With the deep analysis of the above options, it is suggested that the company needs to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and ingenious products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share costs as well, as investors want to invest more in business with substantial R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by developing certain short term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Levy Restaurants should perform various activities to implement its NHW technique 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 income.
• Examine the existing target market as well as the market section which is not consist of in the business's circle.
• Examine the existing financial data to measure the quantity that ought to be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to know that how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to deal with. Acquire most beneficial companies with a strong dedication to health, to construct the client's perceptions in the best instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Levy Restaurants worths and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste factor, as the base for the Levy Restaurants as a business producing healthy products has been constructed under midterm strategy and now the company might move towards taste element too to grasp 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 develop brand-new items.
