With the deep analysis of the above options, it is recommended that the company ought to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and innovative items in the market it would also minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share prices too, as investors want to invest more in companies with significant R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Strategy can be executed effectively by establishing specific short term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Union Corrugating Co B ought to carry out various activities to execute its NHW strategy effectively. 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 most of its income.
• Analyze the current target market as well as the market sector which is not consist of in the business's circle.
• Analyze the existing financial information to measure the quantity that should be invested in 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 profits (dividend). It would let the business to know that just how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has potential experience to deal with. Obtain most beneficial companies with a strong commitment to health, to construct the client's perceptions in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Union Corrugating Co B worths and vision and to avoid possible risk of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health as well as taste element, as the base for the Union Corrugating Co B as a business producing healthy items has been constructed under midterm strategy and now the business might move towards taste aspect also to grasp 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 construct new items.
