With the deep analysis of the above alternatives, it is advised that the company must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not only introduce new and innovative items in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share prices also, as financiers want to invest more in business with considerable R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be executed effectively by developing particular short-term along with long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Japanese Financial System From Postwar To The New Millennium must carry out numerous activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which generate the majority of its profits.
• Analyze the present target market in addition to the marketplace segment which is not consist of in the company's circle.
• Evaluate the existing financial information to measure the amount that needs to be spent on the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the company to understand that how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has potential experience to handle. Get most beneficial organizations with a strong commitment to health, to develop the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Japanese Financial System From Postwar To The New Millennium values and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste aspect, as the base for the Japanese Financial System From Postwar To The New Millennium as a company producing healthy products has actually been built under midterm strategy and now the business could 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 brand-new items.
