Recommendations of Corporate Restructuring Case Solution

Home >> Darden Business School >> Corporate Restructuring >> Recommendations

Recommendations of Corporate Restructuring Case Study Solution

On the basis of above internal and external analysis of the company in addition to the assessment of different alternatives, the company is recommended to think about alternative 3. As alternative 3 would permit the business to broaden in international markets with no reduction in its local earnings and any wear and tear of its market position. By thinking about Alternative 3, the company might maintain its store experience and brand individuality. It might likewise consider alternative 2 that might enable the business to access the markets without any prospective financial investment. The business could pursue alternative 1 which would make it possible for the business to focus on possible worldwide markets rather than the local markets but as the business is extremely reliant on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in company's earnings. Therefore, the business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Corporate Restructuring Case Solution Stores

The company has a long term market position in United States which can not be produced quickly in the new markets. The option would assist the business to broaden in global markets along with the elimination of problems raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new international markets.
• Increase in revenue from international markets.
• Removal of problems related to variety.
• Profits diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive profits from the local markets.
• Increase in competition.
• Differences in cultures could caused a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Corporate Restructuring Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might posture a severe hazard to the market share of business. In this scenario the business might think about introducing Click and Recommendations of Corporate Restructuring Case Help shops. These stores with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand Individuality
• Removal of the fantastic shop experience.
• Risk of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another alternative that the company might think about, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the major part of incomes of the company. The benefits and drawbacks connected to Alternative 3 are provided below;

Pros:

• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Exploration of brand-new global markets.
• Increase in revenue from global markets.
• Profits diversity.
• Action towards being a strong global brand.

Cons:

• Extension of issues associated with diversity.
• Differences in cultures could caused a failure of the brand especially in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.