constraints. Theory of constraints is a multi-faceted systems
methodology that has been progressively developed to assist people and organizations to think
about problems, develop breakthrough solutions, and implement those solutions successfully.
, (Mabin & Balderstone, 2003, pg. 569). The theory of constraints management technique
improves the profitability and cycle time by identifying the bottleneck in the operation and
determining the most profitable product mix by the bottleneck. (Bolcher et al., 2019, pg. 15).
A bottleneck is a part of the various business and manufacturing processes that slow the overall
operation down or at least play a contributing factor to the overall process not running as
efficiently as possible. The ability and potential to be faster than competitors in today’s global
market is undoubtedly an exceptional critical success factor. An example of showing how crucial
it is to eliminate all bottlenecks related to speed and the delivery of products or merchandise and
the role that it plays in the growth and success of a business is what Amazon has accomplished in
the past couple of decades. Amazon could be considered one of the most successful businesses of
recent time, and one of their main operating principles and management techniques has been
built on speed and the theory of constraints technique. The rationale for Lululemon incorporating
the theory of constraints management technique is because there are certain aspects of the
business operation, both in the manufacturing and service sectors, that could increase the speed
as to which consumers can obtain their products. Lululemon currently has a “Power of Three”
strategic plan to accelerate growth that encompasses a five-year growth plan that aims to double
men’s apparel, double digital, and quadruple international revenues. (Lululemon, 2019). The
three main emphasis points that Lululemon will prioritize are product innovation, omni guest
experiences, and market expansion. With this strategy in mind, the theory of constraints
management technique will allow the quickest transition and path to success. For example,
Lululemon prides itself on consumer experience, particularly in storefronts. This could present a
bottleneck in business operations, especially in the event of a global pandemic that restricts
travel and personal interactions as a whole. Lululemon also has plans that might come with some
risk – being one of the most experimental brands in the industry, stating that its vision is, “to be
the experimental brand that ignites a community of people living the sweatlife through sweat,
