Question

Which of the following statements are pillars of the LVMH Business Model? Select several answers.

a. Decentralised organisation
b. Sustaining Savoir-Faire
c. Creating Synergies
d. Balance across business segments andlocations

Answer 1

The pillars of the LVMH Business Model are a decentralized organization, sustaining Savoir-Faire, creating synergies, and balancing across business segments and locations.

Step-by-step explanation:

The pillars of the LVMH (Louis Vuitton Moët Hennessy) Business Model are:

• Decentralized organization: LVMH has a decentralized structure, allowing each brand within the conglomerate to maintain its own identity and control over its operations.
• Sustaining Savoir-Faire: LVMH prides itself on preserving and promoting the craftsmanship and expertise of its luxury brands, ensuring the continuity of their traditional techniques and heritage.
• Creating Synergies: LVMH encourages collaboration and synergies among its brands, leveraging their strengths and resources to drive innovation and growth.
• Balance across business segments and locations: LVMH aims to achieve a balanced portfolio of brands across various business segments (including fashion, wines & spirits, watches & jewelry, perfumes & cosmetics) and geographical locations to diversify its risk and maximize its global presence.

Answer 2

a. Decentralised organisation, b. Sustaining Savoir-Faire, and c. Creating Synergies are the pillars of the LVMH Business Model.

Step-by-step explanation:

**Decentralised organisation**, **Sustaining Savoir-Faire**, and **Creating Synergies** are the pillars of the LVMH Business Model.

A decentralised organisation allows decision-making authority to be distributed among employees at different levels of the company, which promotes increased efficiency and flexibility.

Sustaining Savoir-Faire refers to LVMH's commitment to preserving and promoting its traditional craftmanship and expertise across its various luxury brands.

Creating synergies involves leveraging the resources, expertise, and networks within LVMH's diverse portfolio of brands to generate value and competitive advantages.

Balance across business segments and locations is not included as a pillar of the LVMH Business Model.