With the deep analysis of the above options, it is advised that the company must choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present new and innovative items in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share prices too, as investors 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
Method can be implemented efficiently by establishing particular short term in addition to long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy 2500 need to carry out various activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce most of its income.
• Evaluate the current target audience in addition to the market segment which is not include in the business's circle.
• Evaluate the existing financial data to measure the quantity that needs to be spent on the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the company to understand that just how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has prospective experience to deal with. Get most beneficial companies with a strong dedication to health, to build the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about 2500 worths and vision and to avoid prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste element, as the base for the 2500 as a company producing healthy items has been constructed under midterm strategy and now the business could move towards taste factor 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 substantial time to develop new items.
