With the deep analysis of the above alternatives, it is advised that the business needs to choose 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 brand-new and innovative products in the market it would also reduce the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share prices as well, as investors want to invest more in business with considerable R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Method can be carried out effectively by establishing specific short-term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Comerica Incorporated The Valuation Dilemma should carry out numerous activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which produce most of its profits.
• Analyze the current target market in addition to the market sector which is not include in the company's circle.
• Examine the existing financial data to determine the amount that needs to be invested in the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to understand that just how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has potential experience to handle. Obtain most beneficial companies with a strong commitment to health, to construct the client's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Comerica Incorporated The Valuation Dilemma worths and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health as well as taste element, as the base for the Comerica Incorporated The Valuation Dilemma as a company producing healthy items has been built under midterm plan and now the business could move towards taste factor as well to grasp the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct brand-new products.
