With the deep analysis of the above options, it is advised that the company should pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not just introduce brand-new and ingenious products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share costs as well, as investors want to invest more in companies with substantial R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Strategy can be executed effectively by developing particular short term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Lehman Brothers must perform different activities to execute 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 the majority of its income.
• Analyze the present target market in addition to the marketplace section which is not consist of in the business's circle.
• Analyze the current financial information to determine the amount that needs to be spent on the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the company to understand that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has potential experience to handle. Acquire 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 build the base in the customer's mind about Lehman Brothers worths and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health along with taste factor, as the base for the Lehman Brothers as a business producing healthy products has actually been constructed under midterm plan and now the business might move towards taste element too to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build brand-new items.
