With the deep analysis of the above alternatives, it is suggested that the company should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not just present brand-new and ingenious items in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share rates also, as financiers are willing to invest more in companies with considerable R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Strategy can be implemented effectively by developing particular short term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Harvard Business Review Case Studies Free Download Pdf ought to carry out various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which produce most of its income.
• Evaluate the present target audience as well as the marketplace section which is not include in the business's circle.
• Examine the current financial data to measure the quantity that should be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the company to understand that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to deal with. Obtain most favorable organizations with a strong commitment to health, to construct the client's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Harvard Business Review Case Studies Free Download Pdf worths and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Harvard Business Review Case Studies Free Download Pdf as a business producing healthy items has actually been constructed under midterm plan and now the business could move towards taste factor too 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 substantial time to construct brand-new products.
