With the deep analysis of the above alternatives, it is suggested that the business should choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not just present brand-new and ingenious products in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share prices also, as investors are willing to invest more in companies with significant R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Technique can be carried out successfully by developing certain short term as well as long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Novo Nordisk A Global Coordination ought to perform numerous activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which produce most of its revenue.
• Evaluate the current target market in addition to the marketplace sector which is not include in the business's circle.
• Analyze the existing financial data to measure the amount that needs to be invested in 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 understand that just how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has prospective experience to deal with. Get most beneficial organizations with a strong dedication to health, to build the customer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Novo Nordisk A Global Coordination values and vision and to avoid prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste factor, as the base for the Novo Nordisk A Global Coordination as a company producing healthy items has actually been constructed under midterm plan and now the business might move towards taste aspect too to understand the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop new products.
