With the deep analysis of the above alternatives, it is recommended that the business ought 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 only introduce new and innovative products in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share prices as well, as financiers are willing to invest more in companies with substantial R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed effectively by developing certain short-term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Bayer Ag A need to perform various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which generate the majority of its revenue.
• Evaluate the present target market as well as the market section which is not consist of in the business's circle.
• Analyze the existing financial information to measure the amount that needs to be invested in the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the company to understand that just how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has possible experience to deal with. Obtain most beneficial organizations with a strong commitment to health, to construct the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Bayer Ag A worths and vision and to prevent prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste factor, as the base for the Bayer Ag A as a business producing healthy items has actually been developed under midterm plan and now the company might move towards taste factor also 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.
