Recommendations of Enron Corporations Weather Derivatives (B) Case Analysis

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On the basis of above internal and external analysis of the company along with the assessment of various alternatives, the company is recommended to think about alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any reduction in its local incomes and any wear and tear of its market position. The company might pursue alternative 1 which would allow the company to focus on possible international markets rather than the local markets but as the company is highly reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in business's profits.

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

Growth towards worldwide markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a good option for increasing the international existence of the company. However, the closing of domestic shops might highly impact the revenues of the firm as above 90% of its shops are located domestically and closing those shops would eventually lower the incomes of the company. Additionally, the company has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would assist the business to broaden in international markets in addition to the removal of problems raised in its regional markets related to its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of new global markets.
• Boost in earnings from worldwide markets.
• Elimination of concerns related to diversity.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competitors.
• Differences in cultures might resulted in a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.

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

Alternative 2 includes the intro of online market places through creating an appropriate company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could position an extreme hazard to the marketplace share of business. Moreover, the competitors are shifting towards click and Recommendations of Enron Corporations Weather Derivatives (B) Case Solution shops with Space presenting Piperline. This shift towards online markets might minimize the incomes for business. In this situation the company might consider introducing Click and Recommendations of Enron Corporations Weather Derivatives (B) Case Solution stores. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic stores. The pros and cons of option 2 are offered as follows;

Pros:

• Low financial investment
• Decreasing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand name Individuality
• Elimination of the terrific store experience.
• Threat of decline in elite sales.

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

Another choice that the business might think about, is to broaden towards the international markets without closing its domestic stores that contributes to the huge part of revenues of the business. The pros and cons related to Alternative 3 are given listed below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Expanding consumer base
• Big Profits
• Exploration of new worldwide markets.
• Boost in revenue from international markets.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of issues connected to diversity.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to acquire market share.



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