With the deep analysis of the above options, it is suggested that the company should choose 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 just present brand-new and ingenious products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share rates also, as investors want to invest more in companies with significant R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Method can be implemented successfully by developing certain short term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Johansens The New Scorecard System Midwest Regional Manager Handout 6 must carry out various activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which generate most of its profits.
• Analyze the present target market as well as the marketplace segment which is not include in the business's circle.
• Examine the current financial information to determine the amount that must be invested in the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to understand that how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has potential experience to deal with. Obtain most beneficial organizations with a strong commitment to health, to build the consumer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Johansens The New Scorecard System Midwest Regional Manager Handout 6 worths and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health in addition to taste aspect, as the base for the Johansens The New Scorecard System Midwest Regional Manager Handout 6 as a company producing healthy products has actually been built under midterm plan and now the business could move towards taste aspect too to grasp 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.
