With the deep analysis of the above options, it is recommended that the company must choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not just present new and ingenious products in the market it would likewise reduce 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 want 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 effectively by developing particular short-term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan National Culture And Management should carry out various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which create most of its earnings.
• Examine the current target audience along with the market sector which is not consist of in the company's circle.
• Evaluate the existing financial information to determine the quantity that needs to be spent on the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (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)
• Get those companies in which the business has prospective experience to handle. Obtain most favorable companies with a strong dedication to health, to develop the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about National Culture And Management values and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste factor, as the base for the National Culture And Management as a business producing healthy products has been developed under midterm plan and now the company might move towards taste aspect 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 build new items.
