With the deep analysis of the above options, it is suggested 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 present new and innovative items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share costs as well, as investors want to invest more in companies with considerable R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Technique can be carried out efficiently by establishing specific short term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Yale University Investments Office June 2003 need to carry out various activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which produce most of its profits.
• Evaluate the existing target market as well as the marketplace sector which is not include in the business's circle.
• Examine the current financial information to measure the amount that should be spent on the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the company to know that how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has possible experience to handle. Acquire most beneficial companies with a strong commitment to health, to build the client's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Yale University Investments Office June 2003 values and vision and to prevent possible threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste element, as the base for the Yale University Investments Office June 2003 as a company producing healthy products has actually been built under midterm strategy and now the company could move towards taste aspect also to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new items.
