With the deep analysis of the above options, it is suggested that the company needs to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not only introduce 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 allow the company to increase its share costs as well, as investors are willing to invest more in companies with considerable R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Method can be carried out successfully by developing specific short term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Harrington Corp need to perform numerous activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which generate most of its income.
• Analyze the current target market as well as the marketplace segment which is not include in the company's circle.
• Analyze the existing financial data to measure the quantity that should be invested in the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early profits (dividend). It would let the business to understand that how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to deal with. Get most beneficial companies with a strong dedication to health, to build the customer's understandings in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Harrington Corp worths and vision and to prevent potential risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste aspect, as the base for the Harrington Corp as a business producing healthy items has actually been developed under midterm plan and now the company could move towards taste factor also to understand 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 construct brand-new products.
