With the deep analysis of the above options, it is advised that the business needs to choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only introduce brand-new and innovative products in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share prices too, as investors are willing to invest more in business with considerable R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be executed efficiently by developing particular short term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Musimundo 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 take a look at the core selling brand names, which generate the majority of its earnings.
• Examine the present target market in addition to the market sector which is not include in the company's circle.
• Analyze the current financial information to determine the quantity that needs to be spent on the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early earnings (dividend). It would let the company to know that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has prospective experience to deal with. Obtain most favorable companies with a strong dedication to health, to develop the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Musimundo worths and vision and to avoid potential danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste factor, as the base for the Musimundo as a company producing healthy products has actually been constructed under midterm plan and now the company might move towards taste factor as well 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 significant time to develop brand-new products.
