With the deep analysis of the above alternatives, it is suggested that the business should choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present brand-new and innovative items in the market it would likewise lower the high expenses on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share rates as well, as financiers want to invest more in companies with significant R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by developing specific short-term along with long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Texas Eastman Co should carry out different activities to implement its NHW strategy effectively. 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 income.
• Analyze the existing target market in addition to the marketplace segment which is not consist of in the business's circle.
• Examine the present financial information to measure the amount that needs to be invested in the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the company to know that how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has prospective experience to handle. Get most beneficial organizations with a strong commitment to health, to construct the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Texas Eastman Co values and vision and to avoid possible danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste aspect, as the base for the Texas Eastman Co as a business producing healthy items has been developed under midterm strategy and now the company might move towards taste aspect as well 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 significant time to construct brand-new products.
