With the deep analysis of the above options, it is recommended that the company needs to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not only introduce brand-new and ingenious products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share rates also, as investors want to invest more in companies with considerable R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by establishing certain short term as well as long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Valuing The Early Stage Company need to perform different activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which generate the majority of its earnings.
• Analyze the existing target market as well as the market section which is not consist of in the company's circle.
• Analyze the current financial information to determine the amount that must be spent on the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the company to understand that how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has prospective experience to deal with. Obtain most beneficial organizations with a strong dedication to health, to construct the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Valuing The Early Stage Company values and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste aspect, as the base for the Valuing The Early Stage Company as a company producing healthy items has been developed under midterm strategy and now the business could move towards taste factor also to understand 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.
