With the deep analysis of the above alternatives, it is recommended that the company should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not just introduce new and innovative products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share prices also, as investors want to invest more in business with substantial R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be carried out efficiently by developing certain short-term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Messer Griesheim B must carry out numerous activities to execute its NHW method effectively. 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 earnings.
• Examine the current target market as well as the marketplace segment which is not include in the business's circle.
• Analyze the present financial data to determine the quantity that should be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to know that how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has prospective experience to handle. Acquire most beneficial companies with a strong commitment to health, to build the client's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Messer Griesheim B values and vision and to avoid possible threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste aspect, as the base for the Messer Griesheim B as a business producing healthy items has been developed under midterm strategy and now the company might move towards taste aspect as well to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new items.
