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This project is evaluated with the purpose to analyze the business environment of the company, product nature/product portfolio and its main characteristics, company’s market structure. Grant analysis of the external and internal business environment elements – SOOT, PASTEL analysis and to give proposals for improvement and adaptation to the environment. For this assignment attention is drawn to the Cassowaries company which is based on manufacturing jewelry.
This sphere of business attracts our group a lot so, we want to introduce the crystals industry from different sides, to show how it works, to find out what threatens and weaknesses of the company are and the influence of various external and internal factors. History: There has been one name that has been consistently and inextricably linked to precision cut crystal and fashion for more than 113 years . The founder of the company, Daniel Cassowaries l, was born in 1862 in Northern Bohemia, which happened to be the center of a flourishing crystal and costume jewelry industry.
In such a setting it’s perhaps unsurprising that Daniel was fascinated with the colorful brilliance of faceted stones from his earliest years. Moreover, as a young an he showed an aptitude for invention and entrepreneurship that was to form the basis of what today is a family company employing more than 20,000 and with a presence in more than 120 countries. In 1892, Daniel Cassowaries invented an automatic cutting and polishing machine.
In 1895, he founded the company Cassowaries, and his car was first established in the cutting and polishing factory in Wattles. Here he could use local hydro power plant for energy-intensive process of grinding and processing of crystal. The production of Cassowaries is diverse and it includes crystal glass sculptures and miniatures, jewelry and couture, home score, clothes decor and chandeliers. Cassowaries has its own logo. First original Cassowaries logo was an edelweiss flower, but later it was finally replaced with the current swan logo in 1988. 977 – Cassowaries entered jewelry and fashion market starting from the USA and other European Markets 1987 – Cassowaries Collectors Society was founded Today’s CRYSTAL SOCIETY, over 400 000 members in 35 countries. 1989 – Daniel Cassowaries Collection. 1993 – Crystal Mesh was invented. E. G. D, Channel, Luis Button regularly work with this fabric. 1994 – Lighting business 1995 – Crystalline, the Crystal World was opened in Wattles, celebrating he company’s 10th jubilee 2003 – Crystal Fabric was introduced (more than a million crystals/mm! 2008 – Flagship store in Tokyo To create crystal glass that lets light refract in a rainbow spectrum, Cassowaries covers some of its products with special metallic chemical coatings. Moreover, Cassowaries includes Trolls (abrasive and cutting materials), Shareware (reflective and luminous road markings), Signing (production of synthetic gemstones) and Optic (optical instruments). The company manages a crystalline technology park “Crystal Worlds CassowariesВ» on an exclusive area of Wattles (near Instruct, Austria). Crystal contains about 32 percent results in maximum refraction of light.
Some crystals are covered with metal chemicals. Aurora Borealis is one of the most popular and gives the surface a rainbow oil slick appearance. There are a lot of others: Crystal Transmission, Volcano, Arum, and Dorado. Some of the stones can be covered twice. Moreover the company works with iconic figures like Channel, Capillaries, Balancing and later, Christian Dior. The glittering, light filled crystals are irresistible to artists like jazz singer Josephine Baker, then to Hollywood icons like Marlene Dietrich, Marilyn Monroe and Audrey Hepburn.
Analysis of company business : Cassowaries is an Australian fashionable company that produces different types of jewelry, accessories, interior design and lighting with the latest on trend crystal innovations. “Crystals” is manufactured by Cassowaries Fieldsmen, near Zurich, Switzerland. The main product that company produces and concentrate on is stones. It also spreads on different production like: watches, shoes, dresses, bags and other clothes, even cars, toilets, chandeliers and other special products that are made by private orders.
The main services that Cassowaries offers are: polishing, decoration and decor, making widely exhibitions that tide by customer attention, exchanging stones among jewelries, orders that come from private clients. Moreover the biggest part of profitability comes from private orders, for example making cloth with Cassowaries stones, watches or any usual product that is not included in catalogs of the company. Besides it can be especial polishing, covering different things by stones for example: cars, computers, toilets, mobile phones and etc.
According to this fact private customers are participating a main part in customer base of the company, because of earning more money of them. The mission statement of the company. The mission of Cassowaries and its retail stores is about the impact that its products can make in everyday lives, and reflects the desire of the Cassowaries founder to use crystals to “spread joy”. (See the complete Cassowaries company mission statement and corporate values below) That means that the mission statement of the Cassowaries company and Cassowaries retail stores is as simple and elegant as the company’s crystals themselves.
Cassowaries provides its employees with guiding principles in the form of official corporate values which define the Swearword’s workplace culture and provide guidance about how its employees at al levels conduct business and make decisions. The Cassowaries corporate values are: Responsibility Imaginative Vigorous Passion Responsibility is the interest of the company and the impact different actions of the company on other employees. Staff takes care of Cassowaries as a whole and Cassowaries cares about the staff – ‘Walking the talk” as the company says.
Imaginative is open-minded and innovative staff in creating aesthetically unique product designs and solutions for companies consumers and customers. Vigorous is dynamic and powerful. Leveraging the strengths and benefits of companies global organization. Empowering colleagues to be effective and efficient. Working as a team across the organization to achieve Cassowaries joint ambition of outstanding and profitable results. Companies acknowledge and reward performance. Passionate is striving for consumer and customer loyalty by continuously surprising and amazing them and create long-term relationships with our business partners. All factors below are dedicated to the objective: Business analysis. Analysis of product nature/product portfolio/and its main characteristics: Jewelry The most famous and fabulous products that everyone connects Cassowaries tit, these are their amazing, precious jewels. Since the company exists (1895) creates sparkling jewels such as: earrings, bracelets with wristbands, necklaces, pendants, rings, hair slides (cuff-links) and brooches. From decades the elegant ladies from highest upper classes prefer Cassowaries as their main jewelry brand because of the elegance, precision cutting and fine design, appropriate for any occasion.
The jewelry collections are high-classed, modern and full with lot of brilliance. The jewelry designers create fabulous combinations between necklaces, earrings, bracelets and rings appropriate for different personal styles. Accessories The sparkling accessories are also part of the main Cassowaries products. Crystalline accessories such as: handbags, purses, watches, key rings, sunglasses, even and USB sticks and headphones have special, fashion trends for different tastes. The Cassowaries watch collection for example exclusively combines crystalline design with Swiss mechanisms.
Technical precision again in every each accessory. Home and Interior Cassowaries home interior collections that includes objects of a timeless design and a lot of sparkle, appropriate for the most refined customers’ taste and pleasure. The collection includes design objects, vases, bowls, beautiful picture frames and so on. The unique interior design objects are made with combined crystal materials such as- metal, wood, stone and even timeless design emerges. Objects and Figurines The amazing and unique Cassowaries figurines are created only for collectors all over the world.
Every each one of them has its own story. Which make them the perfect gift or a special souvenir. In a time for decades the company grabs customers’ attention with the precision of color, shape, size, cutting and stylish details. The names of some of this kind of collections are: “Crystal Moments”, Crystal Paradise”, “The Love lots” and “Silver Crystal” Chandeliers The chandeliers have a special place in Cassowaries products. Famous designers such as Tuition Yahoos and Gaza Had have reinterpreted a Cassowaries crystalline chandeliers.
They are created for all tastes- from traditional and simple to elegant and extravagant tastes, with perfectly combined light and crystal. Optics For already sixty years until now the company is completed with high quality Cassowaries Optic products- telescopes, telescopic sites, optical instruments, binoculars, optical instruments and light intensifiers with the highest quality ND precision (as every Cassowaries products). These products are preferred and highly popular among nature observers and worldwide professional specialists, because the company is well-known with its optical brilliance, quality and exactness.
The department of Q is responsible for improving product on the market and its growth in its business portfolio. Providing innovations, staff training , getting achievements on world’s exhibitions make company more competitive and fashionable with its modern product that improving every year. Company market structure analysis: Cassowaries company takes one of the leading position on the burning surface of he competition. The structure of the competition market is oligopoly because of that several big companies stands on competition and Cassowaries one of them.
The stone market is very high and strong market to competitive. The main competitors of the company are : Van clef and Rappels, Carrier, Chopped. This competition concentrates on quality, polishing , attracting customers and especially race of private orders and clients, because in such business the most important is such making business as especial orders. As the market structure is Oligopoly means that it is the low chance for entrance new companies on he market, because new companies won’t be competitiveness forward such companies as Cassowaries,Van clef and Rappels, Carrier, Chopped.
Customer orientation of the company is: broad range, crystal experience, affordable luxurious well as high-end products. Company oriented on abroad and private buyers that are high social class. Although company uses long marketing term plan it means that Swearword’s strategy concentrated on innovation, investments in constantly changing business environment. SOOT analysis SOOT analysis is performed to study the business environment, legal environment, the strengths and weaknesses of the company and the competing companies, and also the complex interaction of factors.
Strengths: 1)The main strength of Cassowaries is that this company has a big customer base, that gives big opportunities forward competitors, because of position on the market and brand. 2)According to the information that was used to obtain the objectives of assignment, the company takes a position of the leader in more than 120 countries in the world – market industry. 3)Moreover it has over 30000 employees. 4)The market of Cassowaries is mostly concentrated on vast production locations n countries like Austria, China, Czech Republic, India, Jordan, Liechtenstein, Thailand, United States. )The company has a huge income statement, strong annual turnover and financial position. 6)Strong and flexible brand has big influence on customer’s wish and whole environment of business. 7)Branding of the company brigs vast customer base in wide spheres: dancing, skates, fashion industry, decoration, architecture and art. Brand presence shown in many festivals, presentations. 7. 1)The Festival programmer is made up of over 300 events and exhibitions staged by hundreds of partner organizations across the sign spectrum and from around the world. )Other strengths of the company are unmatched quality, craftsmanship and creativity that guides by supporting creativity and culture, promoting wellbeing and conserving natural resources. 9)Cassowaries crystals became an essential ingredient in the heady world of high fashion of the 20th century. 10) Cassowaries crystal offers a wealth of possibilities for integrated lighting solutions, innovative design and exceptional architecture. Weaknesses: 1)Cassowaries takes one of the biggest leader position on the competitive market, nevertheless it has limited market share. Another side of the company brand that Cassowaries has poor advertising program. 3)Besides the company faces with defective product such as false cut of stones. 4)The product is not available for all segments of society because of its high price. 5)Len some cases a color of stones does not correspond to the desires of the clients that has a bad influence on the company at all. 6)There are some companies which counterfeit products of Cassowaries company and thereby they have lower production costs and price which attracts customers. ) It is necessary to increase the protection of the production and this requires additional funds. ) Basically the product of the company is fragile. Opportunities: 1 )The company begins to create a brand identity by collaborating with PR activities(Public Relations Activities) 2)Cassowaries deals with foreign and famous partners that give opportunities to sell its product more widely and in a high race. 3)Every year a new line of products appears on the world market that has an influence on customer’s loyalty. 4) Exhibitions that are provided by the company impact on customer’s attractiveness. ) Festivals that are made by company give opportunities against competitors, make companies product more attractive and represents it in a different way than competitors do. 6) Increasing budget in advertising will cover issue in a distribution of information in more easy way. 7) Future innovation in sports, swimming wear, lingerie etc. Threats: 1)One of the biggest threat that can face company like Cassowaries is cheap manufacturing, because client is willing to search cheaper stones with fake brand. In our case company faces with China cheap manufacturing. )Nowadays fashion and trends are fast changing, and there is a chance that stones of Cassowaries will be less popular, and company will lose their clients. )Low interest of people in crystal stones as investments. 4)Substitute products of competitor are still big threat for company, stones of the company could be changed on another more fashionable and attractive for current line of customers. PASTEL analysis Political: Market players in this industry include a variety of retailers ranging from small specialty retailers to large international retailers.
The large retailers have the right and the ability to compete intensively on price- as it is the Cassowaries company. Since it began in 1 895 in Wattles, Tyro it has preserved its independence, it has developed groundbreaking innovations and inspired trends in a jewelry field. Cassowaries fabulous expressiveness is coming from the Central Rupee’s cultural heritage and one very important thing to mention- its ability to build bridges between industry, art and a science. Brand loyalty is very important for the Cassowaries market.
The brand identity is one of the most major factors in determining the price of production. It is important for the company industry very single crystal to be unique with itself. The perfection is on the first place. The development never stands still. Cassowaries is always improving the perfection of its production, pursue internationalization in order to grow and searching for more and new market options. The key for the SUccess of Cassowaries is the strength and the permanent high class of their brand for all these years. Economic: Cassowaries has its activity in 120 countries in the world.
The production of the company spreads among 18 countries. It is directed by family members of the fifth generation. Cassowaries has 1014 owned-prepared boutiques and concessions, moreover it has 819 partner-operated. The total spent on wages 12,779,000 Euros and average staff pay 15894. 28. Research shows that in 2007 the company had turnover of 2. 56 billion Euros. Employees are more than 12. 000 people and 30. 600 employees worldwide. The company is dealing with many worldwide operations, including factories in Italy, Mexico, USA, Argentina and in other countries.
Cassowaries is mainly known like a luxury market in the economic world. They are focusing on the broad portfolio of their products in order to increase the market of the company and make their customers pleased with the variety of products that they can provide. Social: The main social activity lately is in a younger demographic through a Web series, or example “Gossip Girl” and “The Adman Chronicles”. They say that one of their strategies is to entertain young fashionable people in the Web series with real- life glimpse world of Cassowaries.
Crystalline products are used not only in TV series and in world fashion designers’ collections too. Many celebrities choose to wear Cassowaries brand in different occasions: movies, Oscar, red carpet fashion awards and etc. Crystal Society members have access to exclusive content, receive small gifts, and most importantly, can purchase exclusive products which can only be seen in specialty stores and media. In 201 2, Cassowaries had two exclusive models, CSS Watch Piazza grandee Quartz and CSS Watch Piazza, available to its members.
The brand has over 100,000 fans on Faceable where it has allowing fans to browse the latest fashion news, view interviews with designers, artists and celebrities and share videos with friends. Every year the Cassowaries company organizes a thousands of social fashion events in the most famous world fashion centers (London, New York, Paris and so on). The creative laboratory of cassowaries – CASSOWARIES CRYSTALLINE opened in 1995. , which has been visited by more than 10 million people so far. Technological: Cassowaries are well-known as the highest quality cut machines and polished crystal beads.
Unfortunately the demand for luxury products attracts the attention of hundred imitators all over the world. The Cassowaries creates its glass with a special compound that cannot be duplicated. The other technological quality is a delicate color palette that sets Cassowaries crystal components apart from others. The newest Cassowaries packaging is sealed with a silver toned hologram saying “CASSOWARIES ELEMENTS. ” The crystals are perfectly uniform. Since they are machine cut, each crystal is the same. This means that the height, width and shape are consistent. Inside the crystals, there are no bubbles.
If there are any bubbles this means that it is a fake. ћAurora Borealis” is the name of one of the Cassowaries techniques for the separation of visible light into its different colors. Other techniques are Crystal Transmission, Volcano, Arum, Dorado. The cleaning of the crystals happens very carefully with soft brushes and gloves. Environmental: The company has always supported social and environmental projects and from a long time until now it is look after its local workforce in Austria and Wattles by alluding churches, quarters, sports and cultural associations.
Something that is very important to mention is that water has always been a key element in Swearword’s company production. They have established charity, The Swearword’s Watercolors, where more than 185,000 children teach about the importance of suitable water management. The Cassowaries Foundation supports initiatives on women’s empowerment access to education and health, assists the development of young people and communities and education. It is also conserving natural resources through environmental projects to promote the protection and improvement of the physical and natural environment.
Legal: The label “MADE WITH CASSOWARIES ELEMENTS” which is trapezoid-shaped in the original products serves like a certificate of authenticity and improves that they are made with genuine Cassowaries elements. The company offers branding partners: first-class services with technical expertise and trend consultancy. The company offers a whole warranty for pieces purchased from authorized Cassowaries retailer. The warranty covers materials manufactures defects due to normal wear and use. Each defective product under warranty examines and valuates by brand’s technical experts. T depends on the situation and the circumstances, the exact product can be replaced, repaired or substituted with other product of an equal value. There is an official legal Cassowaries Website www. cassowaries. Com, where there are general conditions and terms apply to all product orders. Before using the Website for ordering customers need to read carefully all terms and conditions. Organizational Structure: The headquarters of the Cassowaries company is located in Whitens, Austria. Nowadays this name is like a logo for creativity and quality all around the world.
It is working in an international environment, the basis of traditional business can be felt in a good way. As an employer Cassowaries can offer enjoyable benefit schemes and make their employees part of the innovative growth and process. The development of the people in the business is very important task for this brand. Cassowaries offers its crystal products to the fashion and design sphere under the product brand “CASSOWARIES ELEMENTS”. The collections provide an overview of the whole range of crystals, Crystals Stones and Semi- finished products.
CASSOWARIES ELEMENTS combine all industry excellence- suasion jewelry, accessories, textiles, lighting to architecture, precision optics, crystal ornaments. The company has the aim to deal with the needs of each industry and offers flexible solutions such as: technical service, training courses, application partner network. Cassowaries developed a network of “Recommended” and “Certified” partners. This network offers services form product and design consultancy to prototyping. The reputation of the company is leading producer of the finest and precise machine-cut crystals.
Crystals have always fascinated people, they seem to imitate a special energy which awakes the interest of architects, artists, scientists and designers. Cassowaries is on the top of the jewelry and fashion lists because of the care for these precious stones and keeping their value and sparkle. They combine organic and inorganic aspects. Cassowaries continuously reflects of the time tend with their jewelry and accessory industry. Keep its work with international designers and help them to express their ideas and creative talents.
One of the long-standing partnerships are with Coco Channel and Else Capillaries. There are, of course many others partners who the company is working with- international clothes designers, perfumes, cosmetics ND so on in fashion business. Legal structure: More than 100 years Cassowaries has developed itself and now it is mastery in precision-cut technology and created stones. For the manufacture of the jewels and figurines the company uses special formulas and the processes are based in a long term of experience. The quality of the final products it is admitted all around the world.
According to the website the brand group had revenue of 2. 87 billion euros (which makes 4 billion dollars) in 2011, up from 2. 25 billion euros in 2009. The research shows that 80 percent of Cassowaries business is derived from he sales of crystals, the half of this comes from fashion designers whom it has a partnerships. The other half from retail sales, made up of crystal sales. The balance of the revenue comes from two other business lines, which are lenses and precision cutting. In this company ownership is between near 1 00 family members.
According to a source (Orbs), 21 percent ( the largest stake) is held by Lances Cassowaries, who is on age of 69 years. He has a public face for 35 years and remains on the advisory board representing family shareholders and definitely influences the company strategy. The brand says in an e-mailed statement that “Cassowaries is a family- owned and run business and it is not obligated to disclose anything beyond the legal and regulatory obligations”. They added that “any numbers and valuations form third parties are purely speculative”.
Propositions for improving business environment influence To identify main objectives of improvement of business environment, getting through the definition, business environment: The combination of internal and external factors that influence a company’s operating situation, to obtain the objective of improvement must consider all facts below. ) Cassowaries company uses long-term business plan, that requires often innovation. The barriers and preconceptions which regard the traditional image have to break down.
The aim is to capture the clients’ attention with a fantasy and emotional influence, and even to stimulate entirely new expectations and visions closer to the modern lifestyle and future. Although for better influencing on customer loyalty, better to use determination that creates products to current client’s wishes. 2) Cassowaries is in the list of the most stylish and expensive products in the fashion world. The prices are too high for most of the people. Nowadays less people spend their money on expensive jewels and stones. The prices should be more accessible.
In this way it will be reduced the customers’ interest for duplicated Cassowaries products from other smaller companies, which prices are lower than the original products. Considering from other side such product as stones, can’t be for all classes of clients , so another option is to create another line of products for clients who has less opportunities than others. 3) The hard working and stability is the main slogan of the market of the company. Offering products in different peeress (as we mentioned): Jewelry, accessories, home and interior, objects and figurines, chandeliers, optics and etc.
All these collections are combined the quality, technical precision, crystalline design and sets new trends. This attracts many costumers. According to the survey for Cassowaries is better to start to combine this highest competence with more unusual style. The stylish products should be matched with some daily elements and details. It is important to mention that in younger customers will be more interested by this trend, because of the broken limits and different products’ looking. )Cassowaries is one f the most famous companies in the fashion world, but it could be better if the advertisement activity of the company pays more attention of the other projects which is dealing with and has a positive influence on the environment and on the customers’ market at all. For example the financed project about Watercolors in India, China and Uganda, which is not connected with fashion, and with the water natural recourse on the Earth. The Watercolors objective is to encourage understanding among young adults and children of use of water and teach them how to use this precious resource in a responsible way.