With the deep analysis of the above alternatives, it is advised that the business must choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the business to not only introduce brand-new and innovative products in the market it would also reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share rates as well, as investors want to invest more in companies with significant R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out efficiently by establishing particular short-term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Birch Paper Co ought to carry out numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which generate the majority of its profits.
• Examine the existing target market along with the market sector which is not consist of in the business's circle.
• Analyze the present financial data to measure the quantity that needs to be invested in the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the company to know that just how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to deal with. Get most favorable organizations with a strong commitment to health, to build the client's perceptions in the best instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Birch Paper Co worths and vision and to prevent prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste element, as the base for the Birch Paper Co as a business producing healthy items has actually been built under midterm plan and now the business might move towards taste aspect too to understand the consumers, 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 products.
