Report on Christian Dior
| A REPORT ON CHRISTIAN DIOR| STUDENT NO:200912051| | | | AKNOWLEDGEMENT I would like to say thank you everyone who helped me to finish this assessment successfully and to God almighty that saw me through all this. TABLE OF CONTENTS CHAPTER 1 INTRODUCTION….
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… 1 AIMS AND OBJECTIVES..
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.. 2 LIST OF DIAGRAM AND TABLES….
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…. CHAPTER 2 BRIEF HISTORY..
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4 ACTIVITIES AND GLOBAL PRESENCE……
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4 NATURE OF COPORATE GOVERNANCE……
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… 6 NATURE OF LOCAL/NATIONAL AND GLOBAL SRATEGY..
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………………………… 7 KEY PROBLEMS AND ISSUES………………………………………………………………………. CHAPTER 3 FINDINGS………………………………………………………………………………………………….. 9 CONCLUTION……………………………………………………………………………………………… 9 RECOMENDATION………………………………………………………………………………………. 9 REFERENCES…………………………………………………………………………………………… 10 CHAPTER 1 INTRODUCTIONChristian Dior remains one of the world’s biggest names in the world of fashion and has remained a leader for over a period of fifty years according to vogue magazine it has grown to be the world’s leading luxury goods holding company. It is a French company founded by a fashion designer named Christian Dior in the year 1946 it also has a 42% LVMH Moet Hennessey, Louis Vuitton which is the largest luxury goods firm in the world. Both the Dior and LVMH are controlled by a business man named Bernard Arnault.The Dior label was named after the designer Christian Dior. This big company has its headquarters in Paris, France, it has an estimated 160 boutiques globally and as at 2009 had 73,150 employees worldwide. AIMS AND OBJECTIVES The aim of this report is to show the activities and brands of the empire Christian Dior, the nature of corporate governance, the nature of a local/national and a global strategy and also the key issues and problems that this company is faced with and will also include findings during the course of the research and recommendations.LISTS OF DIAGRAMS AND TABLES DIAGRAM SHOWING THE YEARLY INCOME OF CHRISTIAN DIOR………… DIAGRAM 1. DIAGRAM SHOWING THE STOCK MARKET DATA OF CHRISTIAN DIOR….. DIAGRAM 2 CHAPTER 2 BRIEF HISTORY Christian Dior is popularly known as Dior by the general public as a high in designer of luxury goods, they produce different ranges of products ranging from women clothes to perfumes and shoes and men’s clothes they produce they also own 45% of LVMH they have different divisions and have an estimated 160 outiques worldwide. It started from a private house in Paris, France in the year 1946 but the Dior Corporation celebrates 1947 as the opening year. ACTIVITIES/BRANDS AND GLOBAL PRESENCE Christian Dior has successfully created a couple of brands, there is the haute couture which was launched in 1946 which was part of the house of Dior and made ready to wear fashion , menswear and accessories.Also they launched the Christian Dior perfumes although references contradict themselves on the topic of when Christian Dior perfumes were created and established but all contradictions were made within the years 1947 and 1948in the following year the launched yet another division which was the new look ,the signature look of this collection was criticized by the public stating that it was made by a below mid-calf length, full skirt, large bust and a tiny waist but over a period of time new look became very popular and influenced fashion and other fashion designers for years to come.In the following years Dior had many different designers which included Saint Lauren and Bark Bohan. In 1948 Bohan launched a new brand in the Dior house called baby Dior and in 1969 they also launched a range of cosmetics following that he also launched the first collection of Christian Dior home clothing line for men in the year 1970. they also launched a range of Dior watches. They have since maintained a good reputation in the production of high quality luxury goods although under different managements.As at 2009 they had an estimated 160 boutiques worldwide. The diagram below shows the total income that is generated by the Christian Dior Corporation. Revenue by business group (Table) IN MILLIONS OF EUROS DIVISIONS| 2009| 2008| 2007 (1)| Christian Dior Couture| 717| 765| 787| Wines and Spirits| 2,740| 3,126| 3,226| Fashion and Leather Goods| 6,302| 6,010| 5,628| Perfumes and Cosmetics| 2,741| 2,868| 2,731| Watches and Jewellery| 764| 879| 833| Selective Retailing| 4,533| 4,376| 4,164| Other activities and eliminations| (52)| (91)| (124)|Total| 17,745| 17,933| 17,245| SOURCED FROM THE DIOR FINANCE WEBSITE. NATURE OF CORPORATE GOVERNANCE Corporate governance can be defined as the process, customs, laws by which the affairs of a company are managed and controlled it also includes the decisions of the stake holders towards the management of the company and how it is being affected by various laws and policies formulated by the government for example taxation which will affect the general performance and profit level of the organization.The Christian Dior Company is headed by a board of directors in which Bernard Arnault is the chairman, it also has a team of executive management committee, performance and audit committee, nomination and compensation committee and statutory auditors, they also have some share holders and their shares are considered free float. They all work together to make sure that high in and high quality luxury goods are presented to the general public. As at 2009 they had 73,150 employees all over the globe.The table below shows the stock market data of the Christian Dior Empire. stock market data Historical data IN MILLIONS OF EUROS SHARES| 2009| 2008| 2007| 2006| 2005| Highest share price| 73. 22| 89. 99| 97. 97| 87. 15| 79. 70| Lowest share price| 34. 60| 30. 18| 79. 10| 69. 00| 47. 90| share price as of December 31| 71. 76| 40. 25| 89. 90| 80. 75| 75. 10| Trading volume| 46,238,935| 66,951,800| 55,768,995| 40,850,000| 57,859,654| Stock market capitalization: as of December 31, in billions of Euros| 13. | 7. 3| 16. 3| 14. 7| 13. 6| Group share of net profit| 3. 89| 4. 43| 4. 86| 4. 41| 3. 43| SOURCED FROM THE DIOR FINANCE WEBSITE THE NATURE OF LOCAL/NATIONAL AND GLOBAL STRATEGY Like any other company Christian Dior has both internal and external environment which cannot be controlled by them but they can use necessary strategies to adapt to the situations as they change and the strategies used by Christian Dior will be explained using swot analysis.This is the strengths, weaknesses, opportunities and threats involved in the business. The strengths of the Christian Dior is that it has a good reputation which is referred to as the goodwill of the company and it is well known for the production of high quality goods and it specialises in the production of and distribution of various consumer goods which includes jewelleries, leather goods, cosmetics, spirits, wines and clothing.And a strategy they use to maintain this image is by marketing and distributing its products through exclusive boutiques and licensed distributors throughout Europe, the United States and Asia . weaknesses faced by Christian Dior include the loss of key staffs, through the years the company had had to change the main designers of their clothing and their products this gives a different style to the outfits and are not sometimes accepted by the public.The Christian Dior group of companies have many opportunities of businesses in the fashion industry as they are one of the leaders and they also enjoy economies of scale as they are a very big company. The company has a lot of threats as there are other giants in the market which are their main competitors and new designer label are coming into the market, some of their competitors include channel, Prada, Gucci, Versace and many others.THE KEY PROBLEMS AND ISSUES Through the years the company has been criticized by a lot of people saying that the designs of Christian Dior encourages anorexia among young women wanting to fit into their outfits an example was when a fashion model Inga Radzieiejewski criticized them saying they promote an unrealistic body image by creating clothes that are very small causing women to want to be dangerously underweight.The company Christian Dior produces high quality goods which have high prices and therefore they do not attract a lot of consumers and sometimes to not generate enough revenue or have large increase in sales. CHAPTER 3 FINDINGS During the course of the research I found out that the Christian Dior Company did not only own the house of Dior but also owned 42% percent of LVMH and produced other goods like wines and spirits. I also found out that they have
