With the deep analysis of the above options, it is recommended that the business ought to 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 business to not just introduce new and ingenious products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share costs too, as investors want to invest more in companies with significant R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Technique can be carried out efficiently by developing specific short term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Flagstar Companies Inc Abridged must carry out different activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which generate most of its earnings.
• Analyze the present target audience along with the marketplace segment which is not consist of in the company's circle.
• Analyze the current financial data to determine the amount that should be invested in the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the business to know that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to handle. Get most favorable organizations with a strong dedication to health, to develop the client's understandings in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Flagstar Companies Inc Abridged worths and vision and to prevent potential threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste factor, as the base for the Flagstar Companies Inc Abridged as a company producing healthy products has actually been constructed under midterm strategy and now the company might move towards taste aspect also 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 products.
