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

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of different alternatives, the business is advised to consider alternative 3. As alternative 3 would allow the business to expand in global markets without any reduction in its local revenues and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the business to focus on potential international markets rather than the regional markets but as the business is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decrease in company's earnings.

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

International SegmentsThe company has a long term market position in US which can not be produced soon in the brand-new markets. The option would help the company to broaden in international markets along with the removal of issues raised in its local markets related to its variety.

Pros:

• Expedition of brand-new global markets.
• Increase in earnings from international markets.
• Elimination of concerns related to variety.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competitors.
• 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 gain market share.

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

Alternative 2 consists of the intro of online market places through creating an appropriate business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could position a serious risk to the marketplace share of company. The competitors are moving towards click and Recommendations of Sinopec Corporation Of China: Setting Standards In Corporate Governance Case Solution shops with Gap introducing Piperline. This shift towards online markets might lower the incomes for business. In this scenario the business could consider introducing Click and Recommendations of Sinopec Corporation Of China: Setting Standards In Corporate Governance Case Help shops. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low investment
• Minimizing competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand name Originality
• Removal of the fantastic shop experience.
• Threat of decrease in elite sales.

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

Another alternative that the company might think about, is to broaden towards the international markets without closing its domestic shops that contributes to the major part of profits of the business. The pros and cons related to Alternative 3 are offered listed below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Enlarging customer base
• Large Revenues
• Expedition of brand-new worldwide markets.
• Boost in earnings from global markets.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of concerns related to diversity.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to gain market share.



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