With the deep analysis of the above options, it is recommended that the company needs to 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 business to not only present new and ingenious items in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share rates also, as financiers are willing to invest more in companies with considerable R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be executed effectively by developing certain short term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Sombrero Proposed Fruit Juice Outlet must carry out various activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which produce the majority of its earnings.
• Examine the existing target market as well as the market sector which is not include in the company's circle.
• Analyze the existing financial data to measure the quantity that needs to be spent on the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to understand that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has prospective experience to deal with. Get most beneficial companies with a strong commitment to health, to develop the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Sombrero Proposed Fruit Juice Outlet values and vision and to avoid possible danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Sombrero Proposed Fruit Juice Outlet as a business producing healthy items has been developed under midterm strategy and now the company could move towards taste factor too to comprehend 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 new items.
