Recommendations of Pch International: Managing Good Information And Financial Flow Case Help

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Recommendations of Pch International: Managing Good Information And Financial Flow Case Study Analysis

On the basis of above internal and external analysis of the business together with the assessment of different options, the business is recommended to think about alternative 3. As alternative 3 would enable the business to broaden in international markets with no decrease in its local earnings and any degeneration of its market position. By thinking about Alternative 3, the company might keep its shop experience and brand originality. It might also consider alternative 2 that could permit the company to access the markets without any possible investment. The business could pursue alternative 1 which would make it possible for the company to focus on prospective international markets rather than the regional markets however as the company is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decrease in company's income. The company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Pch International: Managing Good Information And Financial Flow Case Analysis Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although a good option for increasing the international presence of the company. The closing of domestic shops might extremely impact the earnings of the firm as above 90% of its stores are located locally and closing those stores would eventually lower the incomes of the firm. The business has a long term market position in United States which can not be created soon in the new markets. The option would assist the company to expand in worldwide 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 new global markets.
• Increase in revenue from global markets.
• Removal of concerns related to variety.
• Profits diversification.
• Action towards being a strong global brand.

Cons:

• Loss of substantial incomes from the local markets.
• Increase in competition.
• Differences in cultures could led to a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Pch International: Managing Good Information And Financial Flow Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could present an extreme risk to the market share of business. In this circumstance the business might consider introducing Click and Recommendations of Pch International: Managing Good Information And Financial Flow Case Solution shops. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Decreasing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Removal of brand name Individuality
• Removal of the fantastic shop experience.
• Danger of decrease in elite sales.

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

Another alternative that the company might consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of profits of the business. The pros and cons connected to Alternative 3 are provided below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Expedition of brand-new international markets.
• Boost in profits from worldwide markets.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Extension of problems related to diversity.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to acquire market share.



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