With the deep analysis of the above options, it is recommended that the company ought to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not just present new and ingenious products in the market it would also minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share costs also, as financiers are willing to invest more in business with substantial R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Method can be executed effectively by developing particular short-term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Smith Family Financial Plan B should perform 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 brands, which create the majority of its revenue.
• Analyze the existing target market as well as the market segment which is not include in the company's circle.
• Evaluate the present financial information to measure the amount that needs to be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the business to know that just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has potential experience to handle. Acquire most favorable companies with a strong dedication to health, to develop the customer's understandings in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Smith Family Financial Plan B values and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste aspect, as the base for the Smith Family Financial Plan B as a business producing healthy items has actually been built under midterm strategy and now the company might move towards taste factor also to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new items.
