With the deep analysis of the above options, it is recommended that the company should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the business to not just introduce brand-new and ingenious products in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share prices too, as investors are willing to invest more in companies with substantial R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed successfully by establishing certain short-term in addition to long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Chain Stores need to perform various activities to execute its NHW strategy 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 income.
• Evaluate the existing target market along with the market section which is not include in the company's circle.
• Evaluate the present financial data to measure the amount that must be invested in the R&D and acquisitions.
• Examine 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 how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has potential experience to deal with. Acquire most favorable companies with a strong dedication to health, to construct the client's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Chain Stores values and vision and to avoid prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health along with taste element, as the base for the Chain Stores as a company producing healthy items has actually been constructed under midterm strategy 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 develop new items.
