Recommendations of The Carlyle Group And The Az-Em Buyout (A2): Due Diligence Case Help

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Recommendations of The Carlyle Group And The Az-Em Buyout (A2): Due Diligence Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of numerous options, the company is advised to consider alternative 3. As alternative 3 would allow the company to broaden in worldwide markets without any reduction in its local earnings and any wear and tear of its market position. By considering Alternative 3, the business could preserve its store experience and brand individuality. It might also consider alternative 2 that might allow the business to access the markets without any possible financial investment. Although, the business might pursue alternative 1 which would enable the business to concentrate on potential worldwide markets instead of the regional markets but as the company is highly based on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decline in business's income. The business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Carlyle Group And The Az-Em Buyout (A2): Due Diligence Case Analysis Stores

The company has a long term market position in United States which can not be produced quickly in the new markets. The option would help the company to broaden in global markets along with the removal of issues raised in its regional markets related to its variety.

Pros:

• Expedition of new global markets.
• Boost in profits from worldwide markets.
• Removal of concerns associated with variety.
• Earnings diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of comprehensive revenues from the local markets.
• Boost in competition.
• Differences in cultures could led to a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of The Carlyle Group And The Az-Em Buyout (A2): Due Diligence Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could posture a severe risk to the market share of business. In this scenario the business might consider presenting Click and Recommendations of The Carlyle Group And The Az-Em Buyout (A2): Due Diligence Case Analysis stores. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competition danger
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand name Uniqueness
• Removal of the fantastic store experience.
• Risk of decline in elite sales.

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

Another alternative that the business might think about, is to expand towards the international markets without closing its domestic shops that adds to the huge part of earnings of the company. The advantages and disadvantages related to Alternative 3 are given listed below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Increasing the size of customer base
• Big Revenues
• Exploration of brand-new worldwide markets.
• Boost in revenue from international markets.
• Revenue diversification.
• Step towards being a strong international brand.

Cons:

• Extension of concerns connected to variety.
• Distinctions in cultures could caused a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.



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