With the deep analysis of the above options, it is suggested that the company needs to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not just introduce new and ingenious products in the market it would also reduce the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share prices also, as financiers are willing to invest more in companies with significant R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Method can be executed effectively by developing certain short term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Calgas ought to carry out different activities to implement its NHW technique 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 produce the majority of its revenue.
• Evaluate the existing target market along with the market sector which is not include in the company's circle.
• Analyze the present financial information to measure the quantity that should be invested in the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early profits (dividend). It would let the company to understand that how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has prospective experience to handle. Acquire most beneficial organizations with a strong commitment to health, to develop the customer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Calgas worths and vision and to avoid potential threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste factor, as the base for the Calgas as a company producing healthy items has been developed under midterm plan and now the company could move towards taste element also to understand 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.
