With the deep analysis of the above options, it is advised that the company needs to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not just introduce new and ingenious items in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share costs too, as financiers want to invest more in companies with significant R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Method can be executed efficiently by developing certain short-term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Mrc Inc B should carry out various activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which produce the majority of its profits.
• Examine the current target audience as well as the marketplace section which is not consist of in the business's circle.
• Examine the current financial information to measure the quantity that must be invested in the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to handle. Obtain most beneficial organizations with a strong dedication to health, to construct the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Mrc Inc B values and vision and to avoid possible risk of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health along with taste factor, as the base for the Mrc Inc B as a company producing healthy products has actually been constructed 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 develop brand-new items.
