Tiffany and Co jewelry retailer is one of the leading retailer of jewelry indust

Question

Tiffany and Co jewelry retailer is one of the leading retailer of jewelry industry with worth more than six billion dollar and is ranked 76th in the global brand of companies. Tiffany and Co is successful for its synonymous in styel, luxury, qualiy and romance in its design and manufacture of jewelry items. The company hold the leading position and with its continuous strive for new product development and product extension it is capable of remaining competitive advatageous over others. The mission of Tiffany and Co is to remain socially and environmentally responsible. Crafting of jewelry, obtaining precious metals and gemstones, manufacturing and designing jewelry by the most respected, successful designers and finest craftsmen with ethical business is its mission. Being socially and environmentally responsible helps the company to be sustainable and qualitative. Tiffany and Co takes stockholders seriously and the interests of the stockholders by making right decisions and brand righteousness. The environmental impact is diminshed through constant working with the civil society, stockholders, employees, local coomunities, supply chain to establish the social impact of the company.

Tiffany and Co's mission is to enrich the lives of the customers by creating enduring and beauty enhancing objects which will be cherished for generations. The vision of the company is to become one of the leading designer in the world. The product mission is to make objects of the extra ordinary design by the finest craftsmanship. There should be lasting value of the objects purchased and cherished by generations in future also. Service mission is to meet the expectations of every kind of customers and get feedback of being warm, efficient and gracious in sales and services. The stakeholders mission is to remain commited to employees, customers and communities. Employees will be provided the best working atmosphere with rewards and recognition to motivate and improve performances. The laws, values, cultures and religion of the communities will be given emphasis, respected and followed through participation of the communities leaders in decision making processes. Superior financial return for the stakeholders in accounting, ethical and business practices.

PESTEL analysis

The PESTEL analysis is a suitable framework for investigating uncontrollable external factors which influences the operation in business (Vecchi, 2016).

Political factors

The free trade agreement of the European Commission has been favourable to Tiffany and Co for importing products and also decreasing cost of sourcing (Lake & Drake, 2015). There are no tariff or import duties to be paid for doing business or selling products in other countries. The sudden increase in cost structure made consumers think before buying. Entering new market in US also incurred losses as there was terrorism prone zone which decreased business. The political factors had negative impact on Tiffany and Co.

Economic factors

Discounting price strategy of competitors like had affected Tiffany and Co to some extent. US consumers mostly prefer both value and quality which helped the company to attain competitive advantage and maintain market share (Clegg, et al., 2016). Financial crisis, decrease in commodity price, fluctuation in pound rate with sudden drop for the Brexit vote led to price sensitivity for loyal customers. The economic factors created negative impact on Tiffany and Co.

Socio-cultural factors

Changing values in people and generation shifting needs attention by retailers. Different age groups have different preferences for shopping (Graham Hooley, 2017). Customers are aware of benefits of green and organic products and prefer brands that are ethical. Tiffany and Co have also give emphasis on corporate social responsibility activities. Socio-cultural factors affected Tiffany and Co positively.

Technological factors

Rising mobile use with online presence of customers in different social media has given Tiffany and Co the scope to increase its business and profit (M&S, 2017). The latest dress, fabrics, styles are communicated to designers instantly (Rasche, et al., 2017). Jewelleries are ordered online and faster delivery and billing is possible. Hosting companies like Amazon streamlined service of multi-channelling. The Big Data Project answer queries about latest trend created positive impact in Tiffany and Co business.

Environmental factors

With increasing pressure for sustainable practices there is need for complete, see-through strategic and tactical environmental practices (Harrison, 2016). Tiffany and Co’s CSR plan in which sourcing responsibly, reducing waste and helping stakeholder communities is significant. Environmental factors had brought positive impact.

Legal factors

The scope of ordering online for home delivery or in-store collection through barcode initiative shows high standard and legal rules Tiffany abides. The New VAT rules for intra-EU purchases, import duties and tariffs will be imposed. Decreasing buying power of the pound and impact of Brexit created negative impact in Tiffany and Co.

1.SWOT analysis

The SWOT analysis evaluates the external environment and the internal capacities of an organization (Sminia, 2014). The SWOT analysis aims to identify and understand the strength and weaknesses of Tiffany and Co and to keep updated with new technologies.

Strengths

Tiffany and Co is known for its international expansion through franchise agreements and competitively advantageous in comparison to other brands. Tiffany and Co. operate in more than 65 territories across Europe, Middle East and Asia through retail business, joint ventures, franchise operations or online website. Jewellery and gems stones business is growing rapid in Europe and US. The differentiated and distinctive strategy of consumer focussed helps in outperforming the market and provide customer with excellent experience both online and offline.

Weaknesses

The initiative of Tiffany Co. to add sub-brands to attract employees from competitors and strengthen clothing business in US and other countries has shown reverse growth. Likewise, launching of new website to increase market share have not brought resultant profit. The gems stones business of Tiffany Co. is falling constantly and it is facing decrease in productivity. Tiffany and Co. is also losing its key employees like designers, product developers and general merchandise to its rivals and competitors. There is risk of show how, contacts and know-how in relation to present and potential business and contacts which is readily made available to competitors. The decision to implement the digital transformation strategy was late. The company also suffered technical difficulties and privacy breaches on the website during its introduction of card scheme and member club.

Opportunities

Jewellery business is successful with specialist strategy. Tiffany and Co is expanding its network through product expansion and online selling. There are around 13 million customers engage with the company which makes Tiffany and Co. attain market leadership.

Threats

The economic recession declines sales. Increasing terrorism across Europe has impacted consumer purchasing decision negatively.

The internal micro-environmental factors are corporate culture, employees’ behaviour, and firm’s competences operating within firm. The external factors include competition, customers and government (Pride, et al., 2016). The corporate culture of Tiffany and Co. is positive work culture and living the values which connects to customers’ behaviour. Decision makers should recruit designers and food manufacturers capable of making changes are per customer demand. Employees’ behaviour examined carefully will meet and match customers’ expectation. Decision for new recruitment, training, motivational technique for improving performance is required. Firm’s decreasing sales growth as compared to competitors due to its high price can be handled through suitable decision making. Decision for making organic and ethical products at reasonable price will help to attain competitive advantage.

Explanation / Answer

Provide recommendations for the future direction of the company Tiffany and Co jewelry retailer and Prepare a report including an analysis of the internal and external environments, which will support your recommendations. The report should include the following:

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