Nabila Sekar Andini

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Cartier

Cartier is a company that designs, manufactures, distributes and sells jewelleries and watches.
Aside from jewelleries and watches, they also make leather goods, eyewear and accessories for
special occasions. They have been consistently innovating with their line of jewelleries to which
they are considered as collectors’ pieces. Among their iconic designs are the Love and Juste un
Clou collections. Cartier symbolises elegance and their customers include royalties such as Edward
VII who ordered 27 tiaras for his coronation in 1902, actress Elizabeth Taylor who owned the 33-
carat pear-shaped diamond, Princess Mathilde and many more notable figures in the world. The
company operates nearly 200 retail stores in 125 countries all over the world with four main
boutiques located in Paris, New York, London and Tokyo.

History

Cartier was founded in Paris, France in 1847 when Louis-François Cartier took over the workshop
of Adolphe Picard. His son Alfred Cartier took over the company in 1874 and Alfred’s three sons,
Louis, Pierre and Jacques, were the ones who established the brand worldwide. Louis ran the Paris
branch in Rue de la Paix, Jacques went to London to open a branch and Pierre travelled to the
United States and opened a New York branch in 1908. The third generation of ownerships brought
the company to a multinational level and started the embark of the expansion of the brand Cartier.

Cartier Paris was bought by Robert Hocq in 1972 together with a group of other investors. They
then bought the Cartier London and Cartier New York which marks the re-conciliation of Cartier
all over the world.

In 1991, an international committee was founded where they held salons and luxurious exhibitions
of certain brands which led to the formation of the "Vendôme Luxury Group" that houses the
brands Cartier, Dunhill, Montblanc, Piaget, Baume & Mercier, Karl Lagerfeld, Chloé, Sulka,
Hackeett and Seeger.

In 2012, Cartier was bought by Richemont, a Swiss Based company owned by the South African
Rupert family that also owns most of the brands housed by the Vendôme Luxury Group.
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Global Perspective

There are three different kinds of global perspective which are the ethnocentric approach,
polycentric approach and the geocentric approach.

The ethnocentric approach is a parochialism belief where the best approach and work practice are
those from the home country of where the business is from or based at. Managers with geocentric
approach believes that people from different countries have no ability, competence, knowledge or
experience to make the best business decisions.

The polycentric approach believes that the employees of the host country knows the best
approaches and work practices to run a business in that country. They believe that those employees
have more knowledge and skills in dealing with the culture and environment. Polycentric managers
have an understanding that foreign operations are very different and foreign and difficult to
understand and tackle down. For that, they would rather let employees from the home country
show them the best way to operate the business and organisation.

Cartier’s approach to going global is by the geocentric approach. Geocentric approach is where
there exists a belief that there are advantages and disadvantages of a certain culture or even every
culture all over the world. Due to that belief, changes and adjustments are made according to the
cultures by merging and innovating the already existing culture to create an even better and much
stronger culture that is also more effective.

Cartier has received many requests for jewellery from all over the world for many years. Among
them are royals from different countries that have different cultural backgrounds. Cartier has
provided jewelleries for many occasions for royalties like Edward VII and the Indian Maharaja.
Those royalties asked for very different styles of jewelleries and crown, to which Cartier is actually
foreign with.

Cartier took upon their creativity and imagination in crafting breath-taking pieces for their highly
valued customers. They married different cultures and art styles in their innovation which birthed
iconic and legendary pieces such as the Patiala choker and Santos de Cartier wristwatch.

Cartier tries to fit in the different culture and requests and environments that keeps on changing all
the time all over the world. The models Cartier designs bear are loved by people all over the globe
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because they never fail to fit in the trend and is the trend-setter of accessories and jewelleries even
to this modern day.

Types of Organisation in Terms of International Organisation

There are four types of international organisation which are domestic, transnational, multinational
and global.

A multidomestic corporation operates at just an area of a place without crossing the borders. This
type of corporation is simple and not complex because they only consider variables that are around
them. A transnational corporation expands their businesses without the boundaries of artificial
geographical barriers while a global company centralizes their management and decisions at their
home country. A multinational company is a company that has operations in many countries.

Cartier would be considered as a multinational corporation, which means that they produce their
goods in different countries and export and import them and makes business decision based on
their host country. They also have a huge amount of assets. Cartier is also expanding steadily
through the years giving them a stable economic growth.

Cartier produces the best quality any jeweller can offer in this world. They set the standard of
luxury goods and they go way beyond of what they have set.

How They Went Global

Cartier is a foreign subsidiary of Richemont, a Swiss-based company owned by the South African
Rupert family. Cartier is producing their products independently, but they are owned and
controlled by Richemont.

Richemont is the parent company that runs a business of other businesses which are called the
subsidiary. Cartier is the subsidiary of the parent company. Cartier operates normally like any
other company but supervised by Richemont.
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The disadvantages of a foreign subsidiary such as Cartier in this case is that they are more
complicated in terms of economic views. Their taxes, legal and accounting standpoint are rather
complicated. It can also get very complicated when their parent company is sued.

Citations

(n.d.). Retrieved from https://www.bloomberg.com/profile/company/0256156D:FP.

A Guide to Cartier: The Birth of a Luxury Jewelry Magnate. (2019, May 28). Retrieved from
https://www.invaluable.com/blog/cartier-collectors-guide/.

Bhasin, H. (2019, April 3). Marketing Mix Of Cartier - Cartier Marketing Mix and 4 P's.
Retrieved from https://www.marketing91.com/marketing-mix-cartier-cartier-marketing-mix/.

Murray, J. (2019, May 30). What Is a Subsidiary Company and How Does It Work. Retrieved
from https://www.thebalancesmb.com/what-is-a-subsidiary-company-4098839.

Person. (2019, June 17). Cartier and the 'Indian style': Christie's. Retrieved from
https://www.christies.com/features/Cartier-and-the-Indian-style-9918-7.aspx.

Robbins, S. P., Coulter, M., & Vries, K. de. (2015). Management. Amsterdam: Pearson.