Introduction to Management Essay

1. IntroductionThis report lead discuss about company background, country background, mug up epitome, Pest analysis, Porters analysis and clear recommendations. At this report the discolouration chosen is Louis Vuitton. Louis Vuitton Mattenier also known as Louis Vuitton and shorten to LV. The Louis Vuitton label was founded by Vuitton in 1854 on Rue Nueve diethylstilbesterol Capucines in Paris, France. As well as the headquarters its self which set in Paris. Louis Vuitton is French house fashion design at that season which nice one of the worlds valuable brand with 40% profitable (Constant, 2012).2. Company BackgroundLouis Vuitton is one of the most valuables brand in its category which is Luxury in goods. Its products includes of leather goods, pocketbooks, trunks, shoes, watches, jewelry and accessories. Most of people adorned with the LV monogram which designed by well known designer and intimately noticeable with simple live style as the idea. Louis Vuitton with a bran d Value of $28.4 Billions in USD with a sales of $9.4 Billions (Reuters, 2013).3. Country BackgroundLouis Vuitton headquarters is located in Paris, they had open many outlets all around the world and capital of capital of Singapore establish 3 big outlets and the latest which located in Marina Bay litoral that open unique island store that will float on the water. Singapore its a developed country which also attract tourist from different countries to come to visit as a traveler as well as shopper. The three outlets can be found in Takashimaya, ION and Marina Bay sands.4. SWOT compendSwot analysis argon the shorten words of Strength, Weaknesses, Opportunities and Threats. SWOT analysis are mainly used for a company to build their outlets/ grind in overseas to extend their products and profits.4.1 StrengthBrand Value ( the brand is one of the oldest fashion houses with more(prenominal) than 150 years) Easily recognizable (the logo and monogram)The brand has it own outlets in mos t of the large shopping center. Well known Designer Custom Tailored on hand(predicate) for elite customers4.2 WeaknessThe Shops only available in exclusive stores making it difficult for developing countries The most expensive price compare to other competitorsRarely to give discounts to customers4.3 OpportunitiesThe company needs to contain new current fashion write outsLarge market for luxury goodsCelebrity attractionsSynergy between brands/merger4.4 ThreatsFinancial crisisCompetitorsIncreased market for counterfeit productsResources are decreasing5. PEST analysis5.1 Political and legalThe anti-counterfeiting trade agreement (ACTA) aims to establish and international legal framework for targeting counterfeit goods. Where as in Singapore has kick the bucket one of the biggest shopping country in Asia, furthermore Singapore is a Bureaucratic country and extremely centralized, with 17% corporate measure, less tax regimes investors are not subject tocapital gains tax, dividend ta x, and foreign ex kind controls (Mehamer, 2013). On august 9 1965 Singapore became and independent nation and consistently improverd their economy, by maintaining their productivity with a stable government and has severe laws in place and due to strict governance and associated fines less corruption, efficient and transparent government. Singapore has class-conscious the 1st in the global enabling trade index and 18 FTA with trading partners in their trade policy.5.2 EconomicSingapore itself have a soused economy statistics. It was recorded and the data shown as interest rate0.2%, Growth rate 6.90%, Jobless Rate 2.10% and GDP per Capita $37,293 (Mehamer, 2013). This massive record shows that Singapore have crocked basis economy in their government. Louis Vuitton with a sales of 7.2 billions in 2012 were involved in Singapore Trade to GDP ratio of 270.8%, and gritty dependance on global market trends and fluctuations in macro economy.5.3 Socio-CulturalSingapore citizen with ex cellent education and healthcare (Sirikan C, 2013). Literacy rate of 92.5% and a multitasking language where they lived as a multinational country that supports every citizens to speak 2 languages, as their mother tongue is Mandarin or English. A significant percentage of non-residents who lived in Singapore with a Gini coefficient index of 48.1 shows that Singaporean can easily adapt with foreign where the employee of the company can interact with customers behavior and promote their products relay on their cultures behavior and difference.5.4 technologicalIn the last tens of years ago, technology in Singapore has a massive evolved of their needs. The growth of technology helps Louis Vuitton to communicate with their headquarters, due the change of currency, products release, transactions and supports more efficient. Furthermore it give a huge impact for both companies and countries to safe their times to manage their needs. Whereas Singapore had become a developed country the ch ange of technology to renew their materials use its not problem for them to follow the world trade affair.6. Porters AnalysisPorters Five ForcesAnalysis6.1 Threat of New EntrantsLOWCompetitor GUCCI, Yves Saint-Lauren, Channel, Bally.Jewelry Montblanc, Bulgari, Cartier, Officine Panerai.Even though LVMH have a strong many competitors Luxury goods, LVMH offer a strong and unique in their products such as high quality products, well service for every customers and brand foster. Furthermore, LVMH has no worries with their competitors they have a loyal customers who perpetually bought the products and advertise to their friends, longstanding commitment to quality and Investment required would be extremely large for those who do businesses. Besides that for a new goods brands wont give an impact to LVMH (Dang, 2013). 6.2 Bargaining Powers of SuppliersLOWFor a big company LVMH have a Suppliers and subcontractors are required to comply with strict environmental guidelines. Where LVMH nee ds lots of materials they will have many offers which the company produce the materials with the lowest deals and highest quality needs (Dang, 2013).6.3 Bargaining Powers of CustomersLOWWith branded name and value customers had become the most loyal of companies buyers, from the experience that they ever had, has build the trust and set their mind become a loyal buyer. Fashion is a trend with a strong name LVMH has put their products into the top levels and Louis Vuitton products are never on sale.6.4 Threats of Substitute ProductsLOWHigh profile luxury goods LVMH brands have high quality productsdifferentiations and believe. 6.5 Rivalry Among CompetitorsModerateIn every company will always have their own competitors in this case LVMH are working in Luxury industries in a big scale to have an competitors will always be a positive things to brought new ideas and trends, in fact competitors do not sell exactly same products and different brand value (Dang, 2013).7. RecommendationsTo m ake LV more appealing to the consumers, some products of the brand can be made available only in small quantities, by limiting its production of certain products from time to time, or producing special edition of the same handbag in different markets. LV product could become even more premium, Create products for collection of limited editions, expend the trend by increasing the popularity by adverstiment. Open their outlets store only in high end malls all around the world. To become more premium in their products LVMH may consider to concentrating its business model to production of leather goods only becoming specialist in their interest.8. ConclusionsLouis Vuitton is one of the leading fashion trends industries in the world which has significant every year. Louis Vuitton will always have their loyal customers where they bought their new products, with a strong brand value LVMH has no worries with their competitors. On the other hand due the change of time they have to consider w ith their resources that year by years will decreased their materials. Louis Vuitton shall put more concern on their weakness in both versed and external put them in the higher level of luxury goods market. They may consider to merge with other company in different products offer to increase and fasten their sales. Working in Luxury markets sales is stable jobs and it wasnt easy but they have to stable their sales and increase the value to become a premium brandReference ListConstant, J. (2012, 11 02). lvmh. Retrieved 01 14, 2014, from Louis Vuittonhttp//www.lvmh.com/investor-relations/lvmh-at-a-glance/executive-committee/Reuters, T. (2013, 11 02). Worlds Most Valueable Brands. Retrieved 01 14, 2014, from Forbes http//www.forbes.com/companies/louis-vuitton/Mehamer, C. (2013, 09 13). http//prezi.com/bin1bd1_2zt1/pest-analysis. Retrieved 01 29, 2014, from http//prezi.com/bin1bd1_2zt1/pest-analysisSirikan C, r. (2013, 07 28). A Cultural & Economic Analysis of Singapore for making Mark et Entry Decisions. Retrieved 01 29, 2014, from Slide Share http//www.slideshare.net/SrikiranCRai1/a-cultural-economic-analysis-of-singapore-for-making-market-entry-decisionsDang, A. W. (2013, 01 23). Louis Vuttion Moet Hennessy Presentation. Retrieved 01 29, 2014, from SlideShare http//www.slideshare.net/mraldang/louis-vuttion-moet-henness