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Integrated Business Experience: Home Furnishings

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Write about the Integrated Business Experience for Home Furnishings.




Hermes of Paris was established in 1837 by Thiery Hermes. The company deals in highly luxurious products that are in fashion. It mainly specializes in lifestyle accessories, leather, jewelry, home furnishings, perfumery and ready-to-wear. The company is guided by a brand philosophy that focuses on the product rather image creation. The company was initially focused on serving the European noble people but has grown over time to help all people across the globe. It has collaborated with most of the large enterprises in the world to deliver the best and to reach more customers all over the world (Colino 2010). 

Organizational Culture of Hermes

Organizational culture refers to beliefs and values which dictate the way employees behave in the company. The corporate culture is a strong force, and it governs most parts of people's behavior such as how they act, dress, communicate and the general way of doing their tasks. Hermes, like other multi-national companies, has an organizational culture identified by the seven characteristics. These features are support of innovation, the attention to detail, emphasis on the relationship with people, encouragement of teamwork, being result oriented, rule oriented and employee aggressiveness. All these aspects of organization culture of Hermes have contributed to the growth of the company and also its general business sustainability (Islam et al. 2009). The company has applied these aspects of culture both in Australia and in France; it’s the home country.

To improve, sustain and ensure continuity of the organizational culture, Hermes has come up with specific strategies that have been implemented to achieve. Firstly, the company ensures that new employees are trained for three days to make them feel close to the organization and also understand more about the Hermes organizational culture, values and philosophies. This strategy has been embraced in Australia and other branches of the company outside France.

Also, the company doesn't endorse products specifically for Australia, but rather it sells similar products across the world.  This significantly promotes oneness and product quality level sustenance in Australia and across the globe. This organization also prepares for a one-day showcasing of products from all its stores. This makes each store to work hard and present the best thus promotional of the organizational culture. This among other strategies has helped Hermes to develop and sustain its organizational culture unlike other organizations (Modaff et al. 2011).


Global Corporate Social Responsibility of Hermes

Corporate social responsibility refers to the company’s aspect of the integration of the concerns of the social life of people and the environmental well-being with a target of improving the interactions of the organization with its stakeholders. Hermes as a multi-national company has shown a lot of concerns about its corporate social responsibility across the globe. The business has put a lot of efforts in conserving the environment and also to support their stakeholders in many ways thus interaction.

In 2008, Hermes founded Foundation enterprise Hermes as a body concerned with the corporate social responsibility in Australia and other branches. This body extends the companies concerns to improving the philanthropic support (Warf et al. 2007). The body works in reflection to the organization's core values because the company has embedded corporate social responsibilities in its core values supporting both individual and group's cultural and charity projects. This, therefore, shows that Hermes is hugely committed to the corporate social responsibility both locally and across the globe (Hermes 2010).

The Corporate Social Responsibility policy of Hermes promotes and supports the creative arts. It has identified the individual talents or other organizations in creative designs and then supports them both from Australia and in the home country. This organization also supports the traditional crafts. It identifies the persons with the skill and expertise in the traditional arts and helps them in all ways possible. This support is critical in the society, and therefore, the local talent is mentored thus improving the company’s interactions with its stakeholders (Eisingerich & Ghardwaj 2011, pp 17–18).  

Also, Hermes has promoted education and training. It has supported the establishment of schools and training centers for arts and creative designs. This made the Australians access these educational facilities quickly and hence their growth. Also, Hermes, like any other company concerned with corporate social responsibility conserves the environment. The company prioritizes environmental well-being in its operation. It tries to avoid environmental pollution and is trying to adopt biodiversity and the general green policy (Kock et al. 2012, pp 492-514).

Global Competitive Advantage of Hermes

Competitive advantage defines the specific conditions that enable a given business organization to produce its products at a lower price or to produce more desirable products to its customers. This helps the business to generate more value to its stakeholders than other competitor firms (comparative advantage) or production of goods that are different from those of the competitors thus they are seen to be superior in the market (Erica 2012).

Hermes is a company that has been a market player in Australia for a long time producing distinctly expensive products. The company makes prestige products that are high in price, but of the highest quality in the market. The organization has continuously maintained its unique process of product manufacturing through its handcraftsmanship thus this has guaranteed its product quality such as in the production of its leather bags. This has helped it to maintain the brand name and has already created a perception of its product superiority by the consumers since they derive more value out of this thus their competitive advantage.

Good brand image of Hermes in Australia has also helped it to take the best pricing strategies in the market for its benefit. The organization sets the prices for its products basing on how it is conceived, the manufacturing cost and the product in distribution.  Company product prices are therefore not influenced by its competitors. Also, Hermes enjoys the competitive advantage in distribution into the market because it already has its roots established in the active fashion market areas. Some of these regions include Japan, France, USA, Asia-pacific regions and Europe. It is, therefore, difficult for other competitors to come in and take the position in these areas to beat Hermes which has a strong brand name in those fashion market areas (Marquis et al. 2013, pp 193–243).


In conclusion, every organization needs to understand and promote a healthy organizational culture since it has a significant influence on the staff and how they perform their tasks. Agencies also need to consider the corporate social responsibility because they improve the interaction with the stakeholders. Besides, businesses should also comprehend the various competitive advantages that they possess. Understanding these concepts is essential for the success of the organization.



Colino, Nadine (2010). The Hermes Scarf: History & Mystique. Thames & Hudson. ISBN 0-500-51518-2.

Eisingerich, A. & Ghardwaj, G. (2011). "Corporate Social Responsibility: Does Social Responsibility Help Protect a Company's Reputation?".  pp 17–18.

Erica Olsen (2012). Strategic Planning Kit for Dummies, 2nd Edition. John Wiley & Sons, Inc

Hermes (2010). The Hermes Responsible Ownership Principles, Hermes Pensions Management Ltd.

Islam, Gazi and Zyphur, Michael. (2009). Rituals in organizations: A review and expansion of current theory. Group Organization  Management. (34), 1140139.

Kock, C.J., Santalo J. and Diestre, L. (2012). Corporate Governance and the Environment: ‘What type of Governance creates Greener Companies?'. Journal of Management Studies, Vol. 49, Issue 3, pp 492-514.

Marquis, Christopher, Tilcsik, András (2013). "Imprinting: Toward A Multilevel Theory." Academy of Management Annals. Pp 193–243

Modaff, D.P., DeWine, S., & Butler, J. (2011). Organizational Communication: Foundations, Challenges, and Misunderstandings (2nd Ed.). Boston: Pearson Education

Warf, Frederick P. Stutz, Barney (2007). The World Economy: Resources, Location, Trade and Development (5th ed.). Upper Saddle River: Pearson. ISBN 0132436892

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