With the deep analysis of the above options, it is advised that the company ought to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not only present new and ingenious items in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share costs too, as financiers want to invest more in companies with substantial R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented successfully by establishing particular short term in addition to long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Scharffen Berger Chocolate Maker must carry out numerous activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which generate most of its revenue.
• Examine the existing target audience along with the market segment which is not consist of in the company's circle.
• Analyze the existing financial information to measure 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 benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has potential experience to deal with. Acquire most favorable companies with a strong commitment to health, to construct the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Scharffen Berger Chocolate Maker values and vision and to prevent prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste factor, as the base for the Scharffen Berger Chocolate Maker as a business producing healthy products has been developed under midterm plan and now the business could move towards taste factor as well to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new products.
