Recommendations of Governance Problems At Morgan Stanley Case Analysis

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On the basis of above internal and external analysis of the business along with the evaluation of various options, the business is advised to consider alternative 3. As alternative 3 would permit the company to expand in global markets without any reduction in its regional revenues and any degeneration of its market position. The business could pursue alternative 1 which would enable the business to focus on potential international markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Governance Problems At Morgan Stanley Case Solution Stores

Growth towards international markets through opening new shops in other Europe and Asian nations with closing domestic shops is although an excellent choice for increasing the international existence of the business. Nevertheless, the closing of domestic shops could extremely impact the revenues of the firm as above 90% of its stores lie domestically and closing those stores would eventually lower the incomes of the company. The company has a long term market position in US which can not be produced soon in the new markets. The alternative would assist the business to broaden in international markets along with the removal of concerns raised in its local markets associated with its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Increase in revenue from international markets.
• Removal of problems connected to variety.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand name specifically in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Governance Problems At Morgan Stanley Case Solution Stores

Alternative 2 includes the intro of online market locations through creating an appropriate company's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could posture a serious danger to the market share of business. Moreover, the rivals are moving towards click and Recommendations of Governance Problems At Morgan Stanley Case Analysis stores with Gap presenting Piperline. This shift towards online markets might minimize the earnings for company. In this circumstance the company could consider introducing Click and Recommendations of Governance Problems At Morgan Stanley Case Analysis stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low investment
• Decreasing competition risk
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

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

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

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

Pros:

• Lowering competition danger
• Access to the world markets
• Expanding consumer base
• Large Profits
• Expedition of brand-new international markets.
• Increase in profits from global markets.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of issues related to variety.
• Differences in cultures could led to a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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