With the deep analysis of the above options, it is advised that the company needs to choose 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 only present brand-new and ingenious products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates as well, as investors want to invest more in business with considerable R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed efficiently by establishing specific short term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Starkist A must perform various activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which generate most of its earnings.
• Evaluate the current target market in addition to the marketplace segment which is not consist of in the company's circle.
• Analyze the current financial information to measure the quantity that should be invested in the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the company to know that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to deal with. Get most favorable companies with a strong commitment to health, to construct the client's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Starkist A values and vision and to avoid potential danger of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health along with taste aspect, as the base for the Starkist A as a company producing healthy products has been built under midterm strategy and now the business could move towards taste element too to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new items.
