With the deep analysis of the above alternatives, it is suggested that the company needs to choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only present new and innovative products in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share rates too, as investors want to invest more in business with substantial R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Technique can be carried out effectively by establishing specific short term along with long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Harmonized Savings Plan At Bp Amoco should perform various activities to implement its NHW method effectively. 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 revenue.
• Analyze the existing target market as well as the marketplace section which is not consist of in the business's circle.
• Analyze the present financial information to determine the quantity that must be invested in the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to understand that how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has possible experience to handle. Get most beneficial companies with a strong commitment to health, to develop the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Harmonized Savings Plan At Bp Amoco worths and vision and to prevent prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste factor, as the base for the Harmonized Savings Plan At Bp Amoco as a business producing healthy items has been built under midterm plan and now the business could move towards taste element too to grasp 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 develop new items.
