With the deep analysis of the above options, it is advised that the company ought to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not only present new and innovative products in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share costs too, as financiers are willing to invest more in business with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Technique can be carried out successfully by establishing certain short-term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Second Cup need to carry out numerous activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which create the majority of its earnings.
• Evaluate the current target market in addition to the marketplace section which is not consist of in the company's circle.
• Examine the existing financial data to measure the amount that must be invested in the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to know that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has prospective experience to handle. Acquire most beneficial companies with a strong commitment to health, to build the customer's understandings in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Second Cup worths and vision and to prevent potential danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste aspect, as the base for the Second Cup as a company producing healthy products has actually been constructed under midterm plan and now the business could move towards taste aspect also to comprehend 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 build brand-new products.
