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 company to not just present brand-new and ingenious items in the market it would likewise lower the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share rates also, as financiers are willing to invest more in business with significant R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Method can be carried out successfully by developing 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 plan Baosteel Group Governance With Chinese Characteristics need to carry out numerous activities to implement its NHW technique 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 profits.
• Evaluate the present target market along with the market sector which is not consist of in the business's circle.
• Analyze the existing financial information to determine the amount that needs to be invested in the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the business to know that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has prospective experience to deal with. Acquire most beneficial organizations with a strong commitment to health, to develop the consumer's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Baosteel Group Governance With Chinese Characteristics values and vision and to avoid potential danger of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health along with taste aspect, as the base for the Baosteel Group Governance With Chinese Characteristics as a company producing healthy products has been built under midterm plan and now the company could move towards taste element too 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 significant time to build brand-new items.