With the deep analysis of the above options, it is recommended that the business ought to select 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 innovative items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share costs also, as financiers are willing to invest more in companies with considerable R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Technique can be executed efficiently by establishing specific short term along with long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Birkenshire Corporation The Pink Towels must perform numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which produce most of its profits.
• Evaluate the current target market in addition to the marketplace sector which is not consist of in the company's circle.
• Evaluate the current financial information to determine the amount that must be spent on the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to understand that just how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to handle. Obtain most favorable companies with a strong dedication to health, to build the client's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Birkenshire Corporation The Pink Towels values and vision and to prevent prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the Birkenshire Corporation The Pink Towels as a business producing healthy products has been developed under midterm plan and now the business could move towards taste element also to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop brand-new products.
