Recommendations of Buyback Of Shares By Mncs In India Case Solution

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Recommendations of Buyback Of Shares By Mncs In India Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of various options, the business is advised to think about alternative 3. As alternative 3 would allow the business to broaden in international markets without any decrease in its regional earnings and any wear and tear of its market position. The company could pursue alternative 1 which would allow the business to focus on possible worldwide markets rather than the regional markets however as the company is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Buyback Of Shares By Mncs In India Case Solution Stores

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a good choice for increasing the international existence of the company. The closing of domestic stores might extremely impact the revenues of the firm as above 90% of its stores are situated domestically and closing those shops would ultimately lower the profits of the company. The company has a long term market position in United States which can not be produced soon in the new markets. The option would help the company to broaden in international markets in addition to the elimination of issues raised in its regional markets connected to its diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Boost in revenue from international markets.
• Elimination of problems associated with diversity.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Buyback Of Shares By Mncs In India Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could pose a serious threat to the market share of business. In this scenario the company could think about presenting Click and Recommendations of Buyback Of Shares By Mncs In India Case Analysis stores. These shops with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Removal of brand name Originality
• Removal of the great shop experience.
• Threat of decline in elite sales.

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

Another option that the business could think about, is to broaden towards the worldwide markets without closing its domestic shops that adds to the huge part of incomes of the company. The benefits and drawbacks connected to Alternative 3 are provided listed below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Expanding customer base
• Big Incomes
• Exploration of new worldwide markets.
• Increase in revenue from global markets.
• Revenue diversification.
• Action towards being a strong global brand name.

Cons:

• Continuation of problems connected to variety.
• Differences in cultures might resulted in a failure of the brand especially in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to get market share.



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