With the deep analysis of the above alternatives, it is recommended that the company must pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not just introduce new and innovative items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share prices as well, as financiers want to invest more in companies with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out effectively by developing particular short term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Southland Corp A must perform numerous activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which generate the majority of its income.
• Evaluate the present target market as well as the marketplace sector which is not consist of in the business's circle.
• Analyze the existing financial data to measure the quantity that should be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the company to understand that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has possible experience to deal with. Get most favorable organizations with a strong commitment to health, to develop the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Southland Corp A values and vision and to avoid possible threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste element, as the base for the Southland Corp A as a company producing healthy products has actually been constructed under midterm plan and now the business might move towards taste aspect also to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new products.
