With the deep analysis of the above options, it is recommended that the company must select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not just introduce new and ingenious items in the market it would likewise lower the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share costs too, as investors want to invest more in companies with significant R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Method can be implemented efficiently by developing specific short-term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Smith Breeden Associates The Equity Plus Fund B must carry out various 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 brands, which produce most of its revenue.
• Evaluate the existing target market as well as the marketplace section which is not include in the company's circle.
• Examine the present financial information to determine the amount that needs to be spent on the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has prospective experience to deal with. Get most beneficial organizations with a strong commitment to health, to build the consumer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Smith Breeden Associates The Equity Plus Fund B values and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste aspect, as the base for the Smith Breeden Associates The Equity Plus Fund B as a company producing healthy products has been developed under midterm strategy and now the company might move towards taste aspect also to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct brand-new items.
