Report: Impact of Science, Politics, Economy, Climate on Lululemon

This report examines the impact of various external factors on Lululemon Athletica. It begins with an introduction to the macro-environment and its influence on business development. The report then delves into specific factors, including the advancements in science and technology, such as RFID programming and in-store technology, and their benefits for the company. It analyzes the impact of political activities and laws, like the North American Free Trade Agreement and patent regulations, on Lululemon's operations. The report also explores the influence of economic conditions, such as Canada's economic growth and consumer spending, on the company's performance. Furthermore, it addresses Lululemon's climate strategy and its efforts to reduce greenhouse gas emissions, highlighting the company's focus on sustainability and its collaborations with partners and communities. The conclusion summarizes the key findings, emphasizing the significance of these external factors on Lululemon's success and future prospects.

Running head: EFFECT OF EXTERNAL FACTORS ON LULULEMON
Effect of External Factors on Lululemon
Name of the student
Name of the University
Author note

1EFFECT OF EXTERNAL FACTORS ON LULULEMON
Table of Contents
Introduction................................................................................................................................2
Effect of external factors on Lululemon....................................................................................2
Science and the technology....................................................................................................2
Politics and the law................................................................................................................2
Economy................................................................................................................................3
Climate Change......................................................................................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................5

2EFFECT OF EXTERNAL FACTORS ON LULULEMON
Introduction
Macro-environment refers to set of the external conditions which has an effect on the
development of a business. The factors cannot be controlled and they have an effect on the
overall performance of a company (Baalbaki, Gilliard & Hoffman, 2019). Lululemon
Athletica refers to the athletic apparel company that can suit the demand of the athletes. This
report focusses on the effect of the science along with the politics on Lululemon. This report
elucidates on the influence of the economy along with the climate change on the company.
Effect of external factors on Lululemon
Science and the technology
The advancements made in the realm of science have helped in the development of
Lululemon that have helped the company in deriving the benefits. The company have been
able to take recourse to the RFID programming that have helped the company in providing
the better access to the items. The company can take the advantage of the in-store technology
that have proved to be advantageous for the company (Sabbati & Russo, 2018). It can greatly
help the company in the generation of the online traffic that have helped in the profitability of
the company. The usage of the technology can greatly help the company in connecting the
people that can help in increasing the popularity of the company across the world. It have
helped the company in the creation of the unique products which suits the needs of the
community.
Politics and the law
The political activity taking place in the external environment would influence the
ability of Lululemon in operating in the efficient manner. North American Free Trade
Agreement facilitates the different business of Canada in spreading across the North America
that can aid in the profitability of Lululemon. The company have various patents that helps in

3EFFECT OF EXTERNAL FACTORS ON LULULEMON
offering protection to the designs of the company (Hamilton & Webster, 2018). The
regulations along with the laws can be instrumental in restricting activity of an organization
and the company have the knowledge about the rules that have helped the company in the
elimination of risk of the lawsuits. Lululemon can disclose the information regarding the
direct supply chains that can help the company in preventing any kind of issues related to the
slave labour. The company takes into consideration tax implications for bringing the money
that have been earned abroad that have increased the profitability of company in the market.
Economy
The economic circumstances of environment within which a company carries out the
functions have a negative effect on the capacity of the growth and the expansion of a
business. The economy of Canada is growing at the sustainable rate that has a positive impact
on Lululemon. The government of Canada lays a great amount of emphasis on the structural
reforms that have facilitated the growth agenda of the organizations of Canada. The country
have taken recourse to the infrastructure investment that have helped the company in the area
of operations in the global sphere (Mann & Byun, 2017). There have been an increase in the
aspect of the consumer spending that would have a positive influence on the growth of the
company. It can help in providing the benefits for the company that can increase the profits of
the company.
Climate Change
The climate strategy of Lululemon helps in addressing the greenhouse gas emissions
across the operations along with the supply chain that have increased the revenue of the
company. The apparel industry contributes to the greenhouse gas emission and the company
have addressed issue of the climate change that have made the company popular among the
people. Lululemon have accelerated the efforts across the social impact along with the
sustainability that have acted like a boon for the company (Alves Soares et al., 2020). The

4EFFECT OF EXTERNAL FACTORS ON LULULEMON
company have made the collaboration with the partners along with the communities that have
aided the company in bringing about a positive influence in the society.
Conclusion
Lululemon have been successful in getting access to the items with the help of the
RFID programming. The company have taken recourse to in-store technology which have
provided the boons for the business. North American Free Trade Agreement have helped in
facilitating the growth of the business which have helped Lululemon in earning the profits.
The Canadian economy is undergoing the steady growth that can work to the benefit of the
company. The structural reforms in the country can influence the company in the positive
manner that can expand the company in the global environment. Apparel industry is
responsible for the greenhouse gas emission and the business strategies of company can
address climate change that can increase the scope of the company.

5EFFECT OF EXTERNAL FACTORS ON LULULEMON
References
Alves Soares, R., Cavalcanti Sá de Abreu, M., Dias Pedro Rebouças, S. M., Marino, L. P., &
de Barros, P. (2020). The Effect of National Business Systems on Social and
Environmental Disclosure: A Comparison between Brazil and Canada. Revista
Brasileira de Gestão de Negócios, 22(1). Retrieved from: https://doi-
org.ezproxy.myucwest.ca/10.7819/rbgn.v22i1.4042
Baalbaki, S., Gilliard, D. J., & Hoffman, D. L. (2019). Is Lululemon Athletica’s Turnabournd
Sustainable?. American Journal of Management, 19(2). Retrieved from:
https://articlegateway.com/index.php/AJM/article/view/2065/1963
Hamilton, L., & Webster, P. (2018). The international business environment. Oxford
University Press. Retrieved from: https://books.google.co.in/books?
hl=en&lr=&id=qQN6DwAAQBAJ&oi=fnd&pg=PP1&dq=Hamilton,+L.,+
%26+Webster,+P.+(2018).+The+international+business+environment.
+Oxford+University+Press&ots=9OBp_E_-
lH&sig=fBjYijw0PP6SHaJLcCw77vt513A&redir_esc=y#v=onepage&q=Hamilton
%2C%20L.%2C%20%26%20Webster%2C%20P.%20(2018).%20The
%20international%20business%20environment.%20Oxford%20University
%20Press&f=false
Mann, M., & Byun, S. E. (2017). To retrench or invest? Turnaround strategies during a
recessionary time. Journal of Business Research, 80, 24-34. Retrieved from:
https://www.sciencedirect.com/science/article/abs/pii/S0148296317302151
Sabbati, G., & Russo, M. (2018). Canada: Economic indicators and trade with EU. Retrieved
from: https://cadmus.eui.eu/handle/1814/59464

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