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

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

On the basis of above internal and external analysis of the company along with the assessment of various options, the business is recommended to think about alternative 3. As alternative 3 would allow the company to broaden in worldwide markets without any reduction in its regional incomes and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on potential 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 considerable decrease in company's income.

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

The company has a long term market position in US which can not be generated quickly in the brand-new markets. The choice would assist the company to expand in global markets along with the elimination of concerns raised in its local markets related to its diversity.

Pros:

• Expedition of brand-new global markets.
• Increase in profits from worldwide markets.
• Elimination of concerns related to variety.
• Income diversification.
• Action towards being a strong international brand.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competitors.
• Differences in cultures might led to a failure of the brand especially in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.

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

Alternative 2 includes the introduction of online market locations through creating a proper business's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture a serious danger to the marketplace share of company. Additionally, the competitors are moving towards click and Recommendations of Dividend Policy At Fpl Group Inc (B) Case Analysis shops with Gap introducing Piperline. This shift towards online markets might lower the earnings for business. In this circumstance the business might think about presenting Click and Recommendations of Dividend Policy At Fpl Group Inc (B) Case Help shops. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Minimizing competition risk
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Uniqueness
• Elimination of the terrific store experience.
• Risk of decrease in elite sales.

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

Another choice that the company might consider, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of revenues of the company. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Expedition of brand-new global markets.
• Boost in earnings from international markets.
• Income diversification.
• Action towards being a strong international brand.

Cons:

• Extension of problems connected to diversity.
• Differences in cultures could resulted in a failure of the brand name especially in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to get market share.



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