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Case Study Essay

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Universal Luxury

Overview: Universal Luxury Group is an international group of companies principally engaged in the production and sale of luxury goods including Food and Beverages, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and other business. Among them, this case is handling Perfumes and Cosmetics business group that accounts for EUR 2,231M, 19% of sales revenue. * What is the organizational structure of Universal Luxury’s brands and R&D? ULV Organization: In order to pursue business unit and brands objectives of making savings on product development and encouraging cross-pollination of innovation across brands, Perfumes and Cosmetics division adopted to have both centralized …show more content…

With those roles, the R&D center should perform each role by meeting due date and reflecting requests from brand marketing teams. The R&D center should also make cost reduction and synergy effect within different products or brands, on reflecting that ULG restructured its organization by centralizing R&D capabilities. * In what ways do the goals of R&D conflict with those of the brands? Without efficient resource allocation & lack of communication between R&D and Brands, the conflict between departments generated in following steps. Even more, each steps make overall inefficient resource management. 1. Brand teams’ driving of R&D center to meet market needs and corporate needs 2. No project ownership and no one responsible for workload management 3. Frequent product changes during development 4. Development work load jammed in R&D center 5. Project and product launch delayed 6. Increased conflict between brands each other or between brands and R&D Basically, conflicts between R&D and brands team mostly resulted from a lack of communication or one way communication. Different goals and different processes of R&D center and brand team make it difficult to collaborate in product development phase. R&D Center became the junction of conflict - R&D team is allocating 55% of its resources to product development

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