Managing Organization of Chanel S.A. – Research Paper – elaine_kk
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Managing Organization of Chanel S.A.
WASEDA BUSINESS & ECONOMIC STUDIES 2011 NO.47 47 Managing Organization of Chanel S.A. Shin’ya Nagasawa* Abstract Chanel S.A. is an independent and unlisted company. If there are plural  shareholders they always interfere in the business and it becomes difficult for the  company to foster the business with a long-term vision. Furthermore, there are many  cases in which the company loses its originality, brand identity, and corporate identity  and becomes stalled. Chanel S.A. can avoid this situation because it is an independent  and unlisted company and the funds available to the owner are sufficient. It is often the  case that the strength of the Chanel brand is due to the progressive approach to creativity  by the founder Coco Chanel and the talent of the designer Karl Lagerfeld and they are  often focused on. However, the authors consider that its form as an independent and  unlisted company should be more emphasized as a strength of Chanel. Keywords Chanel S.A., Coco Chanel, luxury brand, brand management, Technology  Management. 1. Introduction: Outline of Chanel S.A. Before unveiling the unknown facts of the company Chanel, which is the main  theme of this paper, let us go over the company outline. It is rather difficult to describe the company Chanel even in fairly simple terms. This  is because many fashion-related books and magazines offer commentaries on Coco  Chanel and the brand itself but do not delve into detail about the company. However,  *  Shin’ya Nagasawa is a professor of doctoral program and MBA program at Waseda  Business School, Graduate School of Commerce, Waseda University, Tokyo, Japan. He is  also a director of Luxury Branding Module (Moët Hennessy. Louis Vuitton Chair) and  Luxury Branding Institute, Waseda University. He holds a Doctor in Engineering from  Waseda University.48 upon going through a collection of documents in order to write this paper, we did find  material that revealed some interesting facts. The author wants to introduce the material. The judicial precedent of the company Chanel was provided in the court document  of “Chanel vs. Snack Chanel,” a case in which Chanel sued bars in Japan named “Snack  Chanel.” The details of the case are omitted but according to the rulings of the “Snack  Chanel case (Yokosuka case)” of the Tokyo District Court and the “Snack Chanel case  (Matsudo case)” of the Supreme Court of Japan, the company Chanel is defined as in the  following: Chanel is an international group corporation consisting of the original Frenchbased company Les Parfums Chanel founded by Gabrielle “Coco” Chanel and  others, the current fashion house Chanel S.A. (Société Anonyme, “company  listed” in French) and a few other companies dealing with the manufacturing  and sales of Chanel products, such as high-end ladies clothing, perfume and  cosmetics, shoes, accessories, watches etc. bearing the Chanel name. Needless to  say, Chanel Group is known worldwide as being well-established in haute  couture in Paris and the products are associated with luxury even in Japan. As its name indicates, the French company Les Parfums Chanel produces perfume,  it makes perfect sense to the author. Though it may be surprising to know that this is the  predecessor to the central organization. We will go into further detail in the section  “History of Chanel S.A.” 2. Corporate Organization of Chanel S.A. We state again that the reports and information disclosed are fairly limited since  Chanel is a privately held independent company. The information presented here was  collected through various websites, comments from interviews and on-the-ground  research in order to reveal the truth about the organization as much as possible. Whenever the term “Chanel” is used in various contexts, it could mean any of the  following: (1) The “Chanel” brand (2) “Chanel” products (3) Chanel S.A. (headquartered in France and owned by the Wertheimers) (4) Chanel Group (which consists of Chanel S.A. and other companies in the world with  the name Chanel) (5) Chanel K.K. (Chanel’s subsidiary in Japan headed by President Richard Collasse) (6) Karl Lagerfeld (Chanel’s chief designer)49 (7) Coco Chanel (Chanel’s founding designer/entrepreneur) While Chanel is without a doubt a group company, it has never been seen any  discussion to pinpoint one company that represents the whole group. Based on the rulings of the Tokyo District Court, however, it makes sense to  consider the French-based Chanel S.A. founded by Coco Chanel herself as the main  entity for convenience sake. This paper also briefly mentions Chanel K.K., which is the  company’s business base in Japan. The outline of Chanel S.A. is shown in the table below Table 1. Interestingly, its  Table 1. The outline of Chanel S.A. Company Chanel S.A. Type Privately held Founded 1909 / 1910 Founder(s) Gabrielle “Coco” Chanel Headquarters 135, Avenue Charles de Gaulle 92521 Neuilly-sur-Seine  Cedex Paris, France Owners Alain Wertheimer, co-owner Gérald Wertheimer, co-owner Chairman Alain Wertheimer Global CEO Maureen Chiquet President Véronique Morali Number of locations Worldwide 100 boutiques Area served Worldwide (Europe, North America, Middle and South  America, Asia, Oceania) Affiliated companies Chanel Inc. (U.S.), Chanel K.K. (Japan), Chanel Hong  Kong, Eres, Paraffection, etc. Revenue Undisclosed Industry Fashion Products Luxury goods (Ladies wear, handbags, shoes, accessories,  perfume, cosmetics, watches, jewelry, eye wear, etc. Global vision The Ultimate House of Luxury, defining style and creating  desire, now and forever. Website www.chanel.com Source:
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By: elaine_kk
Submitted: January 2, 2016
Essay Length: 7,873 Words / 32 Pages
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