Recommendations of Bp Amoco (B): Financing Development Of The Caspian Oil Fields Case Solution

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Recommendations of Bp Amoco (B): Financing Development Of The Caspian Oil Fields Case Study Help

On the basis of above internal and external analysis of the business in addition to the assessment of different options, the company is suggested to think about alternative 3. As alternative 3 would enable the business to broaden in international markets without any reduction in its local incomes and any deterioration of its market position. By thinking about Alternative 3, the company could maintain its store experience and brand originality. It might also consider alternative 2 that could enable the company to access the markets without any possible financial investment. Although, the business might pursue alternative 1 which would allow the business to concentrate on prospective international markets rather than the local markets however as the business is highly depending on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's profits. The business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Bp Amoco (B): Financing Development Of The Caspian Oil Fields Case Analysis Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the international existence of the company. The closing of domestic stores could extremely impact the profits of the firm as above 90% of its stores are located domestically and closing those stores would eventually lower the profits of the firm. The business has a long term market position in United States which can not be produced soon in the brand-new markets. The alternative would help the business to broaden in worldwide markets in addition to the removal of problems raised in its regional markets associated with its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new international markets.
• Boost in income from global markets.
• Removal of concerns connected to variety.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Increase in competition.
• Differences in cultures could led to a failure of the brand specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Bp Amoco (B): Financing Development Of The Caspian Oil Fields Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position a severe risk to the market share of business. In this situation the company might consider introducing Click and Recommendations of Bp Amoco (B): Financing Development Of The Caspian Oil Fields Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand Originality
• Elimination of the fantastic store experience.
• Threat of decline in elite sales.

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

Another alternative that the business might think about, is to broaden towards the international markets without closing its domestic shops that adds to the huge part of incomes of the company. The advantages and disadvantages related to Alternative 3 are provided below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Large Incomes
• Exploration of brand-new international markets.
• Boost in revenue from global markets.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of concerns connected to variety.
• Distinctions in cultures could resulted in a failure of the brand name especially in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.



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