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Dividend Policy At Fpl Group Inc A Recommendations Case Studies

Case Study Solution And Analysis

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Dividend Policy At Fpl Group Inc A Case Study Solution

With the deep analysis of the above alternatives, it is recommended that the business must pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present new and innovative products in the market it would also lower the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share rates too, as financiers are willing to invest more in business with significant R&D spending and boost in the overall worth of the business.

Action and implementation Strategy

Method can be implemented effectively by developing certain short-term in addition to long term plans. These plans might be as follows;

Short Term Plan (0-1 year)

• Under the short-term strategy Dividend Policy At Fpl Group Inc A ought to perform various activities to execute 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 brands, which create most of its profits.
• Analyze the present target audience in addition to the market sector which is not consist of in the business's circle.
• Analyze the existing financial information to determine the quantity that must be spent on the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the business to understand that how much amount must be invested in R&D.

Mid Term Plan (1-5 years)

• Get those companies in which the company has potential experience to handle. Acquire most beneficial companies with a strong commitment to health, to construct the client's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Dividend Policy At Fpl Group Inc A worths and vision and to prevent prospective threat of sunk expense.

Long Term Plan (1-10 years)

• Acquire organizations with health in addition to taste element, as the base for the Dividend Policy At Fpl Group Inc A as a business producing healthy items has actually been built under midterm strategy and now the business could move towards taste element also 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 substantial time to develop new items.