With the deep analysis of the above alternatives, it is suggested that the company ought to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only present brand-new and ingenious products in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share rates as well, as investors want to invest more in companies with substantial R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Method can be carried out effectively by developing particular short term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Straight Talk From The New Ceo should perform various activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which create most of its profits.
• Evaluate the existing target market along with the market segment which is not include in the company's circle.
• Analyze the present financial information to measure the amount that should be spent on the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the business to understand that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to deal with. Get most favorable companies with a strong dedication to health, to build the consumer's perceptions in the best direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Straight Talk From The New Ceo values and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste aspect, as the base for the Straight Talk From The New Ceo as a business producing healthy products has been built under midterm plan and now the business could move towards taste element too to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build brand-new items.
