With the deep analysis of the above options, it is suggested that the company needs to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not just introduce brand-new and ingenious items in the market it would also reduce 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 as well, as investors want to invest more in companies with considerable R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Strategy can be executed efficiently by establishing specific short term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Yale University Investments Office August 2006 should carry out various activities to implement its NHW method effectively. 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 revenue.
• Evaluate the current target audience along with the market sector which is not include in the business's circle.
• Analyze the current financial data to measure the amount that must be invested in the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to understand that just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has possible experience to handle. Obtain most favorable companies with a strong commitment to health, to develop the customer's understandings in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Yale University Investments Office August 2006 values and vision and to prevent prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health as well as taste element, as the base for the Yale University Investments Office August 2006 as a company producing healthy items has been developed under midterm plan and now the company might move towards taste factor too to understand the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop brand-new items.
