Recommendations of Daiwa Bank: Lessons In Risk Management Case Solution

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Recommendations of Daiwa Bank: Lessons In Risk Management Case Study Solution

On the basis of above internal and external analysis of the business in addition to the examination of different alternatives, the business is recommended to consider alternative 3. As alternative 3 would permit the business to broaden in international markets with no decrease in its regional revenues and any degeneration of its market position. By considering Alternative 3, the business could maintain its store experience and brand originality. It might likewise consider alternative 2 that might enable the business to access the markets without any possible financial investment. The business might pursue alternative 1 which would make it possible for the company to focus on potential global markets rather than the local markets however as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in company's income. The business is advised to think about alternative 3.

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

Expansion towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the worldwide existence of the business. Nevertheless, the closing of domestic shops might extremely impact the profits of the firm as above 90% of its stores are located locally and closing those shops would ultimately decrease the revenues of the company. The business has a long term market position in United States which can not be generated quickly in the new markets. The option would help the company to expand in global markets along with the removal of concerns raised in its local markets associated with its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of new international markets.
• Increase in income from international markets.
• Elimination of concerns connected to variety.
• Income diversity.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competition.
• Distinctions in cultures could caused a failure of the brand name especially in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get 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 hazard to the market share of business. In this situation the business might think about presenting Click and Recommendations of Daiwa Bank: Lessons In Risk Management Case Help stores. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competitors danger
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Elimination of brand name Originality
• Removal of the terrific store experience.
• Danger of decrease in elite sales.

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

Another alternative that the business might consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of incomes of the business. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Enlarging consumer base
• Large Revenues
• Expedition of new global markets.
• Boost in earnings from worldwide markets.
• Revenue diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of issues related to variety.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to gain market share.



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