Executive Crisis at Lululemon: Who Is Responsible for Establishing Company Culture?

Executive Crisis at Lululemon: Who Is Responsible for Establishing Company Culture?

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  • Teaching Notes
Abstract

This case reviews the sudden exit in February 2018 of CEO Laurent Potdevin from the Vancouver, Canada-based women’s athletic wear company Lululemon. It was not clear at first whether Potdevin had voluntarily resigned or whether the board of directors had requested that he step down. News later broke that he was responsible for encouraging a toxic work culture at the company. In the wake of his departure, investors feared for the future growth of the brand. Employees pointed not only to the CEO, but also to the Human Resources Department of Lululemon and the board of directors for failing in their duties to promote a positive work culture. Market analysts, looking to identify reasons for the executive crisis and forecast the company’s next moves, noted ...

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