With the deep analysis of the above alternatives, it is advised that the business ought to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the business to not just introduce 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 rates also, as financiers are willing to invest more in companies with substantial R&D spending and boost in the overall worth of the business.
Action and implementation Strategy
Technique can be executed effectively by establishing particular short term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Arcapita 2002 must perform numerous activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which produce most of its revenue.
• Examine the existing target market as well as the market segment which is not consist of in the business's circle.
• Evaluate the present financial data to measure the amount that must be invested in the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to understand that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to handle. Acquire most beneficial organizations with a strong dedication to health, to construct the consumer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Arcapita 2002 worths and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste factor, as the base for the Arcapita 2002 as a company producing healthy products has been built under midterm plan and now the company might move towards taste factor too to understand the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build new items.
