With the deep analysis of the above alternatives, it is suggested that the company needs to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not only introduce brand-new and ingenious products in the market it would also reduce the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates too, as financiers want to invest more in companies with considerable R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be carried out successfully by developing specific short term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Activity Based Costing And Management need to carry out numerous activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which create most of its earnings.
• Examine the current target market along with the market segment which is not consist of in the company's circle.
• Evaluate the present financial data to determine the amount that must be invested in the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the company to know that how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has potential experience to handle. Obtain most favorable organizations with a strong dedication to health, to develop the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Activity Based Costing And Management worths and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste element, as the base for the Activity Based Costing And Management as a company producing healthy items has been developed under midterm strategy and now the business could move towards taste element as well 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 considerable time to build brand-new products.
