With the deep analysis of the above alternatives, it is suggested that the business must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not just introduce brand-new and innovative items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share prices too, as investors want to invest more in companies with substantial R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be carried out efficiently by establishing particular 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 Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard must carry out various activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce the majority of its revenue.
• Examine the present target market along with the marketplace segment which is not consist of in the company's circle.
• Analyze the current financial information to determine the amount that should be spent on the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early profits (dividend). It would let the business to understand that how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has potential experience to deal with. Acquire most beneficial companies with a strong dedication to health, to construct the customer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard values and vision and to avoid prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard as a company producing healthy products has been constructed under midterm plan and now the company might move towards taste factor as well 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 considerable time to construct brand-new items.
