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Raffles Holdings Limited Valuation Of A Divestiture Recommendations Case Studies

Case Study Solution And Analysis

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Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis

With the deep analysis of the above alternatives, it is advised that the company should pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not only present brand-new and ingenious items in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share costs as well, as financiers want to invest more in companies with significant R&D costs and boost in the total worth of the company.

Action and implementation Strategy

Technique can be executed successfully by establishing specific short term in addition to long term plans. These strategies could be as follows;

Short Term Plan (0-1 year)

• Under the short term strategy Raffles Holdings Limited Valuation Of A Divestiture must perform different activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which generate most of its profits.
• Evaluate the existing target audience as well as the marketplace segment which is not consist of in the business's circle.
• Analyze the existing financial data to measure the quantity that should be spent on the R&D and acquisitions.
• Examine 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 amount must be spent on R&D.

Mid Term Plan (1-5 years)

• Get those companies in which the business has potential experience to handle. Acquire most beneficial companies with a strong commitment to health, to build the client's perceptions in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Raffles Holdings Limited Valuation Of A Divestiture values and vision and to avoid potential danger of sunk expense.

Long Term Plan (1-10 years)

• Acquire companies with health along with taste element, as the base for the Raffles Holdings Limited Valuation Of A Divestiture as a business producing healthy items has been constructed under midterm strategy and now the company could move towards taste element too to understand 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 products.