With the deep analysis of the above options, it is advised that the company must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not only present new and innovative items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share rates too, as investors want to invest more in companies with significant R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be carried out effectively by developing specific short term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy The Hestia Fund need to perform numerous activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which produce most of its income.
• Examine the present target audience in addition to the marketplace section which is not include in the business's circle.
• Evaluate the present financial information to determine the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to know that how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has possible experience to deal with. Acquire most favorable companies with a strong commitment to health, to build the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about The Hestia Fund values and vision and to avoid prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health along with taste aspect, as the base for the The Hestia Fund as a business producing healthy products has been developed under midterm strategy and now the company could move towards taste factor as well to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build new products.
