With the deep analysis of the above options, it is suggested that the business should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not only present brand-new and ingenious products in the market it would also reduce the high expenses 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 business with substantial R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be executed successfully by establishing certain short-term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan American Cyanamid A B Combined ought to carry out different activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which generate the majority of its profits.
• Analyze the existing target audience as well as the market sector which is not consist of in the company's circle.
• Examine the current financial data to measure the amount that should be spent on the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the business to know that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has potential experience to deal with. Acquire most beneficial organizations with a strong dedication to health, to construct the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about American Cyanamid A B Combined values and vision and to prevent potential danger of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health along with taste factor, as the base for the American Cyanamid A B Combined as a company producing healthy items has been constructed under midterm strategy and now the business might move towards taste element as well to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build new products.
