Kering 603

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Central Michigan University *

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698

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Business

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Jan 9, 2024

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docx

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KERING STRATEGIC IMPLICATIONS FOR Utilizing a shared HR services platform MSA 698 Directed Administrative Portfolio Paper #1 MSA 603 Strategic Planning for Administrators Submitted by: Taraiya Dodd Instructor: Dr. Don Forrer Submission Date: May 31, 2020
Running Head: MSA 698 Directed Admin Portfolio Paper #1- MSA 603 Dodd 2 Abstract The strategic nature of any company is determined by the analytical direction executed by its management. To engage in successful operations, all companies undergo the strategic planning process. The process includes action steps as follows, 1. Select the corporate mission and major corporate goals. 2. Analyze the organization’s external competitive environment to identify opportunities and threats 3. Analyze the organization’s internal operating environment to identify the organizations strengths and weaknesses 4. Select strategies that build on the organization’s strengths and correct its weaknesses in order to take advantage of external opportunities and counter external threats. Strategies should be consistent with the mission and major goals of the organization. 5. Implement the strategies (Hill, Schilling, and Jones, 2020, p. 13).
Running Head: MSA 698 Directed Admin Portfolio Paper #1- MSA 603 Dodd 3 Firms may go through new periods of the strategic planning process every year to reaffirm a strategy and structure already in place (Hill et al, 2020, p. 13). Operations in multiple regions utilizing shared Human Resources services has to be mastered in such a way that the company operates at the efficient rate. One example is Kering Americas Inc, who uses a shared services operation to handle its HR services faces this challenge continuously with having to find the best fit formula to provide its consumers the best experience while remain profitable. McDowell (2011) stated that shared services users are defined as doing any of the following “centralized the management and processing of a group of common business transactions under a single department or service, Implemented a common information system environment and standardized operational processes for the target services, operated fully as a shared service for at least one year (p. 119). Kering is a global luxury group, that was founded in 1963 by Francois Pinault. The headquarters is located in Paris, France manages multiple fashion brands referred to as “ Houses in Fashion”, leather goods, jewelry, and watches. The Brands consists of Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pommelato, Dodo, Qeelin, Ulysee, Nardin, Girard Perregaux, and Kering Eyewear”. The company has approximately 34,902 employees according to its key financial data on its finance page. Therefore, the need to achieve significant administrative efficiencies while reducing costs is important for the company(McDowell, 2011, P. 118). In order to achieve superior performance and maximize shareholder value, the correct strategy has to be formulated and implemented throughout the entire operations at the company. The mission of any firm should detail what that company does, the vision articulates the desired future state of the company as to what it would like to achieve (Hill, Schilling, and Jones, 2020).
Running Head: MSA 698 Directed Admin Portfolio Paper #1- MSA 603 Dodd 4 At Kering, the vision of luxury enables every individual to express what makes him or her unique. The name Kering means “caring” and is a symbol of the company’s core values. The strategy Kering uses focuses on creativity through a bold vision of luxury, in greater detailed it is stated on its website as “ with a creative vision that focuses on authenticity and audacity, Kering sets trends, and bold crafts tomorrow’s luxury. A luxury that is creative, authentic, and sustainable, one that offers powerful and genuine creative content and allows people to assert their individuality” (Kering.com). A company is said to have a “competitive advantage” when its profitability and profit growth are greater than the average of other companies competing for the same set of customers. It has a “sustained competitive advantage when its strategies enable it to maintain above-average profitability and profit growth for a number of years (Hill, Schilling, and Jones, 2020, p. 7). In this paper I will use a SWOT analysis to examine the way Kering maneuvers in its internal environment and external environment while successfully streamlining a shared services strategy that would unify the benefits for all its luxury goods. Strengths Brand Reputation helps consolidate and expand market entry Assets/capabilities High Margins Strong supplier relationships Consistent financial performance Weaknesses Focuses too much on consumer- oriented product development and marketing approach Bad advertising causing issues of racism controversy High employee turnover rate
Running Head: MSA 698 Directed Admin Portfolio Paper #1- MSA 603 Dodd 5 Opportunities Lifestyle brand that focuses on fitness and wellness, makeup, and traveling Digital improvements bring new innovation Increased online Presence Kering’s Sustainability strategy Threats Increased cheap counterfeits Competitors Changes in economic system Selective retailing Having a strong brand name and awareness attracts new business partners and customers. Diverse products allows Kering to be able to target various consumer groups with its presence in the industry , Kering has a strong presence in the industry , Kering has a strong track record of launching new products, and tested various concepts in markets in markets using insights from local consumers in markets using insights from local consumers. As a result, the company creates/improves the marketing strategy. With Kering acquiring or aligning with many brands it can also be a weakness as it increases the liabilities in the operation. Having many locations within the brands employees come and go as they may venture use Kering because of its name as a stepping-stone. Thus, long-term employment may never be the actual goal of employees leading to challenging retention efforts. The challenge to remain differentiated is also a threat as the luxury as there is “ requirement to presser the positional nature of items and services over time is translated into the need to mobilize a plurality of heterogeneous resources and coordinate strongly diversified skills, through flexible forms of connection between the company and the various actors
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