With the deep analysis of the above alternatives, it is advised that the company must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not only present brand-new and innovative items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share rates also, as investors want to invest more in companies with considerable R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Method can be executed successfully by establishing 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 strategy Asante Teaching Hospital Activity Based Costing must perform various activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate the majority of its income.
• Evaluate the present target market along with the marketplace sector which is not include in the business's circle.
• Analyze the present financial data to determine the quantity that needs to 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 earnings (dividend). It would let the business to know that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to deal with. Get most beneficial organizations with a strong dedication to health, to build the customer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Asante Teaching Hospital Activity Based Costing worths and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste aspect, as the base for the Asante Teaching Hospital Activity Based Costing as a business producing healthy items has actually been constructed under midterm strategy and now the company could move towards taste aspect too 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 considerable time to construct new items.
