Case Study Louis Vuitton Moet Hennessy

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The key organisational metaphors I have noticed being used by Louis Vuitton Moet Hennessy are organisations as machines, organisations as cultures, organisations as brains, organisations and organisms and organisations as flux and transformations. All these metaphors are used within LVMH to varying degrees. Although it can be argued that all eight metaphors are present these are the most predominant.
Organisations as Machines- There is a use of scientific theory in the running of Louis Vuitton Moet Hennessy. Bernard Arnault uses scientific theory in the management of his company. They measure the success of the business in a quantitative manner. This is done by monitoring sales, expenditure and profits. For example, if the sales of products
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Historically, LVMH operated under a closed, exclusive culture. They believed that their product would sell well in China just because of the brand name. However, this was not the case, and LVMH had to change their products and become less exclusive to appeal to the middle class and increase their sales. They had to become more open and more accepting of their outside environment in order to be successful. LVMH originated in France so they have to take into account the culture of the new market. They had to look at a number of factors including, Chinese fashion trends, tastes, marketing and beliefs. They do not want to offend the Chinese consumer market by accidentally insulting their beliefs. Also, for the products and marketing to be successful LVMH need to attract the attention and appeal to their target audience. The businesses own culture was also adapted to appeal to a more middle-class market due to an economic down turn in China. Arnault dealt with the fashion trends of China by providing a more subtle brand…show more content…
They have many segments and sections that work together in order for the brand to be a success in the luxury market. For example, if the material used in making the products isn’t of high quality it effects the design and sales of the product. In the case of Moet Hennessy if the ingredients sourced for their alcohol isn’t of a high standard the luxury of the product is compromised. LVMH in China must consider local taste preferences when making alcohol as it may differ to the procedure used back home. If the reputation of the brand is damaged in one sector it may impact the overall image of the brand in China. Some of the products LVMH make take ‘300 stages to assemble’ (CNNMoney

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