With the deep analysis of the above alternatives, it is suggested 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 enable the business to not only introduce new and innovative items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share prices also, as financiers are willing to invest more in business with substantial R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Method can be carried out efficiently by developing particular short term along with long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Eric Wood B should perform various activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which generate most of its income.
• Evaluate the present target audience along with the market section which is not include in the business's circle.
• Examine the current financial information to determine the amount that must be invested in the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the business to know that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has potential experience to handle. Acquire most favorable companies with a strong dedication to health, to develop the client's understandings in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Eric Wood B worths and vision and to avoid possible danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the Eric Wood B as a company producing healthy products has been built under midterm plan and now the business could move towards taste factor also to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new items.
