With the deep analysis of the above alternatives, it is suggested that the business ought to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not just introduce brand-new and innovative items in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share prices as well, as financiers are willing to invest more in business with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Method can be carried out effectively by developing specific short-term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Managing For Shareholder Value From Top To Bottom ought to carry out different activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which create most of its income.
• Analyze the present target audience along with the market section which is not include in the business's circle.
• Evaluate the present financial information to measure the quantity that needs to be spent on the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early profits (dividend). It would let the business to know that just how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has possible experience to deal with. Acquire most favorable companies with a strong dedication to health, to construct the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Managing For Shareholder Value From Top To Bottom worths and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste aspect, as the base for the Managing For Shareholder Value From Top To Bottom as a company producing healthy items has actually been constructed under midterm strategy and now the business might move towards taste element 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 substantial time to construct new products.
