With the deep analysis of the above options, it is advised that the business should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only introduce brand-new and innovative products in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share costs too, as financiers are willing to invest more in companies with considerable R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be implemented effectively by developing certain 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 Tetra Pak Freedom With Accountability should carry out numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which generate the majority of its profits.
• Analyze the existing target market as well as the marketplace sector which is not include in the business's circle.
• Examine the present financial data to determine the amount that needs to be spent on the R&D and acquisitions.
• Analyze the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to know that just how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has potential experience to handle. Get most beneficial companies with a strong commitment to health, to develop the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Tetra Pak Freedom With Accountability values and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste factor, as the base for the Tetra Pak Freedom With Accountability as a company producing healthy items has actually been constructed under midterm plan and now the company could move towards taste factor too to understand the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop brand-new items.
