Azza Fahmy Jewelry Case Study

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1) Azza Fahmy Jewelry (AFJ), a leader in the Egyptian jewelry industry is undertaking international expansion that will also result in restructuring, very risky decision. It is important that AFJ evaluates targeted countries carefully. The jewelry industry is highly dependent on the current overall spending power of consumers. Consumer’s disposable income is correlated to the quantity of goods purchased and thus sales revenue. Macro indicators provide a gauge of the consumer’s “spending power”. Consumer spending is dependent on a wide range of factors that include actual and perceived economic condition that affects disposable income, business landscape, tax rates, government regulations, availability of credit, demographics and markets where the products are sold. If the country’s general economic condition is in the red or changes in consumer spending, tax, interest rates, political instability locally or within the region will undoubtedly affect sales of AFJ products. The macro indicators are classified into 5 key areas. Though all of them are important in evaluating overall attractiveness, some have more relevance to AFJ and the industry as compared to the rest. Demographics This criterion is one of the most important as it provides AFJ with general information and trends about the population. For AFJ, one of the most important is a demographic trend as it allows them to predict future needs such as demand. For example, Turkey has a smaller senior (65 years and

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