With the deep analysis of the above alternatives, it is advised that the business must select 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 only introduce brand-new and ingenious products in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share costs as well, as investors are willing to invest more in business with significant R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Method can be implemented effectively by developing specific short-term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Butler Lumber Co must perform various activities to implement its NHW method 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 the majority of its earnings.
• Analyze the present target market in addition to the marketplace sector which is not include in the business's circle.
• Examine the present financial information to measure the quantity that needs to be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early profits (dividend). It would let the business to understand that how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has prospective experience to handle. Obtain most favorable organizations with a strong commitment to health, to develop the consumer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Butler Lumber Co worths and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste element, as the base for the Butler Lumber Co as a business producing healthy products has actually been built under midterm strategy and now the business could move towards taste element as well 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 construct new items.
