6) what is your appraisal of Tiffany & Co.\'s financial performance based on the

Question

6) what is your appraisal of Tiffany & Co.'s financial performance based on the data in case exhibit 1? How do the company's EBIT margins compare for the 2006-2011 period? Is there evidence that Tiffanys strategy is working ?



7) Does Tiffany have adequate competitive strength to defend its position in the industry ? Do a weighted competitive strength assessment using he methodology presented in Table 4.4 of chapter 4 to support your answer. s Tiffany's Little Blue Box: Does it Have Any Strategic Signifncance Case Financial Performance Summary for Tiffany&Company;'s US. Segment, 2006-2on C-87 's U.S Revenue (S million) $1,560.9 1,734.1 1,547.0 1,338.2 1,484.5 1,764.2 % Change EBIT (S million) % Change 8.0% $250.3 343.4 228.3 226.4 352.1 477.1 0.7% 37.2 33.5 -13.5 10.9 18.8 55.5 35.5 Note: EBIT = Earnings before interest and taxes. Sounce: httpullelients.bisworld.com.libdata.lib.ua.edu/indust THE 4 C'S OF DIAMONDS the naked eye; however, a minor difference in color rat ing can create a large difference in value. diamond,there are a few When it comes to choosing a things consumers need to be aware of before entering The third C, clarity, refers to the purity of the diamond and its absence of natural inclusions and a store or purchasing items online. These characteris- blemishes. Determining a diamond's clarity is based cs are referred to as the 4 C's: carat, color, clarity, and ot. Created by the GIA, the Gemological Institute of America, the 4 C's are the international standard for on evaluating the number, size, relief, nature, and position of these defects, as well as how they affect the overall appearance of the stone. The greater the clarity describing the quality of the diamond. The creation of the diamond, the greater its value. The GIA clar the 4 C's permitted universal communication when ity scale includes six different categories: flawlessnes dscribing diamonds and also provided customers (FL), no inclusions or blemishes under 10x magnifi under 10x magnification; very very slightly include (VVSI and VVS2), inclusions so slight that they ar way of understanding what they were looking cation; internally flawless (IF), no inclusions visible at in jewelry stores. The first C, carat, refers to the actual weight of the ach carat can d. One carat is equal to 200 milligrams, and difficult for a skilled grader to see under 10x magnif carat can be subdivided into 100 points. This cation; very slightly included (VSI and VS2), inclusios or very precise measurements, to the hun- are clearly visible under 10x magnification, but can b decimal place. Diamond weights greater than characterized as minor; slightly included (SI and S for v carat are expressed in carats and decimals, such as r one point twenty-five carats. The greater rat weight, the more expensive the diamond. said, two diamonds of the same weight inclusions are noticeable under 10x magnificatio included (II, 12, 13), inclusions are obvious und 10x magnification, which may affect transparency a enormous difference in the value of the diamond. T is why it is so important for consumers to receiv To many people, the fourth C, cut, refers to and 125 brilliance. Identifying blemishes and inclusions can very difficult to see with the naked eye, but make carats o very difficul very different values dependi second C, color, actually refers to the ing on the other ery different values depending on the other diamond's rfect dia- chemically and structurally perfect dia professional appra completely absent of color. Consequently professional appraisal. shape (round, princess, emerald, pearl) of the mond. In truth, the cut of the diamond actually re ls facets interact with light ed of color. A chemically and structu the ralue. GIA devel- nd D

Explanation / Answer

Tiffany is consistent in making profits in every year from 2006 to 2011. There is fluctuation in the EBIT, however, both positive and negative, which means the profits have also increased and decreased in comparison to the previous year. It is evidence that the company’s strategy is working as we can see the results in the profits every year.

Yes. Tiffany has adequate competitive strength to defend its position in the industry. Tiffany has an overall rating of 5.95 which is neither too strong nor too weak to consider. It is an adequate rating enough for Tiffany to survive. In comparison to the rivals, the company is more competitive than one and less competitive than the other. This shows Tiffany has what it takes to survive in the industry.

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.