With the deep analysis of the above alternatives, it is recommended that the company must choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not just introduce brand-new and ingenious items in the market it would also minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share costs as well, as investors are willing to invest more in companies with significant R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be carried out efficiently by developing particular short-term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan How Venture Capitalists Evaluate Potential Venture Opportunities must perform different 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 revenue.
• Examine the current target market as well as the market segment which is not include in the company's circle.
• Evaluate the existing financial data to measure the quantity that needs to be invested in the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to understand that just how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has prospective experience to handle. Get most favorable companies with a strong commitment to health, to build the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about How Venture Capitalists Evaluate Potential Venture Opportunities worths and vision and to avoid potential danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste element, as the base for the How Venture Capitalists Evaluate Potential Venture Opportunities as a business producing healthy products has actually been built under midterm strategy and now the business might move towards taste aspect also to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct new items.
