Recommendations of Texas High-Speed Rail Corporation: Fcf Vs Ecf Valuation Case Analysis

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Recommendations of Texas High-Speed Rail Corporation: Fcf Vs Ecf Valuation Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of various alternatives, the business is advised to consider alternative 3. As alternative 3 would enable the company to expand in international markets without any reduction in its local revenues and any wear and tear of its market position. The company might pursue alternative 1 which would allow the business to focus on potential global markets rather than the regional markets but as the business is highly reliant on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decline in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Texas High-Speed Rail Corporation: Fcf Vs Ecf Valuation Case Solution Stores

Growth towards global markets through opening new stores in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the international presence of the company. However, the closing of domestic shops might highly affect the incomes of the company as above 90% of its shops lie domestically and closing those shops would ultimately reduce the revenues of the firm. The company has a long term market position in US which can not be produced soon in the brand-new markets. The option would assist the business to expand in worldwide markets together with the elimination of issues raised in its regional markets connected to its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Boost in revenue from global markets.
• Removal of concerns associated with diversity.
• Income diversification.
• Action towards being a strong international brand.

Cons:

• Loss of substantial profits from the regional markets.
• Increase in competition.
• Differences in cultures could caused a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Texas High-Speed Rail Corporation: Fcf Vs Ecf Valuation Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might posture a severe danger to the market share of business. In this scenario the business might think about introducing Click and Recommendations of Texas High-Speed Rail Corporation: Fcf Vs Ecf Valuation Case Solution shops. These shops with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops.

Pros:

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

Cons:

• Danger to the market position
• Elimination of brand name Uniqueness
• Elimination of the terrific shop experience.
• Threat of decline in elite sales.

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

Another alternative that the company might consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of profits of the company. The benefits and drawbacks associated with Alternative 3 are provided listed below;

Pros:

• Lowering competitors hazard
• Access to the world markets
• Enlarging customer base
• Big Profits
• Expedition of brand-new international markets.
• Increase in profits from international markets.
• Earnings diversity.
• Step towards being a strong global brand name.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.



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