With the deep analysis of the above options, it is recommended that the company should select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not only introduce new and innovative products in the market it would also decrease 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 too, as investors are willing to invest more in companies with significant R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Technique can be carried out efficiently by developing certain short term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Omv Petrom Investment As Partnership When It Takes Three To Tango ought to perform various activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which generate most of its revenue.
• Analyze the existing target market as well as the market segment which is not include in the business's circle.
• Evaluate the current financial information to measure the amount that should be invested in the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that just how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has prospective experience to deal with. Get most beneficial companies with a strong dedication to health, to develop the client's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Omv Petrom Investment As Partnership When It Takes Three To Tango values and vision and to avoid prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste element, as the base for the Omv Petrom Investment As Partnership When It Takes Three To Tango as a company producing healthy items has been built under midterm strategy and now the business could move towards taste aspect also to comprehend 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 new items.
