With the deep analysis of the above alternatives, it is advised that the business needs to pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not only introduce brand-new and ingenious products in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share costs too, as investors want to invest more in companies with considerable R&D costs and boost 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 plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Hedging Currency Risks At Aifs should carry out numerous activities to execute its NHW strategy effectively. 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 earnings.
• Examine the current target market as well as the marketplace section which is not consist of in the business's circle.
• Examine the existing financial data to determine the quantity that should be invested in the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the company to understand that just how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to handle. Obtain most beneficial organizations with a strong commitment to health, to build the consumer's understandings in the best instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Hedging Currency Risks At Aifs values and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the Hedging Currency Risks At Aifs as a company producing healthy products has been built under midterm plan and now the business might move towards taste aspect also to comprehend the consumers, 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.
