Recommendations of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Analysis

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Recommendations of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Study Help

On the basis of above internal and external analysis of the business along with the examination of numerous alternatives, the company is suggested to think about alternative 3. As alternative 3 would permit the business to broaden in international markets without any decrease in its regional incomes and any degeneration of its market position. The business could pursue alternative 1 which would allow the company to focus on prospective worldwide markets rather than the regional markets however as the company is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the significant decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Help Stores

Expansion towards global markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a good option for increasing the global presence of the business. The closing of domestic shops could highly affect the earnings of the company as above 90% of its stores are situated locally and closing those stores would ultimately minimize the incomes of the firm. The company has a long term market position in US which can not be produced soon in the new markets. The alternative would help the company to broaden in global markets together with the removal of concerns raised in its regional markets related to its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Increase in profits from worldwide markets.
• Elimination of concerns associated with diversity.
• Income diversity.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competition.
• Differences in cultures could caused a failure of the brand name particularly in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Analysis Stores

Alternative 2 includes the intro of online market places through generating a correct company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could pose an extreme danger to the marketplace share of business. The competitors are shifting towards click and Recommendations of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Analysis stores with Space introducing Piperline. This shift towards online markets might reduce the profits for company. In this circumstance the company might think about introducing Click and Recommendations of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Analysis shops. 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 shops. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low investment
• Minimizing competitors threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Incomes
• Low Operating Expense
• Easy new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand Individuality
• Removal of the great store experience.
• Danger of decline in elite sales.

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

Another choice that the company might think about, is to expand towards the global markets without closing its domestic shops that contributes to the major part of incomes of the company. The benefits and drawbacks related to Alternative 3 are offered listed below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Exploration of new global markets.
• Boost in revenue from global markets.
• Profits diversification.
• Action towards being a strong global brand.

Cons:

• Extension of problems connected to variety.
• Differences in cultures could led to a failure of the brand specifically in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to get market share.



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