Recommendations of Changing The Role Of Top Management: Beyond Structure To Processes Case Analysis

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Recommendations of Changing The Role Of Top Management: Beyond Structure To Processes Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of different options, the company is advised to consider alternative 3. As alternative 3 would allow the business to expand in worldwide markets without any decrease in its regional profits and any deterioration of its market position. The business could pursue alternative 1 which would allow the business to focus on prospective worldwide markets rather than the regional markets but as the business is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Changing The Role Of Top Management: Beyond Structure To Processes Case Analysis Stores

Expansion towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a good option for increasing the global presence of the company. Nevertheless, the closing of domestic shops might extremely affect the revenues of the company as above 90% of its shops lie domestically and closing those stores would eventually lower the revenues of the firm. The business has a long term market position in US which can not be created quickly in the new markets. The option would help the business to expand in worldwide markets along with the removal of concerns raised in its local markets related to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in revenue from worldwide markets.
• Elimination of issues related to diversity.
• Revenue diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial incomes from the local markets.
• Boost in competition.
• Differences in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Changing The Role Of Top Management: Beyond Structure To Processes Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could position an extreme hazard to the market share of company. In this situation the business might think about introducing Click and Recommendations of Changing The Role Of Top Management: Beyond Structure To Processes Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the market position
• Removal of brand name Individuality
• Removal of the fantastic shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the business might think about, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of revenues of the business. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Large Incomes
• Expedition of brand-new international markets.
• Increase in earnings from international markets.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Continuation of issues connected to diversity.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to get market share.



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