With the deep analysis of the above alternatives, it is advised that the business needs to select the alternative 3 in order to maintain 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 also reduce the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share prices 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
Strategy can be implemented successfully by developing particular 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 Amsterdam Brewery should carry out various activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which create most of its earnings.
• Evaluate the existing target audience along with the marketplace sector which is not consist of in the business's circle.
• Examine the existing financial information to determine the amount that needs to be spent on the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the company to understand that how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has potential experience to handle. Obtain most beneficial organizations with a strong dedication to health, to construct the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Amsterdam Brewery values and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste element, as the base for the Amsterdam Brewery as a business producing healthy products has been developed under midterm plan and now the company could move towards taste aspect as well to grasp the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new products.
