HR MANAGEMENT
BY LIU HUAMING, SUZHOU CAMPUS, RUC
1 why do companies bring together luxury brands under one company?
(1) To occupy segment market
Different products constitute luxury markets, it is essential to posses various products and brands to occupy different segment markets.
(2) To concentrate resource
It will be easier to share the resource of HR, marketing, finance and channel…. Company can benefit from the concentration and integration to reduce the cost of operation.
(3) To avoid market risk
Fierce competition demand to bring brands together, sometimes some brands should be sacrificed to protect the other important brands, for instance, in price battle with other luxury companies.
2 Advantage and disadvantage of multi-brand strategy
(1) Advantage
Multi-brand strategy is useful in terms of reducing market risk and integration of resource to occupy enormous market. Another advantage is financial merit. By selling and acquiring other brands to make the company more profitable.
(2) Disadvantage
Firstly, conflicts among various brands.
Secondly, multi-brand strategy maybe increases the management cost.
3 Advantage and disadvantage of multi-brand strategy in terms of HR
(1) Advantage
Firstly, Employee can benefit from multi-environment; for instance, different job and department can be available for employee.
Secondly, to cope with different situation in some many brands, expensive and extensive training will be organized, and employee can get more chance to master more new skills.
(2) Disadvantage
Firstly, multi-brand strategy increases the cost of HR. Secondly, it is difficult to cultivate different culture to match different SBU in one company.
4 how do individual strategies of each business under Richmond affect its overall strategy?
(1) Reacting force to the overall strategy
Individual strategies are made according to overall strategy, however, reacting force of the individual also affect to the overall strategy in terms of marketing and other aspects.
(2) Allocating and balancing resource inside the company Company should allocate and balance resource according to the performance of individual business
5 How does this affect its HR?
(1) HR policy should pay more attention to train employee Multi-brand strategy demand more competent talents, so extensive training is necessary.
(2) To improve employee’s motivation, awards system should be more elaborate
By appraising the performance of every brand, resource should be adjusted inside the company
6 Should MontBianc be allowed to sell swiss watches? Why?
Richemont has another watch brand-Vacheron Constantin that is very famous and successful. In combination with the Vacheron Constantin brand’s experience and channel, it will be more advantageous. For instance, HR of Vacheron Constantin, including skillful workers and marketing force can bring valuable experience.。