With the deep analysis of the above options, it is suggested that the business needs to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not just present brand-new and ingenious products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share prices too, as financiers are willing to invest more in companies with substantial R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out effectively by establishing specific short-term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Acid Rain The Southern Co A should carry out different activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which generate the majority of its revenue.
• Examine the current target market as well as the market segment which is not include in the company's circle.
• Evaluate the current financial information to determine the amount that must be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the company to know that just how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has potential experience to deal with. Get most favorable companies with a strong dedication to health, to develop the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Acid Rain The Southern Co A values and vision and to avoid prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health along with taste factor, as the base for the Acid Rain The Southern Co A as a company producing healthy items has been built under midterm strategy and now the business could move towards taste element as well to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build brand-new items.
