With the deep analysis of the above options, it is suggested that the business ought to pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not only present new and ingenious items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share rates also, as investors are willing to invest more in business with considerable R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Method can be implemented efficiently by establishing certain short-term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Powershares Exchange Traded Funds ought to perform various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce the majority of its earnings.
• Examine the current target audience along with the market section which is not include in the business's circle.
• Evaluate the existing financial data to determine the amount that needs to be invested in the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to understand that how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has prospective experience to handle. Obtain most favorable companies with a strong dedication to health, to develop the customer's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Powershares Exchange Traded Funds values and vision and to avoid possible danger of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health in addition to taste aspect, as the base for the Powershares Exchange Traded Funds as a business producing healthy products has been constructed under midterm plan and now the company could move towards taste factor as well to grasp the customers, 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 new items.
