Recommendations of Molycorp: Morgan Brothers Reverse Convertible Notes (C) Case Solution

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Recommendations of Molycorp: Morgan Brothers Reverse Convertible Notes (C) Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of numerous options, the business is advised to consider alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any reduction in its local incomes and any deterioration of its market position. The business might pursue alternative 1 which would make it possible for the company to focus on prospective worldwide markets rather than the regional markets but as the business is highly reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Molycorp: Morgan Brothers Reverse Convertible Notes (C) Case Solution Stores

The business has a long term market position in United States which can not be created quickly in the brand-new markets. The alternative would assist the company to broaden in international markets along with the elimination of concerns raised in its local markets related to its variety.

Pros:

• Expedition of brand-new international markets.
• Increase in earnings from international markets.
• Elimination of problems connected to variety.
• Revenue diversity.
• Action towards being a strong international brand.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Boost in competitors.
• Differences in cultures could caused a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Molycorp: Morgan Brothers Reverse Convertible Notes (C) Case Help Stores

Alternative 2 includes the introduction of online market places through generating a correct company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position a severe danger to the market share of company. Furthermore, the rivals are moving towards click and Recommendations of Molycorp: Morgan Brothers Reverse Convertible Notes (C) Case Analysis stores with Gap presenting Piperline. This shift towards online markets might minimize the earnings for company. In this circumstance the business could consider introducing Click and Recommendations of Molycorp: Morgan Brothers Reverse Convertible Notes (C) 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 stores. The benefits and drawbacks of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competitors hazard
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Big Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand name Individuality
• Elimination of the excellent shop experience.
• Danger of decline in elite sales.

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

Another alternative that the company could consider, is to broaden towards the international markets without closing its domestic stores that contributes to the major part of profits of the business. The advantages and disadvantages related to Alternative 3 are given listed below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Enlarging consumer base
• Big Profits
• Exploration of brand-new worldwide markets.
• Boost in profits from international markets.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of issues associated with variety.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.



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