Recommendations of Daiwa Bank Lessons In Risk Management Case Help

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Recommendations of Daiwa Bank Lessons In Risk Management Case Study Help

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of various options, the business is suggested to consider alternative 3. As alternative 3 would enable the business to broaden in international markets without any decrease in its local earnings and any degeneration of its market position. The business might pursue alternative 1 which would enable the company to focus on potential worldwide markets rather than the regional markets but as the company is extremely reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Daiwa Bank Lessons In Risk Management Case Help Stores

International SegmentsThe company has a long term market position in United States which can not be produced soon in the brand-new markets. The option would help the company to expand in global markets along with the removal of problems raised in its local markets related to its variety.

Pros:

• Expedition of brand-new worldwide markets.
• Boost in earnings from international markets.
• Elimination of issues connected to variety.
• Revenue diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Daiwa Bank Lessons In Risk Management Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present a serious risk to the market share of business. In this scenario the business could think about introducing Click and Recommendations of Daiwa Bank Lessons In Risk Management Case Solution stores. These shops with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the market position
• Elimination of brand name Originality
• Elimination of the excellent store experience.
• Threat 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 expand towards the international markets without closing its domestic shops that adds to the major part of profits of the business. The benefits and drawbacks associated with Alternative 3 are offered listed below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Exploration of brand-new global markets.
• Increase in income from global markets.
• Income diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of problems associated with diversity.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to get market share.



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