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American Cyanamid A B Combined Recommendations Case Studies

Case Study Solution And Analysis

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American Cyanamid A B Combined Case Study Analysis

With the deep analysis of the above alternatives, it is advised that the company ought 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 company to not just present new and ingenious items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share prices too, as financiers are willing to invest more in business with significant R&D spending and boost in the overall worth of the business.

Action and implementation Strategy

Technique can be executed effectively by establishing particular short term in addition to long term strategies. These plans could be as follows;

Short Term Plan (0-1 year)

• Under the short term strategy American Cyanamid A B Combined must perform numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which create the majority of its profits.
• Analyze the current target audience along with the market section which is not include in the company's circle.
• Evaluate the existing financial data to measure the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the business to understand that how much quantity needs to be spent on R&D.

Mid Term Plan (1-5 years)

• Get those organizations in which the business has prospective experience to handle. Get most favorable organizations with a strong commitment to health, to construct the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about American Cyanamid A B Combined worths and vision and to prevent possible danger of sunk cost.

Long Term Plan (1-10 years)

• Obtain organizations with health as well as taste factor, as the base for the American Cyanamid A B Combined as a business producing healthy items has actually been constructed under midterm plan and now the business could move towards taste element also to understand the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new products.