With the deep analysis of the above options, it is advised that the business must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not only present new and ingenious items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share prices as well, as financiers are willing to invest more in business with substantial R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Method can be executed effectively by establishing particular short term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Markham Stouffville Hospital must perform different activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which generate the majority of its income.
• Examine the existing target market along with the market section which is not consist of in the company's circle.
• Analyze the present financial data to determine the amount that ought to be spent on the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early profits (dividend). It would let the business to know that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has possible experience to deal with. Acquire most beneficial organizations with a strong commitment to health, to develop the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Markham Stouffville Hospital worths and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste factor, as the base for the Markham Stouffville Hospital as a company producing healthy products has actually been developed under midterm plan and now the business might move towards taste factor as well 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 construct new products.
