Formal Report

Introduction

Moet Hennessey, Louis Vuitton S.A is also based in Miami (2655 S Le Jeune Rd Ste 701, Miami, FL 33134). Moet Hennessey, Louis Vuitton S.A., which is usually shortened to LVMH. It is the world's largest producer of luxury goods. LVMH has over 50 mostly autonomous daughter concerns, to which it is a parent company. A number of the world's renowned brands are managed in turn, by each daughter company. The LVMH Company came into existence when one of the world's largest manufacturers of champagne, Moet et chandon, formed a merge with Hennessey, a leading manufacturer of cognac. LVMH group, in its present form, was realized in 1987, following a further merger with Louis Vuitton, a fashion house. LVMH is a worldwide brand, and it has employed over 56000 people. It is a global giant with a portfolio of 50 prestigious brands, with each brand having a unique history and culture. Its activities include business in jewelry and watches, wines and spirits, cosmetics and perfumes, fashion leather and goods, among others.

In this assignment, I am going to major on Christian Dior company, because it is the main LVMH holding company. It owns 42.38% of its shares, and voting rights of 59.3%. Christian Dior's majority shareholder is also the chairman of both companies. He is LVMH's CEO. By successfully integrating various famous aspirational brands, other luxurious companies, e.g. Richemont and Gucci, which is now, part of French conglomerate, to do the same. The assignment also covers Chateau d'Yquem, which is the oldest brand of the group, the producer of premium vintage wine.

Challenges facing LVMH

Intercultural training

LVMH is facing the challenge of preparing its expatriates to its international assignments so as to facilitate the cross-cultural adjustments. Therefore, the adjustment process would be accelerated. It involves training the employee together with his/her family. At present, both post-arrival and pre-departure training develop the language courses. Little time is left for intercultural training since an international position requires to be filled urgently. As a result, very little training is provided even to 'culturally tough' countries like Mexico and Brazil, where people usually adjust to their own cultures. They are however, not put under pressure to perform as though they had undergone rigorous training. In some cases, subsidiaries provide help to newcomers and the trainees are allowed preparatory field trips. As a rule, a candidate has to have some previous international exposure, for instance, through studies or earlier professional exposure before he/she is sent on an international assignment.Support for family

LVMH employees rarely turn down international assignments. However, it has been noted that the employees have some characteristics that impede their mobility, and in most cases, this is related to the spouse. To assess willingness of an employee to take on an international assignment, LVMH puts out feelers. When it anticipates a potential problem with the spouse or reluctance, it does not offer international mobility. To counter this, international assignments are typically assigned to young graduates, who are mostly single, and understand the developmental purpose of taking up the assignments.

Repatriation

Whether an employee's international assignment is a local contract or an expatriation per se contract, always there is a deliberate limitation of the assignment's length, ...