Recommendations of Molycorp: Issuing The Happy Meal Securities (B) Case Analysis

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Recommendations of Molycorp: Issuing The Happy Meal Securities (B) Case Study Help

On the basis of above internal and external analysis of the company together with the assessment of various alternatives, the business is recommended to consider alternative 3. As alternative 3 would allow the company to expand in global markets with no decrease in its regional earnings and any degeneration of its market position. By considering Alternative 3, the company might maintain its store experience and brand individuality. Nevertheless, it might also consider alternative 2 that might enable the business to access the marketplaces with no prospective financial investment. The business could pursue alternative 1 which would allow the company to focus on possible global markets rather than the regional markets however as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decrease in company's profits. Therefore, the business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Molycorp: Issuing The Happy Meal Securities (B) Case Solution Stores

Growth towards global markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a great option for increasing the worldwide existence of the company. However, the closing of domestic stores could highly impact the incomes of the firm as above 90% of its stores lie domestically and closing those shops would eventually reduce the incomes of the firm. Additionally, the company has a long term market position in US which can not be produced quickly in the new markets. The option would help the business to broaden in worldwide markets along with the elimination of problems raised in its regional markets related to its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Boost in revenue from global markets.
• Elimination of problems connected to variety.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Increase in competitors.
• Differences in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Molycorp: Issuing The Happy Meal Securities (B) Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might position a severe threat to the market share of company. In this circumstance the company might think about presenting Click and Recommendations of Molycorp: Issuing The Happy Meal Securities (B) Case Analysis stores. These shops with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Decreasing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Elimination of brand Originality
• Removal of the great store experience.
• Threat of decline in elite sales.

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

Another choice that the company could consider, is to expand towards the international markets without closing its domestic shops that adds to the major part of incomes of the business. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Exploration of new worldwide markets.
• Boost in profits from global markets.
• Income diversification.
• Step towards being a strong international brand.

Cons:

• Extension of problems connected to variety.
• Distinctions in cultures could led to a failure of the brand specifically in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to gain market share.



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