1. To avoid the PR crisis that arose from the "see-through" pants debacle that Lululemon experienced, management could have formulated plans based on what-if scenarios about the future. What is the term given to this technique?

a. Serendipity

b. Scenario planning

c. SWOT analysis

d. Vision

2. In many stores, Lululemon places a chalkboard near dressing rooms where customers can make comments about Lululemon's products. This practice is a critical input for which part of the strategic planning process?

a. Strategy implementation

b. Feedback loop

c. SWOT analysis

d. Defining mission and vision

3. Chip Wilson, Lululemon's founder, envisioned creating high-quality sportswear, found low-cost producers, realized sales that exceeded those of competitors, established a corporate culture, and formulated a marketing strategy. Of these activities, which would be first and last in the strategic planning process?

a. Finding producers and establishing a corporate culture

b. Establishing a corporate culture and formulating a marketing strategy

c. Formulating a marketing strategy and envisioning high-quality sportswear

d. Envisioning high-quality sportswear and realizing high sales

4. Several Lululemon stores are in need of new managers. Lululemon's commitment to sustaining its internal culture means which of the following would most likely be a characteristic of those hired for a management position?

a. These managers began employment at Lululemon on the sales floor.

b. Like most other managers, these managers will be hired from an outside position.

c. These managers will have an MBA in marketing and management regardless of their interest in the fitness world.

d. These managers will be bound to carry out employee training and to maintain the layout of the Lululemon store as directed by corporate headquarters.

5. Which of the following is a sustained competitive advantage for Lululemon?

a. Exercisers' preference for technical athletic fabrics in their sportswear

b. Average return on invested capital during 20082017 of about 31%, far outpacing that of other well-known specialty retailers

c. Increasing competitive pressures from Gap's Athleta

d. Sales per square foot estimated to be around $1,560

6. Lululemon faced criticism when it put Ayn Rand's provocative line "Who is John Galt?" from Atlas Shrugged on its tote bags. Although the company removed the bags from the market, which of the following decision-making techniques might have been appropriate for this situation?

a. Play devil's advocate beforehand to identify considerations that might make a proposal unacceptable.

b. Use escalating commitment to explain what was really meant by putting the quote on the bags.

c. Rely on small focus groups to generalize the greater public's reaction.

d. Change the vision and mission of the organization.

7. Which of the following would be included in the internal part of a SWOT analysis for Lululemon?

a. The employees' positive response to Lululemon's $2,700 charitable contribution on their behalf

b. The increasing competition from rivals such as Gap's Athleta, Urban Outfitters' Without Walls, and Nike Stores

c. The public's criticism of bags emblazoned with an Ayn Rand quote

d. Exercisers' preference for technical athletic fabrics in their sportswear

8. Chip Wilson served as Lululemon's CEO until 2005, after which he served as the company's chief innovation and branding officer. Which of the following categories best describes his roles?

a. Business-level manager

b. Functional-level manager

c. Corporate-level manager

d. Market-level manager

9. If maximizing shareholder value is Lululemon's ultimate goal, at what point did Chip Wilson put strategy in place to realize that goal?

a. In 1998, when Chip Wilson took his first yoga class

b. By the time the first store opened in 2000

c. In 2007, when the company went public

d. This is not an appropriate goal for a high-end company such as Lululemon.

10 The actual production of Lululemon's high-quality clothing for yoga and related sports activities using the very best technical fabrics is an example of which of the following?

a. Strategic leadership

b. Strategy formulation

c. Strategic manager

d. Strategy implementation