With the deep analysis of the above alternatives, it is advised that the company needs to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not only introduce brand-new and ingenious items in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share costs too, as financiers want to invest more in companies with considerable R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Technique can be executed effectively by developing particular short-term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Globalizing The Cost Of Capital And Capital Budgeting At Aes should perform various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which produce the majority of its revenue.
• Evaluate the present target audience along with the market sector which is not include in the company's circle.
• Examine the existing financial information to measure the amount that ought to be invested in the R&D and acquisitions.
• Examine the potential 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 just how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has possible experience to deal with. Get most beneficial organizations with a strong commitment to health, to develop the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Globalizing The Cost Of Capital And Capital Budgeting At Aes worths and vision and to avoid prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the Globalizing The Cost Of Capital And Capital Budgeting At Aes as a business producing healthy products has been built under midterm strategy and now the business might move towards taste factor also to grasp 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.
