Marketing Project – Part Two
Principals of Marketing
Dr. Sarah Williams, Instructor
October 28, 2011
How the Economic Environment Impacts Tiffany & CO
Economic environment consists of the totality of economic factors, such as employment, income, inflation, interest rates, productivity, and wealth that influence the buying behavior of consumers and institutions (businessdictionary, 2011). Tiffany & Co contributes to the economic growth of the community around them by opening stores in the states; in 2004 the company opened ten stores four of which were located in the United States. That year sales increased 2.2 billion which means some of that revenue was filtered through the communities that the stores were opened in. As of January 31, 2007, the Company operated 64 Tiffany & Co. stores in the United States (answers, 2011). Business has done well for the companies even through the recession shares have gone up 6.4 % to 67.18% which has led the company to raise their yearly predictions because of the success. Stocks for the full year have risen 1.4% but dropped 21% this month assuming that financial, and other economic changes are affecting upscale shoppers. The company must also factor in the price of materials, within the past year the company has seen almost a 40% increase in rough diamond prices. Even with the increase in material prices the companies second-quarter gross margin widened to 59% from 57.8% which is good news for the business (marketwatch, 2011). How the Socio-Culture Environment Impacts Tiffany & CO
Social culture is defined as the explanation of two aspects of culture, Cognitive Culture or Worldview and Social Culture, the public patterns of relationships and interaction (yahooanswers, 2011). Being in the jewelry manufacturing business, worldly changes also have impacts on sales and profits. Americans want to see that the business helps and supports our economy while keeping ethical standards, bad social...