Recommendations of Dividend Policy At Fpl Group Inc (A) And (B) Case Help

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Recommendations of Dividend Policy At Fpl Group Inc (A) And (B) Case Study Analysis

On the basis of above internal and external analysis of the company in addition to the evaluation of different options, the business is advised to consider alternative 3. As alternative 3 would enable the business to expand in international markets with no reduction in its local profits and any degeneration of its market position. By thinking about Alternative 3, the business might preserve its shop experience and brand uniqueness. However, it might likewise think about alternative 2 that might permit the business to access the markets with no potential investment. Although, the business might pursue alternative 1 which would allow the business to concentrate on potential worldwide markets instead of the local markets but as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would lead to the considerable decline in business's profits. Therefore, the business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Dividend Policy At Fpl Group Inc (A) And (B) Case Solution Stores

Expansion towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the international presence of the company. However, the closing of domestic stores could highly affect the incomes of the firm as above 90% of its stores lie locally and closing those stores would eventually lower the earnings of the company. The company has a long term market position in United States which can not be created soon in the new markets. The option would help the company to broaden in worldwide markets together with the elimination of issues raised in its regional markets associated with its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Boost in income from worldwide markets.
• Removal of issues connected to variety.
• Earnings diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial revenues from the regional markets.
• Increase in competitors.
• Differences in cultures could caused a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Dividend Policy At Fpl Group Inc (A) And (B) Case Analysis Stores

Alternative 2 consists of the introduction of online market locations through generating a proper business's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might present an extreme danger to the marketplace share of company. The rivals are shifting towards click and Recommendations of Dividend Policy At Fpl Group Inc (A) And (B) Case Help shops with Gap introducing Piperline. This shift towards online markets could decrease the earnings for business. In this circumstance the company might think about presenting Click and Recommendations of Dividend Policy At Fpl Group Inc (A) And (B) Case Solution stores. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Elimination of brand Originality
• Removal of the great store experience.
• Risk of decrease in elite sales.

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

Another alternative that the company could think about, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of revenues of the company. The pros and cons related to Alternative 3 are provided below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Expedition of new international markets.
• Increase in profits from worldwide markets.
• Revenue diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of problems connected to diversity.
• Distinctions in cultures could led to a failure of the brand particularly in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to gain market share.



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