With the deep analysis of the above options, it is suggested that the business must pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not only present brand-new and innovative products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share costs too, as investors are willing to invest more in business with considerable R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Method can be executed successfully by establishing particular short term along with long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Peter Woodson A must perform numerous activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce most of its earnings.
• Examine the present target market along with the market section which is not consist of in the business's circle.
• Evaluate the existing financial data to determine the quantity that needs to be spent on the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the company to understand that how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has potential experience to handle. Get most favorable companies with a strong dedication to health, to build the consumer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Peter Woodson A worths and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste factor, as the base for the Peter Woodson A as a company producing healthy items has been developed under midterm plan and now the company might move towards taste element 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 construct brand-new products.
