With the deep analysis of the above options, it is recommended 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 enable the business to not only present brand-new and ingenious items in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share costs as well, as financiers are willing to invest more in companies with substantial R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Method can be implemented effectively by developing specific short term along with long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Steward Health Care System need to carry out various activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which generate most of its revenue.
• Examine the existing target audience as well as the market section which is not include in the company's circle.
• Examine the current financial information to determine the quantity that should be spent on the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they desire 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)
• Acquire those companies in which the business has possible experience to deal with. Get most favorable organizations with a strong commitment to health, to develop the customer's understandings in the best direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Steward Health Care System worths and vision and to avoid potential threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste factor, as the base for the Steward Health Care System as a company producing healthy items has been developed under midterm strategy and now the company might move towards taste factor as well 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 significant time to construct new products.
