From: Senior Analyst, Business Development and Creative Policy Formulation.
Date 19th April, 2017
Subject: Proposed business expansion in China and consequent requirement of funding________________________________________ At present, the best two countries for global expansion are China and India, due to the low labor costs and the purchasing power of the citizens. China however, has the edge, due to its political stability, better infrastructure in the coastal areas (Wu, 2012, p.138), and better growth figures over the last decade. Nordstrom, Inc. needs to expand as the North American market is too saturated with quality players and more and more companies are becoming global by basing their …show more content…
Moreover, what with the recent clash between Nordstrom and President Trump, the next five years does not augur well for American Industry as we see that the new President does not hesitate to stoop to the level of declaring a business decision as a political one.
The Business Idea. Nordstrom, Inc. headquartered in Seattle, Washington had a total revenue of $14,498 million, not counting the revenue from the cards business which was $259 million, against which the company had profits of $354 million. (Nordstrom Annual Report, 2016). As on 2016 end, Nordstrom says that it has 166 trademarks, “each the subject of one or more trademark registrations and/or trademark applications, and renewable indefinitely” (Nordstrom AR, 2016, p.4). Most of these represent well known and respected brands, such as ‘Tucker + Tate” is a line of kids dresses, 14th & …show more content…
Once this global village is finished, all these can be planned. Funds required will be very high and some portion of the load can be arranged by selling of 20-25 lesser potential brands, instead of raising all the money through debt or/and equity. However not much time is available because China’s advantages are falling as it is developing ( Rein, 2014) and Nordstrom has to move fast.