"Strategic and Operations ManagementA Study Conducted OnLVMH GROUP Table of ContentsIntroduction: .................................................................................................................................... 2Purpose of LVMH Group...............................................................................................................................2PEST Analysis................................................................................................................................................31. Portfolio Strategy: ....................................................................................................................... 32. Evaluation of divisional strategy of LVMH Group: ................................................................... 62.1Generic Posture: ....................................................................................................................... 72.2 Product Market strategy ............................................................................................................ 82.3 Directional Strategy: ................................................................................................................. 93. SWOT analysis: .......................................................................................................................... 9Stakeholders...............................................................................................................................................12Competence Structure................................................................................................................................12REFERENCES: ...........................................................................................................................133 1Introduction:LVMH Moët Hennessy - Louis Vuitton is considered to be a world leader in luxury possessing aunique portfolio of over 60 extremely prestigious brands including names like Dom Perignon,Christian Dior, Donna Karan and Louis Vuitton.. The various sectors in which the group is activeinclude Fashion and Leather Products, Watches and Jewelry, Perfumes and Cosmetics, Winesand Spirits and Selective Retailing. Since its creation in 1987, due to its expansion ofinternational retail network and brand development strategy, LVMH had a strong growthdynamic with over 3000 stores worldwide. In the current day, almost 100,000 employees sharethe group?s value. LVMH carries out numerous initiatives for protecting the environment andcommunity action for human development such as LVMH-ESSEC Chair and LVMH House. Thegroup is also involved in the support of designers and young artists, humanitarian action,heritage, culture, and education.Purpose of LVMH Group:Mission: The mission of the LVMH group is to represent the most refined qualities ofwestern “Art de Vivre” around the world. LVMH must continue to be synonymous withboth elegance and creativity. Our products, and the cultural values they embody, blendtradition and innovation, and kindle dream and fantasy.Vision: LVMH pursue authentic quality and uniqueness in their products. The companypersists to strive for global growth to remain prominent in the future. They want tomaintain their ground to be a pioneer and leader among luxury industry. Through this, thecompany will increase the share price with their excellent performance to bolsterinvestor's confidence. 2 PEST ANALYSIS:Political: A competitive, transparent and modern economy with vibrant and updatedinformation and communication technology sector.Environmental: World leader in business freedom, property rights and trade freedom, ahigh level of economic freedom available with a sound banking system and taxes beingmoderate with a high level of overall taxation.Social: Scenario of shrinking workforce and a catapulting population.Technology: Existence of a cutting edge expertise in high tech clusters, availability ofwireless solutions, adaptation to the emerging technologies.1. PORTFOLIO STRATEGY:Strategic Fit:The potential for the use of synergies between the different businesses has been observedfrom the corporate value chain. The synergies that can be identified from the value chainanalysis of LVMH include the following.Technology: The development in technology can be utilized across businesses. E- procurement, Intranet aid in exchange of technology across businesses.CRM, Sales, Marketing, Distribution and Service: In case the target market iscommon, the different businesses tend to overlap each other for route to market.Operations: Since the trend of the products fall in the category of luxury, they tend tocater to the same market segments who are the consumer of premium price taggedproducts, hence the various businesses trade in similar markets. Except for Wine andSpirits, there is a tendency for different businesses to overlap. 3"