With the deep analysis of the above options, it is recommended that the business needs to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present brand-new and innovative products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share costs also, as investors are willing to invest more in companies with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be implemented efficiently by developing certain short term along with long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Streamline The Abc Of A Merger C The Bumpy Road Of Transformation need to perform numerous activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce most of its earnings.
• Analyze the existing target market in addition to the market section which is not consist of in the business's circle.
• Analyze the current financial information to measure the quantity that needs to be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the company to know that how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has potential experience to handle. Obtain most favorable organizations with a strong commitment to health, to build the customer's understandings in the right direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Streamline The Abc Of A Merger C The Bumpy Road Of Transformation values and vision and to prevent possible risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste factor, as the base for the Streamline The Abc Of A Merger C The Bumpy Road Of Transformation as a company producing healthy products has actually been developed under midterm plan and now the business might move towards taste factor as well to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct brand-new products.
