With the deep analysis of the above options, it is recommended that the business should pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the business to not just introduce brand-new and ingenious 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 companies with considerable R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Method can be executed effectively by developing specific short term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan International Paper A need to perform various activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which create the majority of its income.
• Analyze the present target market in addition to the market sector which is not include in the company's circle.
• Analyze the present financial information to measure the amount that should be invested in the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early revenues (dividend). It would let the company to know that just how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has potential experience to deal with. Get most beneficial companies with a strong commitment to health, to develop the client's understandings in the right instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about International Paper A worths and vision and to avoid possible risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste aspect, as the base for the International Paper A as a business producing healthy products has been developed under midterm plan and now the business might move towards taste element too 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 substantial time to develop new products.
