With the deep analysis of the above alternatives, it is recommended that the company ought to pick 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 introduce brand-new and innovative items in the market it would also minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share rates also, as investors are willing to invest more in companies with considerable R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Method can be implemented effectively by developing certain short-term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Eric Wood A should perform different activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which generate the majority of its earnings.
• Examine the existing target market as well as the marketplace sector which is not consist of in the company's circle.
• Analyze the current financial information to determine the amount that must be invested in the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want 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 prospective experience to handle. Acquire most favorable organizations with a strong dedication to health, to build the customer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Eric Wood A worths and vision and to prevent possible danger of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the Eric Wood A as a company producing healthy products has actually been developed under midterm plan and now the company might move towards taste aspect too 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 substantial time to develop new products.
