With the deep analysis of the above alternatives, it is recommended that the business should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and innovative products in the market it would also lower the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share costs too, as financiers want to invest more in business with substantial R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be executed effectively by developing specific 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 Business Family Dynamics must perform various activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which generate most of its income.
• Examine the current target market as well as the market sector which is not include in the company's circle.
• Evaluate the current financial data to measure the quantity that must be spent on the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the company to know that just how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has potential experience to deal with. Get most beneficial organizations with a strong commitment to health, to develop the client's perceptions in the best direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Business Family Dynamics worths and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Business Family Dynamics as a company producing healthy products has been developed under midterm plan and now the business could move towards taste aspect 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 considerable time to develop brand-new items.
