With the deep analysis of the above options, it is recommended that the business ought to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not only present new and ingenious products in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share costs also, as financiers are willing to invest more in companies with substantial R&D spending and boost in the overall worth of the business.
Action and implementation Strategy
Method can be executed efficiently by establishing specific short-term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy E2m Health Services must perform various activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which generate the majority of its earnings.
• Examine the current target market as well as the market section which is not include in the company's circle.
• Evaluate the current 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 want long term benefits (capital gain), or the want early earnings (dividend). It would let the business to know that just how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has potential experience to deal with. Acquire most beneficial companies with a strong dedication to health, to build the customer's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about E2m Health Services worths and vision and to avoid potential danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the E2m Health Services as a business producing healthy items has been constructed under midterm strategy and now the company might move towards taste factor too to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop brand-new products.
