Question
case is from the book. Kering SA: Probing the Performance Gap with LVMH , pages 459-471. (R. M. Grant, Contemporary Strategy Analysis: Text and Cases,
case is from the book. "Kering SA: Probing the Performance Gap with LVMH", pages 459-471. (R. M. Grant, Contemporary Strategy Analysis: Text and Cases, 9th edn, Wiley, 2016).
Kering LVMH
ROCE 14.59% 24.96%
Op Margin 15.46% 17.73%
Labor Cost/ Sales 37.28% 35.25%
Dep /sales 2.80% 3.53%
Other Costs/ Sales 15.39% 46.08%
Sales/Cap Employed 0.94 1.41
Inventory turnover 4.49 3.23
PPE turnover 5.32 2.95
Creditor turnover 8.59 11.66
cash turnover 0.21 0.22
ROE 4.97% 25.95%
ROA 0.07 0.10
Gross Margin 0.63 0.65
Operating Margin 0.15 0.18
Net Margin 5.27% 18.43%
1) Apply financial analysis to identify the sources of the performance gap
2) Evaluate Kering's (corporate) strategy in 2015
3) Recommend strategic actions how Kering might close this performance gap.
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