Recommendations of Sinopec Corporation Of China Setting Standards In Corporate Governance Case Solution

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Recommendations of Sinopec Corporation Of China Setting Standards In Corporate Governance Case Study Analysis

On the basis of above internal and external analysis of the company together with the assessment of various options, the business is suggested to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any reduction in its local revenues and any deterioration of its market position. By considering Alternative 3, the business might maintain its store experience and brand name uniqueness. It might likewise think about alternative 2 that could permit the business to access the markets without any potential investment. Although, the company might pursue alternative 1 which would enable the company to focus on possible worldwide markets instead of the regional markets but as the business is extremely based on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would lead to the significant decline in company's profits. The business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Sinopec Corporation Of China Setting Standards In Corporate Governance Case Analysis Stores

The company has a long term market position in United States which can not be created soon in the new markets. The option would help the company to broaden in global markets along with the elimination of concerns raised in its local markets related to its variety.

Pros:

• Expedition of new international markets.
• Increase in earnings from worldwide markets.
• Elimination of concerns related to diversity.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Differences in cultures might led to a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Sinopec Corporation Of China Setting Standards In Corporate Governance Case Solution Stores

Alternative 2 consists of the introduction of online market locations through producing an appropriate business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could posture a severe danger to the market share of company. The rivals are moving towards click and Recommendations of Sinopec Corporation Of China Setting Standards In Corporate Governance Case Analysis stores with Space introducing Piperline. This shift towards online markets might minimize the earnings for company. In this circumstance the company might think about presenting Click and Recommendations of Sinopec Corporation Of China Setting Standards In Corporate Governance Case Help stores. These shops with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low financial investment
• Reducing competitors hazard
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the market position
• Removal of brand name Individuality
• Removal of the great shop experience.
• Threat of decline in elite sales.

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

Another option that the business might think about, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of incomes of the business. The advantages and disadvantages connected to Alternative 3 are given below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Big Revenues
• Expedition of brand-new global markets.
• Increase in revenue from worldwide markets.
• Revenue diversity.
• Step towards being a strong global brand.

Cons:

• Extension of issues related to diversity.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to acquire market share.



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