With the deep analysis of the above alternatives, it is recommended that the business should pick 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 introduce new and innovative products in the market it would also lower 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 rates also, as investors want to invest more in companies with substantial R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Method can be executed efficiently by establishing certain short-term along with long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Structuring Deals And Governance After The Ipo Entrepreneurs And Venture Capitalists In High Tech Start Ups need to perform various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which produce the majority of its profits.
• Analyze the existing target audience along with the marketplace section which is not include in the business's circle.
• Evaluate the current financial information to determine the quantity that must be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the business to know that how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to deal with. Get most favorable organizations with a strong commitment to health, to construct the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Structuring Deals And Governance After The Ipo Entrepreneurs And Venture Capitalists In High Tech Start Ups values and vision and to prevent prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the Structuring Deals And Governance After The Ipo Entrepreneurs And Venture Capitalists In High Tech Start Ups as a business producing healthy products has actually been built under midterm plan and now the company could move towards taste factor also 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 substantial time to build new products.
