With the deep analysis of the above alternatives, it is advised that the company ought to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only present new and ingenious items 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 investors want to invest more in companies with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by developing certain short term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Classic Pen Co Developing An Abc Model need to carry out various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which generate the majority of its profits.
• Evaluate the existing target audience in addition to the market segment which is not include in the company's circle.
• Analyze the present financial information to determine the amount that should be spent on 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 revenues (dividend). It would let the business to know that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has possible experience to handle. Get most beneficial companies with a strong commitment to health, to develop the client's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Classic Pen Co Developing An Abc Model values and vision and to avoid prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste factor, as the base for the Classic Pen Co Developing An Abc Model as a business producing healthy products has been developed under midterm plan and now the company could move towards taste aspect as well 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 build brand-new products.
