Recommendations of Leveraged Employee Stock Ownership Plans Case Help

Home >> Darden Business School >> Leveraged Employee Stock Ownership Plans >> Recommendations

Recommendations of Leveraged Employee Stock Ownership Plans Case Study Help

On the basis of above internal and external analysis of the company in addition to the examination of various options, the business is recommended to consider alternative 3. As alternative 3 would enable the company to broaden in international markets without any decrease in its local incomes and any wear and tear of its market position. By considering Alternative 3, the business might preserve its shop experience and brand uniqueness. It might likewise consider alternative 2 that could enable the business to access the markets without any possible financial investment. Although, the business could pursue alternative 1 which would make it possible for the company to concentrate on possible international markets rather than the local markets but as the business is extremely based on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would lead to the considerable decline in company's revenue. Therefore, the business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Leveraged Employee Stock Ownership Plans Case Analysis Stores

Growth towards global markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the worldwide presence of the company. However, the closing of domestic stores could extremely impact the earnings of the firm as above 90% of its stores are located domestically and closing those stores would eventually lower the revenues of the firm. Additionally, the company has a long term market position in US which can not be produced quickly in the brand-new markets. The option would assist the business to expand in global markets together with the elimination of problems raised in its local markets connected to its variety. The pros and Cons for Option 1 are listed below;

Pros:

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

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competitors.
• Differences in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Leveraged Employee Stock Ownership Plans Case Solution Stores

Alternative 2 includes the intro of online market places through generating an appropriate company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could posture a serious threat to the marketplace share of business. The competitors are shifting towards click and Recommendations of Leveraged Employee Stock Ownership Plans Case Help shops with Space introducing Piperline. This shift towards online markets could minimize the incomes for company. In this circumstance the business could consider presenting Click and Recommendations of Leveraged Employee Stock Ownership Plans Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic stores. The pros and cons of alternative 2 are given as follows;

Pros:

• Low financial investment
• Lowering competitors threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Profits
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand name Originality
• Removal of the excellent store experience.
• Risk of decrease in elite sales.

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

Another alternative that the business could think about, is to broaden towards the global markets without closing its domestic stores that contributes to the major part of profits of the company. The pros and cons associated with Alternative 3 are offered below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Expanding consumer base
• Large Incomes
• Exploration of new international markets.
• Increase in profits from international markets.
• Revenue diversification.
• Step towards being a strong international brand.

Cons:

• Extension of issues related to variety.
• Differences in cultures might led to a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures 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.