Recommendations of Restructuring Citigroup: The Bank In Trouble Case Analysis

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Recommendations of Restructuring Citigroup: The Bank In Trouble Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of numerous options, the company is advised to think about alternative 3. As alternative 3 would permit the business to broaden in worldwide markets without any reduction in its regional profits and any degeneration of its market position. The company might pursue alternative 1 which would allow the business to focus on potential global markets rather than the regional markets but as the business is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Restructuring Citigroup: The Bank In Trouble Case Solution Stores

Expansion towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a good choice for increasing the global existence of the company. Nevertheless, the closing of domestic shops might extremely affect the incomes of the firm as above 90% of its stores are located domestically and closing those stores would ultimately minimize the incomes of the firm. The business has a long term market position in United States which can not be generated quickly in the new markets. The alternative would assist the business to broaden in international markets in addition to the elimination of issues raised in its local markets connected to its variety. The advantages and disadvantages for Option 1 are noted below;

Pros:

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

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competition.
• Differences in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Restructuring Citigroup: The Bank In Trouble Case Solution Stores

Alternative 2 consists of the intro of online market places through creating a correct business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position a severe hazard to the marketplace share of business. The competitors are moving towards click and Recommendations of Restructuring Citigroup: The Bank In Trouble Case Solution shops with Space presenting Piperline. This shift towards online markets could lower the revenues for company. In this circumstance the company could consider presenting Click and Recommendations of Restructuring Citigroup: The Bank In Trouble Case Analysis shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand name Uniqueness
• Removal of the terrific shop experience.
• Risk of decrease in elite sales.

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

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

Pros:

• Lowering competition risk
• Access to the world markets
• Enlarging customer base
• Big Profits
• Expedition of new worldwide markets.
• Boost in profits from international markets.
• Income diversification.
• Action towards being a strong international brand name.

Cons:

• Extension of concerns associated with diversity.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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