With the deep analysis of the above options, it is suggested that the company should select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not only present brand-new and ingenious products in the market it would also decrease 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 prices too, as investors are willing to invest more in business with significant R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Technique can be executed effectively by developing certain short-term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan A Managers Guide To Human Irrationalities should perform various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which generate the majority of its earnings.
• Evaluate the existing target market along with the marketplace segment which is not consist of in the company's circle.
• Evaluate the present financial data to measure the quantity that needs to be spent on the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the company to know that just how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has prospective experience to handle. Acquire most favorable organizations with a strong commitment to health, to construct the consumer's understandings in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about A Managers Guide To Human Irrationalities worths and vision and to prevent possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the A Managers Guide To Human Irrationalities as a business producing healthy items has been built under midterm plan and now the business might move towards taste factor as well 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 substantial time to construct brand-new products.
