Recommendations of Governance Problems At Royal Dutch Shell Case Analysis

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Recommendations of Governance Problems At Royal Dutch Shell Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of numerous options, the company is suggested to think about alternative 3. As alternative 3 would enable the company to expand in international markets without any decrease in its local revenues and any degeneration of its market position. The company could pursue alternative 1 which would enable the business to focus on possible international markets rather than the local markets however as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Governance Problems At Royal Dutch Shell Case Help Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a great alternative for increasing the international presence of the business. The closing of domestic shops could highly affect the earnings of the company as above 90% of its stores are situated locally and closing those stores would ultimately lower the incomes of the firm. The business has a long term market position in US which can not be generated soon in the new markets. The alternative would assist the business to broaden in international markets along with the elimination of concerns raised in its regional markets connected to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in profits from international markets.
• Removal of concerns related to diversity.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand name especially in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Governance Problems At Royal Dutch Shell Case Solution Stores

Alternative 2 consists of the intro of online market places through creating a proper company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could posture a severe threat to the marketplace share of business. Moreover, the rivals are moving towards click and Recommendations of Governance Problems At Royal Dutch Shell Case Solution stores with Gap presenting Piperline. This shift towards online markets could lower the profits for company. In this situation the company might consider introducing Click and Recommendations of Governance Problems At Royal Dutch Shell Case Solution shops. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Reducing competition hazard
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Removal of brand Originality
• Removal of the terrific shop experience.
• Danger of decrease in elite sales.

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

Another option that the business might consider, is to broaden towards the global markets without closing its domestic stores that contributes to the major part of earnings of the business. The pros and cons connected to Alternative 3 are offered below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Expanding consumer base
• Large Profits
• Exploration of brand-new international markets.
• Increase in earnings from worldwide markets.
• Income diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of problems associated with diversity.
• Differences in cultures could led to a failure of the brand name particularly in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.



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