With the deep analysis of the above alternatives, it is recommended that the company 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 just introduce brand-new and ingenious products in the market it would also minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share rates as well, as financiers want to invest more in companies with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Method can be carried out efficiently by establishing specific short term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Takeover Of The Norton Co must perform different activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate most of its earnings.
• Evaluate the current target market along with the market sector which is not include in the business's circle.
• Examine the existing financial information to determine the amount that needs to be invested in the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to understand that just how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has prospective experience to handle. Get most beneficial organizations with a strong dedication 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 Takeover Of The Norton Co values and vision and to prevent possible risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste factor, as the base for the Takeover Of The Norton Co as a business producing healthy products has actually been built under midterm plan and now the business could move towards taste aspect also to comprehend the customers, 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.
