With the deep analysis of the above options, it is advised that the business must choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present new and ingenious products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share rates as well, as financiers want to invest more in companies with substantial R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Method can be implemented successfully by establishing certain short-term along with long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Hanson Industries B ought to perform different activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which generate most of its income.
• Examine the present target audience along with the market segment which is not consist of in the company's circle.
• Evaluate the existing financial information to determine the quantity that should be spent on the R&D and acquisitions.
• Examine the potential investors 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 how much quantity needs 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 favorable organizations with a strong dedication to health, to construct the consumer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Hanson Industries B values and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste element, as the base for the Hanson Industries B as a company producing healthy items has actually 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 instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new items.
