With the deep analysis of the above options, it is recommended that the company needs to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not just present brand-new and ingenious products in the market it would likewise minimize the high expenditures 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 business with substantial R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Method can be executed effectively by developing 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 plan Gulf Oil Corp Takeover need to carry out numerous activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which produce most of its profits.
• Evaluate the existing target market in addition to the market segment which is not consist of in the business's circle.
• Analyze the current financial information to determine the quantity that needs to be spent on the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to know that how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has prospective experience to handle. Acquire most beneficial organizations with a strong dedication to health, to build the client's perceptions in the right instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Gulf Oil Corp Takeover values and vision and to avoid possible danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste aspect, as the base for the Gulf Oil Corp Takeover as a business producing healthy products has been built under midterm plan and now the company might move towards taste factor as well to comprehend the customers, 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 items.
