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

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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 along with the assessment of various options, the company is suggested to think about alternative 3. As alternative 3 would enable the company to broaden in global markets without any reduction in its local profits and any wear and tear of its market position. The company could pursue alternative 1 which would allow the business to focus on potential global markets rather than the local markets but as the company is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decline in business's revenue.

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 brand-new stores in other Europe and Asian nations with closing domestic shops is although a great alternative for increasing the global existence of the business. However, the closing of domestic shops might highly impact the earnings of the company as above 90% of its shops lie locally and closing those shops would eventually reduce the revenues of the firm. The business has a long term market position in US which can not be generated quickly in the new markets. The choice would assist the business to broaden in global markets together with the removal of issues raised in its local markets connected to its diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Exploration of new global markets.
• Boost in income from worldwide markets.
• Removal of problems related to variety.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competitors.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to gain market share.

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

Alternative 2 consists of the introduction of online market locations through producing a correct company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position a serious threat to the marketplace share of business. Moreover, the competitors are shifting towards click and Recommendations of Structuring Corporate Financial Policy: Diagnosis Of Problems And Evaluation Of Strategies Case Help stores with Gap presenting Piperline. This shift towards online markets might lower the incomes for business. In this circumstance the business could think about presenting Click and Recommendations of Structuring Corporate Financial Policy: Diagnosis Of Problems And Evaluation Of Strategies Case Help 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 shops. The pros and cons of option 2 are given as follows;

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the market position
• Removal of brand name Uniqueness
• 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 company might consider, is to broaden towards the global markets without closing its domestic stores that adds to the major part of incomes of the company. The pros and cons connected to Alternative 3 are provided listed below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Big Incomes
• Expedition of new global markets.
• Boost in income from global markets.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of concerns associated with variety.
• Distinctions in cultures might caused a failure of the brand specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to get market share.



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