Hedge Tiffany and Co.'s Foreign Currency Exposure in Japan
Hedging Tiffany and Co.’s Foreign Currency Exposure in Japan
Prepared for the Board of Directors of Tiffany & Company D.A.M.M. Business Consultants June 15, 1993
Table of Contents
Executive summary ………………………………… Risk of foreign exchange exposure in Japan ……… Overview of the Japanese Economy ………………. Industry analysis ……………………………………. Internal & external environmental analysis………. Financial analysis …………………………………... Hedging foreign exchange exposure ………………. Recommendation …………………………………… Appendices …………………………………………. Bibliography ……………………………………….. page 3 Page 4 Page 4 Page 7 Page 9 Page 12 Page 14 Page 16 Page 18 Page 25
Executive summary
The new era for Tiffany & Company, one with a world without borders, is ready to be conquered. The market is opening up into one global realm and the future for Tiffany‟s retail jewelry base in Japan could be lucrative.
It is no secret that Japanese consumers are the biggest spenders on luxury items in the world. Japanese consume 41% of the luxury good market world wide giving Tiffany‟s a market well suited for their products. (Kogler, 2006) The prestige associated with Tiffany‟s brand name gives the company a good position in this influential Asian market.
In the last few years the Japanese economy has seen some hard times. Forecasts are showing that we are at the end of this downward economic trend within Japan and that an upward trend could follow. The ability for Tiffany & Company to control the retail sales and grow its market share within the Japanese market could parallel a growth in the Japanese economy that is forecasted to come. If the forecasts are on, the future for Tiffany‟s could be one of substantial growth within the Japanese market.
D.A.M.M. Business Consultants would like to thank Tiffany & Company for acquiring our expertise in the area of Asian markets.
Primary Issue: risk of foreign exchange exposure in Japan
Controlling the retail sales within Japan could potentially translate into wider
Prepared for the Board of Directors of Tiffany & Company D.A.M.M. Business Consultants June 15, 1993
Table of Contents
Executive summary ………………………………… Risk of foreign exchange exposure in Japan ……… Overview of the Japanese Economy ………………. Industry analysis ……………………………………. Internal & external environmental analysis………. Financial analysis …………………………………... Hedging foreign exchange exposure ………………. Recommendation …………………………………… Appendices …………………………………………. Bibliography ……………………………………….. page 3 Page 4 Page 4 Page 7 Page 9 Page 12 Page 14 Page 16 Page 18 Page 25
Executive summary
The new era for Tiffany & Company, one with a world without borders, is ready to be conquered. The market is opening up into one global realm and the future for Tiffany‟s retail jewelry base in Japan could be lucrative.
It is no secret that Japanese consumers are the biggest spenders on luxury items in the world. Japanese consume 41% of the luxury good market world wide giving Tiffany‟s a market well suited for their products. (Kogler, 2006) The prestige associated with Tiffany‟s brand name gives the company a good position in this influential Asian market.
In the last few years the Japanese economy has seen some hard times. Forecasts are showing that we are at the end of this downward economic trend within Japan and that an upward trend could follow. The ability for Tiffany & Company to control the retail sales and grow its market share within the Japanese market could parallel a growth in the Japanese economy that is forecasted to come. If the forecasts are on, the future for Tiffany‟s could be one of substantial growth within the Japanese market.
D.A.M.M. Business Consultants would like to thank Tiffany & Company for acquiring our expertise in the area of Asian markets.
Primary Issue: risk of foreign exchange exposure in Japan
Controlling the retail sales within Japan could potentially translate into wider
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