Aurora Case

The problems: that have been created due to a well-established product line and target demographic, in a challenging industry environment, facing declining growth and changes in corporate structure and ownership. The case represents the opportunity for students to analyze the effectiveness of organizational strategy and goals. No long term strategic planning (no vehicle growth)

Goal:

Is to keep the business healthy, keep inventories in line and keep moving forward. We ....... (page209)

Goal analysis:

SMART

PESTLE analysis:

It gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful tool for understanding risks associated with market growth or decline, and as such the position, potential and direction for a business or organization.

P (Political): not mentioned in the case

E (Economic):1) according to Philadelphia based marketing consultry there were 38 million young people between the ages of 11 and 19 In US, buying power per year is about $2000 per capita.

2) Decline in profit because of currency factor and lower demand in Europe.

S (Social): 1) there were 38 million young people between the ages of 11 and 19 in the U.S at the beginning of 2006. Also, there were 27.6 million people from 6 to 12 years old.

2) The number of American ages 25 to 34 was expected to rise to 5.2% of the population by 2010, but those ages 12 to 18 were forecasted to fall by 3.3%.

3) Socio-cultural issues included the worry in some circles about the focus on little girls growing up too soon, becoming sex objects or slaves to the pop icons, losing their individuality.

T( Technology): is not mentioned

L (Legal):

1) Maryland and California required U.S. Retailers and distributions to dramatically reduce the levels of lead in costume jewelry particularly when sold to children.

2) Potential trade regulations and supplier disruption

E (Environment): 1) Maryland and California required U.S, Retailers and distributions to dramatically reduce the levels of lead in costume jewelry particularly when sold to children.

Porter's Five Forces:

Porter five forces is an important tool for analyzing an organization's industry, and it determines the intensity of competition and hence the profitability and attractiveness of an industry.The industry we are analyzing is the retail industry.

Bargaining power of buyers

Buyers of the retail industry are individuals.

* Individuals