With the deep analysis of the above options, it is suggested that the company ought to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not only present new and ingenious items in the market it would also reduce the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share costs too, as investors are willing to invest more in companies with significant R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be executed effectively by developing specific short-term along with long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Mylan Labs Proposed Merger With King Pharmaceutical Abridged ought to perform various activities to implement 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 revenue.
• Examine the present target market in addition to the marketplace section which is not consist of in the business's circle.
• Analyze the existing financial information to measure the amount that needs to be spent on the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the want early earnings (dividend). It would let the business to understand that how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has potential experience to handle. Acquire most beneficial organizations with a strong dedication to health, to construct the customer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Mylan Labs Proposed Merger With King Pharmaceutical Abridged values and vision and to avoid prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health along with taste factor, as the base for the Mylan Labs Proposed Merger With King Pharmaceutical Abridged as a business producing healthy products has been built under midterm plan and now the business might move towards taste element too 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 substantial time to develop new items.
