With the deep analysis of the above options, it is recommended that the company should choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present new and ingenious items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share prices also, as investors are willing to invest more in business with considerable R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Method can be implemented effectively by establishing specific short-term as well as long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Blue Heron Capital Partners should perform numerous activities to execute 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 create most of its profits.
• Evaluate the current target audience in addition to the market segment which is not consist of in the business's circle.
• Analyze the present financial data to measure the quantity that must be invested in the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early profits (dividend). It would let the company to understand that just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has potential experience to deal with. Acquire most favorable companies with a strong commitment to health, to construct the consumer's perceptions in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Blue Heron Capital Partners worths and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste aspect, as the base for the Blue Heron Capital Partners as a company producing healthy products has been built under midterm strategy and now the company might move towards taste aspect also 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 significant time to develop brand-new items.
