Bernard Arnault And His Duality Pioneering Act Of Lvmh Essay

Bernard Arnault And His Duality Pioneering Act Of Lvmh - Essay Example Global firms have the whole world as its market field that they can offer a wide array of products and services - firms keep growing while others downsize or rightsize. One aspect of globalization is that firms can assign departmental functions, such as marketing, finance, operations, human resource management, and accounting to other firms – this is known as outsourcing. Global firms use many different structural forms in dealing with globalization. They can use the horizontal structure which is made easier with the availability of the internet and Information Technology. It is still possible with the old structure, i.e., the vertical structure where the top echelon of the organization can dictate or take hold of the reins of business even if they are in the other side of the world. Whether we see this as positive or negative, globalization has change the world in terms of commerce and trade and how we see the world in different perspectives.After the world economic downturn, some of Europe’s giant firms have continued to keep watch the playing arena of businesses in terms of acquisitions and mergers. They have turned their eyes on the emerging markets of China, India and other countries of Asia. This is because these emerging markets survived and made remarkable steps during the financial crisis. And this is one of the reasons why Bernard Arnault, who is believed to be Europe’s wealthiest man, has shifted business focus to Asia, particularly the emerging markets of China and India.... This is because these emerging markets survived and made remarkable steps during the financial crisis. And this is one of the reasons why Bernard Arnault, who is believed to be Europe’s wealthiest man, has shifted business focus to Asia, particularly the emerging markets of China and India. Combine these two countries in terms of population, you have approximately one third of the world’s peoples who have the urge and the motivation to buy consumer products. In China, particularly Shanghai, the motivation is on luxury products, which is why Bernard Arnault has his own ambassador there in the person of John Galliano. Arnault has made business trips using his private jet to wherever he wants to promote the latest of his treasured bags and perfumes. He has made instant visits to places as far as Morocco not only to promote but to measure how much profits the company has earned there. 2. Background of Bernard Arnault and LVMH Bernard Arnault is not only Europe’s weal thiest businessman with an estimated worth of $39 billion, he is a multi-talented and product-oriented artist. He has acquired brands from bags to perfume and has made corporate acquisitions one after another. He describes his quest for perfection as a ‘duality’ which should be reinforced immediately with â€Å"timelessness and utmost modernity†. His desire to acquire businesses is not only motivated by finances but by his dream to infuse art on commerce (or commerce on art). And he is doing this because he believes he is doing it for France and the people who patronize LVMH. His modernity and art includes a collection of modern and contemporary art which will soon be housed in a grand museum designed by Frank Gehry, which Arnault has