With the deep analysis of the above alternatives, it is suggested that the company must pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not just introduce brand-new and innovative products in the market it would also minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share prices too, as investors want to invest more in business with substantial R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be executed successfully by establishing certain short-term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Fremont Financial Corp A should perform 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 produce the majority of its profits.
• Examine the present target audience in addition to the market sector which is not consist of in the business's circle.
• Examine the current financial data to determine the quantity that must be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to know that just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has potential experience to handle. Acquire most favorable companies with a strong commitment to health, to build the client's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Fremont Financial Corp A worths and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste element, as the base for the Fremont Financial Corp A as a company producing healthy items has actually been constructed under midterm strategy and now the business might move towards taste factor 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 substantial time to construct brand-new items.
