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Do You Know Gucci Group Management Philosophy

November 1st, 2010 at 01:08 am

Domenico, the CEO of Gucci Group, has made an impressive achievement. He turns the brand of Gucci benefit again from losing and become the third luxurious brand of the world. However, Gucci Group started the new CEO Robert Polet originally responsible for sales of ice cream resolutely instead of the old hero with great achievements.

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In the year of 2003, this was a decision which was out of many people's expectation, especially for those oriental entrepreneurs, this action was totally absurd.
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However, GUCCI Corporation changed the old embarrassing situation in which nine of the ten top brands of it depended all on GUCCI. Recession Chic – How to Be Most Magnificent on a Budget By the end of 2006, the sales volume climb from 2.5 billion pounds to 4 billion, and the profit rate rises from 10% to 16%. All of the brand belonging the group begins make a profit other than YSL.

Is it a risky fluke? No! It conforms to the business logic!

Yes, Domenico is a excellent master of the single brand, but from 2003, Gucci is no longer the single brand company but a group of many brands. With the growth of Gucci Group, the diversification of brand, the horizontal integration of management platform and the complication of organization structure, previous heroic ability structure contrarily became a choke point restricting the further development of the group. Gucci thinks that only by evaluate the lack of material at the growing stage of the company impersonality and make replacement can the company survive. Just under this simple logic, Gucci chose Robert﹒Pole though there was much cynicism in luxury goods industry and fashion industry. He is one of the CEOs who are best at multi-brand business operating, a former CEO of Unilever. The fact proves that Gucci’s employing logic meets the needs of the business.

The development of Enterprise was the upgrading and dynamic process with the match of ability and opportunity, need by the opportunities, continuously strengthen the capacity of the building, and then with the ability to promote opportunities. As a result, if the enterprise wants to catch the chance of developing, first of all it should know what kind of chance to catch? If wants to catch the chance, what ability is needed? On the basis of ability, what kind of talent do we need?

Only by this consideration, can the company finds the appropriate talents and wins the future. Only by doing so can the enterprise find the , breakthrough capability prior to the bottleneckfind the way to use it well, and finally increase the whole capability to foster the development in the overall enterprise operation. Only such logic employing, the enterprises could avoid more difficulties, and finished the graft viability grafting quickly, and then capture the opportunity in the new era, become industry consolidators, instead of being integrator.

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