With the deep analysis of the above options, it is advised that the business ought to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the business to not only introduce new and innovative items in the market it would also reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share costs as well, as investors are willing to invest more in companies with considerable R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out successfully by establishing particular short term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Magdalena Yesil ought to carry out different activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which generate most of its profits.
• Analyze the present target market in addition to the marketplace sector which is not consist of in the business's circle.
• Examine the existing financial information to determine the amount that needs to be spent on the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the business to understand that just how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has prospective experience to handle. Obtain most beneficial companies with a strong commitment to health, to develop the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Magdalena Yesil values and vision and to prevent prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste aspect, as the base for the Magdalena Yesil as a company producing healthy items has been developed under midterm strategy and now the business could move towards taste factor as well to understand 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 construct new items.
