With the deep analysis of the above options, it is suggested that the business must choose 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 new and innovative products in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share costs too, as financiers want to invest more in companies with considerable R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be executed efficiently by developing specific short-term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Microsofts Financial Reporting Strategy must carry out numerous activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which create most of its income.
• Evaluate the existing target market as well as the market sector which is not consist of in the company's circle.
• Examine the existing financial information to determine the quantity that should be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the company to understand that how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to handle. Acquire most favorable organizations with a strong commitment to health, to construct the client's understandings in the right instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Microsofts Financial Reporting Strategy values and vision and to prevent prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste aspect, as the base for the Microsofts Financial Reporting Strategy as a company producing healthy products has been constructed under midterm strategy and now the company might move towards taste aspect also to understand the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new items.
