Recommendations of The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Help

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Recommendations of The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of different alternatives, the company is advised to consider alternative 3. As alternative 3 would enable the company to broaden in international markets without any decrease in its local profits and any deterioration of its market position. The business might pursue alternative 1 which would allow the company to focus on potential international markets rather than the local markets but as the business is extremely dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Solution Stores

The business has a long term market position in United States which can not be produced quickly in the new markets. The alternative would help the company to broaden in international markets along with the removal of concerns raised in its regional markets related to its diversity.

Pros:

• Expedition of new global markets.
• Increase in profits from global markets.
• Elimination of concerns related to variety.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Analysis Stores

Alternative 2 consists of the introduction of online market places through creating a correct company's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could present a serious hazard to the marketplace share of company. Furthermore, the rivals are shifting towards click and Recommendations of The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Analysis shops with Space presenting Piperline. This shift towards online markets might reduce the incomes for company. In this scenario the business could think about presenting Click and Recommendations of The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Analysis shops. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic stores. The pros and cons of option 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competitors hazard
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Incomes
• Low Operating Expense
• Easy brand-new market entrance

Cons:

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

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

Another alternative that the company could think about, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the huge part of revenues of the business. The benefits and drawbacks associated with Alternative 3 are given listed below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Expanding consumer base
• Big Revenues
• Expedition of new global markets.
• Increase in profits from global markets.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of problems associated with variety.
• Differences in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire market share.



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