Recommendations of Project Financing: An Economic Overview Case Solution

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Recommendations of Project Financing: An Economic Overview Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of different options, the company is advised to think about alternative 3. As alternative 3 would enable the company to broaden in international markets without any reduction in its local incomes and any degeneration of its market position. By thinking about Alternative 3, the company could preserve its shop experience and brand name originality. Nevertheless, it might likewise consider alternative 2 that could permit the business to access the marketplaces without any possible investment. Although, the company might pursue alternative 1 which would make it possible for the business to concentrate on prospective global markets instead of the local markets but as the company is highly depending on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decrease in business's earnings. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Project Financing: An Economic Overview Case Analysis Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a great choice for increasing the worldwide presence of the business. The closing of domestic stores might extremely impact the incomes of the company as above 90% of its stores are located locally and closing those stores would eventually decrease the earnings of the firm. The business has a long term market position in United States which can not be generated quickly in the brand-new markets. The choice would assist the company to broaden in international markets in addition to the removal of issues raised in its local markets associated with its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in profits from global markets.
• Removal of problems connected to diversity.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Boost in competition.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Project Financing: An Economic Overview Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose a serious hazard to the market share of business. In this scenario the business might think about presenting Click and Recommendations of Project Financing: An Economic Overview Case Help 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.

Pros:

• Low investment
• Decreasing competition hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand name Individuality
• Removal of the great store experience.
• Danger of decrease in elite sales.

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

Another option that the company might think about, is to broaden towards the international markets without closing its domestic stores that adds to the major part of incomes of the business. The advantages and disadvantages associated with Alternative 3 are provided below;

Pros:

• Lowering competitors risk
• Access to the world markets
• Expanding customer base
• Large Earnings
• Expedition of new worldwide markets.
• Boost in income from global markets.
• Income diversification.
• Action towards being a strong global brand.

Cons:

• Extension of concerns associated with variety.
• Differences in cultures could led to a failure of the brand particularly in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to get market share.



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