With the deep analysis of the above alternatives, it is recommended that the business ought to choose 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 brand-new and innovative products in the market it would also reduce 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 too, as financiers want to invest more in business with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Method can be executed efficiently by developing specific short term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Stock Options And Compensation 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 brands, which generate most of its revenue.
• Analyze the current target audience as well as the market sector which is not consist of in the company's circle.
• Analyze the current financial data to determine the quantity that should be invested in the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to understand that how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has potential experience to deal with. Acquire most beneficial organizations with a strong commitment to health, to build the client's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Stock Options And Compensation worths and vision and to prevent prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste aspect, as the base for the Stock Options And Compensation as a business producing healthy items has been built under midterm strategy and now the business might move towards taste element as well to understand the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop brand-new items.
