Lvmh Management Control

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Cost Accounting and Management Control LVMH: Cost Accounting and Management Control Executive Summary A) Introduction - Presentation of LVMH (story, brands, products) - Results of the group: good financial performance for the last years with growth of the sales and of the net profit, 2010 was a record year with extraordinary results - Good financial and commercial prospects with an encouraging year 2011 supported by a constant growth in the emerging markets - Strategy of the group: diversification of its brands portfolio B) Operating review - SWOT analysis C) Conclusion - Summary of the analysis - Recommendation whether a consultancy group should approach this company - LVMH is a good investment A) INTRODUCTION “LVMH is not just about numbers” (Bernard Arnault, Chairman and CEO of the LVMH Group) Created in 1987 and based in Paris, LVMH – Louis Vuitton Moët Hennessy – is a world-leading brand in the luxury sector. In 2011, more than 80.000 employees work for the group, 77% of whom are based abroad. LVMH possesses more than 60 sub companies, including Louis Vuitton, Guerlain, Chrisian Dior, Fendi… Bernard Arnault, chairman and CEO of the group, owns almost 48% of its shares. The company is listed on the Euronext Paris exchange, and is a constituent of the CAC 40 index. The companies owned by LVMH operate in 5 major activities that represent the five business units of the group: - Wines and Spirits (14% of total revenues for the first 9 months of 2011), - Fashion and Leather Goods (38%) - Perfumes and Cosmetics (14%) - Watches and Jewellery (7%) - Selective Retailing (27%) The group’s revenues for the first 9 months of the year 2011 amount €16.3 billion, corresponding to a 15% growth (reported and organic) compared to the first 9 months of 2010. For the full year 2010, the group revenues had reached €20.3

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