With the deep analysis of the above options, it is recommended that the company must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not only present new and ingenious items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share costs too, as financiers want to invest more in companies with considerable R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Technique can be executed effectively by developing certain short-term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan American Bank must carry out various activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which create the majority of its income.
• Evaluate the present target market along with the marketplace sector which is not consist of in the business's circle.
• Examine the existing financial information to measure the quantity that needs to be invested in the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to understand that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to handle. Get most favorable organizations with a strong commitment to health, to construct the client's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about American Bank worths and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the American Bank as a company producing healthy items has actually been constructed under midterm strategy and now the business might move towards taste aspect too 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 significant time to develop new items.
