No Essay Example | Topics and Well Written Essays - 1000 words - 3

No - Essay ExampleIn discussing Tiffany in the context of the forces considered in performing and environmental s butt, it has been evident that the last couple of years, politics and political economy have continued to play a critical role in driving different companies in the jewelry industry so as to stay competitive. The issue of blood diamonds continue to elicit abstruse reactions. The current economic conditions has made the jewelry industry face a downturn especially in occasions like the Valentines Day and Christmas.The risks that Tiffany needs to consider in conducting its ope dimensionns include the copiousness of counterfeit goods which is adversely affecting the sales of the branded accessories for Tiffany. This is further worsened by the increasing meshwork retailing which continues to make Tiffanys efforts in fighting counterfeit goods more challenging and consequently makes the federation to lose its brand equity hence a threat because of increases customer dissati sfaction due to the detrimental jut out of the company. Another threat continues to be the slowdown in the US economy which continues to depress the purchasing ability of the retail customers hence having a counter effect on the growth of revenue and the margins of the company. The fact that this does not augur well for retail chains like Tiffany makes it threat that needs serious consideration.To establish whether TIF can take on more debt, we computed the companys debt ratio or capital gearing ratio which measures the symmetricalness of debt finance capital employed by the company. The debt ratio of Tiffany is 43.41% hence the companys pecuniary position as regards to debts is healthy as it is less geared. The debt equity ratio provides a measure of the proportion of non-owner supplied funds to owners contribution. Tiffanys debt equity ratio is 59.25% meaning that the