There are six environmental factors that can affect an industry and they are economic, political, social, technological, competitive, and geographical. These factors are known as the environmental scan. Many businesses including Tiffany & Co. are affected by the macro-environment which can include a number of factors as mentioned above. Economy is one of the main factors that affect many companies and Tiffany’s as well. I believe that general and industry economic conditions and socio-cultural factors are favorable to Tiffany & Co. business situation because of the standing Tiffany & Co. holds in the industry and the brand name it has it will be able to outlast the economic crisis and still be able to profit. According to a Wall Street Journal article, “The Bare Necessities: Marketing Luxury Goods in a Bad Economy” by Christine Rosen here is an example of an ad made by Tiffany’s during tough economic times, "Dreams can still come true, give her the ring of her dreams. For less than you imagine, the best there is"(Rosen, p.1). As you read this ad you see how Tiffany and Co. is still portraying their high quality image they are known for, however they change their approach by saying dreams can still come true implying that even in these hard times you can get great quality for the one you love. In the last couple of years, politics and economics have played a major role in forcing companies in the jewelry industry to change in order to stay competitive. For example, blood diamonds were a major concern of the public which were used to fund conflicts in war torn areas. According to the Global Witness, in 2003, an agreement was made called Kimberley Process Certification Scheme, to remove blood diamonds from the worlds diamond su... ... middle of paper ... ...s/kimberley-process Wilcox, J., Damassa, S., & Hyder, Z. (2007, April 14). Strategic Report for Tiffany & Company. . Retrieved May 21, 2014, from http://economics-files.pomona.edu/jlikens/SeniorSeminars/harknessconsulting2008/pdfs/Tiffany_and_Co.pdf Global Strategy. (n.d.). TIFFANY CO. Retrieved May 21, 2014, from http://brandtiffanyandco.wordpress.com/business-strategy/ Cardenal, A. (2014, February 20). Signet Buys Zale: Does Tiffany Need to Worry?. Signet Buys Zale: Does Tiffany Need to Worry?. Retrieved May 22, 2014, from http://www.fool.com/investing/general/2014/02/20/signet-buys-zale-does-tiffany-need-to-worry.aspx Tiffany & Co. - Tiffany Reports Strong First Quarter Results; Sales and Earnings Better Than Expected; Increases Full Year Earnings Outlook. (2011, May 26). Retrieved May 21, 2014, from http://investor.tiffany.com/releasedetail.cfm?ReleaseID=581210
Tiffany & Company is up to date in all aspects of technology. The company has an online shopping site; Facebook, Twitter, and Pinterest accounts; and “advertising” in movies and TV shows.
Women buying diamonds for themselves, for the joy of wearing them invested in jewelry in case of emergency.
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When selecting our case, we wanted to choose a company that a majority of our class wouldn’t have heard of before. We were researching possible topics and companies and came across Beech-Nut Nutrition Corporation. The company sold a wide variety of products ranging from vacuum-sealed jars of bacon to chewing gum from its inception in 1890. However, Beech-Nut’s most lucrative product was its baby food, which began around the 1930s. At this time, the company was the second largest producer of baby food products in the U.S. The company differentiated itself from competitors by packaging its product in glass jars rather than cans, which were used by most manufacturers. Their baby food line did well, but sales took off with the arrival of the postwar baby boom, where sales nearly doubled between 1948 and 1950. By 1950, Beech-Nut had 48 different types of jarred baby foods that provided more than a quarter of the company’s $70 million of revenue.
In 1785, the court jewelers, Bohmer and Basange, constructed a necklace with five hundred and forty diamonds of varying sizes in an ugly arrangement that resembled the collars worn by circus animals. They hoped that King Louis XV would purchase it for his favorite, Madame du Barry. Unfortunately, the king died before the necklace was completed. So, naturally the jewelers tried to sell the piece to the newly crowned Queen, Marie Antoinette, because she was known for her extravagant spending and taste. They priced the jewelry at and equivalent of two million dollars in modern money. The Queen declined the offer. She did not like the necklace and the price was even too high for her. Knowing that they would be ruined if the Queen didn’t buy their product the jewelers continued to plead with her for ten years. Each time she turned them down. Then, one day the Queen received a note signed by Bassange which said, “We have real satisfaction in thinking that the most beautiful set of diamonds in existence will belong to the greatest and best of Queens.” Puzzled by the message, the Queen, put the note to flame by a candle sitting on a nearby table (Komroff 85).
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“Despite worldwide softness in the sale of luxury goods, LVMH has cemented its position as the world’s largest and most profitable player in the category. To stay there it must keep its customers loyal and its brand strong and find new markets worldwide” (Hazlett C. 2004). That is why in its mission they state to represent the most refined qualities of Western “ art de vivre” all around the world. Their objective is to be the leader in the luxury market, continuing to transmit elegance and creativity. This poses some major challenges, the main one is to keep being the leader in the luxury market through a sustainable growth. The main problem to achieve it is the high dependency on three main countries, France, Japan and USA. This becomes a threat because if there is an economic downturn in one country it affects LVMH directly that is why.
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