With the deep analysis of the above alternatives, it is suggested that the company should pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not just present brand-new and innovative products in the market it would also lower the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share costs as well, as investors are willing to invest more in business with considerable R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be implemented efficiently by developing specific short-term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Khalil Abdo Group must carry out numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which create the majority of its income.
• Examine the current target market in addition to the market section which is not consist of in the company's circle.
• Examine the existing financial data to measure the quantity that needs to be spent on the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to know that how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to deal with. Acquire most beneficial companies with a strong dedication to health, to build the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Khalil Abdo Group values and vision and to avoid prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste aspect, as the base for the Khalil Abdo Group as a company producing healthy products has been developed under midterm strategy and now the company might move towards taste element also 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 develop new items.
