With the deep analysis of the above options, it is advised that the business ought to choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not just present new and innovative items in the market it would also minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share prices as well, as financiers are willing to invest more in companies with considerable R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Method can be executed efficiently by developing specific short term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Capitaland Facing The Challenges Ahead ought to carry out different activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which produce most of its revenue.
• Evaluate the existing target audience along with the market segment which is not consist of in the business's circle.
• Examine the existing financial data to measure the amount that needs to be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early earnings (dividend). It would let the company to know that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has prospective experience to deal with. Acquire most beneficial companies with a strong dedication to health, to develop the customer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Capitaland Facing The Challenges Ahead worths and vision and to avoid prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste factor, as the base for the Capitaland Facing The Challenges Ahead as a company producing healthy items has actually been developed under midterm strategy and now the business could move towards taste factor also to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new items.
