With the deep analysis of the above options, it is recommended that the company should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company 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 earnings margins. It would allow the business to increase its share rates also, as financiers want to invest more in companies with considerable R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by developing certain short term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Levendary Cafe The China Challenge should perform numerous activities to execute 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 create the majority of its profits.
• Evaluate the present target audience along with the market segment which is not include in the company's circle.
• Examine the existing financial information to determine the quantity that should be invested in the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early profits (dividend). It would let the company to understand that how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has possible experience to deal with. Get most beneficial companies with a strong dedication to health, to build the customer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Levendary Cafe The China Challenge worths and vision and to prevent potential danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Levendary Cafe The China Challenge as a company producing healthy items has been developed under midterm plan and now the business could move towards taste factor as well to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct brand-new products.
