With the deep analysis of the above options, it is recommended that the business needs to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only present new and ingenious items in the market it would likewise lower the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share rates too, as investors are willing to invest more in business with substantial R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out efficiently by establishing specific short-term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Flagstar Cos Inc ought to carry out various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which produce most of its earnings.
• Analyze the existing target market in addition to the market section which is not include in the company's circle.
• Evaluate the existing financial information to measure the quantity that ought to be invested in the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the business to know that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has possible experience to handle. Get most beneficial organizations with a strong commitment to health, to build the customer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Flagstar Cos Inc values and vision and to prevent possible threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Flagstar Cos Inc as a company producing healthy products has been built under midterm plan and now the company could move towards taste factor too 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 develop brand-new products.
