With the deep analysis of the above options, it is recommended that the company needs to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and innovative items in the market it would also reduce the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share prices also, as financiers want to invest more in business with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be implemented effectively by establishing particular short-term as well as long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Fonterra Taking On The Dairy World should perform various activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which generate most of its revenue.
• Analyze the present target market as well as the market sector which is not consist of in the company's circle.
• Examine the existing financial data to determine the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has prospective experience to deal with. Acquire most beneficial companies with a strong commitment to health, to develop the client's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Fonterra Taking On The Dairy World worths and vision and to prevent prospective danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste aspect, as the base for the Fonterra Taking On The Dairy World as a company producing healthy items has been constructed under midterm strategy and now the business could move towards taste element too 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 considerable time to develop brand-new items.
