With the deep analysis of the above alternatives, it is suggested that the business must choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not just present brand-new and innovative items in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share rates also, as financiers are willing to invest more in business with considerable R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Method can be implemented successfully by developing certain short term as well as long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Howard Schultz Building Starbucks Community B need to carry out numerous activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which create most of its profits.
• Evaluate the current target market along with the marketplace segment which is not include in the business's circle.
• Examine the current financial data to measure the quantity that ought to be invested in the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to understand that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has possible experience to handle. Get most favorable organizations with a strong commitment to health, to develop the client's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Howard Schultz Building Starbucks Community B values and vision and to avoid potential danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste element, as the base for the Howard Schultz Building Starbucks Community B as a company producing healthy products has been constructed under midterm plan and now the company might move towards taste element also to comprehend the customers, 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 new items.
