Recommendations of Enron Corporations Weather Derivatives (A) And (B) Case Help

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Recommendations of Enron Corporations Weather Derivatives (A) And (B) Case Study Solution

On the basis of above internal and external analysis of the business together with the assessment of numerous alternatives, the business is advised to consider alternative 3. As alternative 3 would enable the business to expand in worldwide markets without any reduction in its regional revenues and any deterioration of its market position. By considering Alternative 3, the business might preserve its store experience and brand originality. It might also think about alternative 2 that could enable the company to access the markets without any possible financial investment. Although, the company could pursue alternative 1 which would enable the company to concentrate on prospective international markets instead of the local markets but as the company is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the significant decrease in business's income. For that reason, the company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Enron Corporations Weather Derivatives (A) And (B) Case Analysis Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian countries with closing domestic stores is although an excellent option for increasing the international existence of the company. The closing of domestic shops could highly impact the incomes of the firm as above 90% of its shops are located locally and closing those shops would eventually decrease the incomes of the company. The business has a long term market position in US which can not be generated soon in the brand-new markets. The choice would assist the business to broaden in international markets in addition to the elimination of issues raised in its local markets connected to its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Boost in earnings from international markets.
• Elimination of issues related to variety.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of comprehensive profits from the regional markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Enron Corporations Weather Derivatives (A) And (B) Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might pose a serious threat to the market share of company. In this scenario the business might think about presenting Click and Recommendations of Enron Corporations Weather Derivatives (A) And (B) Case Solution stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competitors hazard
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Elimination of brand name Originality
• Elimination of the terrific shop experience.
• Threat of decline in elite sales.

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

Another option that the business could think about, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of earnings of the business. The advantages and disadvantages related to Alternative 3 are provided below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Exploration of brand-new worldwide markets.
• Increase in profits from worldwide markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of problems connected to diversity.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to acquire market share.



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