With the deep analysis of the above alternatives, it is recommended that the company needs to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not just present brand-new and ingenious products in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share prices too, as investors are willing to invest more in companies with considerable R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Method can be implemented effectively by developing certain short-term along with long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Lyondell Chemical Company ought to perform 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 produce most of its revenue.
• Analyze the present target audience in addition to the marketplace segment which is not consist of in the company's circle.
• Examine the existing financial information to measure the quantity that must be spent on the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the company to understand that how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has prospective experience to handle. Get most favorable organizations with a strong dedication to health, to develop the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Lyondell Chemical Company values and vision and to prevent prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste aspect, as the base for the Lyondell Chemical Company as a company producing healthy products has been constructed under midterm strategy and now the business could move towards taste aspect as well 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 construct brand-new products.
