With the deep analysis of the above options, it is advised that the company should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not only present new and ingenious products in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates also, as financiers are willing to invest more in companies with considerable R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be carried out successfully by establishing certain short-term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Service Companies Focus Or Falter must carry out various activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which create the majority of its earnings.
• Examine the existing target audience along with the marketplace section which is not consist of in the company's circle.
• Analyze the present financial data to determine the amount that should 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 earnings (dividend). It would let the business to know that how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has potential experience to handle. Obtain most favorable companies with a strong commitment to health, to develop the customer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Service Companies Focus Or Falter worths and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste aspect, as the base for the Service Companies Focus Or Falter as a business producing healthy items has been constructed under midterm plan and now the business could move towards taste aspect also to grasp the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop new items.
