Recommendations of The Lucent Accounting Scandal Case Analysis

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Recommendations of The Lucent Accounting Scandal Case Study Solution

On the basis of above internal and external analysis of the business in addition to the evaluation of numerous options, the company is recommended to consider alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any reduction in its local earnings and any deterioration of its market position. By thinking about Alternative 3, the business might maintain its shop experience and brand uniqueness. However, it could likewise consider alternative 2 that could enable the company to access the markets without any possible investment. Although, the business could pursue alternative 1 which would make it possible for the business to concentrate on potential global markets instead of the local markets but as the business is extremely dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would lead to the significant decline in business's earnings. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Lucent Accounting Scandal Case Solution Stores

Growth towards global markets through opening new stores in other Europe and Asian nations with closing domestic shops is although an excellent option for increasing the international existence of the business. Nevertheless, the closing of domestic shops could highly impact the earnings of the firm as above 90% of its stores lie locally and closing those stores would ultimately decrease the revenues of the company. Furthermore, the company has a long term market position in US which can not be produced soon in the new markets. The option would assist the company to expand in international markets together with the elimination of concerns raised in its local markets associated with its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Increase in income from worldwide markets.
• Removal of issues associated with diversity.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of extensive revenues from the local markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of The Lucent Accounting Scandal Case Help Stores

Alternative 2 includes the intro of online market places through generating a correct business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could position a severe threat to the marketplace share of business. Additionally, the rivals are shifting towards click and Recommendations of The Lucent Accounting Scandal Case Analysis stores with Space introducing Piperline. This shift towards online markets could decrease the profits for business. In this scenario the company might consider presenting Click and Recommendations of The Lucent Accounting Scandal Case Help stores. These shops with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low investment
• Reducing competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand Uniqueness
• Elimination of the terrific shop experience.
• Danger of decline in elite sales.

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

Another choice that the company could consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the major part of incomes of the business. The advantages and disadvantages related to Alternative 3 are provided listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Expanding customer base
• Large Revenues
• Exploration of brand-new worldwide markets.
• Boost in revenue from global markets.
• Income diversification.
• Action towards being a strong international brand.

Cons:

• Continuation of concerns connected to diversity.
• Differences in cultures might caused a failure of the brand name especially in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.



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