With the deep analysis of the above alternatives, it is recommended that the company needs to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not only introduce new and ingenious products in the market it would also lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share costs too, as investors are willing to invest more in business with substantial R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out efficiently by developing specific short term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Up In Smoke Corporation should carry out various activities to execute its NHW technique efficiently. 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 produce the majority of its income.
• Evaluate the existing target market as well as the marketplace segment which is not include in the company's circle.
• Examine the current financial data to measure the quantity that must be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early earnings (dividend). It would let the business to understand that just how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has possible experience to handle. Get most favorable organizations with a strong commitment to health, to develop the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Up In Smoke Corporation values and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health along with taste aspect, as the base for the Up In Smoke Corporation as a company producing healthy items has actually been built under midterm plan and now the company might move towards taste factor also to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build brand-new items.
