Recommendations of Telstra Corporation: Reorganizing Strategic Business Units Case Solution

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Recommendations of Telstra Corporation: Reorganizing Strategic Business Units Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the business in addition to the assessment of various alternatives, the company is suggested to consider alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any decrease in its regional earnings and any degeneration of its market position. By considering Alternative 3, the company could keep its store experience and brand name originality. It could also think about alternative 2 that might permit the company to access the markets without any prospective financial investment. The company could pursue alternative 1 which would make it possible for the business to focus on prospective global markets rather than the regional markets however as the business is extremely reliant on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decrease in business's profits. For that reason, the business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Telstra Corporation: Reorganizing Strategic Business Units Case Solution Stores

International SegmentsExpansion towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although an excellent choice for increasing the global existence of the company. However, the closing of domestic stores could highly affect the profits of the firm as above 90% of its shops are located locally and closing those stores would eventually minimize the incomes of the firm. The company has a long term market position in US which can not be produced soon in the new markets. The choice would help the company to broaden in international markets along with the removal of concerns raised in its regional markets connected to its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in profits from global markets.
• Elimination of issues connected to variety.
• Earnings diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial revenues from the regional markets.
• Increase in competition.
• Differences in cultures might led to a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Telstra Corporation: Reorganizing Strategic Business Units Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might posture a severe danger to the market share of business. In this circumstance the company might consider presenting Click and Recommendations of Telstra Corporation: Reorganizing Strategic Business Units Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the fantastic store experience.
• Threat of decline 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 profits of the company. The advantages and disadvantages related to Alternative 3 are given listed below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Exploration of new worldwide markets.
• Boost in earnings from worldwide markets.
• Profits diversification.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of problems associated with diversity.
• Differences in cultures could resulted in a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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