With the deep analysis of the above alternatives, it is suggested that the company needs to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not only introduce brand-new and ingenious items in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share prices as well, as investors are willing to invest more in companies with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Method can be executed effectively by developing particular 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 Flanders Of Springfield need to carry out numerous activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which create the majority of its income.
• Evaluate the current target audience along with the market segment which is not consist of in the business's circle.
• Evaluate the existing financial information to measure the quantity that must be spent on the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early earnings (dividend). It would let the company to know that how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has possible experience to handle. Obtain most favorable organizations with a strong commitment to health, to build the consumer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Flanders Of Springfield values and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste aspect, as the base for the Flanders Of Springfield as a business producing healthy items has actually been built under midterm strategy and now the business could move towards taste factor as well to understand the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build new products.
