Flexibility and Lululemon go hand and hand in the
traditional, yoga sense.
Chapter 8 delves into the strategic definition of
flexiblility, “that is, the ability to change direction quickly and at low
cost, given unanticipated changes in the competitive situation within which a
firm is operating” (Barney 216). This
flexibility, or lack thereof, leads in to real options theory.
Last summer, rumors of a potential sale of Lululemon
resulting in “Open interest in Lululemon options [increasing] 40 percent [over
three months], with traders owning about 1.4 calls for every put” (Barach). Clearly, Lulu proved it was as flexible as its
stretchy yoga pants, remaining independent.
Moreover, the latest 10-Q directly speaks to said flexibility: “We
believe our strong cash flow generation, solid balance sheet and healthy
liquidity provide us with the financial flexibility to execute the initiatives
which we believe will continue to lead our profitable growth" (10-Q).
Works Cited:
Would like to have had you stay with the weeks to get the habit...but good and fun blog. Doesn't the typo in the title drive you crazy?
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