With the deep analysis of the above alternatives, it is advised that the business needs to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not only introduce brand-new and innovative products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share rates too, as investors are willing to invest more in business with significant R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out effectively 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 Managing In A Borderless World must carry out different activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which generate most of its income.
• Evaluate the current target market in addition to the market segment which is not consist of in the business's circle.
• Evaluate the present financial information to determine the amount that ought to be spent on the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the business to understand that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has possible experience to deal with. Obtain most favorable companies with a strong dedication to health, to build the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Managing In A Borderless World values and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste factor, as the base for the Managing In A Borderless World as a business producing healthy products has been built under midterm strategy and now the business might move towards taste aspect as well to understand the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new items.
