With the deep analysis of the above alternatives, it is advised that the business needs to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not only present new and ingenious items in the market it would also decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share costs as well, as financiers 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 carried out successfully by establishing specific short term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Goodyear Restructuring need to carry out different activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate most of its profits.
• Analyze the current target audience in addition to the market sector which is not consist of in the business's circle.
• Evaluate the present financial data to determine the quantity that should be spent on the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the company to understand that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has possible experience to handle. Obtain most favorable companies with a strong dedication to health, to build the consumer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Goodyear Restructuring values and vision and to prevent possible threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Goodyear Restructuring as a company producing healthy products has been constructed under midterm plan and now the business could move towards taste aspect too to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build new products.
