With the deep analysis of the above alternatives, it is suggested that the business should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not just present brand-new and innovative products in the market it would also lower the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share rates too, as investors are willing to invest more in business with significant R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out efficiently by developing specific short-term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Kpmg Peat Marwick The Shadow Partner need to carry out numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which create most of its income.
• Evaluate the current target market along with the marketplace segment which is not consist of in the business's circle.
• Evaluate the present financial data to measure the amount that needs to be spent on the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has prospective experience to deal with. Acquire most favorable organizations with a strong commitment to health, to construct the client's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Kpmg Peat Marwick The Shadow Partner worths and vision and to avoid possible danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste factor, as the base for the Kpmg Peat Marwick The Shadow Partner as a company producing healthy products has actually been constructed under midterm plan and now the business could move towards taste factor also to understand the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop brand-new items.
