With the deep analysis of the above alternatives, it is advised that the company needs to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not just present new and innovative products in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share prices too, as investors are willing to invest more in companies with considerable R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out successfully by developing particular short term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Cumberland Worldwide Corp A should perform numerous activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate most of its revenue.
• Evaluate the existing target audience as well as the marketplace sector which is not include in the company's circle.
• Analyze the present financial information to measure the quantity that should be invested in the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire 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 prospective experience to deal with. Obtain most favorable companies with a strong dedication to health, to develop the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Cumberland Worldwide Corp A values and vision and to prevent potential threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste aspect, as the base for the Cumberland Worldwide Corp A as a company producing healthy items has actually been constructed under midterm plan and now the business could move towards taste aspect as well 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 considerable time to build brand-new items.
