With the deep analysis of the above alternatives, it is recommended that the business must choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not only introduce brand-new and ingenious products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share prices too, as investors want to invest more in business with substantial R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Technique can be executed 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 Precedent Study should carry out various activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate the majority of its income.
• Analyze the existing target audience along with the marketplace sector which is not include in the business's circle.
• Evaluate the present financial data to determine the quantity that should be invested in the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the company to know that just how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has possible experience to handle. Obtain most beneficial organizations with a strong commitment to health, to develop the client's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Precedent Study values and vision and to prevent potential danger of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the Precedent Study as a business producing healthy items has been constructed under midterm plan and now the company could move towards taste aspect too to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct brand-new items.
