With the deep analysis of the above alternatives, it is suggested that the business should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not only introduce new and ingenious products in the market it would also minimize the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share prices also, as financiers are willing to invest more in companies with considerable R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be executed successfully by establishing certain short-term as well as long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Siemens Electric Motor Works A Process Oriented Costing need to perform different activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which create the majority of its revenue.
• Examine the current target market in addition to the marketplace section which is not include in the business's circle.
• Analyze the existing financial information to determine the amount that ought to be spent on the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that just how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has potential experience to handle. Obtain most favorable companies with a strong commitment to health, to build the consumer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Siemens Electric Motor Works A Process Oriented Costing values and vision and to prevent potential threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste factor, as the base for the Siemens Electric Motor Works A Process Oriented Costing as a company producing healthy products has actually been developed under midterm plan and now the business might move towards taste aspect too to comprehend the consumers, 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 brand-new products.
