Environmental Analysis of Louis Vuitton Assignment

Environmental Analysis of Louis Vuitton - Assignment Example Environmental analysis of an organization is necessary to realize the impacts that several factors might have on an organization. Such analysis enables business organizations to identify the threats and opportunities and thus a company is capable of considering the effective measures accordingly (Jain, Trehan & Trehan, n.d., p.21). Macro environment of an organization refers to the environment external to an organization and includes factors like the political-legal environment, the technological state, and the socio-cultural environment. Micro environment on the other hand refers to the internal environment that includes factors like the organizational employees, the board, the consumers, the contractors, the competitions, the financial organizations associated with a business as well as the governmental impacts (Management: The Business Environment of Organizations, 2012). The present study has considered Louis Vuitton as the business to make a detailed learning on the organization ’s macro and micro environment thereby trying to reflect on its strengths, weaknesses, opportunities and threats. Louis Vuitton: An Overview: The Louis Vuitton fashion house has its name from the founder of the company, Louis Vuitton who was a fashion designer by profession. Initially he had been involved in manufacture of trunks in Paris and his company became famous for luxury goods. The luggage company along with its designer logo has made its presence successful and leading through its availability of luxury goods for its consumers, and products like books, perfumes, distilled spirits as well as designer clothing (Louis Vuitton, 2012). Purses, wallets and women bags as offered by the company are highly popular. Louis Vuitton Company merged with Moet et Chandon and Hennessy in the year 1987 that led to the creation of luxury powerhouse anagram LVMH. Ten years after this merger, the business started offering ready to wear products and other clothing (Label Overview, 2012). In the present times, the company is known to have its presence in several countries across the world that includes Japan, China and Asia among others . There are around 130 retail stores of the company in total across the world. With the passing years, newer ranges of handbags and accessories are being designed and presented by Louis Vuitton. The company focuses on creation of new, graceful, and sensible up to date luxuries with value. These primarily cater to those consumers who believe in style, and are aware of the latest designs being offered, thus following the up to date trends of fashion (Louis Vuitton (1821-1892), 2012, pp.16-28). Macro Environment Analysis of the Company: The macro environment analysis of Louis Vuitton would involve the relevant environmental trends in the external factors that might affect the company and its operations to achieve its desired goals and objectives. Economic Factors: The economic factors that may affect Louis Vuitton include the rates of interest, the changes in the systems of taxation, the rates of economic growths, the inflation rates and rates of exchange that are generally varied depe nding on different countries