Strategic Options Post - Mexit
COST SAVINGS
• Key Strategy to turn around Telford Engineering
Post Mexit- low risk option
• Outsourcing the accounting functions (payables,
receivables, payroll and credit control)
• Looking for alternative suppliers of materials
imported from CETA
MARKET DEVELOPMENT
• Mexit as an opportunity to expand the foreign
markets (outside of CETA)
• Looking for countries which will find our products
more affordable and will be able to start
cooperation
• This option is somewhat higher risks-detailed
analysis of foreign markets
• Cost Saving • Market development
1. Oursourcing- lower cost than retaining accountancy 1. Economist forecast that exports from Menia to Ceta will
staffs in house. It allows the Tellford Engineering to decrease (due to a potential weakening of the Menai dollar
focus on its core and significant part of accounting against the CETA dollar) therefore it is time to focus on new
department will be handled by specialists. There will be markets.
additional cost savings as the process is outsourced to a
foreign company operating in cheaper labor area (off- 2. This option is somewhat higher risk because the company
shoring). is going into unknown territories. There is no guarantee that
investment will be successful therefore it is so important to
2. Because of Mexit, economists forecast that cost of analyze potential markets.
imports from CETA will increase due to a potential
weakening of the Menial dollar against the CETA dollar.
In that case, we should look for alternative supplier in
Menial (on condition that materials will have the same
quality).
3. Options is regarded as relatively low risk and low return.
The company is in its home territory both for products
and markets.
STRATEGIC OPTIONS Post-MEXIT

PRODUCT DIVERSIFICTION
* WE are specialist in manufacturing trestles for Bridges
* Extension of product range (related diversification) other constructions
* Benefits by integrating supply and purchase operations, marketing
* The most risky option (company isn’t in its home territory both for product and markets)

Strategic Options where Telford Engineering will go into new products and new markets:
Products Diversification
1) Telford Engineering manufactures various types of reinforced steels support for the bridge building
2) Expanding into a new segment of the industry that the company is already operating in.
3) Because the businesses are related there is a real chance that diversification would achieve efficiencies, for example, through cost saving
or better marketing
4) The most risky option as company would have to start manufacturing new products and selling them on new markets.