Recommendations of The Ford Production System Case Help

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Recommendations of The Ford Production System Case Study Solution

On the basis of above internal and external analysis of the company together with the evaluation of various alternatives, the business is recommended to consider alternative 3. As alternative 3 would permit the business to expand in worldwide markets without any decrease in its local incomes and any wear and tear of its market position. By considering Alternative 3, the business could preserve its store experience and brand name originality. Nevertheless, it could also consider alternative 2 that could enable the company to access the marketplaces without any prospective financial investment. The company might pursue alternative 1 which would enable the company to focus on prospective global markets rather than the regional markets however as the business is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decrease in business's income. For that reason, the business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Ford Production System Case Analysis Stores

Growth towards international markets through opening new stores in other Europe and Asian countries with closing domestic stores is although an excellent choice for increasing the worldwide presence of the business. However, the closing of domestic shops might extremely impact the earnings of the firm as above 90% of its stores lie locally and closing those stores would ultimately minimize the earnings of the company. Additionally, the business has a long term market position in United States which can not be generated quickly in the brand-new markets. The option would assist the business to expand in global markets in addition to the removal of problems raised in its regional markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of new global markets.
• Boost in profits from global markets.
• Removal of concerns connected to variety.
• Earnings diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial earnings from the local markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of The Ford Production System Case Help Stores

Alternative 2 includes the intro of online market locations through generating a proper business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could posture a serious threat to the marketplace share of company. Moreover, the rivals are shifting towards click and Recommendations of The Ford Production System Case Solution shops with Space introducing Piperline. This shift towards online markets might lower the revenues for business. In this circumstance the company might think about presenting Click and Recommendations of The Ford Production System Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low investment
• Minimizing competition risk
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the market position
• Elimination of brand Uniqueness
• Removal of the terrific store experience.
• Danger of decline in elite sales.

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

Another choice that the company could think about, is to broaden towards the global markets without closing its domestic shops that adds to the major part of incomes of the business. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Exploration of brand-new global markets.
• Increase in earnings from international markets.
• Profits diversity.
• Step towards being a strong global brand.

Cons:

• Extension of problems connected to diversity.
• Differences in cultures could resulted in a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.



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