StudentShare solutions
Triangle menu

Economic environment effect on Build-a-Bear - Essay Example

Not dowloaded yet

Extract of sample
Economic environment effect on Build-a-Bear

When consumers’ income decrease, then it is expected that their purchasing power will fall thus impacting on the brand negatively. For example, after the financial crisis of 2007/2007, consumers’ income fell remarkably in the United States as a result of closure of companies, laying down of workers and reduction of salaries of wages (Nanto Dick). As a result consumers were unable to spend money buying items in the manner they did before the financial crisis. This is what resulted in the decline in sales of the Build-a- bear company thus negatively affecting its brand. According to the company’s press release the company increased its sales remarkably in the first quarter of 2013 (yahoo finance). Other external factors that affected the company’s brand are savings, debts, employment and credit. All these factors were also greatly influenced by the financial crisis of 2007/2008 thus negatively affecting the company’s brand. This is due to the fact this industry dependent highly on consumers’ disposable income (Accuval). How Recent Stock Market Movements have Affected the Company Despite the economic crisis of 2007/2008, the United States of America economy has been recovering gradually. This has been as a result of the austerity and stimulus policies that have been adopted by the United States of America government (Weaver, 189). ...
At the same time the company’s sales increased by1.4 dollars more than the previous quarter. This is a remarkable improvement considering the company was performing poorly after the financial crisis of 2007/2008. This is because consumers in the united Sates of America opted for imported toys and other commodities in the industry from countries such as china since they were at a cheaper price. Thus it can be concluded that the recent stock market movements have favored the company. Actions Has the Company been Taking in Response to these Developments and Trends In order to cope with the developments and trends in the economy, the company came up with a number of strategies. Firstly, the company introduced a store design that is new where the company introduced 11 stores which were newly imagined. These stores increased sales to 20 percent in the second quarter. The company expects that by 2013 it will have established the new store design in at least 30 locations and 25 more in 2014. The company decided to reduce on operational costs by closing up 38 stores in 2012 and transferring the sales of these stores to other stores in the market. The company also remodeled it stores in order to save on cost by reducing the square footage occupied by the stores. It also moved to smaller premises in small malls. Build-a Bear also changed its approach to marketing and advertising in order to increase shopping frequency. The company did this by building their brand through television advertising in its markets in the United States of America 2012 mid October. It also rebalanced its marketing mix in Europe in order to retain existing customers and attract more consumers to their products. This has resulted in the company realizing ...Show more

Summary

Name Instructor Course Date Economic environment effect on Build-a-Bear Trends in Consumers’ Income, Employment, Savings, Debt, and Credit Availability that have an Impact on the Brand There are various economic environmental factors that determine how a brand performs…
Author : cschiller
Economic environment effect on Build-a-Bear essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Economic environment effect on Build-a-Bear"
with a personal 20% discount.
Grab the best paper

Related Essays

Economic Environment and Financial Status of a Company
The author conducts financial evaluation on the basis of the four groups of ratios namely. An assessment of the economic environment in which the bank is functioning also was assessed for the purpose. In summary, the author concluded that the company should shift its focus more upon equity financing rather than depending on debts.
9 pages (2250 words) Essay
Assignment Three: A Literature Review in IMC: The topic is (Integrated Marketing Communication to build brands: Using Integrated
It has dealt with various researches on the topic relevant to the requirements of this literature review. The previous research papers have been critically examined citing their pros and cons. This paper is an interesting review of the earlier research on the concept of IMC in the modern marketing environment.
14 pages (3500 words) Essay
A Bear Workshop
YOUR NAME HERE YOUR TUTOR HERE DATE HERE Question 3 – Build A Bear Workshop Build A Bear Workshop is taking the right avenue in diversifying its product line, considering that many of the customer tastes are fad related and therefore short-lived in its marketplace.
1 pages (250 words) Essay
Effect of the Economic Downturn on a Manufacturing Company
The company's main concern was what action to take with regard to the workforce. With fewer production facilities, the company needed to reduce the number of labor hours by twenty per cent. There were several factors that affected the decision, most important was how to deal with a company union which strongly opposed a lay-off of any employee.
6 pages (1500 words) Essay
Intro to build environment
When the construction work began the cost was estimated at 50 Million (SPCB, 2001) and the building was to be completed by 2001. The actual construction started in mid 1999. The initial cost estimate was revised a number of times due primarily to cost escalations, delay in execution and change in project specifications.
9 pages (2250 words) Essay
Thailand's Crisis: A critical analyis of Thai Economic Security
As a prelude to the analysis, the rising significance of economic security towards ensuring national security is explicated with a view to justifying the focus on economic security, rather than the usual significance of military security in ensuring national security.
50 pages (12500 words) Essay
Build a Computer
t day availability of such terminals is broadly classified into two categories – The ‘Apple’ computer based on the ‘McIntosh’ operating system and the ‘Personal Computer’ or PC, based on the ‘Microsoft Windows’ operating system (Derene Glenn, 2008). The PC can
3 pages (750 words) Essay
Build a Model
It is dependent on the rate of income tax (Dai et al. 36). The relationship between the dependent and independent variables can be written as r = mt + b. This function shows a linear relationship between real interest rate and income tax. Where r is real interest
1 pages (250 words) Essay
Build a Model (Micro)
Few such factors are: Generally students with disability have to be trained and educated in special schools which are in accordance with their ability and provide certain facilities for them. In regular schools such facilities are not provided. So in such schools
2 pages (500 words) Essay
Economic environment
This helps to keep the price stable and this will greatly benefit the economic system of a country. This will ensure business sector to perform with confidence as price levels will not
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation