With the deep analysis of the above alternatives, it is advised that the company ought to choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the business to not just introduce new and innovative items in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share costs as well, as financiers want to invest more in companies with considerable R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Technique can be carried out effectively by developing specific short-term along with long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Reliable Equipment Ltd The Popcorn Predicament should perform various activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which create most of its income.
• Evaluate the present target market in addition to the marketplace section which is not consist of in the business's circle.
• Examine the existing financial information to determine the amount that needs to be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early profits (dividend). It would let the company to know that how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has potential experience to handle. Acquire most favorable companies with a strong dedication to health, to build the consumer's understandings in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Reliable Equipment Ltd The Popcorn Predicament values and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the Reliable Equipment Ltd The Popcorn Predicament as a business producing healthy products has actually been developed under midterm plan and now the company might move towards taste factor 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 substantial time to construct new items.
