With the deep analysis of the above alternatives, it is advised that the business should pick 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 items in the market it would also minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share costs also, as financiers want to invest more in companies with significant R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out successfully by establishing specific short-term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Financial Statement And Ratio Analysis must carry out various activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which produce the majority of its revenue.
• Analyze the current target audience along with the marketplace section which is not consist of in the business's circle.
• Evaluate the present financial information to measure the quantity that needs to be spent on the R&D and acquisitions.
• Examine the potential investors 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 how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has possible experience to deal with. Get most beneficial companies with a strong commitment to health, to construct the customer's understandings in the right instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Financial Statement And Ratio Analysis worths and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste aspect, as the base for the Financial Statement And Ratio Analysis as a business producing healthy products has been built under midterm strategy and now the business might move towards taste element also to understand the customers, 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 items.
