Recommendations of Investment Management At Harvard Management Company Case Solution

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Recommendations of Investment Management At Harvard Management Company Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of numerous alternatives, the company is advised to think about alternative 3. As alternative 3 would permit the business to broaden in international markets without any reduction in its regional earnings and any deterioration of its market position. The business could pursue alternative 1 which would allow the business to focus on possible global markets rather than the local markets but as the business is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Investment Management At Harvard Management Company Case Analysis Stores

Growth towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic shops is although an excellent choice for increasing the worldwide existence of the business. Nevertheless, the closing of domestic stores might highly affect the profits of the company as above 90% of its shops lie locally and closing those stores would ultimately minimize the profits of the company. The company has a long term market position in US which can not be produced soon in the brand-new markets. The alternative would help the company to broaden in global markets along with the removal of problems raised in its regional markets associated with its variety. The advantages and disadvantages for Option 1 are noted below;

Pros:

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

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Investment Management At Harvard Management Company Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could pose an extreme threat to the market share of company. In this situation the company could consider introducing Click and Recommendations of Investment Management At Harvard Management Company Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition threat
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Risk to the market position
• Removal of brand name Uniqueness
• Removal of the excellent store experience.
• Risk of decrease in elite sales.

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

Another alternative that the business could consider, is to broaden towards the worldwide markets without closing its domestic stores that adds to the huge part of earnings of the company. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Large Revenues
• Exploration of new worldwide markets.
• Boost in revenue from global markets.
• Income diversity.
• Action towards being a strong international brand.

Cons:

• Extension of issues associated with variety.
• Differences in cultures might caused a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to gain market share.



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