With the deep analysis of the above options, it is suggested that the company should select 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 present new and ingenious products in the market it would also lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates too, as investors are willing to invest more in companies with considerable R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Method can be implemented effectively by developing specific short-term along with long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Korea First Bank A need to perform numerous activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which produce most of its revenue.
• Analyze the present target audience in addition to the marketplace segment which is not consist of in the business's circle.
• Analyze the existing financial information to measure the amount that ought to be spent on 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 revenues (dividend). It would let the business to know that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has potential experience to handle. Acquire most beneficial organizations with a strong dedication to health, to build the client's perceptions in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Korea First Bank A worths and vision and to prevent possible threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste factor, as the base for the Korea First Bank A as a business producing healthy products has been constructed under midterm plan and now the company might move towards taste aspect too to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop new products.
