With the deep analysis of the above options, it is suggested that the business should pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not only introduce new and innovative products in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share rates as well, as investors are willing to invest more in companies with significant R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Method can be implemented effectively by developing specific short term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Serena And Lily ought to carry out various activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which create the majority of its earnings.
• Examine the existing target market along with the market sector which is not consist of in the business's circle.
• Analyze the current financial information to measure the quantity that ought to be invested in the R&D and acquisitions.
• Analyze the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to know that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has possible experience to handle. Acquire most beneficial organizations with a strong commitment to health, to develop the customer's understandings in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Serena And Lily values and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste aspect, as the base for the Serena And Lily as a business producing healthy products has actually been built under midterm plan and now the company might move towards taste element also to grasp 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 develop new products.
