With the deep analysis of the above options, it is advised that the business needs to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and ingenious products in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the business to increase its share prices as well, as financiers want to invest more in companies with considerable R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be implemented efficiently by establishing certain short term as well as long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Pine Street Capital ought to carry out different activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which create most of its revenue.
• Examine the current target audience along with the marketplace sector which is not consist of in the company's circle.
• Analyze the present financial information to measure the amount that ought to be invested in 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 profits (dividend). It would let the company to understand that how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has possible experience to handle. Acquire most favorable companies with a strong dedication to health, to develop the client's understandings in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Pine Street Capital worths and vision and to prevent possible risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Pine Street Capital as a company producing healthy products has been developed under midterm plan and now the business could move towards taste aspect as well to grasp 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 brand-new items.
