With the deep analysis of the above options, it is recommended that the business ought to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not only introduce brand-new and innovative products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share costs as well, as financiers want to invest more in business with considerable R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be implemented effectively by establishing certain 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 Gulf Bank Re Building A Bank ought to perform different activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which create the majority of its earnings.
• Evaluate the present target audience as well as the market section which is not consist of in the company's circle.
• Evaluate the current financial information to determine the amount that should be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the company to understand that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has prospective experience to deal with. Acquire most beneficial organizations with a strong commitment to health, to build the client's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Gulf Bank Re Building A Bank worths and vision and to prevent possible risk of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health in addition to taste factor, as the base for the Gulf Bank Re Building A Bank as a business producing healthy products has actually been built under midterm strategy and now the company could move towards taste element also to comprehend the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop new products.
