With the deep analysis of the above options, it is advised that the business ought to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not only introduce new and innovative items in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share rates as well, as investors want to invest more in business with substantial R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be implemented efficiently by developing particular short-term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Fonderia Del Piemonte S P A need to perform various activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which create most of its earnings.
• Analyze the existing target market along with the market section which is not include in the company's circle.
• Examine the current financial information to measure the quantity that needs to be spent on the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the business to understand that how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has potential experience to handle. Get most beneficial organizations with a strong commitment to health, to construct the customer's understandings in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Fonderia Del Piemonte S P A values and vision and to avoid possible risk of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health along with taste element, as the base for the Fonderia Del Piemonte S P A as a company producing healthy products has actually been constructed under midterm strategy and now the business might move towards taste factor also to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build new products.
