Recommendations of Basel Ii: Assessing The Default And Loss Characteristics Of Project Finance Loans (A) Case Analysis

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Recommendations of Basel Ii: Assessing The Default And Loss Characteristics Of Project Finance Loans (A) Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of various options, the company is advised to consider alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any reduction in its regional profits and any wear and tear of its market position. The business might pursue alternative 1 which would make it possible for the business to focus on potential global markets rather than the regional markets but as the company is extremely dependent 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.

Aletrnative-1: Expanding International Brick and Recommendations of Basel Ii: Assessing The Default And Loss Characteristics Of Project Finance Loans (A) Case Help Stores

The business has a long term market position in United States which can not be generated quickly in the new markets. The choice would help the business to broaden in international markets along with the elimination of concerns raised in its local markets related to its variety.

Pros:

• Exploration of new global markets.
• Boost in profits from international markets.
• Elimination of concerns associated with diversity.
• Revenue diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive profits from the local markets.
• Boost in competitors.
• Differences in cultures might led to a failure of the brand especially in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Basel Ii: Assessing The Default And Loss Characteristics Of Project Finance Loans (A) Case Solution Stores

Alternative 2 consists of the introduction of online market places through creating a proper business's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might present an extreme threat to the market share of company. Moreover, the competitors are shifting towards click and Recommendations of Basel Ii: Assessing The Default And Loss Characteristics Of Project Finance Loans (A) Case Solution shops with Gap presenting Piperline. This shift towards online markets could minimize the profits for business. In this situation the company could think about presenting Click and Recommendations of Basel Ii: Assessing The Default And Loss Characteristics Of Project Finance Loans (A) Case Analysis stores. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Decreasing competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Elimination of brand name Uniqueness
• Removal of the excellent store experience.
• Threat of decrease in elite sales.

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

Another choice that the company could consider, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the major part of revenues of the business. The advantages and disadvantages associated with Alternative 3 are offered listed below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Increasing the size of customer base
• Large Earnings
• Expedition of new global markets.
• Increase in profits from international markets.
• Revenue diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of concerns related to diversity.
• Distinctions in cultures might led to a failure of the brand name especially in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



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