With the deep analysis of the above options, it is suggested that the business ought to pick 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 present new and ingenious items in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share prices as well, as financiers are willing to invest more in companies with substantial R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by developing specific short term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Grupo Bimbo should perform numerous activities to execute its NHW method efficiently. 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 most of its profits.
• Analyze the current target market as well as the marketplace sector which is not include in the business's circle.
• Evaluate the present financial data to determine the amount that ought to be invested in the R&D and acquisitions.
• Evaluate 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 understand that how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has potential experience to deal with. Get most favorable organizations with a strong dedication to health, to develop the client's understandings in the best direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Grupo Bimbo worths and vision and to avoid prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the Grupo Bimbo as a business producing healthy products has been built under midterm strategy and now the company could move towards taste factor as well to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new items.
