With the deep analysis of the above alternatives, it is recommended that the business should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and innovative products in the market it would also minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share prices also, as investors want to invest more in companies with significant R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Technique can be executed effectively by establishing particular short-term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Basic Industries need to carry out different activities to execute its NHW strategy effectively. 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 most of its income.
• Evaluate the current target audience in addition to the marketplace segment which is not include in the business's circle.
• Analyze the existing financial information to measure the amount that must be spent on the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the company to understand that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to handle. Get most favorable organizations with a strong commitment to health, to build the client's understandings in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Basic Industries values and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health along with taste factor, as the base for the Basic Industries as a business producing healthy items has actually been built under midterm strategy and now the business could move towards taste factor also 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 build brand-new items.
