With the deep analysis of the above alternatives, it is recommended that the company needs to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not just present new and innovative items in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share prices as well, as financiers want to invest more in business with considerable R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be carried out efficiently by establishing certain short-term along with long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Fonderia Del Piemonte Spa should carry out various activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which produce the majority of its earnings.
• Analyze the existing target market in addition to the marketplace sector which is not include in the company's circle.
• Analyze the existing financial information to determine the amount that needs to be spent on 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 revenues (dividend). It would let the company to know that how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has possible experience to deal with. Get most beneficial organizations with a strong commitment to health, to construct the client's understandings in the best direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Fonderia Del Piemonte Spa values and vision and to avoid prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste aspect, as the base for the Fonderia Del Piemonte Spa as a business producing healthy items has actually been built under midterm plan and now the business could move towards taste aspect as well to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build new items.
