With the deep analysis of the above alternatives, it is recommended that the company must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not just introduce new and ingenious items in the market it would also reduce the high expenses on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share prices as well, as investors want to invest more in companies with substantial R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Method can be carried out effectively by establishing particular short-term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Closing The Gap Facing The Future B should perform various activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which produce the majority of its revenue.
• Evaluate the present target audience as well as the marketplace section which is not include in the business's circle.
• Analyze the present financial information to determine the quantity that should be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to understand that how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has potential experience to deal with. Obtain most beneficial companies with a strong dedication to health, to build the customer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Closing The Gap Facing The Future B values and vision and to prevent possible danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste aspect, as the base for the Closing The Gap Facing The Future B as a company producing healthy products has actually been constructed under midterm plan and now the business might move towards taste factor as well 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 considerable time to construct new items.
