Recommendations of Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies Case Solution

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Recommendations of Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies Case Study Analysis

On the basis of above internal and external analysis of the company together with the evaluation of numerous options, the business is recommended to consider alternative 3. As alternative 3 would permit the company to expand in international markets with no reduction in its local revenues and any deterioration of its market position. By thinking about Alternative 3, the business might maintain its shop experience and brand originality. It might likewise think about alternative 2 that might allow the business to access the markets without any prospective investment. The business could pursue alternative 1 which would make it possible for the company to focus on potential global markets rather than the regional markets but as the company is extremely reliant on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decrease in company's profits. Therefore, the company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies Case Analysis Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a good option for increasing the worldwide presence of the business. The closing of domestic shops could highly affect the earnings of the firm as above 90% of its shops are located domestically and closing those shops would ultimately decrease the profits of the firm. Additionally, the business has a long term market position in US which can not be created quickly in the new markets. The option would help the company to expand in worldwide markets along with the elimination of concerns raised in its local markets related to its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of new international markets.
• Boost in profits from global markets.
• Removal of concerns connected to diversity.
• Income diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of comprehensive revenues from the local markets.
• Increase in competition.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position an extreme danger to the market share of company. In this scenario the business might think about presenting Click and Recommendations of Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies Case Solution shops. These stores with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Removal of brand name Uniqueness
• Elimination 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 could think about, is to expand towards the international markets without closing its domestic stores that contributes to the major part of profits of the company. The advantages and disadvantages related to Alternative 3 are given listed below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Expanding customer base
• Big Profits
• Expedition of brand-new global markets.
• Increase in revenue from global markets.
• Income diversification.
• Action towards being a strong international brand name.

Cons:

• Extension of problems related to diversity.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to gain market share.



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