With the deep analysis of the above alternatives, it is recommended that the business must select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present brand-new and ingenious items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share costs too, as investors want to invest more in companies with significant R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Method can be implemented effectively by establishing specific 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 Champagne Hotel should carry out different activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which generate the majority of its profits.
• Examine the current target market as well as 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.
• Examine the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the company to understand that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has potential experience to deal with. Get most beneficial companies with a strong dedication to health, to develop the customer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Champagne Hotel worths and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the Champagne Hotel as a company producing healthy products has actually been constructed under midterm strategy and now the business might move towards taste element also to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build brand-new items.
