With the deep analysis of the above alternatives, it is suggested that the company needs to pick 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 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 allow the company to increase its share prices too, as investors want to invest more in business with significant R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be executed efficiently by developing particular short term along with long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan The Little Red Roaster should carry out numerous activities to execute its NHW method 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 produce the majority of its revenue.
• Evaluate the existing target market along with the marketplace sector which is not consist of in the company's circle.
• Examine the current financial data to measure the amount that must be spent on the R&D and acquisitions.
• Evaluate the possible investors 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 just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has possible experience to handle. Obtain most beneficial organizations with a strong commitment to health, to develop the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about The Little Red Roaster values and vision and to avoid prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste element, as the base for the The Little Red Roaster as a company producing healthy items has been developed under midterm plan and now the company could move towards taste factor as well to understand the customers, 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 brand-new items.
