Section A. Case Study â€“Answer ALL Questions relating to the Case Study TYTJewellery Group was set up almost fifty years ago in Hong Kong. It started with about thirty staff and was engaged in retailing jewels of various materials including gold, diamond, platinum and silver, etc. for customers in weddings, new-born children and other ceremonies in Chinese society. Their craftsman skills and products were of high standards with good quality. After years of development, their product ranges are very wide,including rings, ear-rings, necklace and pendant with materials of diamond, gold, k-gold, pearl,and jade, etc. Their collections have been very popular in Hong Kong and Mainland China for years. In the past decade, the Group expanded the jewelry business in retailing of their collections to the neighboring Asian countries like Thailand, Vietnam, Singapore,and Malaysia. TYTJewellery Group has established many outlets to retail their own brand names of collections of jewels like ear-rings, necklace, pendant, and bracelet, etc. They are especially well-accepted in these eastern Asian countries with Chinese tradition.Seeing the success of expanding jewelry business to Asian countries, the Group has just started for about two years to further expand her business to the western countries including those developed countries in Europe, such as France, Germany, United Kingdom and Italy, as well as the newly-developed countries like Bulgaria, Portugal, and Romania, etc. TYT has developed new product collections of jewels with western style as they asked designers to adapt their original collections to meet the tastes of new, western customers. They established new retailing networks and also entered partnerships with some local enterprises in these countries. Their products are of good standards with high quality and the craftsman skills are commended by new customers. Some new marketing executives are employed to formulate marketing plans targeting at these European countries. With such marketing and sales plans, they can attract some westerns to buy their products, especially from the rich people in Europe. However, the styles of these jewellery collections cannot easily penetrate into the main middle-classes of people in these European countries. After spending many efforts, they have had only small increase in the sales volumes for the past twelve months in those new market sin Europe whilst the original Asian markets still performed well. The management board was not very satisfied with the pace of performance. Now, TYTJewellery Group has a total of about one thousand two hundred employees serving in Hong Kong and in other regions. In this year, the company faced the problem of high employee turnover, especially among those young marketing executives and experienced technical staff and craftsmen who were responsible for the design of new products and production management. Some young staff resigned because of the Groupâ€™s traditional management style because their opinions were not much taken seriously by the senior staff. On the other hand, many experienced technical staff left the company because some aggressive competitors offered them with much higher salaries and better working conditions.
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