With the deep analysis of the above options, it is advised that the business should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not just introduce new and innovative products in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share rates as well, as investors want to invest more in companies with substantial R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be implemented efficiently by developing certain short term along with long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Cafe Coffee Day must carry out numerous activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which generate the majority of its profits.
• Evaluate the current target audience in addition to the marketplace segment which is not consist of in the business's circle.
• Examine the existing financial information to determine the amount that must be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the company to know that just how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has prospective experience to handle. Get most beneficial companies with a strong commitment to health, to build the customer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Cafe Coffee Day worths and vision and to prevent prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste factor, as the base for the Cafe Coffee Day as a company producing healthy items has been developed under midterm plan and now the business might move towards taste aspect as well to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct brand-new products.
