With the traditional corporate ladder is giving way to globalization, merger and acquisition activity in the luxury sector is considered to be a common norm. However, Chanel, a Parisian fashion house founded by the late couturier Gabrielle "Coco" Chanel, recognized as one of the most established in haute couture chooses to be privately held until today. In this presentation, we will examine the secret of the organization structure in Chanel, how Chanel can manage the balance between an individual French company and a global luxury brand company. How to allocate resources without strong financing like LVMH and PPR etc? Does the French heritage contribute to its global business expansion and is their current business strategy sustainable in terms of globalization in the future?
1. Why Chanel chose the current individual organization structure? * Overview of the company
* Overview of Chanel (History and heritage )
* Current Business Portfolio Analysis (BCG matrix)
* Channel Organizational Structure vs Typical Organizational Structure of Conglomerate company (case of LVMH) * Why Channel did not choose to be public company
2. How does Chanel balance between Individual French company and Global luxury brand company? How does French heritage contribute to its global business expansion? * Case Analysis of Japan
* Political/Economic/Social/technological Analysis (PEST) * Company’s core competence in Japanese market
* Products vs. Market (Ansoff analysis)
* Analysis of the cultural effects on the organizational structure * (Hofstede’s Four Value Dimensions)
3. Is their current business strategy sustainable in terms of globalization in the future?