Recommendations of Deutsche Bank Securities: Financing The Acquisition Of Consolidated Supply Sa Case Solution

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Recommendations of Deutsche Bank Securities: Financing The Acquisition Of Consolidated Supply Sa Case Study Help

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of different options, the company is recommended to consider alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any decrease in its local earnings and any deterioration of its market position. The company might pursue alternative 1 which would enable the company to focus on prospective global markets rather than the local markets but as the company is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Deutsche Bank Securities: Financing The Acquisition Of Consolidated Supply Sa Case Solution Stores

International SegmentsExpansion towards global markets through opening new shops in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the worldwide presence of the business. The closing of domestic stores might extremely impact the profits of the company as above 90% of its stores are located locally and closing those stores would eventually minimize the profits of the company. Moreover, the business has a long term market position in US which can not be created soon in the new markets. The choice would assist the business to expand in worldwide markets along with the elimination of concerns raised in its local markets connected to its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of brand-new international markets.
• Increase in revenue from global markets.
• Removal of issues connected to variety.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Deutsche Bank Securities: Financing The Acquisition Of Consolidated Supply Sa Case Help Stores

Alternative 2 includes the introduction of online market places through producing a proper business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might posture a severe danger to the marketplace share of company. The rivals are moving towards click and Recommendations of Deutsche Bank Securities: Financing The Acquisition Of Consolidated Supply Sa Case Analysis shops with Space presenting Piperline. This shift towards online markets could decrease the revenues for business. In this circumstance the business could consider presenting Click and Recommendations of Deutsche Bank Securities: Financing The Acquisition Of Consolidated Supply Sa Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Elimination of brand Uniqueness
• Removal of the terrific store experience.
• Risk of decrease in elite sales.

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

Another option that the company could think about, is to expand towards the global markets without closing its domestic shops that contributes to the major part of revenues of the business. The pros and cons associated with Alternative 3 are provided listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Exploration of new worldwide markets.
• Boost in income from global markets.
• Profits diversity.
• Action towards being a strong global brand name.

Cons:

• Extension of problems associated with variety.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to get market share.



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