With the deep analysis of the above alternatives, it is advised that the company ought to choose 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 present new and ingenious items in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business 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 company.
Action and implementation Strategy
Method can be carried out successfully by developing specific short-term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Negotiating Corporate Change Confidential Information David Carlson Vp Management Information Systems must perform numerous activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which generate most of its earnings.
• Analyze the existing target market as well as the market section which is not include in the business's circle.
• Evaluate the existing financial data to determine the amount that needs to be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to understand that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has possible experience to handle. Obtain most favorable companies with a strong commitment to health, to build the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Negotiating Corporate Change Confidential Information David Carlson Vp Management Information Systems worths and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health in addition to taste factor, as the base for the Negotiating Corporate Change Confidential Information David Carlson Vp Management Information Systems as a business producing healthy items has been developed under midterm plan and now the business could move towards taste element as well to grasp the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct brand-new items.