With the deep analysis of the above alternatives, it is suggested that the company should select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only introduce brand-new and innovative products in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share prices as well, as investors want to invest more in business with significant R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by developing certain short-term in addition to long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Stanley Black And Decker Inc should carry out numerous activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which create most of its profits.
• Evaluate the current target audience along with the market section which is not consist of in the company's circle.
• Analyze the current financial data to determine the quantity that must be invested in 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 how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has prospective experience to deal with. Get most beneficial organizations with a strong commitment to health, to construct the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Stanley Black And Decker Inc worths and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste element, as the base for the Stanley Black And Decker Inc as a business producing healthy products has actually been constructed under midterm strategy and now the business might move towards taste aspect also to grasp 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 build brand-new products.
