With the deep analysis of the above alternatives, it is advised that the company ought to pick the alternative 3 in order to keep 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 lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share prices too, as financiers want to invest more in companies with considerable R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be implemented efficiently by establishing specific short term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy National Youth Association must carry out numerous activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which create the majority of its profits.
• Examine the current target audience along with the market segment which is not include in the business's circle.
• Evaluate the current financial information to determine the amount that ought to be invested in the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to know that how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to deal with. Obtain most beneficial organizations with a strong dedication to health, to build the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about National Youth Association values and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the National Youth Association as a business producing healthy products has been built under midterm strategy and now the company could move towards taste aspect as well to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop brand-new products.
