With the deep analysis of the above alternatives, it is advised that the business needs to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the business to not just introduce new and innovative products in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share prices also, as financiers are willing to invest more in companies with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Method can be carried out successfully by developing certain short term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Preem A should carry out various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which produce the majority of its income.
• Analyze the present target market in addition to the market section which is not consist of in the business's circle.
• Examine the present financial data to measure the quantity that ought to be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the company to know that how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to handle. Obtain most beneficial companies with a strong dedication to health, to build the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Preem A values and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste factor, as the base for the Preem A as a business producing healthy items has been developed under midterm plan and now the company might move towards taste aspect also to understand the consumers, 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 brand-new items.
