ECONOMICAL
Date: 2015-10-07; view: 510.
PRIMARY ESTIMATION
| Factors | Explanation | Opportunity/Threat |
| Increase in corporate taxation in Italy and in the main European countries. | Due to the financial crisis, Italian government increase fiscal corporation taxes. | Threat of a negative impact on profit, in the case of a prolongation of this situation. |
| The real economy crisis, following the financial crisis of 2007-2008, has had a big impact on the national balances of Italy and of the other European countries. In order to avoid a possible default and to reduce national deficit, these states have adopted a fiscal policy that has increased corporate taxes. Tod's Group, which has the holding located in Italy, is negatively impacted by this policy. | ||
| Euro depreciation against dollar and the other main currencies. | In the last year, especially from the beginning of 2015, Euro is depreciating against the other main currencies. | Opportunity of an increase in foreign sales. |
| The European currency has lost against the dollar more than 10% from the beginning of the year, closing at a value of 1,0771, compared with the 1,21 of January. Taking a look at a longer period, it is possible to say that in nearly one year the Euro has depreciated against the US dollar of 30%, due probably to different monetary policies implemented by the European Central Bank (ECB) and the Federal Reserve (Fed). Some experts has stated the probably the Euro will continue to decrease its value in the following period. | ||
| Zero economic growth in European area. | Due to the negative effects of the financial crisis of 2007-2008 on the real economy, Europe growth is close to zero. | Threat of a negative impact on sales, in the case of a prolongation of this situation. |
| The economic crisis in the European area is reducing the Tod's opportunity of growth in the market, which represents more than the 40% of the total sales. A prolongation of this situation could even stress the figures of the company. | ||
| Increasing in competition in the luxury market. | Due to the economic crisis in Europe, several shoes producers are moving toward the luxury segment. | Treat of a negative impact on sales, and on market share. |
| Due to the economic crisis, and the following decrease of people belonging to the so called “middle class”, several Italian shoes producers are moving their activities toward the luxury segment, which is less impacted by the economic crisis. | ||
| Reduction in custom duties for luxury brand sold in China. | In the second quarter of 2015, China has reduced its custom duties on luxury brands. | Opportunity of a increase in sales in this country. |
| Due to a low level of custom duties, Tod's products will become less expensive in the China. | ||
| Grivna depreciation against Euro, dollar and the other main currencies. | Due to the political instability, and the effects of the financial crisis, the value of Grivna has depreciated. | Treat of a negative impact on sales, due to a relative lower purchase power of Ukrainian customers. |
| The Euro/UAH exchange rate moved from 6 (2006) to 25 (2015). |
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