Analysis Of The Activity Of Louis Vuitton Company Essay - 4

Analysis Of The Activity Of Louis Vuitton Company - Essay Example PESTEL stands for factors which may affect the operations of the business such as political, economic, social, technological, environmental as well as legal factors (Lancaster & Reynolds 1999). These are explained in detail below and Appendix 1 shows a summary of the major points noted. This is a very useful tool for analyzing the environment in which an organization operates. It can be noted that there are various factors that affect the operations of any given organization and these have to be taken into consideration by an organization that is serious about its viability so as to achieve competitive advantage (Kottler 1999). Any given organization is guided by certain factors that so as to ensure that it does not violate the needs and interests of the consumers as well as the other stakeholders. Political In the UK, there are policies that govern the operations of all organizations that are involved in the manufacturing of different products so as to meet the expected standards. Consumer law in the UK is effective and under the EU law, every big organization like Louis Vuitton is expected to protect the needs and interests of the customers. It can be noted that the current political environment prevailing in the EU is not exploitative which is seen as the reason why exclusive manufactures like Louis Vuitton continue enjoying growth and expansion since inception to the present day. Economic factors The organization has not been spared by the impacts of the recent global economic recession though it managed to bounce back in the first half of 2010. By virtue of specializing in producing only exclusive products with premium prices, the operations of the organization are likely to be affected during turbulent times given that premium prices charged are specifically meant for a few people who can shift their buying behavior which negatively impacts on the operations of the organization as a whole. However, LVMH- Louis Vuitton harnesses on its resilience and responsiveness even during the most difficult trying times.