With the deep analysis of the above alternatives, it is suggested that the company must pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not just present brand-new and ingenious products in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share prices also, as financiers want to invest more in companies with substantial R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed efficiently by developing certain short term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Storybook Gardens must carry out numerous activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce the majority of its profits.
• Evaluate the existing target market as well as the marketplace sector which is not consist of in the business's circle.
• Analyze the current financial information to measure the quantity that must be invested in the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early earnings (dividend). It would let the company to know that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to deal with. Acquire most beneficial organizations with a strong commitment to health, to construct the client's perceptions in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Storybook Gardens worths and vision and to prevent potential danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste factor, as the base for the Storybook Gardens as a business producing healthy products has been built under midterm strategy and now the company could move towards taste element also to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct brand-new items.
