Recommendations of Enron Corporations Weather Derivatives (A) Case Analysis

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Recommendations of Enron Corporations Weather Derivatives (A) Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of various options, the company is recommended to consider alternative 3. As alternative 3 would allow the business to expand in worldwide markets without any decrease in its local revenues and any deterioration of its market position. The company might pursue alternative 1 which would allow the company to focus on prospective international markets rather than the regional markets however as the company is extremely reliant on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decline in business's revenue.

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

Expansion towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although a great choice for increasing the global presence of the business. Nevertheless, the closing of domestic shops might highly impact the earnings of the firm as above 90% of its stores lie domestically and closing those stores would eventually lower the revenues of the company. The company has a long term market position in US which can not be created quickly in the brand-new markets. The option would help the business to expand in global markets along with the elimination of problems raised in its local markets connected to its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of new international markets.
• Increase in earnings from international markets.
• Removal of concerns associated with variety.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial revenues from the local markets.
• Boost in competition.
• Differences in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.

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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might position an extreme threat to the market share of company. In this circumstance the company might think about introducing Click and Recommendations of Enron Corporations Weather Derivatives (A) Case Solution stores. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Elimination of brand Originality
• Removal of the terrific store experience.
• Danger of decline in elite sales.

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

Another choice that the company could think about, is to broaden towards the international markets without closing its domestic shops that adds to the huge part of earnings of the business. The advantages and disadvantages related to Alternative 3 are offered below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Exploration of brand-new international markets.
• Boost in earnings from international markets.
• Income diversification.
• Action towards being a strong international brand.

Cons:

• Continuation of problems connected to variety.
• Distinctions in cultures could caused a failure of the brand name specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to gain market share.



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