With the deep analysis of the above options, it is recommended that the company must pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not only 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 revenue margins. It would enable the company to increase its share prices also, as investors are willing to invest more in business with considerable R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be executed efficiently by developing specific short-term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Iss A S The Buyout need to carry out different activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which create most of its earnings.
• Evaluate the current target audience along with the market section which is not include in the company's circle.
• Examine the existing financial data to determine the quantity that needs to be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to know that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has potential experience to deal with. Obtain most beneficial organizations with a strong commitment to health, to build the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Iss A S The Buyout values and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste aspect, as the base for the Iss A S The Buyout as a company producing healthy products has been developed under midterm strategy and now the company might move towards taste element also to understand the consumers, 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.
