With the deep analysis of the above options, it is suggested that the company should pick the alternative 3 in order to maintain 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 innovative products in the market it would also lower the high expenses on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share prices too, as financiers are willing to invest more in business with considerable R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Method can be implemented effectively by establishing specific short-term along with long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Korea First Bank B ought to carry out numerous activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which create the majority of its income.
• Evaluate the current target market along with the marketplace segment which is not include in the company's circle.
• Evaluate the present financial data to determine the amount that needs to be spent on the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the company to know that how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to handle. Acquire most beneficial companies with a strong commitment to health, to construct the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Korea First Bank B worths and vision and to avoid prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste aspect, as the base for the Korea First Bank B as a company producing healthy items has been constructed under midterm plan and now the company might move towards taste factor also 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 considerable time to build new products.
