Recommendations of The Kooltex Buyout: Valuing The Management Team Incentive Package (A) Case Analysis

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Recommendations of The Kooltex Buyout: Valuing The Management Team Incentive Package (A) Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of numerous options, the company is recommended to consider alternative 3. As alternative 3 would allow the business to broaden in global markets without any reduction 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 uniqueness. It might likewise consider alternative 2 that could permit the company to access the markets without any possible investment. The business might pursue alternative 1 which would allow the business to focus on potential worldwide markets rather than the regional markets but as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decline in business's income. The business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Kooltex Buyout: Valuing The Management Team Incentive Package (A) Case Analysis Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good option for increasing the global existence of the company. The closing of domestic shops could extremely impact the incomes 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 business has a long term market position in US which can not be created soon in the new markets. The option would assist the business to expand in worldwide markets in addition to the removal of issues raised in its local markets associated with its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of new global markets.
• Increase in revenue from global markets.
• Elimination of concerns associated with diversity.
• Income diversification.
• Action towards being a strong global brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of The Kooltex Buyout: Valuing The Management Team Incentive Package (A) Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might posture an extreme threat to the market share of business. In this scenario the business might think about presenting Click and Recommendations of The Kooltex Buyout: Valuing The Management Team Incentive Package (A) Case Help stores. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy new market entrance

Cons:

• Risk to the market position
• Removal of brand Originality
• Removal of the great shop experience.
• Risk of decline in elite sales.

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

Another choice that the company might think about, is to expand towards the international markets without closing its domestic stores that adds to the major part of incomes of the business. The benefits and drawbacks associated with Alternative 3 are provided listed below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Exploration of brand-new international markets.
• Boost in earnings from worldwide markets.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of concerns related to variety.
• Differences in cultures could caused a failure of the brand name specifically in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenditures to gain market share.



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