With the deep analysis of the above options, it is recommended that the company must 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 just introduce brand-new and innovative items in the market it would also lower the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share costs too, as financiers are willing to invest more in companies with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out effectively by developing certain short term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Pinkleys Prospect ought to carry out numerous activities to execute its NHW method 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 produce the majority of its profits.
• Examine the existing target market in addition to the market section which is not consist of in the company's circle.
• Evaluate the existing financial information to measure the amount that should be invested in the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the business to understand that how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has possible experience to deal with. Obtain most favorable companies with a strong commitment to health, to develop the customer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Pinkleys Prospect worths and vision and to prevent prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste factor, as the base for the Pinkleys Prospect as a business producing healthy items has actually been constructed under midterm strategy and now the company might move towards taste aspect also to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct brand-new products.