Recommendations of Governance Problems In Citigroup Japan Case Solution

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Recommendations of Governance Problems In Citigroup Japan Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of various options, the business is recommended to think about alternative 3. As alternative 3 would enable the business to broaden in international markets without any reduction in its regional earnings and any degeneration of its market position. By considering Alternative 3, the business might keep its shop experience and brand name originality. Nevertheless, it might also think about alternative 2 that might enable the business to access the markets with no prospective investment. The business could pursue alternative 1 which would enable the company to focus on possible worldwide markets rather than the local markets but as the business is extremely dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decline in company's profits. The company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Governance Problems In Citigroup Japan Case Analysis Stores

International SegmentsThe business has a long term market position in United States which can not be generated soon in the brand-new markets. The choice would assist the business to expand in global markets along with the elimination of issues raised in its regional markets related to its diversity.

Pros:

• Exploration of brand-new global markets.
• Increase in income from worldwide markets.
• Elimination of issues associated with variety.
• Earnings diversity.
• Action towards being a strong international brand.

Cons:

• Loss of extensive earnings from the local markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Governance Problems In Citigroup Japan Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could position an extreme risk to the market share of company. In this scenario the business could think about introducing Click and Recommendations of Governance Problems In Citigroup Japan Case Analysis stores. These stores with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Profits
• Low Operating Expense
• Easy new market entryway

Cons:

• Danger to the market position
• Elimination of brand Individuality
• Removal of the terrific shop experience.
• Threat of decrease in elite sales.

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

Another choice that the company could consider, is to broaden towards the global markets without closing its domestic shops that contributes to the huge part of revenues of the company. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Expanding consumer base
• Large Profits
• Expedition of new international markets.
• Boost in income from international markets.
• Income diversity.
• Action towards being a strong international brand.

Cons:

• Continuation of issues associated with diversity.
• Distinctions in cultures might caused a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.



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