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Evidence of the controlling function lies in the decision to keep production in France, where they were more satisfied with quality control. By advising their employees on the product’s requirements, they employees are measured by how well they stick to the requirements.
For a while, Luis Vuitton has focused on its popularity in Japan, which accounts for approximately 55% of its global sales annually (Bloomberg Businessweek Magazine 1). Luis Vuitton also focuses on the women’s demographic with their handbags and female shoes lines. Luis Vuitton also targets middle-aged men with their line of Vuitton eyeglass cases, wallets and briefcases. Additionally, Luis Vuitton has been attempting to woo younger clients while retaining their older client base.
The company has cultivated a brand loyalty within the Japanese market through a staff that comprises of Japanese locals, and thus, increasing access to this lucrative market. As proof of this, almost all grown-up Japanese women possess at least one Luis Vuitton item.
Luis Vuitton has a monolithic workforce that has little cultural integration. As gleaned from the article, Luis Vuitton decided to keep its major factories in France and employ locals, who cost more because the quality control in France was higher (Bloomberg Businessweek Magazine 1). Additionally, their Japanese operations were also staffed with locals in order to tap into what their Japanese customers need.
Luis Vuitton’s management inspires a shared vision among its employees. The company management encourages its employees to suggest improvements to its manufacturing designs and briefs them on the product details, for example, the product’s retail price, as well as how well the product is selling (Bloomberg Businessweek Magazine 1). The management also enables others to work, in this case, its employees as evidenced by the workers who
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