analyzing financial data
Case 22: LMVH in 2016: Its Diversification into Luxury Goods, by John E. Gamble (page C-290)
Read the case and then respond to the case questions provided below.In addition to using the case study provided in the textbook, research the company further to find any relevant events that have transpired since the writing of the case study. Use the company’s website, Internet search engines such as Google, online data services, or other sources to locate the latest articles about the company including press releases and current financial information. Be sure to cite all sources according to APA guidelines.
Note: For assistance with analyzing any financial data in this case, Table 4-1 (Key Financial Ratios: How to Calculate Them and What They Mean) in your textbook is a useful
Requires: 6 references and 4 pages (1100 words), double-spaced. in-citation within paper and reference page .
1.LVMH management used several strategies in the process of identifying options for new business diversification. Analyze the relative benefits (or lack thereof) of such strategies.
2.What are the drawbacks associated with a strategy of unrelated diversification? Be descriptive and detailed in your response.
3.A business strategy should address the topic of whether or not diversification will add to shareholder value. What are the three tests of competitive advantage? Discuss the relevance of Test 2 to adding shareholder value, and then apply that test to LVMH operations and diversification practices.
4.Define and review the concept of synergy as it relates to a multibusiness company. In the case of LVMH, was the whole company greater than the sum of its parts? Defend your perspective and provide relevant details to support your views.