With the deep analysis of the above options, it is advised that the company needs to 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 introduce new and ingenious items in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share rates as well, as investors want to invest more in business with significant R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Method can be carried out successfully by establishing certain short-term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Urbanizing China need to 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 examine the core selling brands, which generate the majority of its income.
• Analyze the current target market as well as the marketplace section which is not include in the business's circle.
• Examine the existing financial data to determine the amount that must be invested in the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the want early earnings (dividend). It would let the business to understand that just how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has prospective experience to handle. Get most beneficial companies with a strong dedication to health, to develop the customer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Urbanizing China values and vision and to prevent potential danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste aspect, as the base for the Urbanizing China as a company producing healthy items has actually been built under midterm strategy and now the business might move towards taste aspect also to comprehend the consumers, 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 products.
