With the deep analysis of the above alternatives, it is advised that the company ought to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not only introduce brand-new and innovative items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share prices too, as investors want to invest more in companies with considerable R&D spending and boost in the overall worth of the business.
Action and implementation Strategy
Method can be executed efficiently by establishing particular short term as well as long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Founders Fund need to carry out different activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which generate most of its profits.
• Examine the present target audience in addition to the market section which is not consist of in the business's circle.
• Evaluate the present financial information to measure the amount that should be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early earnings (dividend). It would let the company to understand that how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has potential experience to deal with. Acquire most beneficial organizations with a strong dedication to health, to construct the consumer's understandings in the best instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Founders Fund worths and vision and to avoid prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste factor, as the base for the Founders Fund as a company producing healthy items has been built under midterm strategy and now the company might move towards taste element 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 significant time to develop brand-new products.
