Recommendations of Takeover! 1997 (A) The Target Global Foods Corporation Case Analysis

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Recommendations of Takeover! 1997 (A) The Target Global Foods Corporation Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of different options, the business is recommended to consider alternative 3. As alternative 3 would permit the company to broaden in global markets without any decrease in its regional incomes and any deterioration of its market position. The business might pursue alternative 1 which would allow the company to focus on potential international markets rather than the regional markets however as the company is extremely dependent 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 business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Takeover! 1997 (A) The Target Global Foods Corporation Case Solution Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the worldwide presence of the business. The closing of domestic stores could highly impact the revenues of the company as above 90% of its stores are situated domestically and closing those stores would ultimately minimize the earnings of the company. Furthermore, the company has a long term market position in US which can not be generated soon in the brand-new markets. The option would help the company to expand in international markets in addition to the elimination of concerns raised in its local markets associated with its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Increase in revenue from worldwide markets.
• Removal of problems associated with variety.
• Earnings diversity.
• Step towards being a strong global brand name.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Takeover! 1997 (A) The Target Global Foods Corporation Case Help Stores

Alternative 2 consists of the introduction of online market places through producing an appropriate company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present a severe hazard to the market share of business. Moreover, the competitors are shifting towards click and Recommendations of Takeover! 1997 (A) The Target Global Foods Corporation Case Help stores with Space presenting Piperline. This shift towards online markets might reduce the revenues for company. In this scenario the company might think about introducing Click and Recommendations of Takeover! 1997 (A) The Target Global Foods Corporation Case Analysis 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 provided as follows;

Pros:

• Low investment
• Lowering competitors danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Profits
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand Individuality
• Elimination of the fantastic shop experience.
• Risk of decrease in elite sales.

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

Another option that the business could consider, is to expand towards the global markets without closing its domestic stores that adds to the huge part of incomes of the company. The benefits and drawbacks associated with Alternative 3 are offered listed below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Increasing the size of customer base
• Large Revenues
• Expedition of brand-new global markets.
• Boost in profits from global markets.
• Earnings diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of concerns connected to variety.
• Differences in cultures might caused a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to acquire market share.



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