Hi, need to submit a 2750 words essay on the topic Cross-cultural Management. LVMH: Career development through international mobility.
Though the 60 subsidiaries deal in different products, their operations are limited to 5 different sectors which are wines and spirits, selective retailing, fashion and leather goods, watches and jewelry and perfumes and cosmetics.
Because of LVMH’s strong and strategic brand development strategy, LVMH has managed to successfully expand its global retail networks, for which there are 3,000 LVMH stores distributed across the entire globe. It is because of these strategic development strategies that has enabled LVMH grow since its inception in 1987. Apart from the 3,000 stores to LVMH’s name, the organisation presently prides itself of 110,000 employees. 81% of these employees are based outside France but share in the LVMH’s values. LVMH also uses culture, humanitarian action and heritage as a way of extending itself into the rest of the world.
According to Enriques and Volpin, (2007, p. 130), despite numerous efforts that LVMH has expended to penetrate the market, there are serious impediments that it faces. One of the impediments is competence. Entering foreign markets means penetrating different geopolitical entities. These geopolitical entities have different cultures and rates of socioeconomic and political development. This means that educational levels and levels of competence may greatly vary. The import of this is that LVMH has always had to contend with human resources hat do not have adequate international skills and competence. Apart from the failure to possess managerial competence among international human resources, LVMH has had to seriously contend with language barriers and an insufficient knowledge on international markets. The crux of the matter herein is that a global manager needs proper training and experience in managing multicultural and multilingual environments to help a particular LVMH chapter in a specific market. The acquisition of such abilities and skills may