Recommendations of Royal Ahold Nv: The Us Foodservice Accounting Fraud Case Solution

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Recommendations of Royal Ahold Nv: The Us Foodservice Accounting Fraud Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of different alternatives, the company is suggested to think about alternative 3. As alternative 3 would enable the business to expand in worldwide markets without any decrease in its regional incomes and any wear and tear of its market position. The business could pursue alternative 1 which would allow the company to focus on potential international markets rather than the local markets but as the business is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decrease in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Royal Ahold Nv: The Us Foodservice Accounting Fraud Case Solution Stores

Growth towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although an excellent alternative for increasing the worldwide existence of the company. The closing of domestic shops could highly affect the incomes of the firm as above 90% of its stores are situated locally and closing those stores would ultimately lower the earnings of the firm. Additionally, the company has a long term market position in United States which can not be generated soon in the new markets. The alternative would help the business to expand in international markets along with the elimination of problems raised in its regional markets related to its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Boost in revenue from international markets.
• Removal of concerns connected to diversity.
• Profits diversification.
• Step towards being a strong international brand.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competition.
• Differences in cultures could caused a failure of the brand name specifically in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Royal Ahold Nv: The Us Foodservice Accounting Fraud Case Help Stores

Alternative 2 includes the intro of online market places through generating a correct company's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could posture a severe threat to the marketplace share of business. The competitors are shifting towards click and Recommendations of Royal Ahold Nv: The Us Foodservice Accounting Fraud Case Help stores with Space introducing Piperline. This shift towards online markets could lower the profits for business. In this circumstance the business could consider presenting Click and Recommendations of Royal Ahold Nv: The Us Foodservice Accounting Fraud Case Solution stores. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic stores. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low investment
• Reducing competition danger
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy new market entryway

Cons:

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

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

Another choice that the business could consider, is to broaden towards the worldwide markets without closing its domestic shops that adds to the huge part of profits of the business. The advantages and disadvantages related to Alternative 3 are provided listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Expanding customer base
• Large Revenues
• Exploration of new worldwide markets.
• Increase in profits from worldwide markets.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Extension of issues connected to diversity.
• Distinctions in cultures might led to 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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