With the deep analysis of the above options, it is suggested 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 allow the company to not just introduce new and ingenious items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share costs also, as investors want to invest more in business with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Method can be implemented effectively by developing specific short term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Vanguard Group Inc A should carry out numerous activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which produce most of its income.
• Analyze the current target market along with the market sector which is not consist of in the business's circle.
• Examine the existing financial information to determine the quantity that should be spent on the R&D and acquisitions.
• Analyze the potential investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the business to know that just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has prospective experience to handle. Obtain most beneficial organizations with a strong commitment to health, to build the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Vanguard Group Inc A worths and vision and to prevent possible risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste aspect, as the base for the Vanguard Group Inc A as a company producing healthy products has actually been built under midterm strategy and now the business might move towards taste element 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 considerable time to develop new items.
