With the deep analysis of the above options, it is recommended that the business should pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not only introduce new and innovative items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share prices too, as financiers want to invest more in companies with significant R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Technique can be executed successfully by developing certain short term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Century National Bank Na must carry out various activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which generate the majority of its income.
• Examine the present target market along with the marketplace segment which is not include in the business's circle.
• Analyze the current financial information to measure the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to understand that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has potential experience to deal with. Acquire most favorable companies with a strong commitment to health, to build the consumer's perceptions in the best direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Century National Bank Na values and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste factor, as the base for the Century National Bank Na as a business producing healthy products has actually been built under midterm plan and now the business could move towards taste element too to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop new products.
