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

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

RecommendationsOn the basis of above internal and external analysis of the business along with the examination of various options, the business is recommended to consider alternative 3. As alternative 3 would allow the company to broaden in global markets without any decrease in its local revenues and any deterioration of its market position. By considering Alternative 3, the business could keep its store experience and brand name uniqueness. However, it could also consider alternative 2 that could permit the company to access the marketplaces with no possible investment. The business might pursue alternative 1 which would allow the business to focus on possible international markets rather than the local markets however as the business 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 decline in company's income. The business is advised to consider alternative 3.

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

International SegmentsThe 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 business to broaden in global markets along with the removal of problems raised in its regional markets related to its variety.

Pros:

• Exploration of new global markets.
• Increase in revenue from worldwide markets.
• Removal of issues related to variety.
• Profits diversity.
• Action towards being a strong global brand.

Cons:

• Loss of substantial profits from the local markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to get market share.

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

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose a severe danger to the market share of business. In this scenario the company might consider introducing Click and Recommendations of Dividend Policy At Fpl Group Inc. (B) Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another alternative that the business might think about, is to expand towards the global markets without closing its domestic stores that contributes to the major part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are offered below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Expedition of new global markets.
• Boost in earnings from worldwide markets.
• Earnings diversification.
• Step towards being a strong global brand name.

Cons:

• Continuation of issues connected to diversity.
• Differences in cultures might led to a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.



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