With the deep analysis of the above options, it is suggested that the company should 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 introduce brand-new and innovative items in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share costs too, as financiers are willing to invest more in business with considerable R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Method can be carried out successfully by developing certain 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 Forest Of Flowers should perform various activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which generate the majority of its revenue.
• Examine the existing target market as well as the market sector which is not consist of in the business's circle.
• Evaluate the present financial information to measure the quantity that needs to be invested in the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early revenues (dividend). It would let the company to know that just how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has prospective experience to handle. Obtain most favorable companies with a strong dedication to health, to construct the client's understandings in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Forest Of Flowers worths and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste factor, as the base for the Forest Of Flowers as a business producing healthy products has been constructed under midterm plan and now the company could move towards taste factor as well to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build new products.
