Louis Vuitton: Management Problem and Decision Making Theory

This case study discusses the management problem faced by Louis Vuitton in decision making and the decision making theory that can be linked to it. It also suggests a step forward for the brand.

Running head: LOUIS VUITTON
LOUIS VUITTON
Name of the Student
Name of the University
Author Note

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CASA 1: The management problem identified
From the chosen case study of Louis Vuitton, the primary management problem which
has been identified relates to the problem of decision making. According to the study, the luxury
market has grown considerably and for this reason, the competition among the different brands
have also increased considerably. As given the demand of the luxury products are incredible as
well as unique but the primary problem being faced by the brand is to check how the company
can engage in a growth strategy and reach out to a wider market without compromising its
image. Louis Vuitton is considerably popular for its customized product with each bag
consuming the contribution of eight craftsmen for eight days. Hence, as discussed the brand,
needs to ensure that it is able to take a decision on the fact that whether it wants to maintain its
flexibility of maintaining production in small bunches or it wants to produce a large number of
luxury goods.
CASA 2: Management Theory
Decision making theory
The management theory which can be linked with the given problem is the Decision
making theory. The decision making theory is primarily concerned with the solutions as defined
by the people and the manner in which these people tend to take certain decisions based on the
criteria given which is underlined by risk and a large amount of uncertainty (Etzioni 2014). The
decision making their states that in order to make a specific decision, the firm`s management
needs to consider a large number of factors before taking a specific decision and this decision has
a long impact on the performance of the organization (Kochenderfer 2015). In the case of Louis
Vuitton, the management problem identified was the decision which was required to be taken by

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the CEO of the firm with respect to increasing the availability of the product or maintaining
quality. Hence, as per the decision making theory, the firm will be required to ensure that it takes
into consideration all the related factors which will assist the firm in identifying the right factors
and make the right decision.
Step forward for the Brand
Hence, as per the analysis, it can be stated that Louis Vuitton is required to consider its
popularity and the positioning of the brand in the eyes of the customers before it takes any
relevant decision. In the case of the company, Louis Vuitton it is required to choose quality over
increase the quantity because it is with respect to its customized offering that the company has
gained increased demand and its present status. Hence, the firm should make a decision to ensure
that it is able to successfully keep up this image and continue with the quality aspect rather than
quantity.

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References
Etzioni, A., 2014. Humble decision-making theory. Public Management Review, 16(5), pp.611-
619.
Kochenderfer, M.J., 2015. Decision making under uncertainty: theory and application. MIT
press.

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Bibliography
Maylor, H., Blackmon, K. and Huemann, M., 2016. Researching business and management.
Macmillan International Higher Education.
Okonkwo, U., 2016. Luxury fashion branding: trends, tactics, techniques. Springer.