LVMH’s competitive strategy

  1. What are the major elements of LVMH’s competitive strategy in the branded luxury products industry? How
    well do the pieces fit together? Is the strategy evolving?
  2. How have LVMH’s corporate strategy choices strengthened or weakened its competitive position in the
    branded luxury products industry?
  3. Is LVMH’s international strategy best characterized as a multi-domestic strategy, global strategy, or
    transnational strategy?
  4. Does it make good strategic sense for LVMH to compete in all of its current segments? Which of its product
    lines — Wine and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry,
    Selective Retailing, and Other — do you think is/are most important to LVMH’s future growth and profitability?
    Should one or more of these current segments be discontinued? Why?
  5. What strategic issues confront LVMH in 2016? What market or internal circumstances should most concern
    CEO Bernard Arnault and his company’s senior leadership team?
  6. What recommendations would you make to Arnault to address the strategic issues confronting LVMH in
    2016 in order to sustain its impressive growth in revenues and profitability?
    Calculate the following ratios for Nucor for 2016: (find and use the Nucor annual report:
    http://www.nucor.com/investor/)
    a. Gross profit margin
    b. Operating profit margin
    c. Net profit margin.
    d. Times interest earned coverage
    e. Return on shareholders’ equity
    f. Return on assets
    g. Debt-to-equity ratio