Verified Document

Gucci And LVMH Gucci' Was Term Paper

Gucci too moved immediately, and along with PPR, purchased from Francois Pinault, the Sanofi Beaute Division, and also the Yves St. Laurent's couture and fragrance businesses. Ford agreed to stay on for another four years, and the PPR investment was formally approved by 80% of Gucci shareholders. However, Gucci now had a new problem, in which PPR could control Gucci with Gucci's management, and LMVH also had a stake, with 20.7% interest. (Moffett; Ramaswamy, 163) How could Gucci uphold the promise that stockholders would get a premium if the ownership changed? In the meanwhile, LMVH wanted to free $1.4 billion of its investment in Gucci, and in November 2000, all the involved parties were back in Court. Gucci finally agreed to distribute a special dividend of $7 per share to all shareholders, except those held by PPR, but this act annoyed quite a few analysts and experts, because the premium must be at least 15%, and at the same time, Gucci continued...

However, De Sole attributed his success to excellent product design and quality, good distribution, and the best communication found in any company. (Moffett; Ramaswamy, 163-164)
If I were Gucci, I would have probably done a similar thing, wherein I would try to uphold the stockholder's interests at any cost, without compromising the company in any way, and at the same time, maintaining excellent communication channels and relations with other investors in the company, including PPR and even LMVH, to a certain extent. The outcome of the entire drama was good for Gucci, and its shareholders received their premium, and PPR continued its investments and partnership, and LMVH held stocks in the company, at no loss to anybody, while Gucci could go about acquiring the beauty and fragrance divisions of the Sanofi Beaute Company, and Yves St.…

Sources used in this document:
References

Moffett, Michael; Ramaswamy, Kannan. Fashion Faux pas Gucci. pp: 159-170
Cite this Document:
Copy Bibliography Citation

Related Documents

Gucci Company Gucci a Brief History of
Words: 1418 Length: 4 Document Type: Essay

Gucci Company Gucci A Brief History of the Company Gucci was founded in 1921 by Guccio Gucci. Gucci was an immigrant who worked in London and Paris. Because he worked in high-end hotels, he became enamored with the beautiful luggage he would always see. He returned to Florence, Italy, where he was born, and begin to sell fine leather goods from a shop in 1920 (Forden, 2000). The Gucci company was officially

La Groupe LVMH Louis Vuitton
Words: 2093 Length: 8 Document Type: Research Paper

Il y avait une controle tres rationnelle sur la quantite des produits fabriques par la marque LV. Au cause d'un demande qui reste fort, et un fabrication rationnelle, il y a toujours un certain demande pas tout-a-fait supporte par la boite. Donc le prix peux reste eleve, et les marges restent aussi eleve (Market Research, 2007). Qu'est-ce qui va passer avec LVMH dans l'avenir? LVMH continue avec sa marche dans l'industrie de

Internal Analysis: Brand Recognition
Words: 1969 Length: 7 Document Type: SWOT

Louis Vuitton -- Case Study Key Issues To formulate a plan for the expansion of the brand into the international market. The planning and execution of strategies that would help on long-term commitment of support in the international market, depending upon different parts of the world. The formulation of strategies and plans in cases of economic down times and interference of government policies. Assess the performance of the company by taking into consideration the

Louis Vuitton Moet Hennessy in Search of Synergies in the Global...
Words: 1831 Length: 4 Document Type: Term Paper

Louis Vuitton Moet Hennessy A luxury good is a product at the highest end of the market in terms of quality and price. Classic luxury goods include haute couture items such as clothing, accessories and luggage. However, many markets have a luxury segment including, for instance, cars, wine and even chocolate. Luxury goods markets are characterized by very high sensitivity to economic upturns and downturns, high profit margins and very tightly

Market Research Final Assuming That
Words: 2030 Length: 7 Document Type: Thesis

This is where the fundamental disconnect is in the purchasing process and why despite the heavy investments in catalogs and games the company is still struggling. It is not reaching the most profitable customers on a consistent basis. 4. Using the appropriate t-test, determine if those who purchased from Gucci and those who did not (q11), are different in terms of a. Their evaluations of catalogs (q7_a - q7_f), b.

Apparel Industry on the First
Words: 3585 Length: 12 Document Type: Term Paper

"Social messages sent by clothing, accessories and decorations can invoke social status, occupation, ethnic and religious affiliation, marital status and sexual availability etc." 4.2 Product innovation and technological changes The rapid rate of technological development set the course of development in numerous other domains, including apparel. In this order of ides, the technology adherent to the apparel production process is on its path from computer made designs to technologically improved materials'

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now