Assessing The Corporate Structure Within Lvmh Business Essay

Assessing The Corporate Structure Within Lvmh Business Essay LVMH Moà «t Hennessy Louis Vuitton S.A. (Euronext: MC), usually shortened to LVMH, is a French holding company and the worlds largest luxury goods conglomerate. It is the parent of around 60 sub-companies that each manage a small number of prestigious brands These daughter companies are, to a large extent, run autonomously. The group was formed after mergers brought together champagne producer Moà «t et Chandon and Hennessy, a leading manufacturer of cognac. In 1987, they merged with fashion house Louis Vuitton to form the current group The group is controlled by the Christian Dior group, which owns 42.4% of shares and has over 58% of voting rights. Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and CEO of LVMH. His successful integration of various famous aspiration brands into the group has inspired other luxury companies into doing the same. Thus Gucci (now part of the French conglomerate PPR) and Richemont have also created extended portfolios of luxury brands. The oldest of the LVMH brands is wine producer Chà ¢tea d’Yquem, which dates its origins back to 1593 Corporate structure LVMH is based in Paris, France. The company is listed on the Euronext Paris exchange and isa constituent of the CAC 40 index. As of 2008, the group revenues of à ¢Ã¢â‚¬Å¡Ã‚ ¬17.2 billion with a net income of à ¢Ã¢â‚¬Å¡Ã‚ ¬2.318 billion. The group currently employs 77,000 people. 30% of LVMH’s staff work in France. LVMH operates over 2,300 stores worldwide. Its current business plan aims to tightly control the brands it manages in order to maintain and heighten the perception of luxury relating to their products. For example, Louis Vuitton products are sold only through Louis Vuitton boutiques found in upmarket locations in wealthy cities or in concessions in other luxury goods shops (such as Harrods in London). This practice contrasts greatly with less exclusive brands which can be bought in shopping malls around the world (http:// en.wikipedia.org) Shareholders At the end of 2008, the only declared major shareholder in LVMH was Groupe Arnault, the family holding company of BernardArnault. The group’s control amounted to 47.42% of LVMH’s stock (with 42.42% held through Christian Dior S.A. and 5.00% held directly) and 63.40% of its voting rights (58.02% by Dior and 5.38% directly). A further 3.4% of shares were declared as treasury stock, with the remainder being free float .(http://en.wikipedia.org) DEPARTMENTS OF LVMH Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective retailing (Annual report LVMH-2008) MISION AND VALUES OF LVMH Be creative and innovate Aim for product excellence Bolster  the  image  of  our  brands  with  passionate  determination Act as entrepreneurs Strive to be the best in all we do (Annual Report LVMH-2008) Definitions of Human Resource Management Human recourse management is a strategic and coherent approach to the mana gement of organization’s most valued assets: the people working there who individually and collectively contribute to the achievement of its objectives. (Michael Armstrong, a Hand book of Human Resource Management 2003) The HRM models are The Matching model of HRM Harvard model of HRM Best practice model The contingency model

Management and Organisational Behaviour Essay Example | Topics and Well Written Essays - 2000 words

Management and Organisational Behaviour - Essay Example Again, the relationship between a company’s business structure and cultural parameters throw light on the performance potential of the company. The structural pattern of small business units is generally flat owing to the reduced hierarchy levels between the employees and owner of the company. However in case of big concerns the structural system attains a much complex pattern with the creation of several functional departments. It signifies a specialized performance pattern of the business unit. The difference in the organizational structures is also closely associated to the degree of control exercised over the people or employees in achievement of organizational objectives. The different organizational structures underline the nature and extent of responsibilities entrusted on the employees which also calls for rendering of rewards and punishment. Similarly the employees working together in groups design the organizational culture and cite the norms and ethics of the compan y. The cultural system of a company is flexible and is decided between the mutual understanding of the upper and lower management levels depending on circumstances and situations. Both the structural and cultural parameters work together in designing the norms of business leadership for efficient performance of the organization (Rollinson, 2008, pp.4-5). ... The set of organizational values also indicate the behavioral and communicating patterns of the employees with external interested parties like the customers, government and similar other interest groups. Further the existence of organizational culture helps in encouraging the people to work in a group network in order to achieve organizational objectives. The behavior and attitudes of the group of people working closely with each other are governed by the cultural parameters set by the company which in turn helps in the fulfillment of business objectives. On the other hand the group dynamics of the different individuals are also governed by the system of organizational structure. The system of organizational structure governs the level of interaction between the people at different organizational levels in order to achieve business objectives. The structural parameters of an organization help the employees to coordinate with each other and also to communicate in an effective manner with other hierarchies. This renders a sense of support to them to work more effectively in fulfilling business goals (Jennifer, 2009.p.6; Mullins, 2008, pp. 66-70). Organizational Culture and Leadership Organizational leadership centers on the maintenance of the core values and business philosophy of the concern as distinct from other companies performing in the external environment. These core values and visions upon which a business functions are formulated through the development of organizational cultures. Development of organizational cultures also enhances the ethical and loyal parameters in the behavioral patterns of the employees within an organization. These organizational

Data Warehousing and Mining Essay Example | Topics and Well Written Essays - 4500 words

Data Warehousing and Mining - Essay Example This paper will discuss the concept of data mining in detail. This paper will discuss the main aspects, techniques and algorithms of data mining. This paper will also assess the market applications of data mining. DATA MINING Data mining is a technique which is used to evaluate business or corporate data from a target source and after that turn that data into valuable and useful information. This corporate information is normally employed to facilitate a business to raise profits, reduce cut expenditure in specific business areas. Moreover, the main purpose of data mining applications is to recognize and take-out similar business configuration enclosed in a given set of corporate data (Bradford, 2011). IMPORTANT DATA MINING TECHNIQUES This section outlines some of the prime and important data mining techniques. Some of the main techniques are presented below: Neural Networks/Pattern Recognition Neural Networks are utilized in a blackbox style. In this technique, an individual produce s a set of data for testing purpose, which allows the neural network to find out patterns based on the identified results, then for these data permits the neural network imprecise on massive amounts of data provided. ... Memory Based Reasoning This technique can offer same results which can be achieved from neural network however the working of this technique is different from neural networks. In addition, the memory based reasoning searches for "closely related" type of data, rather than considering similar working patterns (Chicago Business Intelligence Group, 2011) and (Han & Kamber, 2006). Cluster Detection This is a standard technique of data mining which is used to assess the relationship between market and business transaction data because it discovers associations from data patterns. Mainly, this method discovers associations in clients or product or anywhere we desire to discover interaction in data (Chicago Business Intelligence Group, 2011) and (Han & Kamber, 2006). Link Analysis This is another method for relating similar business records. However, this method is not utilized extensively; on the other hand, a number of methods and software applications have been built on the basis of this technique. Since its name states, this technique attempts to discover associations, either in dealings, various products, consumers, etc. as well as reveals those associations (Chicago Business Intelligence Group, 2011) and (Han & Kamber, 2006). Visualization This method of data mining facilitates the users to recognize their data. In this scenario, visualization is used to create the association from text established to visual/graphical arrangement. In addition, various other techniques such as rule, decision tree, pattern visualization and cluster facilitate users to observe data associations rather than reading the associations. Moreover, a lot of powerful data mining systems have taken effective actions for enhancing their