Recommendations of Restructuring Bulongs Project Debt Case Analysis
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On the basis of above internal and external analysis of the company along with the evaluation of various alternatives, the business is suggested to think about alternative 3. As alternative 3 would allow the company to expand in global markets without any reduction in its local incomes and any degeneration of its market position. The company could pursue alternative 1 which would enable the business to focus on prospective international markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its shops 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 Restructuring Bulongs Project Debt Case Analysis Stores
Growth towards global markets through opening new shops in other Europe and Asian nations with closing domestic shops is although a good option for increasing the worldwide presence of the company. The closing of domestic shops could highly affect the profits of the company as above 90% of its stores are located domestically and closing those stores would ultimately decrease the incomes of the firm. Moreover, the company has a long term market position in United States which can not be generated quickly in the brand-new markets. The option would help the company to broaden in international markets in addition to the removal of concerns raised in its local markets related to its diversity. The advantages and disadvantages for Option 1 are listed below;
Pros:
• Exploration of new global markets.
• Increase in revenue from worldwide markets.
• Elimination of concerns related to variety.
• Profits diversification.
• Step towards being a strong international brand name.
Cons:
• Loss of comprehensive revenues from the local markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.
Alternative-2: Introduction of Click and Recommendations of Restructuring Bulongs Project Debt Case Solution Stores
Alternative 2 consists of the intro of online market places through generating a proper business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might present an extreme risk to the market share of business. Additionally, the rivals are shifting towards click and Recommendations of Restructuring Bulongs Project Debt Case Analysis shops with Space presenting Piperline. This shift towards online markets might minimize the revenues for company. In this scenario the company might consider introducing Click and Recommendations of Restructuring Bulongs Project Debt Case Solution stores. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are given as follows;
Pros:
• Low investment
• Minimizing competition risk
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance
Cons:
• Risk to the marketplace position
• Elimination of brand Individuality
• Removal of the fantastic shop experience.
• Danger of decline in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another alternative that the business might think about, is to broaden towards the global markets without closing its domestic shops that adds to the major part of earnings of the company. The advantages and disadvantages connected to Alternative 3 are offered below;
Pros:
• Minimizing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Large Revenues
• Exploration of new worldwide markets.
• Boost in profits from worldwide markets.
• Income diversity.
• Step towards being a strong international brand name.
Cons:
• Continuation of problems connected to diversity.
• Distinctions in cultures could caused a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.
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