Tiffany & Co

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I. EXTERNAL ENVIRONMENT

A. Societal Environment

1. Economy
• Low-negative growth in economy/financial markets (T)
• Reduced discretionary spending on goods that are, or are perceived to be, luxuries (T)
• Unsettled regional/global conflicts e.g. military and/or terrorist activities (T)
• Weak economic conditions in Japan (T)
• Global competition (T)
• Wholesale market for high quality cut diamonds will provide continuity of supply and pricing (O)
• Soft employment market (T)
• Post September 11th recession/reduced tourism (T)
• Increase in 2-income families (O)
• Number of families w/ household incomes over $100,000 to grow by 20% (O)
• Low cost manufacturing abroad – China, Brazil (O)
• High discretionary income
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Finance
• See Common Sized Statement - Appendix D
• See Ratio Analysis – Appendix E
• 2002 - good financial position (S)
• U.S. represents 59% of net sales, international 42% of net sales (W)
• Fine jewelry – 80% of fiscal 2002 sales (S)

3. Research and Development
• Many successful new product launches (S)

4. Operations
• Effective inventory management (S)
• Well-stocked inventory (S)
• Strong relationship between suppliers and personnel (S)
• Investment in Aber Resources (S)
• Strong ability to outsource/effective license agreements (S)
• Collaborations with Brazilians & Chinese (S)
• Acquired Little Switzerland (S)
• Further improved warehousing and distribution productivity/capacity (O)

2. Human Resource Management
• Highly trained
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