Economic environment effect on Build-a-Bear Essay

Economic environment effect on Build-a-Bear - Essay ExampleWhen consumers income decrease, then it is expected that their buying power will fall thus impacting on the brand negatively. For example, after the financial crisis of 2007/2007, consumers income fell unmistakably in the unite States as a result of closure of companies, laying down of workers and reduction of salaries of hire (Nanto Dick). As a result consumers were unable to spend money buying items in the manner they did beforehand the financial crisis. This is what resulted in the decline in gross sales of the Build-a- bear come with thus negatively touch its brand. According to the companys press release the company increased its sales remarkably in the first quarter of 2013 (yahoo finance). Other external factors that affected the companys brand are savings, debts, affair and credit. All these factors were also greatly influenced by the financial crisis of 2007/2008 thus negatively affecting the companys brand. This is due to the fact this industry dependent highly on consumers disposable income (Accuval). How Recent Stock commercialise Movements have Affected the Company Despite the economic crisis of 2007/2008, the United States of the States 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 brass (Weaver, 189). ... At the same time the companys 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. and then it can be concluded that the recent stock market movements have favored the company. Actions Has the Company been victorious in Response to these Developments and Tre nds In order to cope with the developments and trends in the economy, the company came up with a human activity of strategies. Firstly, the company introduced a store design that is tonic 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 tolls 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 obtain frequency. The company did this by building their brand through television advertising in its markets in the United States of Am erica 2012 mid October. It also rebalanced its marketing mix in Europe in order to go for existing customers and attract more consumers to their products. This has resulted in the company realizing