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Enron Gas Services Recommendations Case Studies

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With the deep analysis of the above options, it is suggested that the company should choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not just introduce new and innovative products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share prices also, as investors are willing to invest more in business with significant R&D costs and increase in the overall worth of the business.

Action and implementation Strategy

Strategy can be executed efficiently by establishing particular short-term in addition to long term plans. These plans could be as follows;

Short Term Plan (0-1 year)

• Under the short term strategy Enron Gas Services should perform different 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 generate the majority of its profits.
• Evaluate the existing target audience in addition to the market sector which is not include in the business's circle.
• Analyze the existing financial information to determine the quantity that should be spent on the R&D and acquisitions.
• Examine 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 company to know that just how much quantity must be spent on R&D.

Mid Term Plan (1-5 years)

• Acquire those companies in which the company has prospective experience to handle. Obtain most favorable companies with a strong commitment to health, to build the customer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Enron Gas Services worths and vision and to prevent potential danger of sunk cost.

Long Term Plan (1-10 years)

• Acquire companies with health in addition to taste aspect, as the base for the Enron Gas Services as a business producing healthy products has been developed under midterm strategy and now the business might move towards taste aspect as well to grasp the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop new products.