LVMH is the leading luxury brand conglomerate in the world. Based in Paris, it employed over 80,000 people in 2010, 77 per cent of whom are outside France. It has more than 2,500 stores worldwide and sales of 12 billion (Dr Harris and Dr. Dickmann, 2008).
Since its creation in 1987, LVMH has sought to create a pool of global managers with a working knowledge of internationalmarkets. A global manager is defined as a person with the training or experience needed to manage a global business. He or she can perform from any place in the world thanks to a global vision and skills in managing multicultural and multilingual teams. To have such abilities, an individual must have worked in several countries to develop the necessary skill that the job requires and the need to beable to work internationally. (Dr Harris and Dr Dickmann 2005).
The report will mainly focus on the LVMH career development strategy through international mobility and examines the main issues raised by the case in terms of external and internal factors affecting the strategy. Four questions regarding the
International mobility issues and challenges that LVMH faces when operating businessglobally will be discussed and clarified along the report.
LVMH believes that the best way to develop its employees is not formal training but mobility. This includes several movements in the organisation in different departments and mainly in different countries to achieve a development of multicultural knowledge and skills to operate business globally (Cerdin, J. 2003)
In 2001, LVMH had 260expatriates and 650 other employees working abroad, today this number has hit over 560 and 3.000 respectively due to the successful development of the company and the HR teams (LVMH, 2011).
International mobility of employees is increasing. People tend to not to limit themselves to working in their home country. People going to work in other countries are known asexpatriates.
The mobility process is managed by Human Resources teams. Preliminary interviews with Human Resources specialists provide an opportunity to clearly define career plans and motivations (LVMH, 2011).
What are the challenges faced by LVMH regarding international mobility?
The LVMH faces many challenges regarding to international mobility, the main ones are:
* Support for family
* Expatriates negotiation
* Appropriate manager’s profile
* Global expansion
Intercultural training involves language which in the past, one of the LVMH international mobility challenge was the fact that, too many managers were not fluent in English. Since then, LVMH has sought to create a pool of global managers, with a workingknowledge of international markets. Nowadays a successful manager is essential to speak at least three languages and be able communicate with multicultural workers. Countries like Mexico and Brazil, where people usually adjust to their own culture, the adjustment process is required, which involves training the employee together with his/her family (Muriithi, M. 2011).
Support for family - LVMHemployees rarely turn down international assignments. However, it has been noted that the employees have some characteristics that impede their mobility, and in most cases this is related to the spouse. To assess willingness of an employee to take on an international assignment, LVMH puts out feelers. When it anticipates a potential problem with the spouse or reluctance, it does not offer aninternational mobility (Muriithi, M. 2011). To counter this, international assignments are usually assigned to young graduates, who are mostly single, and understand the developmental purpose of taking up the assignments, however the experience is not counted as if was someone who have worked in the international environment.
Expatriates negotiation - the organization would like to avoid situations...