Recommendations of Restructuring Pandg Case Solution

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Recommendations of Restructuring Pandg Case Study Help

On the basis of above internal and external analysis of the business along with the examination of various options, the company is suggested to consider alternative 3. As alternative 3 would allow the business to expand in international markets without any decrease in its local revenues and any deterioration of its market position. The company could pursue alternative 1 which would make it possible for the company to focus on potential worldwide markets rather than the regional markets however as the company is highly reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decline in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Restructuring Pandg Case Solution Stores

Expansion towards worldwide markets through opening new stores in other Europe and Asian countries with closing domestic stores is although an excellent alternative for increasing the worldwide existence of the business. Nevertheless, the closing of domestic stores might extremely impact the revenues of the company as above 90% of its shops lie locally and closing those stores would eventually minimize the revenues of the firm. The business has a long term market position in United States which can not be produced soon in the new markets. The choice would help the company to broaden in worldwide markets along with the elimination of issues raised in its regional markets connected to its variety. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Boost in earnings from global markets.
• Removal of concerns associated with variety.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competitors.
• Distinctions in cultures might caused a failure of the brand specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Restructuring Pandg Case Analysis Stores

Alternative 2 consists of the intro of online market locations through producing an appropriate business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could posture an extreme threat to the market share of business. Additionally, the competitors are moving towards click and Recommendations of Restructuring Pandg Case Solution shops with Gap presenting Piperline. This shift towards online markets could lower the earnings for business. In this situation the company could think about presenting Click and Recommendations of Restructuring Pandg Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competitors threat
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand Individuality
• Removal of the great store experience.
• Danger of decline in elite sales.

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

Another choice that the business could think about, is to broaden towards the international markets without closing its domestic stores that adds to the major part of incomes of the company. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Enlarging consumer base
• Large Incomes
• Expedition of new global markets.
• Increase in earnings from global markets.
• Earnings diversity.
• Action towards being a strong worldwide brand.

Cons:

• Extension of concerns related to diversity.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.



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