With the deep analysis of the above alternatives, it is recommended that the business ought to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not just present new and ingenious items in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share prices too, as investors want to invest more in business with substantial R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented successfully by developing particular short-term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Siemens Ag Global Development Strategy B should carry out various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which produce most of its earnings.
• Analyze the current target market as well as the market sector which is not include in the business's circle.
• Examine the existing financial data to measure the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to understand that just how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has prospective experience to handle. Get most favorable companies with a strong commitment to health, to build the consumer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Siemens Ag Global Development Strategy B worths and vision and to prevent potential risk of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health in addition to taste element, as the base for the Siemens Ag Global Development Strategy B as a business producing healthy items has actually been built under midterm plan and now the business could move towards taste factor as well to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct new products.
