Recommendations of Executive Decision Making At General Motors Case Solution

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Recommendations of Executive Decision Making At General Motors Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of numerous options, the business is advised to consider alternative 3. As alternative 3 would permit the company to expand in global markets without any reduction in its local revenues and any wear and tear of its market position. The business could pursue alternative 1 which would allow the company to focus on possible global markets rather than the local markets but as the company is highly reliant on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Executive Decision Making At General Motors Case Help Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although a good option for increasing the global existence of the business. The closing of domestic shops might highly impact the profits of the firm as above 90% of its stores are located locally and closing those stores would eventually decrease the earnings of the firm. The company has a long term market position in US which can not be produced quickly in the new markets. The choice would help the business to broaden in worldwide markets together with the elimination of problems raised in its local markets related to its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in profits from international markets.
• Elimination of issues related to variety.
• Income diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand especially in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Executive Decision Making At General Motors Case Help Stores

Alternative 2 includes the introduction of online market places through creating a proper company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could pose an extreme risk to the marketplace share of company. The rivals are shifting towards click and Recommendations of Executive Decision Making At General Motors Case Help shops with Space presenting Piperline. This shift towards online markets could minimize the incomes for business. In this scenario the business could think about introducing Click and Recommendations of Executive Decision Making At General Motors Case Help shops. These shops with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores. The pros and cons of option 2 are given as follows;

Pros:

• Low investment
• Decreasing competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy new market entrance

Cons:

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

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

Another option that the company might consider, is to broaden towards the international markets without closing its domestic stores that contributes to the huge part of incomes of the business. The advantages and disadvantages related to Alternative 3 are offered listed below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Expanding customer base
• Large Incomes
• Exploration of brand-new international markets.
• Boost in revenue from worldwide markets.
• Profits diversification.
• Step towards being a strong global brand name.

Cons:

• Extension of problems associated with diversity.
• Distinctions in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to gain market share.



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