With the deep analysis of the above options, it is suggested that the business must pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not only present brand-new and innovative items in the market it would also lower the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share costs also, as financiers want to invest more in companies with significant R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed efficiently by developing certain short term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Sanlus Melamine Tainted Milk Crisis In China should carry out different activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which generate most of its earnings.
• Evaluate the present target audience along with the market sector which is not consist of in the company's circle.
• Analyze the current financial data to measure the quantity that should be spent on the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early profits (dividend). It would let the company to know that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to handle. Acquire most favorable companies with a strong dedication to health, to develop the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Sanlus Melamine Tainted Milk Crisis In China worths and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health along with taste element, as the base for the Sanlus Melamine Tainted Milk Crisis In China as a company producing healthy items has been developed under midterm plan and now the company could move towards taste aspect also 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 construct brand-new items.
